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What are the best circular economy examples in the energy sector and how can they be scaled up?

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The circular economy is a model that aims to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems. It offers a way to decouple economic growth from environmental degradation and resource depletion. In the energy sector, the circular economy can help reduce greenhouse gas emissions, enhance energy security, and create new business opportunities. In this article, you will learn about some of the best circular economy examples in the energy sector and how they can be scaled up to achieve greater impact.

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1 Renewable energy sources

One of the key elements of the circular economy in the energy sector is the shift from fossil fuels to renewable energy sources, such as solar, wind, hydro, and biomass. These sources are abundant, clean, and resilient, and can reduce the dependence on imported and finite resources. Renewable energy sources can also be integrated into circular systems, such as using waste heat from biogas plants to power district heating networks, or using solar panels to charge electric vehicles.

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2 Energy efficiency and demand response

Another aspect of the circular economy in the energy sector is the improvement of energy efficiency and the management of energy demand. This means using less energy to provide the same or better services, and adjusting the consumption patterns to match the availability of renewable energy sources. Energy efficiency and demand response can be achieved through various measures, such as smart meters, LED lighting, insulation, digitalization, and behavioral change.

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James Boyce

Remarkable Energy
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Look at the way technology has enabled behavioural change in Norway. Customers receive day ahead cost profiles for electricity on their smart phones and naturally adjust their consumption which helps balance the grid over the day. It also enables selling electricity back to grid (e.g. EV back to grid). The technology is already here but it needs policy to drive it harder (e.g. mandating smart meters, vehicle to grid mechanisms)

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3 Energy storage and grid flexibility

A third component of the circular economy in the energy sector is the development of energy storage and grid flexibility solutions. These are essential to balance the supply and demand of renewable energy sources, which can vary depending on weather conditions and time of day. Energy storage and grid flexibility can include batteries, pumped hydro, hydrogen, thermal storage, and demand-side management. These solutions can also enable the integration of decentralized and distributed energy resources, such as rooftop solar panels or microgrids.

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4 Material recovery and reuse

A fourth dimension of the circular economy in the energy sector is the recovery and reuse of materials from energy products and infrastructure. This means designing products and systems that are durable, repairable, upgradable, and recyclable, and minimizing the use of virgin and critical materials. Material recovery and reuse can apply to various energy products and infrastructure, such as wind turbines, solar panels, batteries, transformers, cables, and pipelines.

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5 Circular business models and innovation

A fifth and final aspect of the circular economy in the energy sector is the adoption of circular business models and innovation. This means creating value from waste streams, offering services instead of products, extending product lifespans, and collaborating across the value chain. Circular business models and innovation can also foster new markets, customer segments, revenue streams, and competitive advantages. Some examples of circular business models and innovation in the energy sector are waste-to-energy, energy-as-a-service, leasing, refurbishment, and co-creation.

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David Vogel

Investment, Policy and Strategy- Creating a clean, sustainable future.
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The circular economy has to be baked into the core of any business model for it to succeed. You can't just pick and choose. It needs to be all in. You won't be able to do everything with your business in the circular economy, but it has to be a priority.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best circular economy examples in the energy sector and how can they be scaled up?

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1 Renewable energy sources

2 Energy efficiency and demand response

3 Energy storage and grid flexibility

4 Material recovery and reuse

5 Circular business models and innovation

6 Here’s what else to consider

Sustainability

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What are the best circular economy examples in the energy sector and how can they be scaled up?

1

2

3

4

5

6

1 Renewable energy sources

2 Energy efficiency and demand response

3 Energy storage and grid flexibility

4 Material recovery and reuse

5 Circular business models and innovation

6 Here’s what else to consider

Sustainability

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