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W H I T E PA P E R

The future is energy-efficient,

the future is data-driven
2 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

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Data, insights and expertise can improve
the 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 the
industrial sector.1 At the time of writing, in the final quarter of 2022, the
cost of energy – oil, gas and electricity – is particularly high, which has led
to significant extra energy costs for companies, and prices are expected to
increase.

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 to
improve energy efficiency by modernizing the existing
electric motor systems. This is the case in the US, for
example, where over 60% of industrial motors are over
10 years old. 3 Reducing energy consumption benefits
companies in terms of both profitability and sustainability.

At the moment, about 70 percent of the electricity

consumed by industry is used by electrical motors and
there are over 300 million industrial motor-driven systems
in operation.4 Therefore, improving the efficiency of
electrical motor systems can play a significant role in
helping the world reduce CO2 emissions towards “net-zero”
Global players, including businesses and governments, are and reduce waste. The measures needed to do this are
looking for ways to achieve and enable sustainable growth. practical, realistic and effective, and they can reduce
Among the key findings of an Energy Efficiency survey energy costs for industry, too. In fact, it’s estimated that
commissioned by ABB in 2022 was that 54 percent of the if all 300 million motor systems were replaced with higher
companies were already investing in energy efficiency efficiency equipment, we could reduce global electricity
measures, and 40 percent planned to make energy consumption by up to 10%. 5
efficiency improvements that year.
Thanks to the Internet of Things and digitalization, new
Although energy demand is predicted to grow, new energy types of digital services now offer even more opportunities
efficiency standards and regulations are having a positive to reduce energy consumption. With remote connections
effect on global energy consumption. For example, in an IEA and services, the status of equipment and even whole
analysis of nine large countries and regions, including China, processes can be checked at any time, from anywhere,
the European Union and the United States, it was found that enabling better decisions about energy efficiency. 51
efficiency standards had successfully helped to save about percent of survey respondents are planning to use energy
1,500 TWh of electricity in 2018. 2 This was equivalent to the efficiency appraisals to improve their operations.
total electricity generated in 2018 in those countries by wind
and solar facilities. In addition, new flexible business models are emerging
that offer the potential for continuous energy optimization
The aforementioned rising energy prices were one of the services. For example, a trusted partner, like ABB, can share
main drivers for this focus on energy efficiency. With an the responsibility for gradually improving the energy
average of 23 percent of annual operating costs attributable efficiency of electrical motor driven equipment over time,
to energy usage, ninety percent of respondents indicated 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 3

Energy efficiency in industry —

Despite the potential benefits of modernization and Total cost of ownership for motor systems
digital services, there are sometimes barriers that
prevent companies from investing. Some of these
barriers are listed below.

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 the
uptake of energy efficiency measures. However, the
costs, savings and benefits should be evaluated for the
20%
Maintenance
5%
Purchase
whole life cycle. In most cases, the majority of the cost
of an electrical motor driven system comes from energy
used to run the motor throughout its working life, and
energy efficiency measures can pay back in just a few years.
See the figure Total cost of ownership for motor systems.

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 not

have the required in-house skills to make use of digital
70%
Energy
technologies. The potential lack of in-house skills as
well as workforce resistance to new technology is more
evident in some countries, with with survey respondents
from India, China, and Brazil showing particular concern in Did you know?
this area. This is where service partners are valuable: they
While there is a lot of interest in sustainability, many
can provide both the technology and the skills needed to
companies may not know that the technology needed
improve the efficiency of a company's operations.
to help them to meet their energy efficiency goals and
reduce their energy costs is already available.
For a company with plants that are already in
operation, the starting point for improving energy
efficiency is to do an appraisal and assess the state The technology exists to reduce motor system energy
of the installed equipment to identify inefficiencies and demand by 20% to 30%.7
opportunities. And for brand new, green-field operations,
the focus should be on choosing and installing energy- The IEA estimates that industry accounts for more than
efficient solutions from the start. In both cases, the latest 40% of global greenhouse gas emissions.8
developments in digital services and connected equipment
also offer further opportunities to continuously improve More than 1/2 of the world’s electricity is consumed
energy efficiency now and in the future. In recognition by just 4 applications:9
of this, regulators and organizations around the world • electric motor systems
are setting and implementing minimum efficiency • lighting
performance standards (MEPS). • room air conditioners
• residential refrigerators

