—W H I T E PA P E R

The future is energy-efficient,the future is data-driven

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Data, insights and expertise can improvethe energy efficiency of electrical rotating
equipment today
By 2050, global energy usage is projected to increase by almost 50%
compared to 2020. This includes an increase in energy consumption in theindustrial sector.1 At the time of writing, in the final quarter of 2022, thecost of energy – oil, gas and electricity – is particularly high, which has led
to significant extra energy costs for companies, and prices are expected toincrease.
that higher energy costs are a threat to profitability.
In addition to the cost element, new regulations mandate
improved energy efficiency and a reduction in emissions.
In industries and regions which have a large and aging
installed base there are clearly good opportunities toimprove energy efficiency by modernizing the existing
electric motor systems. This is the case in the US, forexample, where over 60% of industrial motors are over
10 years old. 3 Reducing energy consumption benefits
companies in terms of both profitability and sustainability.

Global players, including businesses and governments, arelooking for ways to achieve and enable sustainable growth.
Among the key findings of an Energy Efficiency survey
commissioned by ABB in 2022 was that 54 percent of thecompanies were already investing in energy efficiency
measures, and 40 percent planned to make energy
efficiency improvements that year.
Although energy demand is predicted to grow, new energy
efficiency standards and regulations are having a positiveeffect on global energy consumption. For example, in an IEA
analysis of nine large countries and regions, including China,
the European Union and the United States, it was found that
efficiency standards had successfully helped to save about
1,500 TWh of electricity in 2018. 2 This was equivalent to thetotal electricity generated in 2018 in those countries by windand solar facilities.
The aforementioned rising energy prices were one of themain drivers for this focus on energy efficiency. With anaverage of 23 percent of annual operating costs attributableto energy usage, ninety percent of respondents indicatedAt the moment, about 70 percent of the electricity
consumed by industry is used by electrical motors andthere are over 300 million industrial motor-driven systems
in operation.4 Therefore, improving the efficiency ofelectrical motor systems can play a significant role inhelping the world reduce CO2 emissions towards “net-zero”
and reduce waste. The measures needed to do this arepractical, realistic and effective, and they can reduceenergy costs for industry, too. In fact, it’s estimated that
if all 300 million motor systems were replaced with higher
efficiency equipment, we could reduce global electricity
consumption by up to 10%. 5
Thanks to the Internet of Things and digitalization, newtypes of digital services now offer even more opportunities
to reduce energy consumption. With remote connections
and services, the status of equipment and even wholeprocesses can be checked at any time, from anywhere,
enabling better decisions about energy efficiency. 51
percent of survey respondents are planning to use energy
efficiency appraisals to improve their operations.
In addition, new flexible business models are emerging
that offer the potential for continuous energy optimization
services. For example, a trusted partner, like ABB, can share
the responsibility for gradually improving the energy
efficiency of electrical motor driven equipment over time,
while maximizing the value customers get from their assets.

T H E F U T U R E I S D ATA - D R I V E N

Energy efficiency in industry
Despite the potential benefits of modernization anddigital services, there are sometimes barriers thatprevent companies from investing. Some of thesebarriers are listed below.

—
Total cost of ownership for motor systems

Cost: Companies often find it difficult to justify the
up-front expenses. Half of the 2022 survey respondents
cited cost as the biggest single factor in inhibiting theuptake of energy efficiency measures. However, thecosts, savings and benefits should be evaluated for the
Maintenancewhole life cycle. In most cases, the majority of the costof an electrical motor driven system comes from energy
used to run the motor throughout its working life, andenergy efficiency measures can pay back in just a few years.
See the figure Total cost of ownership for motor systems.

