IEA predicts stronger efficiency gains

Global momentum on energy efficiency is expected to gain pace in 2025, according to the International Energy Agency’s latest annual assessment

The update highlights renewed progress in an essential area for bolstering energy security, strengthening economic competitiveness, and reducing both energy costs and emissions.

The IEA’s yearly outlook, Energy Efficiency 2025, reports that global primary energy intensity — the main indicator for tracking efficiency improvements — is projected to rise by 1.8% this year, compared with only 1% in 2024. Early data suggests that major economies including India and China are showing signs of stronger improvement relative to their average performance since 2019.

Since 2019, global advances in energy efficiency have remained relatively muted, averaging about 1.3% annually, a notable decline from the roughly 2% yearly progress recorded between 2010 and 2019.

“The acceleration in global progress on energy efficiency that we’re seeing in 2025 is encouraging, including positive signs in some major emerging economies. But our analysis shows that governments need to work even harder to ensure efficiency’s full range of benefits are enjoyed by as many people as possible,” said IEA Executive Director Fatih Birol. “Energy efficiency has the power to enhance people’s lives and livelihoods through greater energy security, more affordable bills, improved economic competitiveness and lower emissions.”

Today’s improvement rate remains far below the 4% target set for 2030 at COP28 in Dubai in 2023, where nearly 200 governments committed to doubling the global average annual energy efficiency improvement rate by the end of the decade.

The new IEA study outlines areas where governments are increasing their efforts and highlights structural issues slowing progress. For instance, nearly two-thirds of the rise in global final energy demand since 2019 has come from the industrial sector, where gains in energy intensity have weakened in recent years.

Policy development is also falling behind technological advancement, resulting in missed opportunities for energy savings. Air conditioners provide a clear example: while expanding access has significantly improved living conditions globally, soaring use has also pushed cooling-related electricity demand higher. Most units sold today remain far less efficient than the top-performing models, unnecessarily raising consumers’ energy costs.

The report notes that stronger policy action is central to unlocking faster progress. Governments can move forward by increasing the ambition of existing measures — many of which have failed to keep pace with modern technologies — and by closing remaining policy gaps. About half of all countries still lack minimum energy efficiency standards for new buildings, including regions with rapidly expanding construction. Targeting these gaps, especially in areas with high energy use and strong savings potential, can help accelerate global improvement.

To improve transparency and support quicker progress, the IEA has expanded its Energy Efficiency Progress Tracker, offering the latest regional insights aligned with the findings of Energy Efficiency 2025. The Agency has also added fresh case studies to its Energy Efficiency Policy Toolkit, providing policymakers with best-practice examples from diverse sectors worldwide.

The Keben Dam Water Supply Project, situated in Nandi County, is a key community-focused initiative designed to strengthen water source security. (Image source: POWERCHINA)

POWERCHINA has formally signed an engineering, procurement, and construction (EPC) contract with the Kenya Lake Victoria North Water Works Development Agency for the Keben Dam Water Supply Project in Kenya on 10 November

The Keben Dam Water Supply Project, situated in Nandi County, is a key community-focused initiative designed to strengthen water source security, improve supply systems, and introduce smart management technologies.

The project’s scope covers the design and construction of a dam, reservoir, water treatment plant, storage tanks, and an extensive network of transmission and distribution pipelines. Once operational, it is expected to significantly boost water supply capacity for Nandi County and nearby regions, serving hundreds of thousands of people. It will play an essential role in supporting local livelihoods and driving regional economic growth.

This contract represents another important step forward for POWERCHINA in Kenya’s water infrastructure landscape, reinforcing the company’s strong position in water resource development and community-focused projects throughout East Africa.

POWERCHINA will make full use of its comprehensive industry chain advantages in planning, design, and construction management, organise and implement the project. This will ensure high standards and quality, contributing to practical cooperation between China and Kenya and improving people's livelihoods."

New agreement aims to enhance data centre efficiency

Vertiv, a global leader in critical digital infrastructure, and Caterpillar Inc., a worldwide powerhouse in power systems, have announced a strategic collaboration to develop advanced energy optimisation solutions tailored for data centres

The initiative will combine Vertiv’s power distribution and cooling technologies with Caterpillar’s and its subsidiary Solar Turbines’ expertise in power generation and CCHP (Combined Cooling, Heat and Power). The result will be pre-engineered architectures designed to streamline deployment, accelerate time to power and enhance overall operational performance for data centre environments.

A strengthened alliance for modern energy needs

The partnership responds to the rising need for on-site energy systems that provide consistent, resilient power and cooling. Through this alliance, customers will gain access to a fully integrated solution with validated performance and seamless interfaces, enabling quicker design, installation and deployment.

