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Why Energy Efficiency Is Becoming the Real Currency

As global power demand surges from AI and renewables reshape the grid, businesses must turn to energy efficiency to cut costs, reduce risk, and stay resilient.

Ava Montini

Oct 20, 2025

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For the first time in history, renewables have overtaken coal as the world’s largest source of electricity, making up 34.3% of global power generation in the first half of 2025. (The Guardian) Wind and solar are leading the charge, but the global energy landscape is entering a new and more complex era — one defined not just by how we produce power, but by how much we use.


And lately, usage is spiking.


The AI Boom Is Rewriting the Energy Equation

From data centers to chip foundries, the AI boom has ignited a new kind of industrial revolution. Major tech firms (such as Nvidia, Microsoft and others) are no longer waiting for the U.S. grid to catch up; they’re building their own power plants. In fact, one analysis finds that electricity costs in some regions near large AI data centre installations have surged up to 267% compared with five years ago. (Bloomberg)


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It’s not just abstract. In the U.S., wholesale electricity prices that would have been modest in 2020 are now far higher in data-centre hotspots. (Sandbox)


Why is this relevant?

  • These high-demand loads strain the grid, making the cost of electricity (and grid services) higher for everyone.

  • The more power-hungry the infrastructure becomes, the greater the business risk for enterprises that rely on stable, affordable energy.

  • As grid infrastructure lags behind demand, companies and organizations have to ask: What control do we have over our energy consumption?


When Power Becomes a Premium

Every kilowatt-hour now carries more weight, especially for companies operating large buildings or complex HVAC systems (sound familiar?). Efficiency isn’t just an ESG metric anymore; it’s a business imperative tied directly to cost-control and resilience.


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We’re now at a moment where:

  • Renewables are expanding fast, but demand is rising even faster in some tech/industrial sectors. For example, the International Energy Agency (IEA) projects that electricity demand from data centres will more than double by 2030 to around 945 TWh — “more than four times faster than the growth of total electricity consumption from all other sectors”. (IEA)

  • Some regions are seeing localized shortages, transmission constraints and higher wholesale power prices. In the U.S., wholesale electricity prices in several markets were up by 40-80 % in 2025 compared with 2024. (Construction Physics)

  • Organizations that wait for the “grid fix” may find themselves paying a premium (or exposed to reliability risk) in the meantime.


Put simply: If you can’t fully control your energy supply, you must control your energy use. Efficiency becomes the operational hedge.


The Efficiency Imperative

Here’s where the story turns from macro trends into actionable insight. The good news: The same technologies driving smarter AI are also enabling smarter buildings and systems. Intelligent filtration, automation, low-pressure HVAC systems, demand-response strategies — these are the tools to control the energy side of the business.


Here are three reasons why now is the time to focus on performance and efficiency:

  1. Cost Avoidance Becomes Value Creation

    With energy prices under pressure and demand growth uncertain, reducing consumption becomes a direct cost-mitigation strategy.– Efficiency improvements often pay back faster when baseline energy costs are rising.


  2. Grid Risk = Business Risk

    Relying solely on external supply (even if green) is a vulnerability; the more you rely on the grid, the more you’re exposed to spikes, shortages or regulatory premium pricing.– Being energy-efficient gives you more independence and control.


  3. Sustainability Meets Differentiation

    With the global pivot to renewables (for example, the projection that global renewable capacity additions between 2025-2030 will be ~4,600 GW) IEA — the organisations that get ahead now won’t just be “green” — they’ll be efficient green. That matters for brand, operations, risk profile.


When you think about building automation, indoor air quality and HVAC systems, you’re often dealing with the largest energy loads after lighting in a built environment. By focusing on filtration, optimization and smart control, you’re reducing both the peak load and the total energy used, which in the current climate is exactly the kind of strategic leverage organizations need.


  • Yes: the news about renewables overtaking coal is encouraging — that shift shows progress. But it also hides a key truth: demand is increasing fast, thanks in part to data, AI, buildings and more.

  • That means supply-side improvements alone aren’t enough. They must be matched by demand-side discipline (i.e., efficiency).

  • Organizations that act now to optimize their energy consumption will be better positioned, from cost, risk and sustainability standpoints, in the years ahead.


So whether you’re managing a campus, commercial building or industrial facility: don’t wait for the grid to “catch up.” Focus on what you control. Because in this new power era, efficiency is the real currency.



MORE INFORMATION

  • To explore available energy-efficient upgrades and funding programs supporting sustainable building projects, visit our Energy Grants page.


  • Learn how our Pro Filter's are helping organizations reduce energy use and operating costs while improving air quality across their facilities.