20%

Downtime: 37 percent of companies in the ABB Energy
Efficiency Survey were particularly concerned with the
downtime associated with modernization work.
Digital skills: Companies often feel that they do nothave the required in-house skills to make use of digitaltechnologies. The potential lack of in-house skills aswell as workforce resistance to new technology is moreevident in some countries, with with survey respondents
from India, China, and Brazil showing particular concern inthis area. This is where service partners are valuable: they
can provide both the technology and the skills needed to
improve the efficiency of a company's operations.
For a company with plants that are already inoperation, the starting point for improving energy
efficiency is to do an appraisal and assess the stateof the installed equipment to identify inefficiencies andopportunities. And for brand new, green-field operations,the focus should be on choosing and installing energyefficient solutions from the start. In both cases, the latest
developments in digital services and connected equipment
also offer further opportunities to continuously improveenergy efficiency now and in the future. In recognitionof this, regulators and organizations around the world
are setting and implementing minimum efficiency
performance standards (MEPS).

Digital transformation enables sustainable operations
Around the world, decision-makers in different
industrial segments see that digital solutions andthe IoT will play a big role in enabling companies
to improve the sustainability of their operations.
A 2022 study published by ABB showed that:6
94% agreed the Industrial IoT “enables better decisions,improving overall sustainability"
57% indicated the IoT has had a “significant positiveeffect” on operational decision-making
38% of digitally mature companies experienced top-line
growth due to sustainability practices

3

5%
Purchase

70%
EnergyDid you know?
While there is a lot of interest in sustainability, many
companies may not know that the technology needed
to help them to meet their energy efficiency goals andreduce their energy costs is already available.
The technology exists to reduce motor system energy
demand by 20% to 30%.7
The IEA estimates that industry accounts for more than
40% of global greenhouse gas emissions.8
More than 1/2 of the world’s electricity is consumedby just 4 applications:9• electric motor systems• lighting• room air conditioners• residential refrigerators
Using energy-efficient motor systems in developing andemerging economies could save 300 TWh and 200 Mt of
CO2 emissions per year by 2030. 10• That’s the same amount of energy that Mexico uses in ayear. 11
Smart demand response could provide 185 GW of system
flexibility globally, the same as the electricity supply
capacity of Australia and Italy combined. This could
save USD 270 billion of investment. 12

T H E F U T U R E I S E N E R G Y- E F F I C I E N T

4—
Replacing an old motor (IE3, 90 kW, running at full load) with a more efficient motor(IE5, 90 kW, running at full load) can significantly reduce losses and energy costs. 3

93%

6.77 kW

96.4%

3.36 kW

3.4%

3.41 kW

IE3: 93% efficiency

Losses

Losses

IE5: 96.4% efficiency

Benefits of changing from IE3 motor to
IE5 motor (90 kW, running at full load):

more efficient

lower losses

If electricity costs 0.1 kWh, then thesavings can be 6,600 EUR/year.

—
Evolution of EU energy prices in the last 5 years.
50
40
30
20
10
0
-10
-20
-30
Q1

Q2

Q3
2018

Energy—Source: Eurostat. 13

Q4

Q1

Q2

Q3
2019

Gas

Q4

Q1

Q2

Q3

Q4

2020
Fuel (includes petrol, diesel,liquid fuels and other fuels)

Q1

Q2

Q3

Q4

2021

Q1
2022

Electricity

T H E F U T U R E I S D ATA - D R I V E N—
Making billions ofbetter decisions
Assess potential energy savings
The ABB Energy Efficiency Survey tells us that different
countries and markets are looking for energy saving
opportunities. Fully 97 percent of the companies surveyed
said they are engaged in or planning energy efficiency
investments.
Due to these efforts, there will be an increasing needfor accurate data which spans countless systems andbusiness processes. With the right expertise and advanced
analytics, this data give companies the knowledge andvisibility they need to make better decisions about theenergy efficiency of their motor systems. It can include
data about motors, drives, entire powertrains and otherconnected equipment, as well as the equipment age andcondition, its power consumption and performance, and thedemands of the application, including load characteristics.
This is vital, for example, for the 70 percent of companies
that intend to improve energy efficiency in their processes
and operations.

