International Journal of Management and Economics Fundamental
68
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue01 2025
PAGE NO.
68-72
10.37547/ijmef/Volume05Issue01-12
Global practice of applying approaches to energy
efficiency improvement in energy companies
Khamdamova Gavkhar Absamatovna
Doctor Of Economics, Professor, Tashkent State University Of Economics, Uzbekistan
Received:
29 October 2024;
Accepted:
23 December 2024;
Published:
30 January 2025
Abstract:
The article presents an analysis of international experience in the implementation of methods aimed at
improving the energy efficiency of energy industry enterprises. The importance of studying foreign practice for
the development of strategies and tools that take into account the relevance of energy efficiency in the context
of modern industrial development is emphasized. These tools fit seamlessly into the overall system of industrial
policy strategies, complementing energy conservation initiatives to optimize the use of energy resources.
Keywords:
Efficiency, energy efficiency of enterprises, energy resources, strategy, industry, sector, energy
conservation, global economy, technological progress.
Introduction:
In recent years, there has been increased
attention to energy efficiency issues in different
countries, which stimulates the active development of
scientific research in this area. Given the importance of
energy efficiency for modern industrial progress, a
number of approaches and mechanisms have been
developed at the global level. These mechanisms are
included in the general system of industrial policy,
which is combined with energy conservation measures
to optimize the use of energy resources. Scientific
research focuses on the analysis of the effectiveness of
the use of energy resources in order to support
informed management decisions. Energy efficiency
assessment methods vary depending on the objectives
of the study, the depth of analysis, and the specifics of
the industry or economic sector. This highlights the
need for further study of modern approaches to energy
efficiency assessment.
World practice demonstrates that countries and
regions achieve the greatest results in the field of
energy
conservation
and
energy
efficiency
improvement using integrated approaches that include
from 5 to 8 different measures. These include
information, technological, financial, institutional, and
economic measures. These measures are interrelated
and reinforce each other, creating a synergistic effect.
Scientists identify several strategies for improving
energy efficiency, classifying them as “Northern
European”, “American” and “Asian” models, while
noting that their effectiveness is generally comparable.
However, it is important to keep in mind that the
success of such strategies may vary depending on a
number of factors, such as the current level of energy
consumption, socio-economic conditions, industry
specifics, and the effectiveness of energy reduction
methods used. This highlights the need for a more
detailed study of energy efficiency assessment issues
and the development of measures to improve it, taking
into account the specifics of each individual industry.
METHODOLOGY
The methodological basis of the study was the work of
domestic and foreign experts devoted to the analysis of
world experience in the implementation of approaches
to improve energy efficiency in the energy sector. In the
course of the work, legislative and regulatory
documents were studied, as well as materials from
scientific and practical events related to this topic. The
research was based on a systematic approach, and
methods of logical, comparative, and statistical analysis
were used to solve the tasks.
RESULT AND DISCUSSION
Energy efficiency measures can be divided into two
types. The first type includes direct methods that
directly influence the behavior of companies in the field
of energy conservation and energy efficiency. The
second type covers indirect methods that contribute to
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
improving the efficiency of production, transportation
and use of energy resources through innovation,
stricter
environmental
standards,
technological
improvements and the development of new industrial
areas. This is due to the fact that technological progress
plays a key role in the transformation of the energy
industry. Energy efficiency programs should cover not
only the energy sector, but also other industries.
When analyzing methods for improving energy
efficiency in industry, it is important to take into
account potential contradictions. First, an increase in
production volumes may lead to an increase in demand
for energy resources. In addition, economic
development can stimulate the growth of energy
consumption even with increased energy efficiency,
which indicates that improved efficiency does not
always lead to a proportional reduction in energy
consumption, as noted by I.A. Bashmakov. In addition,
lower energy costs as a result of increased energy
efficiency can directly or indirectly increase energy
demand by increasing available income. This can cause
a “rebound effect”, which limits the effectiveness of
energy conservation and energy efficiency policies.[6]
Therefore, it is important to analyze the price and
cross-elasticity of demand for energy goods and
services, as well as to take into account the general
economic equilibrium.
