How do you lower energy consumption without new machinery?

Higher OEE can reduce energy use per good unit by increasing productivity, for example through fewer stops and less scrap. The effect depends on how energy use and production change and needs to be verified through measurement. Reduced idling can decrease energy use, while shaving peak loads can lower peak demand costs without reducing total kWh.

Energy has shifted from being a line item buried deep in the income statement to a topic on the management team's weekly agenda. Energy prices have risen and fluctuated sharply. Customers are setting stricter requirements for climate data. In addition, production and energy data can become part of the basis for sustainability reporting.

The EU's target is to reduce final energy consumption by at least 11.7% by 2030 compared to the 2030 projections made in the EU's 2020 reference scenario. This is an EU-wide target, not an identical percentage requirement for every single factory.

European Commission: 2030 energy efficiency targets

The EU's climate target applies to greenhouse gas emissions. Net emissions must be reduced by at least 55% by 2030 compared to 1990 levels, and the EU is to become climate-neutral by 2050 at the latest. Energy efficiency can contribute to these targets.

European Commission: European Climate Law

The usual reaction is to start looking at capital investments. New, more energy-efficient machines. Solar panels on the roof. Heat recovery. It all makes sense in the long run. But starting at the other end is often faster, cheaper, and delivers a greater impact.

This guide walks through how to lower energy consumption in an existing factory by targeting productivity and losses. We show why production and energy are more closely linked than most think, which concrete actions deliver the greatest effect, and how an improvement platform becomes the engine driving the work.

How are productivity and energy consumption linked?

Productivity and energy are linked because a machine draws power even when it is not producing. Fewer stops and less scrap yield more good units for the same energy. Still, most factories measure energy consumption on a monthly or quarterly basis, reporting the figure to management where it simply sits. It says little about what is actually happening on the plant floor.

When we instead break down energy consumption and connect it to production data, the picture changes. Measurements across various industries show that an idle machine rarely draws zero power. Idling, ventilation, heating, auxiliary systems, control equipment, and compressed air consume energy even when nothing is being produced. An idling machine can consume a large share of the power it draws during full production, depending on the type of equipment.

Combine that with a typical OEE value. The industry average lies between 50 and 60%. This means that roughly 40 to 50% of machine time is non-value-adding. Research from Chalmers University of Technology shows the same pattern for energy: in a typical factory, around 67% of energy goes toward value-adding work. The remainder is consumed by downtime, changeovers, micro-stops, and speed losses where no production occurs, yet the energy meter keeps running.

This is the hidden connection. Fewer stops mean less idling. Faster changeovers mean less wasted heating energy. Fewer quality losses mean raw materials and energy are not spent on products that end up scrapped.

This makes energy management an integral part of continuous improvement, not a parallel initiative. And it changes where the major savings are found.

How much can a factory save?

A plant with an annual revenue of €100 million can realistically save around €125,000 per year in energy costs, and reduce climate impact by 60 to 80 tonnes of CO2 equivalents through systematic efforts targeting losses and consumption. This example is based on typical OEE levels and energy intensity in manufacturing.

The largest portion does not stem from new machinery. It comes from better utilisation of existing equipment. Less idling. Fewer changeovers for the same heating energy. Less scrap. Better collaboration between operators, maintenance, and planning.

For a plant or production manager, this presents a scenario where profitability and sustainability point in the exact same direction. Actions that lower energy consumption also lower the cost of production per unit and bolster competitiveness.

How can production, energy use, and peak demand costs be improved?

Two complementary approaches exist: improving production efficiency and reducing energy use during operation. Track both total energy consumption in kWh and kWh per good unit. Peak shaving is a separate measure targeting the maximum simultaneous load in kW; it can lower capacity charges without automatically reducing overall kWh consumption.

Method 1: produce more in the same time

This method focuses on getting more good units out of the same operating time.

If OEE increases from 55% to 65%, keeping planned production time, product mix, and ideal cycle time unchanged, the volume of good units produced increases by approximately 18.2%. If total energy consumption remains unchanged at the same time, energy use per good unit decreases by around 15.4%. The calculations are 65/55 − 1 and 1 − 55/65, respectively. Unchanged total energy consumption is an assumption in this example.

The route to getting there is classic lean and OEE improvement: identify the largest losses, prioritise, implement countermeasures, measure, and iterate. This work is best driven by a platform where the entire team, from operator to production supervisor, works with the same data and the same loss categories.

Method 2: reduce energy consumption and manage peak demand

The second path involves measuring energy consumption and power load under various operating conditions and selecting interventions based on the results. Distinguish between measures that reduce total energy consumption in kWh and measures that shave peak loads in kW.

A few concrete actions that yield results:

Peak shaving. Shaving peak loads involves reducing the maximum simultaneous power demand, measured in kW. This can reduce capacity and network charges, depending on electricity contracts and grid tariffs. It does not automatically mean that overall energy consumption, measured in kWh, decreases.

Compare similar machines. Two machines performing the same task can consume drastically different amounts of energy. In one pilot plant, one machine (designated Mch16) drew 7 kW during normal operation, while the equivalent Mch14 drew 12 kW performing the same task. The discrepancy was only discovered once measurements were taken. A mechanical adjustment was made, and consumption dropped.

Choose the right technology for the job. Electric injection moulding typically draws around 10 kWh per production cycle, whereas hydraulic injection moulding draws 25 kWh. The difference is significant. For new capital investment decisions, this is one of the most critical factors.

Turn off what is not in use. Compressed air leaks, compressors running during non-production periods, ventilation running at maximum when half the plant is idle. This is not glamorous, but it delivers rapid results once visualised.

