New study explains companies' false sense of security about energy management

Feb. 15, 2018

Most companies believe they're prepared for the future of energy management, but a new study reveals many are relying on conventional efficiency approaches that give stakeholders a false sense of security.

Most organizations believe they’re prepared for the future of energy management, but are in fact relying on conventional efficiency approaches that are delivering a false sense of security, according to a study by Schneider Electric.

“The gaps in innovation are further complicated by limited coordination between procurement, operations and sustainability departments, as well as inefficient data collection and sharing,” Schneider Electric explains.

The study, which surveyed nearly 240 large corporations across the globe, found that while 85 percent of the responding organizations said their company is taking action to keep its carbon reduction plans competitive with energy leaders, few were implementing advanced technologies to manage energy and emissions, relying instead on renewables and conservation projects. Other findings include:

  • 75 percent of respondents are working to reduce water consumption and waste.
  • 51 percent have either completed or are planning to pursue renewable energy projects.
  • Only 30 percent have implemented or are actively working to implement energy storage, microgrids or combined heat and power technology.
  • Just 23 percent use demand response strategies or plan to enact them soon.
  • Energy and sustainability decisions are not well-coordinated across teams and departments for 61 percent of respondents. The same number also named lack of collaboration as a challenge.
  • Data management was a significant obstacle for the 45 percent of people who said that organizational data is decentralized.

“We are in the middle of a massive disruption in the way energy is consumed and produced,” says Jean-Pascal Tricoire, Chairman and CEO of Schneider Electric. “The near-universal focus on conservation is a positive, but being a savvy consumer is only part of what’s needed to survive and thrive. Companies need to prepare to be active energy participants, putting the pieces in place to produce energy and interact with the grid, utilities, peers and other new entrants. Those that fail to act now will be left behind.”

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