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These are unprecedented times and the global pandemic has made us rethink every aspect of life. Energy is no different.
Cutting down on manpower will help you cut costs. But, is this a permanent solution? No, certainly not. Tomorrow, when you start functioning in full blaze you will again need manpower and then have to search and invest in a new breed of people. That will incur an additional cost, as the loyalty of the new staff will also have to be checked and proven. Indeed, all tangible and intangible resources add up to the cost. So, think long-term and save on energy resources to cut down costs today and make a sustainable choice.
The energy sector has been severely affected by the crisis, which has slowed transport, trade, and economic activity all across the globe. Global Energy Review 2020 report, published in mid-April, it has been recorded that countries in full lock-down are experiencing an average 25% decline in energy demand per week, and countries in partial lock-down are experiencing an average 18% decline.
This pandemic has brought us eye to eye with a future that must be built on the pillars of renewable energy. Hinting towards conservation and sustainability an alternate universe for energy sustenance brought forth by new energy processes is of utmost importance now. However, start with energy savings and then make sustainable transformation a way of life!
Building the #NewEnergyOrder through savings
Energy is a key driver of prosperity and economic growth, and the stability of global energy markets is essential to endure and nurture modern society. However, energy reset and pushing forth to make new energy and renewable energy a part of the system abruptly will lead to a deluge of job loss. This transition should be initiated with care, over time, and through professional help. But with the pandemic being the disruptor, this change should and must come.
Put in place an Energy Management Team
Monitoring energy usage is the first step to strategic savings. So, plan a team and let them keep a track of energy consumption on a day-to-day basis.
Strategically schedule machinery use.
Based on the data collected by your team, immediately reschedule the operation of machines that consume maximum energy. Try running them outside peak hours. Peak hours constitute up to 30% of your manufacturing unit’s monthly utility bill.
Plan strategic shut-downs and start-ups
Schedule production floor shut-downs for a length of time (maybe during the weekend or off-shift periods) will substantially lower industrial energy costs.
Optimize air compressors
Pay attention to the compressors and note leaks. A leak can drain you off your budget and cost you a fortune. So, spend on maintenance of the compressors and keep them fully functional to save energy.
What should we do?
1. Due to the pandemic, there is an opportunity to reboot the system and accelerate the energy transition. As an industry or a company depending on energy sources, you must take a systemic approach towards the transition requirements and pay attention to initiate simultaneous action on multiple solutions – including renewable energy, systemic efficiency, a circularity of the economy, cutting emissions from fossil fuels and building human capital for the future energy system.
2. Energy expenditures for you and your company have significantly reduced due to the lockdown. Now you can use these savings to reinvest in a more diversified energy system.
3. The earth has suddenly come to a pause and owing to the lockdown the environment has started to get better reducing the adverse effects of pollution. This is the right time to switch to renewable. Not only will this be a cost-effective move, but the same will allow you long-term sustenance.
It is all about spotting the silver lining and turning the crisis into an opportunity in the post-COVID world. According to the International Renewable Energy Agency, de-carbonation of the global energy system can grow the global economy and create up to 28 million jobs by 2050.
Cut your investment in fossil fuels
Avoid volatility and reduce your dependence on coal and fossil fuel-based energy sources. The fluctuating price of fossil fuels does indicate that throwing your reserve on this fuel will mean a bad investment. As per calculations, 51 percent of operating coal power costs is more than the amount needed to run operations using this stream of energy as compared to building new renewable.
Adaptation to solar power should be your next big investment. Apart from the set-up cost and the initial capital cost, running the power units does not require much expense. Rather it ensures energy saving. That’s why, you should utilize the government’s recovery package for micro, small and medium enterprises (MSMEs) to infuse capital to enable low-cost energy efficiency upgrades that you may have otherwise restricted due to lack of funds and information.
With the pandemic in tow, global coal usage in electricity generation is likely to fall 80 percent below its 2010 levels by 2030. According to an analysis from the UN’s Intergovernmental Panel on Climate Change, this will limit global warming to 1.5°C. The pandemic has presented itself as a chance to reduce the adverse effects of energy and thus, through savings and minor to major transformations a bigger, cleaner, more breathable world.
Also, building renewable resource plants will help cut job losses that have suddenly aggravated owing to the lockdown, the world over. It is easier to switch to renewable than you can imagine and proper planning and assessment are all you need.
For more assistance and to get a detailed energy report and consultation, get in touch.