According to I.A. Bashmakov, the resolution of these
contradictions largely depends on the consistency of
industrial policy with measures to improve energy
efficiency. This implies a change in the structure of the
industry and a transition to more technologically
advanced production methods characterized by
reduced energy consumption. It is also important to
take into account the current structure of energy
consumption in the industrial sector of the economy. In
addition, when developing energy efficiency measures,
it should be borne in mind that the effectiveness of
individual tools increases significantly when they are
used together, including the integration of various
types of policies and the integration of measures within
a single software platform. In other words, it is
necessary to create an integrated system that
integrates policies, programs and mechanisms, linking
the measures taken with their results not only in the
field of energy conservation, but also in the industrial
complex as a whole.[6] This is important for both
demand and supply in the energy market. This is
particularly relevant in the light of data from the
International Energy Agency (IEA), according to which
more than half of total energy consumption is in the
industrial sector, and in electricity generation this
figure reaches 80%. [7]
According to a study commissioned by the European
Commission, it is expected that by 2030, the potential
for reducing energy consumption in the field of
industrial engines could reach 13,286 terawatt-hours,
which corresponds to about 1,140 million tons of oil
equivalent. However, the effectiveness of various
measures may vary during their implementation, which
underlines the importance of a deeper analysis and
synthesis of international experience in the field of
energy efficiency.[6]
The International Energy Agency (IEA) has extensive
experience in this field and has developed a
comprehensive strategy aimed at using existing energy-
efficient technologies. The implementation of this
strategy can lead to a doubling of energy efficiency
levels. The agency's specialists emphasize the
importance of widespread adoption and application of
the best available technologies. This will significantly
reduce energy losses at all stages
—
from production to
distribution and final use, as well as achieve a 50%
reduction in carbon dioxide emissions without
adversely affecting economic growth. The use of such
technologies can double energy efficiency, which will
lead to a reduction in the total amount of energy
consumed. The introduction of such innovations will
also provide a rapid economic effect by reducing
operating costs.
Ghisetti and Rennings’ research demonstrates that
innovations aimed at reducing energy or material
consumption have a significant positive impact on
companies' operational profitability. At the same time,
innovations focused solely on reducing negative
external impacts, such as emissions of harmful
substances, CO2 or noise, can significantly reduce the
profitability of enterprises.[6]
Scientists note that the effectiveness of energy saving
projects largely depends on the interest rate on loans
used to finance them.[2] This highlights the importance
of financial measures that the state, as a macro-
regulator, can apply to support initiatives to improve
energy efficiency in industry. In addition, budgetary
financing of energy efficiency programs also plays a key
role, as it not only contributes to the implementation
of specific projects, but also stimulates the attraction of
additional investments in this area.
Global practice shows that countries that have
achieved significant success in energy conservation
have actively attracted a variety of sources of financing
for projects aimed at improving energy efficiency.
Financing in this area includes a wide range of sources,
from public to private investors, offering a variety of
financial instruments. These include commercial
financing at the initial stages, loans from suppliers,
leasing, securities issuance, risk insurance, funds from
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
commercial and emerging banks, as well as the creation
of specialized funds focused on improving energy
efficiency.
In modern scientific literature, information measures
are highlighted as an important tool for improving
energy efficiency. Such measures include the use of
energy certificates, conducting energy audits, as well as
the introduction of specialized information and PR
programs. The relevance of these approaches is
confirmed by a study conducted by the Analytical
Center,[6] according to which about 40% of industrial
managers believe that the potential for saving
electricity and heat does not exceed 5% of total
consumption. However, the experience of enterprises
that successfully implement energy-saving measures
shows that due to organizational solutions and the
implementation of low-cost projects, a reduction in
electricity consumption can reach 5-6%. At the same
time, 72% of experts are confident that the main
production processes have the greatest potential for
energy saving.
