The Race to Net Zero: Clean Energy Transition Challenges and Strategies for Hotels
Finolhu Villas, a fully solar-powered luxurious island resort in the Maldives designed by Yuji Yamazaki Architecture. Photo by Finolhu Villas
Why it matters
Reducing carbon emissions is the number one remedy to fight climate change. With the energy sector accounting for over 70% of global carbon emissions, it is important to address this head-on. Source: Our World in Data.
Asia Pacific as a region is the world’s biggest carbon emission emitter due to its continued heavy dependence on coal for electricity and heating. The average share of coal power in electricity generation in Asia Pacific rose from 40% in 1990 to over 50% by 2020 according to the Asian Development Bank.
Furthermore, a recent study by the International Tourism Partnership suggests that the global hospitality industry must decrease emissions by 66 percent by 2030 to limit global warming to no more than two degrees Celsius, which is the threshold as outlined in the Paris Climate Accords.
Source: Our World in Data
Benefits
That said, transitioning to renewable energy is paramount for hotels in the hospitality sector as it brings forward its multifaceted benefits.
Firstly, it aligns with global efforts to combat climate change by significantly reducing carbon emissions associated with fossil-fuel-based energy sources like coal, oil, and natural gas.
Hotels using renewable energy demonstrate their commitment to mitigating negative environmental impacts, which can enhance their brand image and attract eco-conscious guests.
Moreover, renewable energy not only offers hotels long-term cost savings and stability by reducing dependence on fluctuating fossil fuel prices but also mitigating the risks associated with energy supply disruptions and future regulations on carbon emissions.
While the benefits are clear, it all comes down to execution.
It helps to be aware of some of the common mistakes and challenges related to energy usage reduction and renewable energy transition for hotels.
Common Mistakes and Challenges
1. Businesses often forget to be energy-efficient before adopting green energy
Economic growth has prompted an increase in energy consumption in Asia’s most populous countries. In 2022, China, India, and Indonesia experienced significant increases in energy usage, with growth rates of +2.1%, +7.3%, and +21%, respectively, compared to the previous year, as reported by enerdata.net, a leading source for global energy insights.
This further complicates Asia's shift from fossil fuels to renewable energy sources.
That said, it is critical for hotels to devise a strategy to minimize their energy consumption while simultaneously optimizing their current energy consumption.
Rubén Cortés, Managing Director at Reef Solutions, an engineering and energy consultancy, suggests that the increasing global demand for energy can only be met if it’s paired with improvements in resource efficiency.
Hotels and travel companies are recommended to analyze the opportunities to reduce energy consumption before investing in new systems or upgrades.
A good starting point begins with the building’s design and materiality. It should continue up to the monitoring & evaluation (M&E) processes and standard operating procedures (SOPs) for how energy is used at a hotel.
SPOTLIGHT: 12 simple and cost-effective tips to reduce energy consumption by Sustainable Hospitality Alliance
These tips were originally published by Sustainable Hospitality Alliance.
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Don’t operate heating and cooling systems at the same time. For example, set the heating to turn off at 21 Celsius degrees and the air condition to turn on at 23 - 24 Celsius degrees, so there is no overlap.
Avoid overheating or overcooling guest rooms and corridors – 19 - 21 Celsius degrees is comfortable. Turning down your thermostat by just 1 Celsius degree can reduce your annual heating bill by 10%.
Install timer switches and thermostats on your radiators to ensure you have good control of your heating systems and you are not heating spaces unnecessarily.
Install occupancy sensors or daylight sensors so lights are only on when needed.
Don’t overheat water – 60 Celsius degrees is ideal.
Insulate pipes and block draughts around windows and doors.
Install low-flow taps and shower heads in guest rooms to reduce the amount of hot water required.
Defrost fridges regularly, and make sure the seals on fridge and cold room doors are secure.
Reconfigure kitchens so that heating appliances (e.g., ovens or hobs) are not next to cooling appliances (e.g., fridges or freezers).
Use a pool cover when the pool is not in use.
If your current energy tariff is due to expire, look for renewable energy options as these can be cheaper (and are more sustainable) than traditional providers using oil and gas.
Engage staff so they understand what can be done and how they can support savings (e.g., turning lights off when not in use).
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Need more energy-saving tips? Check out Carbon Trust’s Guide on Energy Efficiency for the Hospitality Sector.
Also, be sure to check out Sustainable Hospitality Alliance’s Utilities Tracker.
2. Misconceptions about the financial implications of renewable energy
According to Cortés, decision-makers are frequently hesitant to examine choices because of outdated knowledge about adverse market conditions. Today, renewable energy is a lot more accessible and affordable than in previous years.
