Close to two thirds of global energy – valued at $4.5 trillion annually – is wasted under current energy systems, Mission Efficiency has said.
The coalition, which campaigns for smarter energy use, was commenting as the World Economic Forum convened in Davos, under the theme ‘Collaboration for the Intelligent Age’.
As Mission Efficiency noted, data centres, artificial intelligence, and the cryptocurrency sector will lead to a doubling of electricity consumption by 2026, while energy use from cooling appliances is projected to triple by 2050 – as much energy as China and India combined.
‘Surging demand’
‘This surging energy demand threatens the reliability of the grids and energy infrastructure that is needed to power the global marketplace,’ the group said. ‘We cannot drive economic growth while experiencing blackouts.
‘The time is now to mitigate this load growth by deploying cost-saving energy efficiency solutions.’
In search of energy efficiency
Mission Efficiency added that commercial available solutions exist that can alleviate the stress on grids, meet growing demand, and reduce operational costs.
Energy efficiency measures have the potential to reduce energy by 31% without reducing output, saving $2 trillion a year by applying available technologies and measures, it noted, while the use of AI to dynamically adjust cooling in response to real-time weather conditions can achieve a 9% increase in energy efficiency.
According to Mission Efficiency, doubling global energy efficiency could achieve 40% of the emissions reductions required under the Paris Agreement, as well as boost profitability and competitive advantage.
”The global rate of progress in energy intensity fell by 50% from 2022 to 2024,’ it noted. ‘As the private sector moves into an intelligent age, we have a bold opportunity to reverse this trend and reduce energy use while expanding the global economy.’
The World Economic Forum runs from 20 to 24 January in Davos. Read more here.
