The company developing digital energy management technologies and solutions is planning to invest around 1 billion $ in research and development over the next five years, to provide access to electricity to 50 million people and train 1 million underprivileged people in energy management.
Electricity and Digitalization as Solutions to Climate Change
Today, electricity comprises as many as 20% of all the world’s energy. Yet 1 in 8 of the planet’s population does not have access to electricity. By 2040, 700 million people will still lack the access to electricity. It is estimated that as the world’s population grows, the demand for electricity will increase to 40% over the next two decades.
“This rebus is today’s energy paradox: the world needs to find a solution to produce more energy whilst cutting CO2 emissions in half. We see two ways to reach this goal. The first option is a transition to sustainable electricity and the other one is its efficient management using digital IoT technologies. We no longer need to wait for innovations. We already have everything, i.e., the Internet of Things, big data, and artificial intelligence. All we need now is to fundamentally change the ways of energy production and its consumption habits,” says Denis Gacicha, CEO of Schneider Electric Lietuva.
Even though society is slow to adapt to changes, for many companies, the 2020 pandemic and lockdown has become a serious challenge that required extra fast solutions on how to distribute and manage available data and resources more efficiently. Several of these solutions, such as work from home or process automation and digitization, have helped some businesses adapt faster, while others have radically transformed their operations.
“The pandemic, the whole world is fighting today, has shown us not only how vulnerable we are, but also how our daily activities affect the environment. Had this crisis hit us in 2000, it would have been completely different. Digital technologies have made it easier for us to adapt, socialize remotely, develop our businesses and even change our lifestyles. 5G connectivity opens up even more possibilities for us to use digital technologies that help to manage energy resources more efficiently in homes, buildings, factories and cities,” says Denis Gacicha, CEO of Schneider Electric Lithuania.
According to D. Gacicha, industrial enterprises and buildings could be 30% more efficient if artificial intelligence and digital IoT technologies were used for energy management. At the same time, efficiency could be increased by more than 70% in some industries, such as metal processing plants, by the application of the principles of the circular economy and the re-use of production resources.
Buildings are yet another area, where digital energy management technologies are not being used efficiently. Constantly growing cities are becoming the arena where the climate battle will either be won or lost. Buildings are estimated to consume about 40% of all energy, and cities are one of the largest sources of pollution, emitting about 70% of CO2. Reduction of carbon emissions in this segment by 2050 can become a difficult mission.
One of the fastest ways to achieve change and significantly reduce CO2 emissions is through digitalisation. According to Schneider Electric, digital energy management solutions can increase the efficiency of buildings tenfold, not to mention that this requires significantly less investment than insulation or new windows.
Digitization is the best catalyst to ensure the efficient use of all energy resources used in a building, such as lighting, heating and air conditioning. These solutions can be applied in all buildings, e.g., private homes, renovated apartment buildings and large industrial complexes.
“Although many of the world’s cities have already embarked on their journey towards sustainability, we still have a long way to go to reach a harmonious, smart energy infrastructure. To win the battle against climate change, we need to take action on the three front lines. Firstly, we have to produce six times more energy from renewable sources. Secondly, we need more electric cars, public transport and electrically heated buildings. Thirdly, energy resources have to be managed more efficiently everywhere, starting with factories, buildings and transport systems and ending with electrical appliances,” says D. Gacicha.
Schneider Electric focused on this path 15 years ago, setting higher sustainability requirements with each passing year for all its production companies and representative offices in 100 countries around the world, and also for its partners.
“So far, just over a fifth of all Fortune 500 companies have made their sustainability commitments by 2030 public. However, we feel optimistic after viewing the results of surveys conducted during the pandemic. Sustainability is mentioned as a priority for business development by 40% of CEOs. The climate change crisis has not stopped because of the lockdown. We must take action to stop it. We can help companies and public sector organizations to assess the challenges they face, to adapt technologies and solutions, and to achieve their sustainability goals,” says D. Gacicha.
Translated by MP Translations Agency in Kaunas
