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7 Factory Energy-Saving Solutions That Cut Costs and Emissions at the Same Time

Energy is a major cost and the main source of emissions for a factory. Seven energy-saving solutions with short payback periods, plus how to measure the results for ESG reporting.

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VietESG Editorial Team
·2 min read
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7 Factory Energy-Saving Solutions That Cut Costs and Emissions at the Same Time
Contents

Energy saving is the lowest-cost way to reduce emissions and usually pays back the fastest. Every kWh of electricity or kilogram of steam that is not wasted reduces both the bill and Scope 1 and 2 emissions. The Law on Economical and Efficient Use of Energy also sets specific obligations for designated energy-intensive facilities.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠

Key takeaways

  • Start with an energy audit to find out where money is "leaking".
  • Quick-payback measures: compressed air leaks, variable speed drives for pumps and fans, LED lighting, insulating steam lines.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠
  • ISO 50001 helps sustain the results and generates reliable data for ESG reporting.

Seven priority solutions

1. Energy audit

Meter consumption by area, production line and major equipment; identify the biggest consumers and quantified savings opportunities.

2. Fix compressed air leaks

Compressed air systems often have significant leakage rates. A regular leak detection and repair programme requires almost no capital investment.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠

3. Variable speed drives for pumps, fans and compressors

Adjust speed to the actual load instead of running at full load and throttling.

4. Optimise boilers and steam networks

Adjust the air–fuel ratio, recover condensate, and insulate pipes and valves.

5. LED lighting and sensors

Combine with making the most of natural light and zone-based controls.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠

6. Load and peak-hour management

Shift loads to off-peak hours and reduce peak demand to optimise electricity costs.

7. An ISO 50001 energy management system

Set energy performance indicators (EnPIs), targets, responsibilities and continuous measurement so that results do not "drift" once the project ends.

Bringing the results into ESG reporting

Report total energy consumption, energy intensity (per unit of product or revenue) and reductions in line with GRI 302. Combine this with green electricity to build a complete emissions reduction roadmap.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠

Frequently asked questions

Is an energy audit mandatory?

For designated energy-intensive facilities under the law on economical and efficient use of energy, periodic energy audits are a mandatory obligation.

Which solutions should come first?

Prioritise low-cost, quick-payback measures such as fixing compressed air leaks, adjusting operations and lighting, before moving on to major equipment investment.

Does energy saving count as emissions reduction?

Yes. Energy savings are converted into emissions reductions based on the emission factors of the fuels and electricity concerned.⁠‌​​​​‌​‌‌​‌​​​​‌‌‌‌​​‌‌‌‌​‌‌​‌​​⁠

VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.

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