Inauguration of the energy-efficient model factory (ETA factory) in Darmstadt last week: Parliamentary State Secretary Brigitte Zypries with Martin Beck (project leader of the ETA factory), Professor Jens Schneider (Technical University of Darmstadt), Professor Eberhard Abele (Technical University of Darmstadt), Tarek Al-Wazir (Minister of Economic Affairs in the State of Hesse), Professor Hans Jürgen Prömel (President of the Technical University of Darmstadt), and Rolf Najork (CEO of Bosch-Rexroth AG). © Felipe Fernandes / Technical University of Darmstadt
Production up, consumption down
Welcome to a place where they think again and again before using even the tiniest amount of energy - which will also be re-used. Heat generated by one machine is captured and re-used in the next step of manufacturing. Power storage facilities are used to provide electricity whenever there are sudden spikes in demand, and excess energy is used to keep the building nice and cool in the summer and cosy and warm in the winter. The building envelope, the technical equipment, the energy storage facilities and the appliances are interconnected via a smart network that ensures that the building's energy supply system is organised just like the circulatory system in a living organism: Welcome to campus of Darmstadt Technical University and to the ETA factory, the first "research factory for energy efficiency" or the "energy-efficient factory for interdisciplinary technological and applied research" as it is called by its full name.
This is a highly ambitious project centred on the metalworking industry. The aim is to create a 'factory for the future' which will be 40 per cent more efficient in terms of its primary energy consumption. The model factory allows researchers to see the results of the adjustments they make in real time – as clearly as if they were performing open-heart surgery. The ETA factory receives a total of €7.9 million in funding from the Federal Ministry for Economic Affairs and Energy.
In future, industrial processes will have to be energy-efficient in order to be viable
"The key to a successful energy transition is to improve on energy efficiency", said Brigitte Zypries, Parliamentary State Secretary in the Federal Ministry for Economic Affairs and Energy at the inauguration ceremony that took place in Darmstadt last week. She pointed out that there is a great deal of potential yet to be tapped in the industrial sector. "The ETA factory is a joint project that is all about exploring this potential. This marks the first time that a holistic approach has been used to look at all aspects of industrial manufacturing and at ways in which the energy system can be rendered as efficient as possible by way of creating synergies between the chain of production and the building itself. I am delighted that this project, which brings together about 35 industrial partners and research institutes, is firmly rooted in the industrial sector, in research and in the education system, which will help translate its findings into practice", said Ms Zypries.
Of course, the Darmstadt ETA factory is a research project and its goals have yet to be achieved. But at the same time, there already are a great many ways in which businesses can conserve energy. Making use of these opportunities has a positive impact not only on the firm itself, but also our economy at large. After all, the industrial sector accounts for almost a third of Germany's energy use (2014: 29 per cent), with commerce, trade, and services accounting for another 15 per cent.
High returns on investment allow you to earn a profit on your investment very soon
Very often the easiest way for companies to lower their energy consumption is to invest in horizontal technologies that are not specific to any sector, such as lighting, cooling or heating. Replacing your old strip lights with highly efficient lighting technology, for instance, can cut the amount of electricity used for lighting by up to 70 per cent. And modern heating and cooling systems are up to 30 per cent more efficient than older ones. If your company uses compressed air, you could save up to 50 per cent of the energy across the entire process, in particular if the heat generated during the compression is captured and used in an efficient way. There are real-life examples showing that even investments of more than €100,000 can pay off within just a few years. It is actually true that investments in energy efficiency tend to yield a return that is higher than the current rate of return obtained on the capital market. For small and medium-sized enterprises, it can be as high as 25 per cent. The potential that exists in this area is massive, not least for businesses. There is good money to be made from business models such as energy contracting that are centred around energy efficiency (cf. "direct insights").
