The combustion of fossil fuels (e.g., oil and natural gas) for energy generation is the most significant driver of human-caused GHG emissions. Reducing the amount of fossil fuel-derived energy that is used is therefore an important mitigation strategy for reducing GHG emissions. Energy efficiency and conservation refer to the strategic implementation of technologies, process changes, or behavioural practices that reduce the amount of energy needed for a desired outcome. Thus, energy efficiency and conservation focus on using the minimum amount of energy required for a specific activity or operation, regardless of the energy source. In cases where the energy consumed is derived from fossil fuel combustion, energy conservation can be effective in reducing carbon through energy savings.
Not only is energy conservation important for individual businesses, but it is important at the regional energy grid level as well. For this reason, many energy utility companies provide energy conservation programs and incentives for their customers. Through improving the energy efficiency of their customers, utilities can reduce the demand on the system grid and free up energy supply to support future economic growth and avoid potential brownouts/blackouts. The Independent Electricity System Operator (IESO) in Ontario found that their energy efficiency efforts over the past 15 years resulted in provincial energy demand that was 12% lower in 2021 than it was expected to be otherwise[1]. Incentivizing energy efficiency therefore helps reduce the need for the development of new energy generation infrastructure and reduces system maintenance costs. The U.S. Environmental Protection Agency (EPA) found that for every dollar invested in the ENERGY STAR program, $350 in energy costs were saved for American businesses and households[2]. Energy conservation programs can help drive business action on energy efficiency resulting in energy savings and GHG emissions reductions for businesses and utility companies.
To find out more about available energy conservation programs for businesses in Ontario visit the Ontario Energy Board (OEB) website, Save on Energy website (electricity projects), and Enbridge Gas website (natural gas projects) for more information.
Bottom Line
Energy efficiency and conservation can significantly reduce carbon emissions related to your business operations. Spending some time and resources on building retrofits and equipment upgrades can reduce expenses and improve operational efficiency. Energy providers will often offer incentives to encourage their customers to reduce demand on the grid in a time of increasing electrification and technological development.
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[1] Independent Electricity System Operator (IESO), 2022. Accessed May 30, 2023. URL: https://www.ieso.ca/
[2] ENERGY STAR. 2018. Technical Notes: Methodology for measuring results. Accessed August 23, 2022. Click here for URL.