As part of the implementation of the sustainable
development strategy, the transition to more rational
energy consumption requires a revision of the energy
balance in favor of increasing the share of renewable
energy sources (RES), as well as the use of various
financial incentives to attract the private sector to the
field of renewable energy. Such incentives include the
formation of a favorable institutional environment, the
removal of bureaucratic barriers, the provision of tax
incentives, duty-free import of equipment, the
establishment of standards for the share of renewable
energy in the energy portfolio, and other measures.
According to a 2017 report by the International Energy
Agency (IEA), renewable energy sources will account
for two thirds of all investments in the electric power
industry.[6] In the European Union, the share of
renewable energy sources will reach 80% of the total
new energy capacity, and wind energy will become the
main source of electricity after 2030. Recognizing the
key role of government measures in improving energy
efficiency, it is also important to pay attention to
creating economic incentives for energy conservation
at the level of individual industrial enterprises.[4]
Research in the industrial sector shows that most
enterprises are able to reduce total energy
consumption in technological processes by 10% with
minimal investment and by 35% with more substantial
investments. For example, integrated steel companies
in Europe and the United States have an energy saving
potential of 10-15%, while chemical plants have an
energy saving potential of 10-20%. To achieve such
results, it is necessary to carefully analyze and plan the
structure of energy consumption at each stage of
production processes, taking into account possible
losses and potential savings. This requires the
application of lean manufacturing principles, which are
actively used to improve energy efficiency in industry.
These tasks can be solved within the framework of the
“Industry 4.0” concept, which is being implemented at
enterprises through the development of the Industrial
Internet of Things (IIoT), the creation of “smart
factories”, “smart grids”, “smart wells” and other
similar technologies. In this case, a set of advanced
technologies is used, appropriate management
decisions are made and organizational mechanisms are
formed that contribute to the creation of effective
cyber-physical systems. Such systems provide energy
savings at all stages
—
from design to production and
product introduction.
Thus, the integration of digital technologies is crucial
for improving energy efficiency, offering a wide range
of solutions and positive effects. Experts note that the
use of digital technologies in oil and gas production
processes can reduce costs by 10-20% and increase
hydrocarbon production by 5%.[6] This is just one
example of how digital technologies are able to solve a
variety of tasks: from ensuring data transparency
between enterprises and government agencies to
optimize taxation and attract investment to fine-tuning
industrial policy, increasing competitiveness and
reducing accident risks.[5]
Experts from the International Energy Agency predict
that in the coming decades digitalization will radically
change the energy infrastructure, making it more
integrated,
intelligent,
efficient,
reliable
and
environmentally sustainable. Modern advances in data
processing, analytical tools, and communication
technologies are opening up new opportunities for
digital innovations such as smart devices, decentralized
transportation solutions, and 3D printing technologies.
In the future, digital energy systems will be able to
adapt to energy needs, ensuring its supply at the right
time, place and at minimal cost. Already today,
digitalization contributes to improving the security,
efficiency, accessibility and sustainability of energy
systems, while simultaneously creating new challenges
in the field of cybersecurity and data protection. [6] It
transforms market conditions, business processes and
employment, contributing to the emergence of new
models of energy production and consumption. In
addition, the integration of interconnected energy
systems is gradually erasing the traditional boundaries
between supply and demand.
In the industrial sector, one of the key elements of the
energy saving strategy is the introduction of modern
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
process monitoring systems, the integration of
intelligent sensors with analytical platforms for
predicting equipment performance, as well as the use
of 3D printing technologies to create lightweight
materials and other innovative solutions.
According to experts, the use of digital technologies in
the electric power industry can provide annual savings
of about 80 billion US dollars, which is about 5% of the
total annual cost of electricity production. This is
achieved by reducing maintenance and operating costs,
improving the efficiency of power plants and networks,
reducing unplanned downtime, and extending asset
life.
