UTILITIES
T
he urgent need to decarbonise , although a challenge , presents a wealth of opportunity .
One area in particular that proves to be difficult ? Industry .
The transition from carbon-intensive processes to sustainable practices requires innovative strategies , particularly when it comes to energy consumption and the emissions that come with energy consumption .
Despite the challenges presented , significant strides have been made worldwide toward industrial decarbonisation . For example , in the UK , CO₂ emissions currently stand at that of emissions in 1990 thanks to major investments in renewable energy , reducing reliance on coal-fired power stations and encouraging adoption of energy-efficient appliances and EVs .
In Latin America and the Caribbean , The International Energy Agency ( IEA ) suggests that countries could
“The cheapest megawatt-hour is the one that is never consumed ”
DIEGO HERNANDEZ DIAZ PARTNER , MCKINSEY & CO meet all new energy demand with renewables before the end of the decade if they follow through on their climate pledges .
With industrial processes accounting for a significant portion of global carbon emissions , decarbonisation in this area is essential for meeting international climate goals .
Industrial decarbonisation : A mammoth challenge ? Diego Hernandez Diaz , a Partner at McKinsey & Co , leads the consultancy ’ s Clean Energy Transformation Service Line , which is focused on industrial decarbonisation . No stranger to the complexity of the industrial decarbonisation challenge , he says while energy efficiency is crucial , it must be paired with comprehensive strategies to reduce overall carbon footprints .
“ The cheapest megawatt-hour is the one that is never consumed ,” he says . “ It ’ s complex as energy efficiency and decarbonisation are not one and the same and need to be paired . Ensuring an entire plant is properly turned off when it is not operating – you ’ d be surprised at entire units , cooling systems , drives not being shut down when not in use – all the way to shifting hours to operate during lower-priced hours is essential .
“ Near term , there are things that can be done to drive down consumption that are behavioural – ‘ remember to turn off the lights ’ – and there are some that will require investment , like swapping out LEDs for traditional lights or even motion sensors . There are also
152 October 2024