Thanks in part to the ongoing war and crisis in Europe, people are starting to look for ways to reduce their energy consumption. There is the argument of weaning off Russian gas and also reducing energy bills given the prices of natural gas. Yet it is such a bummer no one ever did it to reduce carbon emissions or to save the environment.
For the longest time we’ve been passive energy consumers and we didn’t really know with much precision where and what was energy consumed going towards within our houses, buildings and factories. Yet we already had technology to track that for many years; it’s just that we don’t think those are going to help us reduce energy consumption. We are too complacent, we want to think we’re already at optimal point. After all, why would we desire to pay hefty energy bills?
The company that needs a new machine tool, and hasn’t bought it, is already paying for it.Charlie Munger
Unfortunately, economics does not work without the cost benefit analysis by individuals and I love the Munger quote here because it is exactly what energy efficiency investments are about. You are already paying for the new equipment that you need but did not buy. It is just a matter of who you’re devoting that cashflow to, and what you really get in return.
The Energy service company (ESCO) industry is growing thanks to rising electricity tariffs and greater consciousness about the energy transition. Now the marketing needs to keep up – are we putting that tension and pressure on our energy users yet?