A Speech by International Rectifier CEO Alex Lidow on Energy Conservation

Alex Lidow, CEO of International Rectifier, recently spoke at the PCIM Europe regarding power conservation. According to him, he first realised the linkage between energy and the standard of living far back in the 1970's from his professor who said the costs of a pair of glasses was the costs of all of the energy i.e. to melt the glass, to plate the frames, to heat the store in which the glasses lived before they were purchased and the costs of refining the gasoline for the workers' cars. Excerpts:

"Energy is the foundation of cost and therefore the foundation of the global standard of living. Power management solution is the industry's mission to answer our lifetime mission to grow our standard of living.

The world spends over $3.7 trillion on energy in 2005. It is estimated to grow to $5.0 trillion in just 20 years by 2025. To save any energy is to improve our standard of living.

Our energy consumption for transportation is approximately 25 percent. With electronification of cars by adoption of hybrid vehicles and other new power management systems can save 50 percent of fuel.

Another 39 percent of energy is consumed by electric motors and lighting usage.

By converting to energy-efficient cars, appliances and lighting combined, we can save as much as 30 percent of energy consumption.

[For example] The consumer will buy only if the energy-efficient washing machine provides 'perceived' values that a consumer can experience its new and expanded features. Such additional values gives the consumer perception of good values for money in buying an energy-efficient washer at its price in the market. This is all about the 'user experience'; that providing a range of desirable features the consumer perceives which add sufficient value to purchase the product. It is the operating cost plus acquisition cost achieved at cost parity, plus the user experience, if applied to all energy-efficient applications including air conditioners, refrigerators, pumps, fans and industrial motor controls, that contribute to our world's saving of 30 percent energy consumption."