Energy Efficiency Networks created or supported by governments can be especially effective in fostering collaboration
Not every Energy Efficiency Network works in partnership with government. But experience shows that collaboration between the public and private sector can help maximise the benefits for industry – and that governments also benefit from establishing, engaging in and working with industrial EENs, since these networks can improve energy efficiency in a cost-effective way over a short period of time.
Based on insights from policy makers shared with the IEA, government-supported industrial EENs can break down barriers to implementation through shared case studies, site visits and peer-to-peer exchanges, while also fostering innovation and the adoption of new approaches and technologies. This can simultaneously support the broader modernisation of the industrial sector. Networks are also instrumental in building trust between governments and industry, facilitating strong communication and ensuring continuous feedback from industry on the effectiveness of government policies as they are implemented.
Examples of successful EENs that partner with governments can be found across regions. Ireland’s Large Industry Energy Network, first established in 1995, now has more than 200 members that together account for almost one-fifth of Ireland’s total primary energy requirement. In 2022, this network reported annual energy savings of more than 780 gigawatt-hours (GWh) based on the strategies they had implemented, which also resulted in cost savings of nearly EUR 58 million. Annual emissions reductions from participating companies ranged from 2% to 10%.
Through the Better Plants programme, the US Department of Energy supports 270 manufacturers across 3 700 facilities in meeting the ambitious energy, emissions, waste and water goals they have set. Collectively, these manufacturers – which cover 14% of onsite and offsite energy consumption by US industry – have reported energy savings of 820 000 GWh and cost savings of USD 14.1 billion since 2009.
Success has been demonstrated in emerging and developing economies as well. The Nigerian Energy Efficiency Network, which was launched in 2016 with a single network of five companies, has grown to three networks encompassing more than 30 companies – and it continues to expand. The original five companies have jointly realised annual cost savings of around NGN 280 million (Nigerian naira). Meanwhile, an Energy Efficiency Network in Vietnam, which focuses on both buildings and industry, now encompasses more than 17 000 companies, plus 600 associations and institutions.
While boosting energy efficiency remains a core objective, these networks also deliver a wide range of additional benefits for all parties. For example, industrial firms may own more valuable assets after new efficiency technologies have been installed – while on the national level, pursuing greater energy efficiency can support other government objectives such as enhancing energy security, creating jobs and supporting energy affordability.