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  • Climate, Energy and Sustainable Finance

Challenges of energy efficiency in Brazil

  • Posted in 31/05/2016

 

Energy efficiency consists of achieving the same result in terms of production while consuming less energy. It's that simple. It's the same concept as when we want to reduce the price of our electricity bill and we replace regular light bulbs with LED ones. Or when we replace a very old refrigerator with a new one, which consumes 50% less energy. So far, so good.

What is not so simple is to make the search for energy efficiency a company guideline. You can understand why by recalling the “homemade” examples mentioned: the light bulb LED has a higher purchase value, for example. Just as the most modern refrigerator also requires a large initial investment. On the other hand, it is true that the investment is compensated in the medium term with the savings made from then on.

But this is not the only challenge that companies face in trying to adapt to this model. In this article, we will explain the concept of energy efficiency in detail and present an overview of the challenges and opportunities of the topic for managers. Stay tuned!

What is energy efficiency?

Once again, energy efficiency is achieved when a company achieves the same results while consuming less energy. It is a concept that has been put into practice in different sectors, in different ways.

Take the case of industries, for example: they invest in energy efficiency by replacing equipment, when they replace a boiler or refrigerator with machines that perform the process with the same quality, but without consuming excess energy. Sometimes, it is not even necessary to replace the equipment: correct maintenance already optimizes performance in terms of energy and operations.

The case of industries is more illustrative because it represents a sector that works with heavy machinery. However, there are also initiatives seen in other sectors that are similar to those we do at home. As in the case of banks, whose strategy in search of energy efficiency is carried out in the construction of buildings and establishments, from the choice of sockets and light bulbs to the use of panels to capture solar energy.

Ultimately, there is a range of measures that can be implemented and make a difference not only by adding value to the company in the eyes of the public, but also by reducing costs and opening doors to new partnerships and initiatives.

The challenges of energy efficiency in Brazil

But there are also challenges in relation to this topic. Most of them are related to the issue of financial sustainability as a whole:

– Fundraising;

– Lack of awareness of the benefits on the part of business owners and managers;

– Lack of awareness and training of the team.

Understand better:

Fundraising

It mainly affects companies that have difficulty placing sustainability efforts on the same level of importance as other investments. These companies stop taking out credit to invest in energy efficiency and use these resources for other purposes. Thus, they spend the level of debt on projects that they believe are more important for the economic health of the business.

Lack of knowledge of the benefits

It is still common to find managers who are unable to understand the potential of energy efficiency policies in terms of capital savings and revenue collection for the company, not to mention social gains. The main benefits are:

– Reduction in greenhouse gas emissions;

– Reduction in electricity consumption;

– Collaboration with national emissions reduction targets;

– Saving financial resources.

Lack of awareness and training of staff

It is easier to send the sustainability message to management than to other employees without seeming superficial. For example, you can promote courses and lectures on the subject, showing how important it is for the business. However, let's say that, when the company's first financial problem occurs, the director decides to cut expenses in the department. How do you convince them?

Furthermore, there is no public or private education plan built on the subject. It is much more complicated to raise awareness among professionals who grew up without ever having touched on the subject in the classroom or in their daily lives, in any depth.

So why should you consider investing in energy efficiency?

There are financing lines and financial instruments to support energy efficiency projects. These projects provide generous subsidies to companies that adopt this type of resource management.

There is an amount of R$42 billion available solely for raising funds for efficiency projects in various programs, such as:

– National Electric Energy Conservation Program (Procel);

– Brazilian Labeling Program (PBE);

– Energy Efficiency Program for Distribution Companies (PEE-ANEEL);

– National Agency of Petroleum, Natural Gas and Biofuels (ANP).

Ultimately, although there are many challenges, the benefits brought by implementing energy efficiency-based management have enormous potential for companies. It means being in tune with the global outlook regarding the environment and financial market trends.

If you want to check out more content like this, follow our blog!

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