Link energy data to product items and downtime causes. When you know which item consumes the most energy per unit, and which downtime causes incur the highest idling costs, continuous improvement efforts can be targeted where the return is greatest.

Where do you start?

Begin with five steps: create visibility through measurement, connect energy to production, prioritise three to five concrete actions, establish the work as a daily management routine, and report progress externally. The most common trap is attempting to do everything at once, which rarely succeeds.

Step 1: create visibility. Before you can improve, you must measure. Current clamps on the largest consumers and measuring idling consumption are often enough to begin. There is no need to monitor every socket in the factory.

Step 2: connect energy to production. Energy on its own is merely a number. Energy per unit produced, energy per stop, energy per shift, and energy per product item provide actionable insights. This is where a platform integrating OEE data, quality data, and energy data makes a difference.

Step 3: prioritise three to five concrete actions. Better to complete a few initiatives than take on ten that no one has time to finish. Select them based on what measurements show to be the largest opportunities and what you can realistically affect within a month. Drive them with clear ownership and follow-up.

Step 4: make it a routine. Address energy in the same forums where you review OEE and quality. Morning stand-ups. Weekly improvement meetings. Monthly reviews at executive level. Otherwise, it turns into an isolated project that fades away when someone changes jobs.

Step 5: report externally. Once the data is in place and the trend is positive, make use of it. With customers. With management. In CSRD and sustainability reports. This is how energy management transforms into commercial value rather than just cost cutting.

What does CSRD mean for energy work?

CSRD requires large companies to report their sustainability impacts, including energy and climate. Following the EU simplification in 2026, the requirements primarily apply to companies with more than 1,000 employees and net turnover exceeding €450 million. Smaller companies may also face requests for energy and climate data from customers who report under the directive.

Companies subject to CSRD report according to the European Sustainability Reporting Standards (ESRS). Which companies are covered, when reporting must commence, and which disclosures are required must be assessed based on current regulations and specific corporate circumstances.

For a manufacturing plant, energy data tied to production provides valuable documentation. Measuring by machine, line, or product item helps you identify energy waste and track the impact of improvements.

By bringing energy, OEE, and quality together into the same platform, you can use the data both in daily improvement work and as verification for sustainability reporting. While production and energy data form a core part of the documentation, they alone are not sufficient to satisfy all reporting requirements.

Read more about current regulations from the European Commission: sustainability reporting and CSRD.

What should effective platform support deliver?

Effective platform support should achieve four things: measure energy at machine and line level, display energy alongside production data, support daily routines rather than just reporting, and scale across multiple sites using standardised definitions.

Measure at the right level. By machine and by line, not just for the plant as a whole. Preferably within the same platform that measures production and quality, ensuring a seamless connection.

Display energy alongside production. kWh, cost, and CO2e per produced unit, linked to product items and downtime reasons. Visualised within the same platform alongside all other production data.

Support daily operations, not just reporting. Energy data should be accessible in the meetings where operational decisions are made, not restricted to monthly executive reports.

Scale across sites. If you operate multiple facilities, standardise definitions across all of them. Otherwise, comparing progress becomes impossible and reporting remains fragile.

How does Good Solutions approach energy?

The platform from Good Solutions features a dedicated energy module designed to integrate directly with the other modules. Current clamps paired with our IoT hardware measure consumption at machine level, even on legacy equipment. The data is linked to production, product items, and downtime causes, visualising kWh, cost, and CO2e per unit produced and integrating energy into daily improvement routines.

Because the platform is built to drive continuous improvements rather than merely log metrics, energy becomes one of several dimensions within the same workflow. It is discussed in the same morning stand-ups, reviewed in the same loss analyses, and managed by the same operators and leadership. Energy is simply an additional perspective on ongoing operations.

Results demonstrate that the link between productivity and energy goes well beyond theory. Barilla Wasa in Filipstad increased net production by 15% while reducing CO2 emissions by 28%. The gains did not come from a single major capital investment, but from systematic work addressing losses, changeovers, and capacity utilisation. Similar results are seen at Svenska Retursystem: increased efficiency alongside reduced resource and CO2e footprints from circular packaging.

The platform scales from individual lines to multi-site enterprise operations, handling both modern PLC-controlled machinery and legacy equipment without modern interfaces.

Read more about how others have increased their factory productivity

Frequently Asked Questions

How much can energy consumption realistically be reduced without investing in new machinery?
Experience across diverse sectors indicates that savings of 5 to 20% are entirely achievable by systematically targeting losses, idling, and the link between production and energy. For a typical plant with €100 million in turnover, this corresponds to approximately €125,000 annually and 60 to 80 tonnes of CO2e.

Do we have to measure every machine to get started?
No. Begin with the largest consumers, typically the 20% of machines that account for 70 to 80% of consumption. Once data is gathered and initial measures are in place, you can expand. You do not need the complete picture across the entire plant before making the first improvement.

What is the difference between measuring energy and working with energy?
Measuring energy produces a monthly report. Working with energy requires linking data to production, visualising it in daily operations, and using it in the same improvement forums as OEE and quality. The difference in business outcomes is often substantial.

How does CSRD connect with OEE initiatives?
The same measurement infrastructure driving OEE efforts can provide energy per produced unit, tied to product items and downtime causes. This data can serve as documentation for sustainability reporting, both for enterprises subject to CSRD and suppliers answering requests from their customers. However, production data alone does not satisfy all reporting obligations.

Where should we start if we want to get moving quickly?
Focus on three things first. Identify the three largest energy consumers in the factory. Install monitoring there. Link that data to production and downtime causes to pinpoint where idling and losses cost the most. Within a month, you will have the foundation required to prioritise actions effectively.