The hidden opportunity in properties: energy efficiency could save SEK 866 billion

When the energy debate gains momentum in Sweden, the focus is almost always on new energy production, such as nuclear, wind or solar power. But the fact is that some of the biggest and fastest gains can be found in the buildings we already have.

Properties account for close to 40 per cent of Sweden’s energy use, and a significant share of that energy is still wasted through poorly insulated building envelopes, outdated heating systems and inefficient ventilation.

Although the technology needed to significantly reduce energy use is already available for many buildings, only part of the potential is being realised. As a result, property owners are missing out on lower operating costs and higher property values, while society continues to face high emissions and growing demand for electricity.

“Society has focused too much on where our energy comes from and too little on how we use it,” says Anders Ekdahl, Senior Advisor, board member of Eneff and member of the think tank Fokus Energieffektivisering.

“It is the fastest and most cost effective route to an energy efficient and therefore more sustainable society. According to the Anthesis report Grön Logik, energy efficiency measures could save society as much as SEK 866 billion.”

Energy efficiency first

The property sector is facing a major transition. One of the key drivers is the EU Energy Efficiency Directive. At its core is the principle of “energy efficiency first”, meaning that opportunities to improve the efficiency of existing energy use should be considered before expanding energy supply.

Despite this, studies show that only around 30 per cent of profitable measures in Swedish municipalities and regions are actually implemented. The rest often fall through the cracks due to uncertainty around investments, a lack of knowledge, or because sustainability targets, financial considerations and technical decisions are handled separately within organisations.

“We are at a crossroads. Either we start adapting our properties now, or we risk falling far behind both EU requirements and market expectations. The technology is already available. The question is whether the industry is ready to invest. This energy efficiency gap is one of the property sector’s biggest challenges, but also one of its most underestimated opportunities,” says Ekdahl.

The technology already exists, but is not being used to its full potential

The problem is not a lack of technology. Quite the opposite. Smart control systems, modern cooling systems, heat pumps and ventilation solutions, including heat recovery, can significantly reduce energy use in many properties. In some cases, consumption can be cut by half.

“Many properties have systems that still work from a technical perspective, but are outdated from a sustainability point of view. Simply replacing an older heat pump or optimising a ventilation system can significantly reduce energy consumption while making the property more attractive to tenants,” says Ekdahl.

For companies developing and supplying solutions within heating, cooling, ventilation, controls and energy optimisation, this represents significant potential. But the opportunity is not simply about selling new technology. More and more property owners need help understanding which measures will have the greatest impact, how different systems can work together and how technical solutions affect the financial performance of the property.

From cost to investment

According to Ekdahl, one of the biggest challenges is how energy efficiency is perceived within the industry.

“Many still see it as a cost rather than an investment. But with rising energy prices and increasing demands from the EU, tenants and investors, it is quickly becoming a business necessity. Those who act first will have a clear competitive advantage.”

For suppliers, installers and technical consultants, this creates new business opportunities. At the same time, expectations around how solutions are presented are changing. Demonstrating technical performance is not always enough. Property owners also need to understand how an investment will affect energy costs, operations, sustainability performance and the long term value of the property.

“Energy efficiency is not just about lower energy bills. Renovation measures can also improve indoor climate, deliver health benefits for occupants, reduce climate impact and reduce the need for new electricity generation. In short, every kilowatt hour saved creates benefits on several levels,” says Ekdahl.

Yet the so called energy efficiency gap remains: the difference between what is profitable to do and what is actually being done. Closing that gap requires knowledge, the right basis for decision making and better collaboration between those with the need and those with the solutions.

A new arena for shared solutions

The need to bring together stakeholders across traditional boundaries is therefore greater than ever. Clima Energy Nordic is a new meeting place in Gothenburg, bringing together property owners, suppliers, installers, consultants, sustainability experts, investors and decision makers around one shared question: how can more efficient energy use deliver both stronger financial performance and concrete action?

“The energy situation creates uncertainty for everyone, from industries to individuals. One of the best things you can do is invest in solutions that reduce your exposure to energy prices. But to take that step with confidence, we need more knowledge sharing and dialogue. That is exactly what we want to create,” says Anders Ekdahl.

At Clima Energy Nordic, companies developing solutions meet property owners and other decision makers who need to reduce energy use, meet new requirements and improve the financial performance of their properties. The focus is on connecting technology, sustainability and finance, and on showing how solutions can create real value in existing buildings.

For suppliers, installers and consultants, the opportunity is therefore about more than growing demand for energy efficient solutions. It is also about getting closer to customers’ real needs and demonstrating how their solutions can contribute to lower costs, better energy performance and stronger property values.

“We need to stop seeing this as a burden and start recognising it as an opportunity. Those who move first will have a competitive advantage as tomorrow’s tenants and investors increasingly demand sustainable properties,” Ekdahl concludes.

Do you want to help turn the vast potential of energy efficiency into reality? Find out more about exhibiting at Clima Energy Nordic »