In recent years, companies in the energy sector have
significantly increased their investments in the
development of digital technologies. For example,
since 2014, international investments in digital
infrastructure and software in the electric power
industry have grown by more than 20% annually,
reaching $47 billion by 2016. Thus, digital investments
in 2016 almost doubled the amount of financing in the
gas-fired power industry segment, which amounted to
$ 34 billion. Interactive digital networks have the
potential to radically transform electricity markets by
providing flexible demand management, integrating
various predominantly renewable energy sources, and
contributing to the development of decentralized
energy systems.[6]
To maximize the benefits of digitalization in the
field of energy efficiency and address related issues
such as cybersecurity, data protection, and job
preservation, it is essential to develop effective sectoral
and cross-sectoral policies at the levels of strategic
management and regulatory regulation.
The integration of digital technologies into the energy
systems of enterprises and organizations is determined
by a number of factors. These include the complexity of
production processes, the financial capabilities of the
company, the degree of dependence on fluctuations in
energy prices, the level of competition in the market
and the flexibility of supply chains. Cultural aspects also
play a significant role: an enterprise's willingness to
take risks by introducing new technologies or changing
established business models and workflows directly
affects the speed and scale of digital transformation.
Thus, the successful implementation of innovative
digital solutions and energy saving policies at the
enterprise level requires the formation of an
appropriate corporate culture and management
systems. This largely depends on the professional
training of the employees. In this regard, the
assessment of labor potential, the ranking of
employees according to their ability to solve energy
efficiency problems, as well as the creation of an
effective system of motivation and evaluation of
energy management in industrial enterprises are of key
importance.[1]
Taking into account the above, methods for
improving energy efficiency can be systematized as
follows:
According to the phase of production and
distribution of energy resources, since it must be taken
into account that about 20% of energy is lost before it
reaches the end user, which requires appropriate
measures;[6]
According to the type of impact, including direct and
indirect effects;
According to the time frame, taking into account
short-, medium- and long-term plans. In the current
environment, when countries set ambitious goals to
modernize the economy and achieve technological
breakthroughs, it is important to focus on measures
that will bring results in the near and medium term,
since without their implementation, the economy will
continue to lag behind the leading countries;
According
to
the
participants
in
the
implementation, where government agencies are
responsible for implementing measures that promote
energy conservation and energy efficiency, and
enterprises and organizations are engaged in the
practical implementation of initiatives aimed at
improving relevant indicators.;
By areas of action, including technological, financial,
managerial, institutional, and information measures.
However, using only one type of measure without
taking into account the others is not considered an
effective approach.
CONCLUSION
Recognizing the importance of all measures and
conditions aimed at improving energy efficiency and
studied abroad, it is also necessary to take into account
the barriers that make it difficult to work in this area.
Such obstacles include insufficient motivation, limited
access to information resources and successful project
implementation experience, as well as poor
organization and coordination of work.
Particular attention should be paid to the development
of an energy efficiency assessment methodology that
will take into account various factors and performance
indicators in this area. Using such a methodology will
not only help to assess the current level of energy
efficiency, but will also allow for the development of
sound regulatory strategies, both direct and indirect,
with respect to factors affecting energy efficiency. In
addition, it will provide an opportunity to analyze the
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
effectiveness of the implementation of these strategies
in the future.
Given the importance of energy efficiency for industrial
development in modern conditions, a certain set of
strategies and tools has developed in world practice,
which together form a system of industrial policy
measures. These measures are closely linked to the
energy conservation policy and are aimed at improving
energy efficiency.
To increase energy efficiency, both direct methods
aimed at changing the behavior of economic entities in
the field of energy conservation and indirect
approaches aimed at improving the efficiency of
production, transportation and consumption of energy
resources are used. This implies the introduction of
innovations, greening of processes, improvement of
technologies, development of new industrial directions
and other solutions related to the field of industrial
policy. Such measures are important because
technological progress plays a key role in the
transformation of the energy sector.
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