Beyond generation: why energy efficiency is key to the future

Every March 5, the world commemorates World Energy Efficiency Day, a key date to reflect on how we use energy and what actions we can take to optimize its consumption. In a global context of climate crisis, increasing energy demand and depletion of natural resources, improving energy efficiency is an urgent need.

Energy efficiency not only reduces emissions and protects the environment, but also generates economic savings, improves business competitiveness and strengthens the resilience of energy systems. Today, governments, companies and citizens face the challenge of transforming their energy consumption and adopting innovative solutions for more sustainable development.

Latin America: Progress and Challenges in Energy Efficiency

Latin America has great potential in renewable energy, but it still faces structural challenges in energy efficiency. According to CEPAL, the region remains heavily dependent on hydrocarbons, although there have been significant advances in the adoption of renewable energies, especially in Chile, Brazil and Mexico.

However, difficulties persist such as:

• High losses in power transmission and distribution, which affects the efficiency of the electrical system.
• Lack of incentives for energy saving, due to fossil fuel subsidies that discourage the efficient use of energy.
• Dependence on hydroelectric plants, a clean source but vulnerable to prolonged droughts caused by climate change.

Despite these challenges, energy efficiency has proven to be a key strategy in the region. Since 2004, Latin America has decoupled GDP growth from energy consumption, meaning that economies are growing without the need to proportionately increase electricity consumption. One example is Mexico, where the installed capacity of renewable energies doubled in the last decade, reaching 33,517 MW in 2023, enough to supply 33 cities the size of Quito.

Ecuador and energy efficiency: a priority in times of crisis

Ecuador has made progress in the transition to cleaner energy sources, with a strong focus on hydroelectric generation. However, the energy crisis of 2024 highlighted the urgency of prioritizing energy efficiency, both in generation and consumption.

Prolonged droughts and structural problems in the electricity sector caused blackouts that affected the economy, trade and the quality of life of citizens. This context obliges:

• Reduce losses in the distribution network.
• Adopt more sustainable models of generation and consumption.
• Promote efficiency in key sectors such as telecommunications, industry and transport.

One of the sectors that has made the most progress in energy efficiency is digital infrastructure and telecommunications, including Cirion Technologies, which has implemented strategies to optimize energy consumption in its data centers, telecommunications networks and digital solutions.

In its most recent sustainability report, Cirion highlighted key developments:

• A 17% reduction in its carbon footprint, thanks to investments in renewable energy and optimization of telecommunications nodes.
• Increased the use of renewable energy from 40% to 62% in the last year.
• Development of energy efficiency strategies in data centers and submarine cables to reduce consumption.

Francisco Guzmán, Country Manager of Cirion Technologies in Ecuador, highlights that “digital transformation and energy efficiency go hand in hand. Sustainable digital infrastructure not only improves the performance of companies, but also optimizes energy use, reducing costs and minimizing environmental impact.”

Cirion’s data centers, optimized with smart cooling and renewable energy, demonstrate that technology can be a key ally in energy efficiency.

Energy efficiency in everyday life

Beyond industry, energy efficiency also depends on the decisions of individual individuals and companies to optimize the use of electricity in different sectors:

Homes: Use of efficient appliances, LED lighting and disconnection of unused appliances. One example is Guadalajara, Spain, where connecting 135 homes to a biomass-based heating network reduced 306 tons of CO2 per year.

Companies and industries: Energy audits and equipment modernization to reduce consumption. An emblematic case is the Empire State Building, which after a modernization reduced its energy consumption by 38%, achieving annual savings of $4.4 million.

Sustainable mobility: Introduction of electric buses and promotion of hybrid and electric vehicles to reduce the carbon footprint in transport.

Although Ecuador has a high hydroelectric potential, it is key to diversify its energy matrix with renewable sources such as solar and wind. Initiatives such as those of Cirion Technologies demonstrate that technological innovation can accelerate energy efficiency and reduce environmental impact.

Countries face a crucial challenge: not only to generate energy cleanly, but to use it efficiently and equitably. To this end, a change in mentality that involves citizens, and governments in the commitment to sustainable technologies, responsible habits and resilient energy infrastructure is essential.

This March 5, on World Energy Efficiency Day, is the time to become aware of how we use energy and what actions we can implement to optimize its consumption. The key question is: what can we do today to reduce our energy consumption and contribute to a more efficient and sustainable future?