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Drive technology is responsible for 60% of industrial energy consumption, according to new research by Siemens.
The research, conducted by the industrial giant’s financial services arm, suggests that replacing motors with energy-efficient technology can lead to the “most significant” energy savings. Siemens Financial Services surveyed companies in Britain, Germany and France and further afield about investment in energy efficient equipment.
The researchers found that investment is now mainstream in Britain, with 44% of firms declaring that over half of their equipment meets the definition of being energy-efficient. However, the momentum of investment has hit an affordability obstacle as the economy slowly recovers, Siemens said. The technology for saving exists but high acquisition costs for energy-efficient industrial drives can put off many managers, Siemens said. However, given that drives have a service life of ten years, in an example where there are 2,000 hours of operation annually, the purchase price accounts for less than 3% of total costs. Energy costs, by contrast, account for over 95%, the company said.
It added: “To overcome the affordability issue, forward thinking organizations are using asset financing techniques to align monthly costs with monthly energy cost savings, achieving payback periods in some instances of as little as two years.”
Siemens said firms could benefit from asset finance arrangements to invest in energy-saving drive technology. In an asset finance arrangement, large amounts of capital are not tied-up or “frozen” through up-front purchase. Instead, regular monthly payments align with the monthly payback from lower energy expenditure. Such arrangements can accommodate technology upgrades, Siemens said.
According to the research, while 44% of companies in the UK say that over half their equipment is now energy-efficient, 65% said that they are delaying further investment because of affordability issues.
David Martin, general manager for Siemens Financial Services, said: “The fact that energy efficient equipment has clearly been the subject of mainstream investment for a sustained period is good news. But there is also evidently, and more importantly, a major need for further stimulus to keep up the momentum of investment.
“The issue is not simply a matter of ethicality and being ‘green’, the economic efficiency of British industry is also at stake. Financing options are readily available to make such investments affordable, aligning outgoings with cost-savings. However, there is also no doubt that further government stimuli would also be of great value.”
Siemens interviewed more than 7,000 company executives in Germany, France, United Kingdom, USA, China, Poland and Turkey during the period May until September 2010.