Although developed nations such as the US continue to become more energy efficient, developing nations that are growing at a faster clip aren’t nearly as energy efficient.
The energy efficiency of a country, in simple terms, is the energy used by a country per dollar of GDP (gross domestic product).
One of the reasons for the disparity between regions is that developed nations tend to have larger service sectors that use less energy to produce each unit of GDP than manufacturing, which is more concentrated in developing nations.
The energy intensity of the US economy declined by 1.6% per year from 1985 to 2004, according to the U.S. Energy Information Administration. And that suggests that America is becoming more energy efficient.
But the changes in a country’s energy efficiency are also influenced by changes in consumption across different industries as well as by residents. Analytics can help researchers and government officials identify and drill down on these subtle shifts.
For instance, China’s energy use per unit of GDP is expected to be reduced by at least 3.7% in 2013, according to Bloomberg. While some of the improvements will result from refinery upgrades that will produce cleaner fuels, China plans to reduce its overall energy consumption per unit of GDP by 16% by 2015.
By comparison, energy consumption in a country such as India is extremely uneven. In fact, half of the country’s population lacks access to electricity or cannot afford it, while the other half is using so much electricity that demand is far outstripping supply, as Berkeley Lab notes.
The growth in energy consumption by developing countries is much higher than in developed nations as industries and services continue to mature in these countries.
For example, energy demand in developing Asian nations is expected to grow by 2.9% per year to 2035, which is faster than the world average of 1.6%, according to the International Energy Outlook 2011.
Analytics can provide researchers with deeper insights into the level of progress being made within certain countries. Analytics can also offer insight into some of the cultural, political, or other challenges that may be holding certain nations back in their efforts to become more energy efficient.
For instance, although real estate developers in Indian cities such as Mumbai, Bangalore, and Hyderabad are jumping on the green energy wave, developers in Madhya Pradesh have been reluctant to invest in energy efficient technologies due to lengthy certification processes.
Data analysis can help researchers and government officials identify the barriers to green energy adoption along with steps that can be taken to streamline the certification process.
Business leaders and other officials can also use analytics to help them analyze and compare differences in energy efficiency between their companies and others in the same industry and between industries in different countries. This can help them discover information about best practices in energy efficiency among companies in their industries or in other geographies.
For instance, in an analysis of energy efficient measures taken by global chemical companies, Rockwood Holdings notes that Dow Chemical is saving $1.9 million annually from an investment in improved efficiency steam systems. Meanwhile, FMC Chemicals is saving nearly $1 million annually from boiler improvements, an investment with a payback period of just six weeks.
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