Digital transformation enables sustainable operations Using energy-efficient motor systems in developing and
emerging economies could save 300 TWh and 200 Mt of
Around the world, decision-makers in different
CO2 emissions per year by 2030. 10
industrial segments see that digital solutions and
• That’s the same amount of energy that Mexico uses in a
the IoT will play a big role in enabling companies
year. 11
to improve the sustainability of their operations.
A 2022 study published by ABB showed that:6
Smart demand response could provide 185 GW of system
94% agreed the Industrial IoT “enables better decisions, flexibility globally, the same as the electricity supply
improving overall sustainability" capacity of Australia and Italy combined. This could
save USD 270 billion of investment. 12
57% indicated the IoT has had a “significant positive
effect” on operational decision-making

38% of digitally mature companies experienced top-line

growth due to sustainability practices
4 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

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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%
IE3: 93% efficiency
6.77 kW
Losses

96.4%
IE5: 96.4% efficiency
3.36 kW
Losses

Benefits of changing from IE3 motor to

IE5 motor (90 kW, running at full load):
3.4%
more efficient
3.41 kW
lower losses

If electricity costs 0.1 kWh, then the

savings can be 6,600 EUR/year.

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Evolution of EU energy prices in the last 5 years.

50

40

30

20

10

-10

-20

-30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021 2022

Fuel (includes petrol, diesel,

Energy Gas Electricity
liquid fuels and other fuels)

—
Source: Eurostat. 13
 T H E F U T U R E I S D ATA - D R I V E N 5

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Making billions of
better decisions
Assess potential energy savings In practice, there are several ways to gather and assess
The ABB Energy Efficiency Survey tells us that different data. Companies without connected equipment can
countries and markets are looking for energy saving conduct offline appraisals and obtain a one-off
opportunities. Fully 97 percent of the companies surveyed assessment. In the case of connected equipment,
said they are engaged in or planning energy efficiency online analyses offer more constant energy efficiency
investments. and cost savings. In this case, tools provided by expert
partners like ABB can gather data constantly to calculate
Due to these efforts, there will be an increasing need how much energy and money can be saved.
for accurate data which spans countless systems and
business processes. With the right expertise and advanced Once enough relevant data has been gathered, it
analytics, this data give companies the knowledge and can be analyzed, assessed, and used to develop the
visibility they need to make better decisions about the best long-term strategy for maintenance, modernization,
energy efficiency of their motor systems. It can include energy savings and reductions in CO2 emissions. However,
data about motors, drives, entire powertrains and other analytical expertise and knowledge of motor systems is
connected equipment, as well as the equipment age and required to put the results into context and turn them
condition, its power consumption and performance, and the into actionable information. Since businesses often
demands of the application, including load characteristics. do not have people with this kind of expertise inhouse,
This is vital, for example, for the 70 percent of companies they are likely to need the help of an expert partner.
that intend to improve energy efficiency in their processes This is why ABB Motion Services offers a range of
and operations. solutions specifically designed to help businesses
improve the energy efficiency of their operations.
6 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