The reality is that today, we are experiencing a more competitive environment thanks to a combination of reforms in public policies, declining costs of solar energy, and increasing fossil energy prices.
He further elaborates that it’s of utmost importance that Asia’s governments diligently enforce environmental regulations, eliminate fossil fuel subsidies, implement carbon taxes, and redirect public funding to promote the adoption of energy efficiency and renewable energy technology.
According to World Resources Institute, Vietnam is expected to add almost three times as many renewables as the four other main renewable energy markets in Southeast Asia combined. Yet, the Southeast Asian country may still need to double coal capacity and almost quadruple natural gas powered facilities by 2030 to meet its projected energy demand. (L) An offshore wind farm, photo by Duy Khoi/AFP via Getty Images; (R) A wind park in Vietnam's Bac Lieu Province, photo by Reuters.
3. A lack of suitable locations for installing renewable energy systems in urban environments
Lucas Gauthier, Head of the Sustainability Department at Sevea, a consulting firm specializing in sustainable energy and water solutions with a strong hospitality portfolio in Cambodia, highlights a prevalent trend in densely populated Asian cities where hospitality infrastructure often integrates outdoor spaces such as patios or rooftops to enhance the guest experience. However, many hotels face the challenge of balancing uninterrupted guest experiences with the optimal utilization of their real estate for installing solar panels.
The good thing is that quite a few Asia’s hotels have managed to come up with a solution by using their roofs. For example, Pan Pacific’s PARKROYAL COLLECTION properties have installed solar panels on their roofs.
In Thailand, homegrown hotel operator Centara Hotels & Resorts plans to install solar panels at its properties, starting with Centara Grand Bangkok & Convention Center.
(L) PARKROYAL COLLECTION Marina Bay had 210 solar panels installed on its roof, photo by PARKROYAL COLLECTION Marina Bay, Singapore. (R) Templation Angkor Resort in Siem Reap, Cambodia has 360 solar panels on its property, covering 20% of its power needs, photo by Templation Angkor Resort.
Best Strategies
1. Set achievable science-based emission reduction targets
For many businesses, the most common way to set a goal is to reach Net Zero by a certain date. But the question is, how achievable is it?
Fortunately, the Science Based Targets Initiative (SBTi) has put together a comprehensive online assessment for companies of all sizes to determine their targets. To begin, be sure to have some knowledge of your scope 1, 2, and 3 emissions.
Check AST’s Ultimate A-Z Glossary for definitions for Scope 1, 2, and 3.
2. Conduct an energy audit
Conducting an energy audit is crucial for understanding your emissions, as it helps identify areas of high energy consumption and suitable approaches for implementing renewable energy solutions.
SPOTLIGHT: One Small Change Saves Batu Batu’s Energy Consumption and Cost
Batu Batu Resort is a beautiful off-the-grid island resort in the Johor Marine Park, approximately nine nautical miles off the east coast of Peninsular Malaysia.
Realizing that the resort was running on a legacy energy-intensive sewage system, the management worked with Reef Solutions to install a simplified and biologically friendly treatment plant that didn’t rely on a myriad of mechanical and electrical components, running 24/7.
Cortés highlights, “When the new treatment plant is completed, not only will it considerably improve the quality of the wastewater, but it will also reduce the resorts’ energy consumption.”
In 2020, an estimated 25 percent of Batu Batu’s energy was powered by its on-property solar panels, supplied by Canopy Power. Photos by Canopy Power.
3. Prioritize Seamless Guest Experience & Promote Team’s Behavioral Change
At the end of the day, hotels and resorts exist to offer a great guest experience. Saving energy or using green energy should not interrupt or deteriorate your guest experience. In fact, as hotels and resorts look to curate elegant spaces for guests, opportunities arise in guest bedrooms by using smart building controls to elevate the experience.
For instance, according to the BDC Network, smart forecasting models allow “hospitality operators to efficiently shift energy usage between guest rooms, social, and public spaces that will support sustainability targets.” Guests will notice and appreciate these eco-conscious gestures and spread the word about your hotel’s sustainability credentials.
At the same time, Gauthier emphasizes that team alignment is critical to promoting excellent practices and long-term impact in energy reduction efforts.
Located in the Indian state of Maharashtra, Aria Hotel offers views of the Godavari River and surrounding hills. Flooded with natural light, it boasts floor-to-ceiling windows and a rooftop solar array meeting 50% of energy needs. Thoughtful design ensures guest comfort and environmental responsibility. Photos by Aria Hotel.