Rethinking HVAC: Decarbonization, Energy Efficiency, and Indoor Air Quality

  • Writer: Ava Montini
    Ava Montini
  • Nov 14, 2024
  • 7 min read

In an era where climate change, energy consumption, and public health intersect, the way we design, operate, and innovate within our buildings has never been more critical. At the heart of this transformation lies the HVAC (Heating, Ventilation, and Air Conditioning) system.


Although typically hidden from sight, HVAC infrastructure plays a crucial role in energy use, indoor air quality (IAQ), and carbon emissions. A closer look reveals that HVAC systems profoundly impact a building’s functionality, environmental footprint, public health outcomes, and operational efficiency.

The Energy-Intensive Reality of HVAC Systems

HVAC systems are among the largest energy consumers in residential and commercial buildings, often responsible for a significant portion of a building’s operating costs and environmental footprint. In the United States alone, HVAC accounts for approximately 35% of a building's energy consumption, a figure that can be even higher in colder and warmer climates due to increased heating and cooling demands. According to the 2021 Global Status Report for Buildings and Construction by the GlobalABC, the buildings sector accounted for 36% of global final energy consumption and 37% of energy-related CO₂ emissions in 2020.


Historically, HVAC systems have been energy-intensive by nature, using vast amounts of power to regulate temperature and maintain air quality within a building. This often places HVAC at the center of energy-saving and decarbonization initiatives. However, balancing energy efficiency with effective indoor air quality control has proven challenging.


Ventilation, which is essential for good IAQ, typically requires large volumes of air to be exchanged, a process that consumes significant energy and raises costs. This trade-off between energy savings and IAQ improvement has long hindered the HVAC industry’s transition to sustainable practices.


The Cost of Compromised Indoor Air Quality

Indoor air quality plays a vital role in health, well-being, and productivity. Poor IAQ has been linked to respiratory diseases, allergies, and even mental fatigue, while the economic cost of inadequate IAQ often goes unmeasured. The World Health Organization estimates that air pollution contributes to more than 4 million premature deaths each year, with indoor air pollution being a significant factor. Studies indicate that improved IAQ can reduce health risks and enhance cognitive function, particularly in office and educational settings where individuals spend extended hours indoors.


A study by the Harvard T.H. Chan School of Public Health found that participants in green office environments experienced a 61% improvement in cognitive scores, while those in green+ environments with enhanced ventilation saw scores double compared to conventional settings, underscoring the link between IAQ and productivity. Improved indoor air quality also reduces absenteeism, as shown by a U.S. Environmental Protection Agency (EPA) study reporting a 10% decrease in student absences with better IAQ, and additional research indicating that increased office ventilation can reduce short-term employee absences by 35%. These findings emphasize the importance of maintaining optimal IAQ in both educational and professional settings for health and productivity.


Comparing Outdoor vs. Indoor Air Quality

While outdoor air pollution often captures public attention, indoor air pollution can pose even greater health risks, largely because people spend nearly 90% of their time indoors. Without proper ventilation and filtration, indoor spaces can accumulate pollutants over time, creating high-risk environments even in areas where outdoor air is relatively clean. Indoor pollutants, such as volatile organic compounds (VOCs) from cleaning products, chemicals from building materials, and particulate matter from HVAC systems, often reach levels that are two to five times higher than outdoor levels. Compounding this, outdoor pollution or environmental factors, like wildfire smoke or high pollen counts, can seep indoors, adding to the burden on indoor air quality if not properly managed.


Bridging the Gap Between IAQ and Energy Efficiency

The perception that energy savings and optimal IAQ are mutually exclusive has evolved with advances in HVAC technology. New systems now offer solutions that provide fresh, filtered air without excessive energy consumption. Energy-efficient HVAC systems are equipped with features like variable-speed compressors, heat exchangers, and intelligent sensors that adjust airflow based on occupancy and usage patterns, more effectively balancing IAQ and energy use.


Key Technologies Redefining IAQ and Energy Efficiency in HVAC:

  1. Variable Refrigerant Flow (VRF) Systems: These systems allow precise control over the cooling and heating of each zone within a building, reducing energy consumption by eliminating the need to heat or cool unused areas.


  2. Heat Recovery Ventilation (HRV) Systems: HRVs reclaim heat from outgoing air and transfer it to incoming air, reducing the energy required to maintain indoor temperatures.


  3. Demand-Controlled Ventilation (DCV): DCV uses sensors to monitor CO2 levels and occupancy within a space, adjusting ventilation rates dynamically. This reduces unnecessary energy use and enhances air quality by providing fresh air only when needed.


  4. Low-Pressure Advanced Filtration: Low-pressure polarized filters efficiently capture pollutants like VOCs and fine particles with minimal airflow resistance, supporting energy and operational efficiency.


  5. Smart Thermostats and Building Automation: These systems enable HVAC units to operate at optimal efficiency by learning usage patterns, predicting occupancy, and adjusting temperature and ventilation levels based on real-time data.


