Conflict in Ukraine: Energy price shock – Smart technology can help

Thyssen Krupp Steel Works in Duisburg

Energy-intensive companies in particular are being put under pressure by the high electricity prices.

(Photo: dpa)

Reducing dependence on Russian gas, oil and coal imports is now the federal government’s top priority in terms of energy policy. Imports of liquefied natural gas from other parts of the world are used for this purpose. This does not make the energy cheaper. And the sharp rise in energy prices is already threatening companies, burdening citizens and fueling a sometimes insane debate about state intervention in the market.

However, what is more worth debating is how smart technologies can be used to reduce energy consumption. Because one thing is clear: every percentage point of energy saved helps companies in the long term. Every percentage point is a contribution to reducing dependencies on other countries.

It is true that energy productivity in Germany has risen significantly in recent decades. However, according to the Federal Environment Agency, total final energy consumption has hardly fallen since 1990.

The technology can help on two sides: On the one hand, software, partly supported by machine learning or artificial intelligence, can identify inefficiencies in process chains. This also, but expressly not only means energy management software. Process mining is becoming increasingly popular. According to surveys, around 60 percent of companies are already working with the technology. That’s a lot compared to other countries, but there’s still plenty of room for improvement.

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On the other hand, there are also numerous other approaches: start-ups and providers who use artificial intelligence to reduce the energy consumption of buildings or use inexpensive sensors to make supply chains more transparent and efficient

This is how the Handelsblatt reports on the Ukraine war:

Turn on the production machines only when they are needed. Additive manufacturing, 3D printing, can be further developed and thus completely replace supply chains. Digitize the lengthy and expensive product tests. That enable virtual work. In the case of these technologies, the focus has often not been on energy savings that were previously possible – but they should increasingly be given the scarcity and prices.

It’s a natural reflex for companies to hold onto cash in times of crisis. Not to invest. No fundamental discussions about processes. But that is not enough in this crisis. It’s not just about the energy price shock as a result of the war, it’s also about the long-term fight against climate change. Precisely because it often takes so long to question processes, it is so important to start now.

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