Competitiveness

Increasing energy efficiency can improve competitiveness at both the firm level – by reducing costs, improving operations and increasing product value – and at the country level, by reducing the amount of energy required to produce economic output. 

• Today the world’s industries produce nearly 20% more value added with a given amount of energy, compared with two decades ago. 
• In the industrial sector, energy management can lead to more than 10% in annual energy cost savings within three years, and up to 60% over the longer term as new savings are uncovered.  
• On average, for every dollar in energy cost savings due to energy efficiency, firms also save one dollar or more from other benefits, from improved resource use to higher productivity
  

Energy intensity improvements have enabled industries to produce 19% more value added with the same amount of energy now, compared to the year 2000. In the European Union, manufacturing industries produce 50% more value added with 25% less energy than in 2000.

Energy management – a well-recognised strategic approach of adjusting and optimising energy consumption – is one of the key levers for industrial competitiveness. By embedding a culture of continuous improvement, firms can achieve significant reductions in energy costs, as well as a broader range of other benefits. These include:

• Increased productivity, such as higher capacity utilisation rates of the production equipment and increased production capacity, as a result of more efficient processes and lower production costs. Efficiency has also been shown to lead to improved product quality and consistency, contributing to brand reputation.
• Improved resource use, such as reduced equipment downtime and unplanned shutdowns, lower maintenance costs, and potentially reduced staff requirements for operation and monitoring. Efficiency has also been shown to increase worker health and safety, reducing the incidence of work-related accidents and health insurance costs.
• Reduced waste production, such as less use of materials and process water.

Combined, these multiple benefits can more than double the benefits of energy cost savings.

• IEA (2025), Gaining an Edge: The Role of Energy Efficiency in Enhancing Competitiveness.