The Role of HVAC in Building Decarbonization

With buildings accounting for nearly 40% of global energy consumption, they play a significant role in carbon emissions. Decarbonizing HVAC systems involves reducing direct emissions from fossil-fuel systems and minimizing indirect emissions through energy efficiency improvements. Efforts to decarbonize increasingly focus on electrifying heating, integrating renewable energy, and adopting advanced technologies that can greatly lower a building’s carbon footprint.


Pathways to Decarbonize HVAC Systems:


  1. Electrification of HVAC: Transitioning from gas boilers and furnaces to electric heat pumps can significantly cut direct emissions from fossil fuels. Paired with renewable energy sources, electric heat pumps further reduce both emissions and operating costs.


  2. Use of Renewable Energy: Integrating renewable sources like solar panels and wind power with HVAC systems reduces reliance on grid electricity. When HVAC systems are powered by renewable energy, buildings can move closer to achieving net-zero emissions.


  3. District Heating and Cooling Systems: Serving multiple buildings from a centralized plant, district heating and cooling systems dramatically reduce energy consumption and emissions. These systems are highly effective in urban areas and industrial complexes, where centralized efficiency can impact entire communities.


  4. Energy Storage and Peak Shaving: Battery storage systems allow buildings to store off-peak energy for later use, lowering demand on the grid and reducing costs. This approach also decreases the carbon footprint by reducing peak-time energy consumption.


  5. Low-Pressure, High Dust Loading Filtration: Low-pressure, high dust-loading filtration technology enables HVAC systems to maintain excellent indoor air quality without increasing energy consumption. By reducing strain on HVAC systems, these filters help optimize energy usage, creating a balanced, low-energy approach to superior indoor air quality. In high-traffic and sensitive environments, this filtration technology promotes sustainability and health but also contributes to lower peak energy demand and overall kWh usage.


Smart HVAC through Real-Time Data and Technology

Smart HVAC systems leverage IoT sensors, AI, and machine learning to enhance building management by providing real-time insights into temperature, occupancy, and indoor air quality (IAQ). IoT sensors enable systems to adjust settings based on occupancy and external conditions, optimizing comfort and reducing energy use. For example, unoccupied zones can automatically receive less heating or cooling, saving energy without sacrificing comfort.


Predictive maintenance is another key feature. It uses data to anticipate and address minor issues before they escalate, reducing repair costs and extending system lifespan. Machine learning further enhances efficiency by learning from usage patterns to optimize settings dynamically, reducing overall energy consumption. IAQ sensors adjust ventilation in response to pollutants, ensuring healthy indoor air, especially in high-occupancy environments like schools and hospitals.


This adaptive functionality not only lowers operational costs and peak energy demand but also supports sustainability goals by reducing carbon footprints. Smart HVAC systems offer continuous optimization, making buildings more resilient, efficient, and environmentally responsible.


Economic Incentives for Sustainable HVAC Systems

The economic benefits of sustainable HVAC upgrades are extensive. Although energy-efficient technology often requires an initial investment, the long-term savings in reduced energy bills can be substantial. Additionally, building owners may qualify for government incentives, grants, and rebates aimed at supporting energy-efficient retrofits. These financial incentives help offset initial costs, making sustainable HVAC upgrades more financially accessible.


Examples of Government Incentives

These incentives make sustainable HVAC systems more affordable and accessible, encouraging widespread adoption and supporting overall energy efficiency and decarbonization efforts.


Future-Proofing Buildings with Sustainable HVAC Solutions

The global transition to net-zero emissions by 2050 hinges on making our built environments sustainable and resilient. HVAC systems, with their substantial energy demands and carbon impact, are essential to this transformation. By embracing energy-efficient and decarbonized HVAC technologies, we can future-proof buildings against rising energy costs, regulatory changes, and environmental pressures.


This shift goes beyond simply improving IAQ or reducing energy bills; it’s about creating spaces where sustainability, health, and operational efficiency coexist. Clean, breathable air is not just a perk—it’s a necessity for well-being and productivity. Likewise, efficient, low-emission buildings are essential for a low-carbon economy.



The future of HVAC is evolving in a way that aligns energy efficiency, decarbonization, and indoor air quality as complementary goals. This shift challenges the traditional trade-offs between these objectives, proving that clean air and efficient energy use can coexist without compromise. HVAC systems of the future will be integrated, smart, and sustainable, paving the way for buildings that are not only more environmentally responsible but also healthier and more enjoyable to inhabit.


With ongoing innovations in HVAC technology, we are reaching a point where buildings can actively contribute to sustainability and public health, setting a new standard for what it means to operate a truly green building. By adopting these advanced systems, we are moving toward a reality where indoor spaces can maintain optimal air quality, reduce energy waste, and significantly cut emissions, creating a cleaner, more sustainable world.

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