Overcoming the efficiency gap: energy management as a means for overcoming barriers to energy efficiency, empirical support in the case of Austrian large firms

The energy efficiency gap has been presented as a prevalent paradox in the literature as individuals and firms fail to invest money or effort in seemingly highly profitable efficiency improvements. This article contributes to answering which management tools promote the realization of economic energy savings. This article first provides a comparison of the barriers to energy efficiency in firms from the literature with the prescriptions of ISO standards for energy management. Second, we provide empirical evidence that such ISO-certified large Austrian firms increased implementation of energy efficiency measures by 165% compared to those firms with business-as-usual decision-making methods. These higher conservation efforts observed support the hypothesis that ISO standards are an effective instrument to overcome efficiency barriers in an economic way. The main contributing factors for this achievement are the internalization of the identification process of savings potentials and setting up a stringent decision-making and governance process, thereby increasing implementation rates of measures.

Energy conservation opportunities: evidences from three industrial clusters in India

Purpose The purpose of the paper is to examine the monitoring of electrical energy consumption, measures adopted for reducing energy consumption, barriers to energy efficiency improvement and driving forces for energy efficiency improvement in three industrial clusters. It is intends to capture the managerial perspectives on energy saving practices and to identify the possible energy saving opportunities in small and medium enterprises (SMEs). Design/methodology/approach Three industrial clusters were identified for the study. Research instrument based in-person survey was conducted in which the authors directly administered the questionnaire to all the 181 organisations. This was thought of to facilitate not so well-educated respondents. The survey took about six months in which 110 units responded. Descriptive statistics, exploratory factor analysis and path analysis were used to draw inferences. Findings There is ample scope for energy savings in the studied clusters. Energy efficiency in many organisations has deteriorated. Their attitude to embrace new or modern technology is shunning. Management’s belief that prevailing technology is efficient, lack of skilled labour, lack of accessibility to updated or modern technology, and lack of compatibility of new technology are found to be the barriers to energy efficiency improvement. Benchmarking by appropriate governments and publicly financed energy auditing act as the driving forces. Originality/value The SMEs must use simple yet powerful energy auditing practices on regular basis to reduce energy consumption. This will not only result in lesser energy costs but also lessen the burden on environment. As these are predominantly small enterprises, appropriate governments interventions are essential to bring the desired change.

Key Factors for Successful Implementation of Energy Efficiency Policy Instruments: A Theoretical Study and the Case of Latvia

The success of energy efficiency policy depends on a number of factors, however, simultaneous application of more than just one policy instrument, coordination of multiple different policy instruments and a correct sequence of application of policy instruments are identified in research as three key factors related directly to policy making. Energy efficiency policy instruments are about the most appropriate ways of overcoming barriers to energy efficiency. The study adopts a policy analysis approach from social sciences to illustrate the relevance of a correct policy-making process in making energy efficiency policy effective. Analysis of interaction between the modules of decision-making matrix looks at the genesis of the faulty choice of energy efficiency policies. Studies of energy efficiency policy instruments indicate that implementation of a single separate policy instrument will most likely fail to achieve the expected results of overcoming barriers to energy efficiency and simultaneous implementation or combination of several policy instruments is preferable. If more than just one separate policy instrument aiming at improving energy efficiency is employed, then coordination in between two or more policy instruments as well as correct sequence of implementation of policy instruments is essential for achieving success. Lack of or insufficient attention to a full cycle of policy analysis leads to absence of one or more of the three key factors. Decision-making about energy efficiency policy instruments becomes faulty and is based on or influenced by ad hoc decisions and random circumstances, like, for example, availability or unavailability of EU financing. Such an approach contributes to maintaining or amplifying existing or creating new barriers to energy efficiency and leads to a new cycle of faulty decisions unless a proper process of policy analysis is applied in preparing and making decisions.

Energy Efficiency as a Wicked Problem

Together with increased shares of renewable energy supply, improved energy efficiency is the foremost means of mitigating climate change. However, the energy efficiency potential is far from being realized, which is commonly explained by the existence of various barriers to energy efficiency. Initially mentioned by Churchman, the term “wicked problems” became established in the 1970s, meaning a kind of problem that has a resistance to resolution because of incomplete, contradictory, or changing requirements. In the academic literature, wicked problems have later served as a critical model in the understanding of various challenges related to society, such as for example climate change mitigation. This aim of this paper is to analyze how the perspective of wicked problems can contribute to an enhanced understanding of improved energy efficiency. The paper draws examples from the manufacturing sector. Results indicate that standalone technology improvements as well as energy management and energy policy programs giving emphasis to standalone technology improvements may not represent a stronger form of a wicked problem as such. Rather, it seems to be the actual decision-making process involving values among the decision makers as well as the level of needed knowledge involved in decision-making that give rise to the “wickedness”. The analysis shows that wicked problems arise in socio-technical settings involving several components such as technology, systems, institutions, and people, which make post-normal science a needed approach.

Approaching Sustainable Energy Management Operations in a Multinational Industrial Corporation

A large share of the energy efficiency improvement measures available for industrial companies remains unadopted due to the existence of various barriers to energy efficiency. One of the main means of overcoming barriers to energy efficiency is via energy management operations. The major parts of the published scientific papers have covered energy management on a company level or on a sector level. However, so far, the literature is scarce regarding empirical studies on energy management on a corporate level. With the aim of filling the research gap, the aim of this paper is to empirically assess the performance of an in-house energy management program adoption from the year of initiation and four years ahead in the multinational company Volvo CE. The paper was conducted as a case study including a participative approach, which has not previously been done in energy management research. This paper adds value, through complementing the existing literature on energy management on a factory or sector level, by highlighting the importance of leadership, speed of execution, and cultural transformation on a corporate level.