Caterpillar and Solar Turbines will deliver power generation technologies, including natural gas turbines and reciprocating engines, ensuring reliable, scalable electricity and thermal output for CCHP applications.
Vertiv will contribute a comprehensive suite of modular, pre-designed power and cooling solutions, engineered to shorten design timelines and support standardised deployment.

Customer-focused benefits

• Accelerated time to power made possible through modular, predesigned reference architectures.

• Reduced PUE (Power Usage Effectiveness) thanks to optimised, end to end energy efficiency across power, cooling, distribution and load management.

• Global lifecycle support underpinned by the extensive worldwide service networks of Vertiv and Caterpillar.

Gio Albertazzi, CEO at Vertiv, stated, "This collaboration with Caterpillar and Solar Turbines is a cornerstone of our Bring Your Own Power and Cooling (BYOP and C) strategy and aligns seamlessly with our grid to chip framework by offering resilient, on-site power generation solutions. This is optimal for customers looking to reduce or eliminate grid dependence."

He added, "By combining our complementary technologies, portfolios and expertise, we are enabling coordinated integration. Our pre-engineered, interoperability-tested building blocks let customers execute design, build and deploy concurrently, with predictable system performance."

Jason Kaiser, group president of Caterpillar Power and Energy, emphasised the growing demand, saying, "As AI driven workloads continue to accelerate, the demand for robust and scalable power infrastructure and cooling is becoming increasingly critical. Our collaboration with Vertiv will enable us to deliver integrated, on-site energy solutions that lower PUE and meet customers' evolving needs."

This joint effort tackles the increasing need for dependable on-site energy solutions and introduces a simplified, unified path to solution design and execution. The Vertiv and Caterpillar Memorandum of Understanding (MOU) represents a significant milestone in advancing this ecosystem, helping customers overcome energy limitations and deploy optimised AI facilities.

MPT secures prestigious EU endorsement. (Image source: Master Power Technologies)

Master Power Technologies (MPT), a leading African specialist in critical power and data centre infrastructure, has become the first company from Africa to receive official recognition as an Endorser of the European Code of Conduct for Energy Efficiency in Data Centres

This achievement places MPT among the continent’s top champions of sustainable data centre design. It also confirms the company’s commitment to meeting the highest international standards for energy efficiency and responsible power usage.

The certification was granted by the European Commission’s Joint Research Centre (JRC), which recognises organisations that design and support data centres according to stringent energy-management best practices. With this endorsement, MPT joins a select roster of global leaders, such as Microsoft, who have earned this distinction.

“This is a proud moment for Africa. We have always believed that African engineering can meet and exceed global benchmarks. Now, with this certification, we can confidently assure our clients that their data centres are being built to the same standards as the best in Europe, efficient, sustainable and future-ready,” said Menno Parsons, founder and CEO of MPT.

Gold standard for data centre design

The European Code of Conduct was introduced to address rising concerns over the growing energy demands of data centres. Since launching in 2008, it has evolved into the leading benchmark for energy-efficient data centre design and operations across the EU. Until now, no African engineering company had secured certification within this framework.

Bernard Lecanu, managing director at BL International Consultant and one of the original creators of the Code, welcomed MPT’s achievement.

“When we began this initiative, we knew that the data centre industry would need to evolve rapidly to meet environmental and energy challenges. MPT’s achievement is not only a first for Africa, it is also a signal that the continent is ready to lead in sustainable digital infrastructure.”

For MPT’s clients, the certification provides clear and measurable value. It validates that their facilities are engineered for optimal energy performance, helping reduce operational expenditure and minimise environmental impact. It also boosts trust among international partners, especially those aligning with the EU’s Taxonomy Regulation and broader sustainability requirements.

Boost for Africa’s data centre industry

Beyond its commercial advantages, MPT’s endorsement delivers a significant push for Africa’s rapidly expanding data centre sector. As digital adoption accelerates across the continent, demand for resilient, efficient infrastructure is increasing. MPT’s success sets a new benchmark and supports the development of an African Code of Conduct, an initiative the company is helping shape in collaboration with European bodies.

“This is just the beginning. We are not only building data centres, we are also helping to build a sustainable digital future for Africa. This certification proves that African engineering can meet the most demanding global standards and gives our clients the confidence that every facility we design is optimised for performance, resilience, and environmental responsibility,” remarked Parsons.

“It also opens the door for deeper collaboration with European partners and policymakers, ensuring that Africa is not just catching up, but actively shaping the future of data centre innovation. We are proud to lead this transformation and are ready to help others follow.”