Can big data help us save energy?

In advancing towards a sustainable energy transition, energy efficiency often loses ground to options perceived as more “exciting”, like energy storage or clean tech. Such favoritism is undeserved: According to the IEA’s latest Energy Efficiency Market report, for example, “energy efficiency satisfies more energy service demand than any other fuel” in 11 OECD economies, making it the first fuel source.

A particularly important sector will be buildings, which alone will account for one-third of global energy savings by 2040 and where big data can play an important role in reducing energy consumption. TESCO, the UK’s largest retailer, is a good example. Five years ago, it set up a team of a dozen data analysts to monitor and optimise the energy efficiency performance of nearly 3,000 of its stores. Using data updated every half-hour, the company managed to save nearly £4m on its electricity bills in 2012. Buoyed by this success, Tesco is now moving to real-time data, contracting with energy analytics company Elster Energy ICT to analyse the 70m+ data points produced by each store.

Software solutions are entering the home as well, enabled by the democratisation of sensors, smart appliances and their increased interconnectivity. EcoFactor, for example, uses algorithms that combine information on consumer energy use, local weather data, house thermal properties and electricity prices to automate energy consumption and deliver energy savings.

They’re not the only ones in the race. While not yet at the same level of sophistication, smartphone apps are catching up. Phone maker Xiaomi, which entered the smart-home market last year, announced in January the launch of a $3.60 module that can “smarten” any appliance when linked to it–the module can then be controlled by an associated proprietary smartphone app.

Infused with $50m from e-commerce giant Alibaba, Peel is also entering the segment with an app that will enable its users to control their TV–Peel’s original focus–as well as their smart thermostats, lighting, air conditioners and locks. The app will be preloaded on Samsung’s Galaxy S6, HTC One M9 and, as of last month, on all smartphones from Indian telecommunications firm Karbonn Mobiles.

More than just apps will be needed to capture all of a building’s energy savings, however. Advances in new materials such as transparent solar panels or passive radiative cooling mirrors will also play a role. Developed by Stanford University, the latter can deliver a 5°C savings under direct sunlight—without any need for electricity. Should the technology become commercial, it could result in substantial savings. In the US alone, for example, households collectively spend circa $11bn a year to power air conditioners.

In the meantime, simpler ideas, like switching to more efficient lighting, could help cut energy consumption by one-fourth in the commercial sector alone. As the IEA notes, however, “combining more efficient lighting technology with more active control can achieve substantially larger savings”.

Big data may not be the silver bullet for energy efficiency, but it may be its silver lining.

This article is published in collaboration with GE LookAhead. Publication does not imply endorsement of views by the World Economic Forum.

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Author: Dr. Elie Chachoua is an expert in strategic and multidisciplinary research.

Image: A chimney of a cogeneration plant is seen. REUTERS/Kim Kyung-Hoon.