In practice, there are several ways to gather and assess
data. Companies without connected equipment canconduct offline appraisals and obtain a one-off
assessment. In the case of connected equipment,
online analyses offer more constant energy efficiency
and cost savings. In this case, tools provided by expert
partners like ABB can gather data constantly to calculate
how much energy and money can be saved.
Once enough relevant data has been gathered, it
can be analyzed, assessed, and used to develop thebest long-term strategy for maintenance, modernization,energy savings and reductions in CO2 emissions. However,analytical expertise and knowledge of motor systems isrequired to put the results into context and turn theminto actionable information. Since businesses often
do not have people with this kind of expertise inhouse,
they are likely to need the help of an expert partner.
This is why ABB Motion Services offers a range ofsolutions specifically designed to help businesses
improve the energy efficiency of their operations.

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6ABB Energy Appraisals
An ABB Energy Appraisal gives a detailed insight into how
motor-driven applications perform, helping to make better
decisions on ways to save energy, lower CO2 emissions andboost a company’s overall energy efficiency. This process
can be done online or offline, i.e., when equipment isconnected or not connected.
The offline process involves involves a one-time on-site
visit by an ABB engineer to gather data from installedmotors and drives, generators, pumps, and otherapplications. The information gathered will include load
profiles and empirical data about energy consumption andprocess requirements. The engineer will then analyze thefindings to assess potential energy savings and reductions
in CO2 emissions, as well as the estimated payback time forany investments in motors and/or drives. They will also
prepare a clear, thorough report and an action plan thatwill include detailed recommendations for suitable drives
and motors, including the correct parameters for optimalenergy efficiency. Once recommendations have been
implemented, the savings can also be tracked andverified against the original predictions.
See the bigger picture
The online process uses remote connections to collect datafrom connected assets of the powertrain. The data will be
automatically processed to provide data-driven insightsthat can be used to reduce the power consumption of thecompany's powertrains. With this data, the customer can
get both instant insights into the energy use of their fleet,as well as accurate assessments of the energy saving
potential of individual connected assets. These insights
enable better decision-making, and because the data isgathered over longer periods of time, it can also be used
to reveal hidden opportunities to improve energy savings.
These audits are becoming increasingly popular among
companies that aim to increase their energy efficiency. An
average of 51 percent of 2022 survey respondents confirmed
they are conducting such audits to identify critical areas for
improvement. In China, this number increased to 71 percent.
Connected equipment and digital solutions make itmuch easier to obtain accurate and reliable data, anddigitalization will play an increasingly important role inenabling a more sustainable and energy-efficient future.
It will bring connected equipment, continuous remotemonitoring, data and analytics together to give companies
the insights they need to make the right decisions at theright time.
Another benefit of ABB energy appraisals - both offlineand online - is that they help companies look beyond processsilos. In the past, motor systems have often been viewed
and optimized as individual processes. Today’s solutions
can overcome this limitation to provide a connected viewof whole applications, giving companies deeper insights
into the performance and energy efficiency of theiroperations overall. Online appraisals that fully utilize
the power of collected data provide constant savingsin terms of costs and energy.

Read more—
51% of decision-makers
plan to use energy
efficiency audits to
identify key areas
for improvement.6

T H E F U T U R E I S D ATA - D R I V E N—
ImplementingchangeEnergy-efficient solutions and services
Once the optimum areas to make energy savings
and reduce CO2 emissions have been identified, thencompanies can begin to implement energy-efficientsolutions. These measures can include adding variable
speed drives to existing motors, replacing low efficiency
class motors with higher efficiency motors, or othermodernizing actions, for example.
The implementation phase should be done together
with a reliable partner that has experience in managing
this kind of project, such as ABB. They can upgrade,
install or commision new equipment, and use insightsfrom the data to ensure the fastest, most efficient andcost effective results. With good data, modernizations
can be implemented at all stages of the equipment
life-cycle.
For example, information about obsolescence andmigration paths can be used to plan and schedule
retrofits and upgrades to extend equipment operating
life and avoid premature scrapping. Encouraging
and enabling a circular perspective to equipment
modernization is a highly beneficial element of thisapproach. The data - both online and offline - can also
inform the best maintenance strategies to employ for
maximum reliability of equipment and processes.
Connected digital solutions can provide better data
about equipment and processes. When properly
integrated, these kinds of solutions can help identify
new opportunities for improvement and prioritize
investments, as well as predicting upcoming needs.
For example, continuous monitoring can be used to
improve maintenance planning, which, in turn, canimprove reliability, performance and continuous energy
efficiency. Furthermore, expert partners can also
analyze data about existing configurations and motor
usage to provide solutions that will lead to improved
energy efficiency and performance over time.

