Energy efficiency ratio: The link between energy efficiency, cost and sustainability

Learn how Energy Efficiency Ratio (EER) influences cooling performance, operating costs, and sustainability throughout the lifetime of critical infrastructure.

When evaluating cooling solutions, cooling capacity is often the first specification considered. After all, the primary role of any cooling system is to remove heat and maintain the required operating conditions for critical equipment. However, cooling capacity alone does not tell the full story.

Two cooling units may deliver the same cooling performance while consuming significantly different amounts of electrical energy. Over the lifetime of the equipment, those differences can have a major impact on operating costs, total cost of ownership, and environmental performance.

This is where the Energy Efficiency Ratio, or EER, becomes particularly important.

EER expresses the relationship between the cooling capacity delivered by a unit and the electrical power required to produce that cooling effect. In practical terms, it measures how efficiently a cooling solution converts electrical energy into useful cooling.

A higher EER means that a system can deliver the same cooling capacity while consuming less energy. While this may appear to be a technical specification, its impact extends far beyond engineering performance.

Why EER matters in critical infrastructure cooling

For Vikinor, EER is an important measure because our cooling solutions are often used in telecom infrastructure, remote sites, and other critical applications where systems operate for extended periods throughout the year. In these environments, reliability and energy performance must go hand in hand.

This is why energy efficiency is central to our approach to cooling. Through continuous product development, testing, and refinement, we work to optimize the EER of our cooling solutions while maintaining the reliability required in demanding applications.

The value of this focus becomes particularly clear when considering the full lifecycle cost of cooling infrastructure.

The relationship between EER, CAPEX, OPEX, TCO, and sustainability

When selecting a cooling solution, organizations often focus on the initial purchase cost, commonly referred to as Capital Expenditure (CAPEX). While CAPEX is an important consideration, it represents only one part of the overall investment.

Cooling systems often operate continuously or for extended periods throughout the year, making electricity consumption one of the most significant ongoing expenses. These operating expenses, known as Operational Expenditure (OPEX), accumulate throughout the equipment’s lifetime and typically exceed the initial purchase cost.

For this reason, Total Cost of Ownership, or TCO, is an important consideration when assessing cooling infrastructure. TCO considers not only the upfront investment, but also the long-term costs associated with operation, energy consumption, and maintenance.

Because EER indicates how much energy is required to deliver a given cooling capacity, it has a direct influence on OPEX and overall TCO. A higher EER means less energy is needed to achieve the same cooling performance, which can reduce total cost over the lifetime of the equipment.

The same principle applies to environmental performance.

Every kilowatt-hour of electricity consumed carries an associated environmental impact. By reducing the amount of energy required for cooling, organizations can lower the indirect carbon emissions associated with electricity generation and support their broader sustainability objectives.

Comparing lifetime cost and environmental impact

To better understand the practical impact of energy efficiency, Vikinor conducted a comparative assessment using the VAK-5000-DC-SLIM as an example case. The Vikinor unit was compared with competitor products offering comparable cooling performance and evaluated under equivalent operating conditions.

The assessment looks at both cost and environmental impact over a 10-year operating period.

Figure 1 shows the estimated total cost over the lifetime of the product, divided into CAPEX and OPEX. To isolate the effect of energy efficiency, the comparison assumes the same purchase price for all units. While this is a simplified assumption, it allows the comparison to highlight how differences in energy consumption affect total lifetime cost.

Figure 2 compares the EER of the assessed solutions, while Figure 3 shows the corresponding cumulative CO₂e emissions over a 10-year operating period. Both figures use the same operating assumptions and a common grid emission factor of 0.46 kg CO₂e per kWh.

Together, the figures show how EER connects energy efficiency, cost, and environmental impact. The Vikinor solution, with an EER of 3.13, achieves both the lowest estimated lifetime cost and approximately 40% lower cumulative CO₂e emissions on average over 10 years compared to the alternative solutions included in the assessment.

This comparison reflects why EER remains an important focus in Vikinor’s ongoing product development. It is not only a measure of energy efficiency, but a practical indicator of how cooling solutions perform across their full lifecycle.

When reliability, cost efficiency, and sustainability objectives must be considered together, EER becomes an important indicator of long-term value. For Vikinor, it shows how efficient cooling solutions can support reliable performance and improved lifecycle efficiency throughout the lifetime of the infrastructure.