ABB Energy Appraisals as well as accurate assessments of the energy saving

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

Read more

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51% of decision-makers
plan to use energy
efficiency audits to
identify key areas
for improvement.6
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Implementing
change
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Energy-efficient solutions and services
ABB can help you to implement energy efficiency
Once the optimum areas to make energy savings
improvements and reduce CO2 emissions
and reduce CO2 emissions have been identified, then
companies can begin to implement energy-efficient
solutions. These measures can include adding variable
speed drives to existing motors, replacing low efficiency
class motors with higher efficiency motors, or other
modernizing actions, for example. Energy appraisals
To implement energy-
The implementation phase should be done together efficient actions
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 insights
from the data to ensure the fastest, most efficient and
cost effective results. With good data, modernizations Installation and
can be implemented at all stages of the equipment commissioning
life-cycle. Expand or replace existing
equipment with planned
For example, information about obsolescence and minimum downtime.
migration 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
Maintenance
modernization is a highly beneficial element of this
To ensure your equipment
approach. The data - both online and offline - can also
operates reliably and as
inform the best maintenance strategies to employ for
expected
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
Modernizations
investments, as well as predicting upcoming needs.
Retrofits, upgrades and
motor-driven replacements
For example, continuous monitoring can be used to
improve maintenance planning, which, in turn, can
improve reliability, performance and continuous energy
efficiency. Furthermore, expert partners can also
analyze data about existing configurations and motor Utilization of old assets
usage to provide solutions that will lead to improved and end-of-life services
energy efficiency and performance over time. Responsible recycling
and disposal of motors
and drives

Read more
8 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

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Mitigating
risks
Flexible business models needed to predict issues before they occur and make better
Various types of digital services have been available for decisions about effective courses of action. Using secure,
some time, including condition monitoring, and remote remote connections, the customer’s equipment and processes
technical support and troubleshooting. Previously, the can be monitored 24/7 and advanced data analytics can be
adoption of IoT was too low for digitalization to have used to follow performance, to ensure that agreed KPIs are
a major impact. This attitude is being reversed with met and to identify and prevent risks in advance. Flexible
advances in digital technology, connectivity and business models like these are provided by ABB, including
processing power. turnkey solutions all delivered through ABB Motion OneCare
agreements.
Instead of focusing on one issue, these new flexible
business models can be used to guarantee outcomes Because outcome-based services involve deeper cooperation
and help companies mitigate their risks. This means between customers and their service partners, companies
that the customer and their service partner define and will need to be more willing to share data than in the past -
agree targets and desired outcomes over time, and then a shift in mindset that is essential to getting the most from
the partner takes responsibility for delivering them. these new models. Simply put, data lets service partners
For example, a service partner, like ABB, could take provide a better quality of service and reduce the risks to
responsibility for ensuring an improved level of the customer. The connected technology and service
energy efficiency. capabilities are already available, so outcomes like
constant energy savings and reductions in CO2
Digital connectivity is a key component of outcome- emissions are now within reach.
based services because it provides us with the data

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, and
advanced technologies.

Read more
 T H E F U T U R E I S D ATA - D R I V E N 9

CUSTOMER CASE

WAGGERYD
The Waggeryd Cell AB pulp mill in Sweden has used
digitalization to continuously improve the energy
efficiency of their operations. The mill installed
146 ABB Ability™ Smart Sensors to gather accurate
data, which ABB’s experts use to monitor performance
and 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 the
risk of unplanned downtime and improve their
energy efficiency.

Read the full article

CUSTOMER CASE

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

Read the full article

CUSTOMER CASE

CERN
CERN is the world’s leading laboratory for
particle physics, providing a unique range of
particle-accelerator facilities. To provide innovative
ways to reduce energy consumption in the cooling and
ventilation systems, smart sensors are used to collect
data. The resulting digital energy appraisal report
from ABB will identify motors with high consumption
and indicate where, how, and how much energy can be
saved. Furthermore, the results and best practices that
emerge from this unique partnership will help illustrate
how industries and large-scale research facilities can
use digital solutions to become more energy efficient.

Read the full article

10 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

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Conclusion
Despite the recent and predicted future rises in fuel About 85% of companies say they are now adopting
prices, solutions do exist that enable cost- and energy IoT initiatives. 14 On average, the amount of connected
efficiency. Embracing the possibilities of digitalization equipment is growing by 33% every year and it’s estimated
and energy audits, companies are able to reduce costs that almost $7 trillion will be spent on digital transformation
and engage in a circular economy. This approach is only between 2020 and 2023. 15, 16As the adoption of digital
becoming more popular. technology accelerates, new types of services will
proliferate to enable companies to make better use
of data, which will further enable them to improve
the energy efficiency of their operations.

ABB's range of digitally enabled solutions and life-cycle

services can help companies to continuously optimise the
energy efficiency of their electrical rotating equipment, and
mitigate 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 11

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