Energy conservation is reduction in amount of energy consumed, whereas energy efficiency is using less energy for any constant service. Both are energy reduction techniques. Energy conservation results in increased environmental quality, personal financing security and national security. The Energy efficiency markets distributes goods and services which reduces energy used to fuel our economies.
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The concern regarding carbon emissions and increase in consumption of power has demanded for energy efficient systems. Manufacturing industries are one of the major consumers of power. The motors used in industries consume majority amount of power generated due to which energy efficient standards for motors was generated. This caused approval of energy efficient standards for electric motors. Different agencies have been assigned for the electric motors to be more energy efficient. After the energy crisis of 1970, governments have involved importance of energy conservation and use of energy efficient devices all over the world. All these reasons such as government regulations and high oil prices have made the market for energy efficient systems. The increase in global oil prices has motivated technological innovations and enhanced efficiency in various sectors. The drivers of energy efficient market in emerging economies are related to economic development, reliability of supply and energy security. The energy efficiency investments are promoted in industries but they can be difficult to identify. Energy security is also reason that has brought energy efficiency to front as they contribute towards reduction in energy.
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Technology such as low E-glass and building energy consumption are widely applied across the world. Some of the governments issued policies to support building energy conservation. Some of the other technologies such as Building integrated PV’s and golden sun are practiced mainly in China and European countries. The increase in demand for consumer goods like refrigerators, air conditioners, and washing machines has motivated the market for power saving machines and low horsepower motors. The application of energy efficiency market is classified on the basis of its uses in industrial, commercial and residential sector. Major Energy-Efficient countries are U.K., U.S., Japan, Germany and Italy according to American Council for an Energy-Efficient Economy (ACEEE).
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Some of the key players in the energy efficiency and conservation market are ABB, Baldor Electric Company, Regal Beloit.
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