Energy makes up a significant part of the input costs in many manufacturing industries. The energy consumed in production accounts for up to 40 percent of the cost of cement,1 for example, up to 30 percent of the cost of many common chemicals, and 10 to 20 percent of the cost of paper, steel, and food2 production.
The relevance of energy in these cost structures has only grown. In Europe, natural gas prices may have fallen from their summer 2022 peak, but they have never returned to the levels seen in 2021—and as of early March 2026, they’re rising quickly once again. Electricity prices in many markets have risen sharply thanks to fuel-price dynamics, higher demand, and the escalating cost of grid upgrades. In the European Union, for example, electricity prices for large industrial consumers rose 86 percent, on average, between 2020 and 2025.3
Against this backdrop, the imperative for companies to pursue meaningful improvements in energy efficiency has rarely been stronger. Leaders are working to protect profitability and maintain pledged decarbonization trajectories. Yet many organizations find themselves running out of ideas. Decades of traditional energy audits have delivered diminishing returns, leaving companies few actionable insights into energy losses across complex production systems.
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