Read more—
ABB can help you to implement energy efficiency
improvements and reduce CO2 emissions

Energy appraisals
To implement energyefficient actions

Installation andcommissioning
Expand or replace existing
equipment with planned
minimum downtime.

MaintenanceTo ensure your equipment
operates reliably and as
expected

Modernizations
Retrofits, upgrades andmotor-driven replacements

Utilization of old assets
and end-of-life services
Responsible recycling
and disposal of motors
and drives

7

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Mitigating
risks
Flexible business models
Various types of digital services have been available forsome time, including condition monitoring, and remotetechnical support and troubleshooting. Previously, theadoption of IoT was too low for digitalization to havea major impact. This attitude is being reversed withadvances in digital technology, connectivity andprocessing power.
Instead of focusing on one issue, these new flexible
business models can be used to guarantee outcomes
and help companies mitigate their risks. This meansthat the customer and their service partner define andagree targets and desired outcomes over time, and thenthe partner takes responsibility for delivering them.
For example, a service partner, like ABB, could takeresponsibility for ensuring an improved level ofenergy efficiency.
Digital connectivity is a key component of outcomebased services because it provides us with the dataneeded to predict issues before they occur and make better
decisions about effective courses of action. Using secure,remote connections, the customer’s equipment and processes
can be monitored 24/7 and advanced data analytics can beused to follow performance, to ensure that agreed KPIs are
met and to identify and prevent risks in advance. Flexible
business models like these are provided by ABB, including
turnkey solutions all delivered through ABB Motion OneCare
agreements.
Because outcome-based services involve deeper cooperation
between customers and their service partners, companies
will need to be more willing to share data than in the past a shift in mindset that is essential to getting the most fromthese new models. Simply put, data lets service partners
provide a better quality of service and reduce the risks tothe customer. The connected technology and service
capabilities are already available, so outcomes likeconstant energy savings and reductions in CO2emissions are now within reach.

ABB Motion
OneCare agreement
With ABB Motion OneCare,
ABB partners with customers
to plan, coordinate and execute
equipment maintenance according
to the specific criticality and needs.
Each service agreement is tailored
to meet the customer’s long-term
objectives using expert knowledge,
standardized processes, andadvanced technologies.

Read moreT H E F U T U R E I S D ATA - D R I V E N

CUSTOMER CASE

WAGGERYD
The Waggeryd Cell AB pulp mill in Sweden has useddigitalization to continuously improve the energy
efficiency of their operations. The mill installed
146 ABB Ability™ Smart Sensors to gather accuratedata, which ABB’s experts use to monitor performanceand to analyze the mill’s status and energy efficiency.
As part of the service, ABB also provides energy
reports, and these have enabled the mill to identify
and deal with inefficiencies, for example, by replacing
wrongly dimensioned motors. The result is that
Waggeryd Cell AB has been able to reduce therisk of unplanned downtime and improve theirenergy efficiency.
Read the full article

CUSTOMER CASE

FIL-GENESISSpanish company FIL-GENESIS turned to ABB
Motion Services to improve the efficiency of theirhydro-power plant, leading to a 25% improvement in
power output. ABB's experts assessed the installedbase and technical data from the previous 10 year
and, using the insights gained, identified the mosteffective modernization options, together with theestimated payback time. As a result, FIL-GENESIS
added an ACS880 variable speed drive to the plantturbine together with specialised Hydropack control
software. The modernized system showed significantly
improved performance at low flow rates, compared tothe previously fixed speed of turbine operation.
Read the full article

CUSTOMER CASE

CERN
CERN is the world’s leading laboratory forparticle physics, providing a unique range ofparticle-accelerator facilities. To provide innovative
ways to reduce energy consumption in the cooling andventilation systems, smart sensors are used to collectdata. The resulting digital energy appraisal reportfrom ABB will identify motors with high consumption
and indicate where, how, and how much energy can besaved. Furthermore, the results and best practices thatemerge from this unique partnership will help illustrate
how industries and large-scale research facilities canuse digital solutions to become more energy efficient.
Read the full article

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Conclusion
Despite the recent and predicted future rises in fuelprices, solutions do exist that enable cost- and energy
efficiency. Embracing the possibilities of digitalizationand energy audits, companies are able to reduce costs
and engage in a circular economy. This approach is only
becoming more popular.

