Energy efficiency and renewables are two sides of the same lucky coin

The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy

Citizens, businesses and local governments must join forces to equip themselves with facilities for the production and self-consumption of energy from renewable sources by promoting virtuous behaviours    

Today, market transformation is happening in a very disruptive way. The historical events of the past six months demand an impressive acceleration of the trajectory outlined by the European Green Deal in 2019.

Looking back at the past eight years, global investments in clean energies have blossomed to $371 billion, an increase of approximately $60 billion compared to 2014 levels.

Is there enough to go around? The answer for most of us is simple: no.

The Ukraine conflict and its consequent war on prices are proving that our society does not have access to abundant, reliable, cheap and clean energy—placing its economic and social progress at stake.

LUCKY COIN

But we still have a lucky coin in our pocket: energy efficiency measures can substantially reduce Europe’s carbon footprint if combined with consistent investments in renewable energy.

If renewables are the only reliable cost-effective source of electricity, energy efficiency itself can be considered a source of (saved) energy which can be adopted in a very short time.

For this to happen, it is key to experiment with new ways of assisting people through their journey towards electrification, digitalisation, a self-use of energy and more efficient consumption. These are necessary solutions which may seem complex but can improve our everyday life and are actually easy to use.

Households can thus save money on energy bills while at the same time being more sustainable. How much energy efficiency mixed with renewables can generate economic and environmental benefits, depends on our ability to innovate.

Consumers have many opportunities to make their homes both more efficient and sustainable. The instance where energy efficiency comes closest together with renewable energy is via heat pumps providing heating and cooling solutions.

ACCESS TECHNOLOGY

Heat pumps can be up to four times more energy efficient than gas boilers. The renewable energy they harvest from the ambient air can deliver up to three times the energy they absorb from the grid.

Furthermore, its attractive role as an easy substitute for fossil fuel-dependent gas boilers has made it one of the centrepieces of the European Union’s RePowerEU Plan.

But these households need help with accessing this technology. These are only some of the reasons why heat pumps, and the smart heating and cooling potential they bring, play a central role throughout the utilities’ offering to the residential, commercial and industrial market.

Overall, we know that innovation in infrastructures and facilities can be an end in itself if not properly supported by investments in education and social awareness. This is true for public administrations as well as for private stakeholders.

Innovation therefore must be accompanied by a social wave of knowledge and learning. It is what is most urgent to make our lucky coin not just accessible to the market but enjoyed by everyone. Only with spread awareness of its great benefits, energy efficiency through renewables can be turned into a reality.

Citizens, businesses and local governments must join forces and seize the potential of a clean energy system, fully embracing energy efficiency and the production and self-consumption of energy from renewable sources. Everybody can play their part and promote virtuous behaviours which support the goal of climate neutrality.

The path to a sustainable Europe is clear, we just have to join forces and take that lucky coin out of our pockets. •

If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com