Philips backs action to turn energy waste into increased productivity and economic growth
Philips, February 17 2015
The ‘2015 Energy Productivity and Economic Prosperity Index’ launched today reveals the huge potential for societies to raise economic performance and extend significant environmental and social benefits through improved energy productivity. The Index, authored by The Lisbon Council, Ecofys and Quintel Intelligence and commissioned by Royal Philips (AEX: PHI, NYSE: PHG), is the first global report to rank countries by their energy productivity – based on their economic output per unit of energy consumed. The report warns that the current rate of energy productivity improvement – around 1.3% worldwide each year – is too slow to keep pace with the rising energy demand.
The report finds that most energy productivity gains will need to come from improvements to residential and non-residential buildings. A simple illustration of energy productivity is boiling an egg, where only 2% of the energy consumed goes into producing the boiled egg. Similarly, nearly 98% of all energy we use in the process of production is being wasted. Just by increasing the use of technology today, such as energy-efficient appliances, LED lighting and insulation, European households could reduce their energy bills by a third. Furthermore, overall energy consumption in the EU could be cut by 35% by more than doubling the rate of the region’s energy productivity improvement from close to 1.5% to 3% per year by 2030.
“Within the range of energy efficiency opportunities, LED lighting is a key contributor in addressing the soaring energy demand of the future as it already can deliver a 500% energy productivity improvement in average households. And by connecting LED lighting to sensors, apps and controls, even greater efficiencies may be realized. It is dramatically changing the way people experience and interact with light at home, at work and in their cities”, said Harry Verhaar, Head of Global Public and Government Affairs at Philips Lighting. According to the High-Energy Productivity Growth Scenario presented in the report, nearly 12 European households could be lit with a 1000 KWh of electricity, which is roughly what it takes to light two households today.