About 85% of companies say they are now adopting
IoT initiatives. 14 On average, the amount of connected
equipment is growing by 33% every year and it’s estimatedthat almost $7 trillion will be spent on digital transformation
between 2020 and 2023. 15, 16As the adoption of digitaltechnology accelerates, new types of services will
proliferate to enable companies to make better useof data, which will further enable them to improvethe energy efficiency of their operations.
ABB's range of digitally enabled solutions and life-cycle
services can help companies to continuously optimise theenergy efficiency of their electrical rotating equipment, andmitigate risks associated with adopting electrical energy
and CO2 emission reduction measures.
As digitalization continues to progress, data-driven services
will make it easier for companies to achieve their energy
efficiency goals and outcome-based business models will
become more common.

(1)		

International Energy Outlook 2021, U.S. Energy Information Administration's (EIA), page 12; https://www.eia.gov/outlooks/ieo/(2)		

IEA, Energy Efficiency 2021, page 17; https://www.iea.org/reports/energy-efficiency-2021

(3)		
		

Lawrence Berkeley National Laboratory, U.S. industrial and commercial motor system market assessment report,
Volume 1: characteristics of the installed base, January 2021, Page 67, permalink: https://escholarship.org/uc/item/42f631k3(4)		

Fong, J.; F. Ferreira; A.M. Silva; and A.T. De Almeida, “IEC61800-9 System Standards as a Tool to Boost the Efficiency of Electric Motor Driven Systems 		
Worldwide,” Inventions, 2020, 5, 20, https://www.mdpi.com/2411-5134/5/2/20/htm

(5)		
		

Waide, P. and C.U. Brunner, “Energy-Efficiency Policy Opportunities for Electric Motor-Driven Systems,” International Energy Agency working paper,
Paris, 2011 page 13, 17, 118.

(6)		ABB “Billions of Better Decisions” survey, August 2021; https://stories.ability.abb.com/better-decisions/introduction/(7)		

Electric Motor Systems Annex EMSA, https://www.iea-4e.org/emsa/(8)		 IEA (2021), Greenhouse Gas Emissions from Energy: Overview, IEA, Paris,
		https://www.iea.org/reports/greenhouse-gas-emissions-from-energy-overview/emissions-by-sector#abstract(9)		

Accelerating the Global Adoption of ENERGY-EFFICIENT ELECTRIC MOTORS AND MOTOR SYSTEMS, UN Environment, U4E Policy Guide, 2017, page 4; 		
https://united4efficiency.org/wp-content/uploads/2017/09/U4E-MotorGuide-201709-Final.pdf(10) 300TWh, 200 Mt, Accelerating the Global Adoption of ENERGY-EFFICIENT ELECTRIC MOTORS AND MOTOR SYSTEMS, UN Environment, U4E Policy Guide, 		
2017, page 15; https://united4efficiency.org/wp-content/uploads/2017/09/U4E-MotorGuide-201709-Final.pdf(11) IEA, Mexico Electricity Final consumption, https://www.iea.org/countries/mexico(12) IEA, Promoting digital demand-driven electricity networks, https://www.iea.org/areas-of-work/promoting-digital-demand-driven-electricity-networks(13) Eurostat, Evolution of energy prices in the last 5 years (EU), https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20220225-2(14) https://stories.ability.abb.com/better-decisions/the-industrial-iot/(15) IEA, Energy Efficiency 2021, page 18; https://www.iea.org/reports/energy-efficiency-2021(16)

https://stories.ability.abb.com/better-decisions/introduction/

T H E F U T U R E I S D ATA - D R I V E N

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