NEW RESEARCH | Energy efficiency is about more than technology – here’s the key small businesses are missing

Many small businesses in Sweden are missing out on major opportunities for energy savings. A new thesis shows that technical solutions are not enough.

– Small businesses often have low maturity in energy management. The biggest obstacle is not the technology but the lack of internal competence. Energy management is a social construct, shaped by norms, values, culture and individuals’ understanding, says Noor Jalo, University of Gävle.

In her research, she has followed small and medium-sized enterprises that have participated in so-called energy efficiency networks. These networks help companies with energy audits, knowledge exchange and concrete proposals for action. The results are clear: the networks make a difference, but they do not solve all the problems.

– They can address barriers such as a lack of technical experts, but they are not enough to build the long-term knowledge and management required.

Lean principles delivered new results

A key part of the thesis is testing methods inspired by Lean, the Japanese model of continuous improvement. Instead of just looking at support functions such as ventilation and lighting, the focus shifted to production itself – where the big energy gains are.

– When we started to distinguish between value-added and non-value-added energy, new opportunities opened up. Companies learned to question processes and identify waste. It made a big difference,” says Noor Jalo.

More than just energy savings

The study also shows that energy efficiency can bring unexpected benefits. When companies install new ventilation, the goal may be to reduce energy use – but at the same time the working environment can improve and sick leave can be reduced.

– We call these non-energy benefits. These can range from improving the working environment to making the company more competitive and attractive to investors.

New policy needed

Today, energy efficiency programs are measured almost exclusively in terms of energy saved and emissions reduced. But this is too narrow a view, says Noor Jalo.

– We need a more comprehensive evaluation that includes technology, management, knowledge and leadership to move beyond technology-centric evaluations based solely on quantitative data. Otherwise, we miss out on the real potential.

So, what is the most important advice for companies that want to succeed in their energy efficiency efforts?

– Knowledge, leadership and participation are at least as important as technical solutions. Involve people. Technology is important – but it is people who make change possible. When more people are invited and engaged in the process, improvements happen continuously and last over time.

Contact Noor.Jalo@hig.se

More about the thesis
Noor Jalo will defend her thesis on November 3 at the University of Gävle Beyond Technology-Driven efficiency towards Knowledge-Driven Approaches among Industrial SMEs-Lean-based Energy Efficiency Networks, Knowledge Creation, and Social Constructions.