What is Energy Efficiency
In energy engineering, the term energy efficiency indicates the ability of a physical system to obtain a given result using less energy than other so-called “lower efficiency” systems, generally increasing the yield and thus allowing energy savings and a reduction in operating costs.
More than 68% of the energy used in the world is NOT covered by an efficient energy standard and the system within which it is used could be made more efficient. Just consider that most of the growth in the demand for energy coming from the cooling of habitable environments takes place in those parts of the world where there is no regulation to support the energy saving process.
Technological innovation is creating new opportunities for progress in terms of efficiency. Digitalisation is profoundly changing the energy sector, just as innovation begins to have a significant impact on energy efficiency.
Improving energy efficiency is the cheapest and often most immediate way to reduce the use of fossil fuels. Using less energy means reducing greenhouse gas emissions and demand for energy imports which on an economy wide scale would mean lowering energy costs.
From 2000 to 2016, Japan imported 20% less oil and 23% less natural gas than it would have done in the same period without energy efficiency interventions. Germany and the United Kingdom, which correspond to the largest gas markets in Europe, have achieved a reduction in imports of natural gas from Russia equal to 30% of the European total. Short-term energy security has improved, as energy efficiency has reduced the daily gas demand peak. This means that imports have not been reduced on an annual basis, but in the periods of greatest demand. Given the last developments in the geopolitical scene energy efficiency is becoming more relevant than ever.
The energy efficiency market is a complex financial system. Thanks to Efforce this market becomes easily accessible to everyone for the first time.
The linking between the financing partners and those in need of investments to improve the energy efficiency of their structures is made possible by Energy Service Companies (E.S.Co). Through Energy Performance Contracts (EPC), these structured companies are able to generate returns on initial investments: energy efficiency translates into savings in bills for the Beneficiaries.
Efforce platform solves the three main problems of the energy efficiency market: the difficulty of putting contributors and savers in contact, the size of the investments required and the type of financial return. Through Efforce, energy savings financed by the Contributor are tokenized and returned as rewards by the company through smart contracts on chain.