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How to solve the energy crisis and get energy prices under control?

The biggest impact on the energy services price rally is that we consume too much and get more and more energy hungry each year.

For example, electricity consumption in Estonia has increased by 7% this year compared to last year. In fact, this is a big problem and is also one of the main reasons behind the price hike. Prices cannot fall if demand remains high and there simply is not enough of the commodity – energy. Unfortunately, this trend of growth in consumption is common worldwide. But are there any real solutions to this?

One of the main solutions undoubtedly lies in large consumers also being able to reduce their energy consumption.

Household consumers must be praised – most people have adjusted their consumption habits or reduced their consumption according to the price of electricity. Some large consumers have also done the same. But why does demand continue to grow? The reason is simple – unfortunately today, reducing consumption and keeping it under control on a larger scale is essentially not being dealt with as the focus is instead on the sale of green certificates. The green revolution is undoubtedly crucial, but the sale of green certificates often has nothing to do with it – it does not reduce consumption. In essence, you can buy yourself green, nothing else. The market for green certificates is a big business for someone, where prices are rallying and the costs of which are still paid by consumers. And in conclusion, we are in a situation where the commodity we all consume is the same – energy, and the ever-increasing deficit affects us all in solidarity.

So how to reach the solution – to consume less?

Prices fell drastically when we had Covid and consumption fell. Does anyone still remember that, for example, oil futures prices were close to zero and the tankers were all full to the brim, but there were no customers? Still, we would rather not have such a solution (Covid etc.).

In reality, the focus should be on consuming as smartly and optimally as possible. In other words, to use smart solutions which the so-called Industrial revolution 4.0 also offers us today. How many readers, for example, have heard of or even used artificial intelligence in managing their technical systems and achieved a 20% reduction in their energy consumption due to this alone, without losing anything else (e.g., good indoor climate)? The self-driving car is already familiar to us; however, the self-managing house has, in fact, developed much further.

The greater goal should be to consume less each year than we did the year before. And this should also be monitored regularly – turning off the heating when a committee shows up or showing them the solar panels on the roof, which will then be reassembled on the next house when the committee leaves, is not a solution.

If we could consume, for example, 7% less compared to previous periods, it would have the same magnitude of impact on the climate, because, in reality, what is the greenest energy?

The greenest energy is what we did not consume and therefore did not need to produce!

Kristo Peerna,
R8 Technologies partner 

If you are interested in achieving your company’s ESG goals and saving in energy costs, don’t hesitate to contact us – click here!

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