A kW saved is greater than a kW burned

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The transition from hydrocarbon fuel sources to renewable energy sometimes overlooks the “fifth fuel”: energy efficiency. Two-thirds of energy is lost in the generation and transmission of electricity. Reducing demand has a greater impact on the energy equation than new sources of capacity.

Flaming Earth

The federal government is doubling down on efforts to utilize energy efficiency, implementing infrastructure projects with no cost to the taxpayer. Energy Savings Performance Contracting (ESPC) allows government agencies to utilize 3rd party financing to fund needed capital improvements through guaranteed energy savings.

The private sector should take a cue from the government. Energy consumption is an operational expense that detracts straight from the bottom line. In low margin industries, such as retail, more efficient operations can represent a significant competitive advantage.

Many organizations accept energy costs as an uncontrollable expense and are unaware of the opportunity that improved energy efficiency offers. Sub-metering and energy audits provide visibility to help make informed financial decisions. Energy conservation measures, such as building automation, lighting & HVAC controls, demand response, and upgrades to high density computer rooms, allow organizations to reduce operational costs while improving performance.

Additional efforts in demand-side energy management could eliminate the need for new construction of fossil fuel generation during the transition to renewables. Lean organizations that embrace energy efficiency will be more competitive and extract greater value for taxpayers and shareholders.


Matt Caldwell

Linked-In posts:

Renewables, it’s your time to Shine!

A kW saved is greater than a kW burned

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  • This is great Matt and it is true that people and companies are
    Still not all aware of how they can actually save.

    • Carsten Baumann

      10 years ago

      Your right on the money, Matt. That’s why we need high density computing and bring the power generation to it, or bring the data center to the power source. This will work well for all non latency critical application. Maybe my FB or LinkedIn post.

  • Jacques Schonek

    10 years ago

    Of course, energy efficiency is a very smart way to reduce CO2 emission, particularly in developped countries where the possibilities of savings are huge.
    Concerning the energy lost in the generation and transmission of electricity, please refer to this post:


  • Thanks for the information! Increasing energy efficiency to help the earth be more sustainable is a very good point. It’s important to find more renewable energy resources, but it’s also important to find ways to get the most out of the energy that we use. If there’s less demand for energy overall, then the cost for renewable energy resources would be more affordable for everyone on earth to have access to.

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