Why the circular economy model is imperative for a brighter energy outlook in 2020 – Opinion by Anil Chaudhry – ETEnergyworld.com

As the impact of climate change becomes more pronounced globally and in India, the importance of energy efficiency and effective management of resources increasingly comes into focus. When the global economy is facing challenges the case for energy efficiency remains as strong as ever. This is because efficient use and management of energy offers savings in both resource and monetary terms.

Against the above backdrop, the rationale for a shift to the circular economy (CE) appears more convincing. The CE is based on the mantra of eliminating or avoiding waste via the continuous use of resources. Its guiding principle revolves around making, using and then reusing or recycling products or resources. In contrast, the linear economy is based on the concept of take, make, use, and throw, which is wasteful and expensive in many ways.

Promoting sustainability

The CE is based on the closed-loop system. Besides, minimising the use of resources, it limits the creation of all waste, carbon emissions and varied forms of pollution. Thereby, all waste is used or cannibalised in making another product or by-product.

Today, CE is especially effective in increasing the efficiency of resources through recycling, particularly in the case of urban and industrial waste. In this way, a better balance is fostered between the economy, ecology, and society. For the CE model to succeed in a big way, however, all stakeholders, including manufacturers and customers, need to change the way in which products are made and used. From the traditional but unsustainable take, make and dispose model, it is necessary to adopt the circular approach revolving around repairing, refurbishing, reusing, recycling, and remanufacturing products.

In driving the circular economy, it is vital to focus on clean sources of power such as solar and wind. Beginning with the grid and then across the entire chain of energy consumption an increasing use of technologically enhanced IoT-enabled software and hardware is allowing for an intelligent usage of energy. When we integrate energy, automation and software with connectivity we drive greater energy and process optimisation. This level of integration enables us to better save (reduced consumption, optimise assets), connect (IT-OT integration, real-time analytics, plug into ERP), and share saved energy back across grids. Further, studies show us that moving towards a more circular economy could deliver benefits such as reducing pressure on the environment, improving the security of the supply of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth, and creating jobs.

Smart is circular

Irrespective of whether power demand is higher or lower, efficient energy management through the deployment of smart systems as well as the use of clean fuels can lead to tremendous power savings. The criticality of this approach becomes clear from two energy-related facts. Firstly, the countrys proportion of universal primary power demand is slated to double to about 11 per cent by 2040. Secondly, India is expected to surpass China as the largest global growth energy market in the mid-2020s.

Given such facts, its essential to shift to smart, energy-efficient systems available via the digitalisation of electricity services, which will help save both power and financial resources. This is managed by increasing the recovery of resources and reducing supply costs. Smart systems include the smart management of electricity demand and supply in commercial, industrial or residential structures, achieved by deploying smart meters, connected power infrastructure and allied energy management systems. Smart grid technologies comprise micro-grids, virtual power plants and demand-response systems, all of which are already improving power production, transmission and distribution across the entire supply chain.

Additionally, smart grids are being used in meeting energy needs under the Smart Cities mission. From generation and distribution to consumption, smart grids offer higher efficiency, greater control and more value by minimising the consumption of resources. Smart grids ensure energy supply requirements are met via entirely safe, secure and sustainable systems while leaving a much lower carbon footprint. India seeks to meet its sustainable development goals of 2030 through lower consumption of fossil fuels, smart systems based on solar power are an ideal, efficient and cost-effective solution.

For making Indias 2020 energy outlook brighter, its necessary to adopt a CE model and an efficient energy system that benefits the economy, ecology, and society at large facilitating humankinds transition to a cleaner, greener planet.

DISCLAIMER: The views expressed are solely of the author and ETEnergyworld.com does not necessarily subscribe to it. ETEnergyworld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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Why the circular economy model is imperative for a brighter energy outlook in 2020 - Opinion by Anil Chaudhry - ETEnergyworld.com