Become involved by joining an initiative or network
Companies that want to harness the potential that exists in this area and aim high can visit the best-practices archive kept by the Initiative for Excellence for "businesses mitigating climate change": the group for mitigating climate change and for energy efficiency within German businesses, of which the Federal Ministry for Economic Affairs and Energy is a co-initiator, brings together companies ranging from a family-run hotel to a company selling seeds, which all rely on innovative methods to boost their energy performance. Small and medium-sized companies can also contact the SME Initiative for Energy Reforms and Climate Change Mitigation for support.
There is much to be gained from working together. This is why the Federal Ministry for Economic Affairs and Energy has teamed up with 20 business associations and organisations to form the Energy Efficiency Networks Initiative. This initiative provides a forum for practitioners to get together, exchange best practices and advice and consult with energy advisors on ambitious efficiency targets. It's an effort well worth pursuing. It has been shown that those companies participating in the networks have been able to cut their energy consumption quite significantly, increasing their energy performance twice as fast as the industrial average. So far, 42 networks around energy efficiency have been created in Germany since the initiative was launched in December 2014.
Energy efficiency comes with many benefits. Not to mention funding.
Companies are no different from everywhere else. Whoever conserves energy will cut costs and become more independent of fossil fuels and the fluctuating prices associated with these. This makes for a more profitable business and, of course, helps cut carbon emissions and protect our climate. But there are other benefits that are less known. Better energy efficiency can have a positive impact on customer loyalty and help boost staff satisfaction. Companies that use energy responsibly gain a reputation of being pioneers and a competitive edge. Also, employees enjoy working in offices and production halls that are well-ventilated and kept at a comfortable temperature all year round, as is the case once these buildings have had a make-over to improve their energy performance. Furthermore, it is worth looking beyond Germany. The global market for energy services and efficiency technologies is growing and ready for more products "Made in Germany".
Finally, energy efficiency pays off in the literal sense. After all, the Federal Ministry for Economic Affairs and Energy provides funding for investments in better energy efficiency. It all starts with taking stock. Companies wishing to gain an overview of their energy consumption and want to start logging this in future can apply for funding under the "energy management systems programme". They should also look at the "SME Energy Consulting" and the "Advice on Contracting" programmes, which are also tailored to the needs of companies in this early stage of their efforts to improve their energy performance. All of these programmes bring SMEs together with experts who can help them find bespoke solutions for their very own energy transition. And these programmes are very well received, with the Federal Office for Economic Affairs and Export Control conducting 2,050 energy audits in SMEs in 2015 alone.
A great deal of support is available - and more is yet to come
Once the time has come to act on the advice given by the energy experts, the Federal Ministry for Economic Affairs and Energy can offer more support:
- The Market Incentive Programme for Renewable Energies (MAP) is the right choice for those having efficient technologies based on renewables fitted, say a family-run hotel that wants to install a pump that uses geothermal energy to heat the swimming pool, or a laundry business planning to rely on solar thermal energy to power its equipment.
- The programme for "climate-friendly production processes" provides incentives for manufacturers to invest in energy-efficient and environmentally-friendly technologies as they change their industrial or commercial production processes.
- Since July 2015, the KfW programme for "energy-efficient construction and retrofitting", which has long been a success in the residential buildings sector, has been open to tradespeople and companies. It doesn't matter if you have a doctor's surgery or a factory hall, or whether it is a modern heating system you want to have installed or a new building you want to construct, you will be able to claim a low-interest loan and a large repayment grant.
And there are other specific funding schemes in the pipeline. These include the "STEP up! programme for better efficiency around electric power. It will be set up as a competition for funding that is allocated to the most (energy) efficient company, municipal utility, or energy service provider - the one that is able to generate the biggest savings in terms of kilowatt hours from the lowest amount of money. Furthermore, the "programme for the promotion of highly-efficient cross-cutting technologies" is to be re-launched in the second quarter of 2016, complete with a programme promoting better use of exhaust heat, which will address the issue of industrial waste heat and the associated energy losses.