Posts tagged energy consumption
Access the Funds for Energy Efficiency Projects
Jan 11th
Ultimately, you want an energy efficiency plan for your business – understanding it makes good business sense to lower your energy consumption, to save money, improve your bottom line and protect the environment in the process. You followed the preliminary steps of benchmarking to see how your building compares with similar buildings in your area. You’ve also had an energy audit to get a handle on what upgrades your building needs.
After looking at the laundry list of inefficient equipment and building systems that need improvements and the associated costs, you start to conceptualize the various ways to shuffle the budget to find capital for these improvements and make it work!
Becoming energy efficient gives businesses the opportunity to reduce costs and in some cases, actually enhance the level of services that they provide to clients in terms of putting in the right level of lighting, providing the right temperature controls and comfort in various areas of the building. This is beneficial because it allows one to control costs without diminishing the levels of service.
Even in a weak economy, the sooner improvements are made, the sooner savings will add up. The cost of waiting is enormous. It’s like the cost of waiting to enter the PC age and waiting for the greatest, most sophisticated computer to come on the market. Over that period of time you are waiting – in the case of energy efficiency – there are substantial savings that your business is losing.
When assessing options for investing in energy efficiency, keep in mind these important factors to help ensure a complete assessment of the cost effectiveness:
- Consider long term and think about the cost and payback that will accrue over the complete life cycle of systems or equipment.
- Compare the cost of continuing with “business as usual” with no changes versus energy efficiency investments.
- Consider your public image – strong leadership in energy efficiency demonstrating your commitment to sustainability, conserving energy and saving the environment.
Many organizations see cash flow as a major obstacle to energy efficiency projects especially in tough economic times. The good news is there are multiple resources. There are programs that offer a number of financing incentives through rebates and other means to promote energy efficiency retrofits and installations. The incentives typically cover standard energy efficiency equipment for lighting and lighting controls, heating, ventilation, and air conditioning (HVAC), furnace, boilers and other gas equipment, motors, variable frequency drive (VFDs), and DDC/controls. These programs may also allow for customized measures. The Con Edison Green Team C&I program, for example, has a custom program that may include the installation of chillers/and or refrigeration system upgrades, industrial improvements, compressed air systems and other innovative measures not included on the standard rebates equipment list.
In most cases, financing can be structured so that the projects can be repaid from energy savings, negating the need for upfront capital. Check with your utility to see what opportunities are available. A good energy service company can guide your organization, offering special financing while the government provides tax credits and low interest loans for energy efficiency projects.
Written by David Pospisil. David Pospisil is program manager of Con Edison’s Commercial & Industrial Energy Efficiency Program, New York, N.Y.
Energy Management and Demand Response on our Minds in the Summertime
Jun 24th
As temperatures soared to over 90 degrees along the East coast in early June, air conditioners across the region were turned on full blast. Air conditioner usage during the hot summer months raise electricity demand and costs, making this season a particularly important time for utilities and energy consumers to focus on energy management opportunities in order to prevent rising costs and to maintain grid stability.
During the summer, air conditioning accounts for 60 to 80 percent of the typical peak demand. Peak energy demands occur for one to two percent of the entire year, yet electric providers must build generators sufficient to cover that peak, plus a reserve safety margin, even though they sit idle for 99 percent of the year. The cost of this generation resource is the highest of any resource.
In addition to the challenge of managing fluctuating energy demand from season to season, there is the larger issue of global energy consumption continuing to rise – the Department of Energy estimates that energy consumption is projected to rise by 50 percent over the next 25 years. This rising energy demand along with CO2 emission reduction goals is driving the need for greater energy efficiency. End-users, particularly large energy consumers such as commercial and industrial buildings, will play a significant role in creating a more sustainable and energy efficient world. The International Energy Agency forecasted that more than half of worldwide CO2 emission reductions will come from end-use efficiency.
Faced with this rising energy demand and the need to meet CO2 emission reductions, utilities and energy consumers have come to realize that they must work together to address our country’s energy challenges by changing our patterns of energy distribution and consumption. The smart grid will lay the groundwork to enable this changing relationship between utilities and end users.
In the past the U.S.’s electric grid sent energy down the line from where it was generated to where it would be used, with no way for end-users to return any unused power to the power plant or to generate and analyze data about usage patterns or problems. This results in a significant amount of energy waste.
Smart grid technologies enable real-time monitoring of energy usage and a bi-directional flow of energy and data between utilities and end users. This, in combination with new and pending legislation will provide end users with access to their energy usage data and enable them to monitor and control their energy consumption and costs while simultaneously helping utilities to maintain grid stability.
New opportunities to reduce energy costs continue to emerge as improvements in technology and increased consumer awareness of energy issues drive demand for intelligent energy management solutions. Demand Response (DR), for example offers financial incentives to energy consumers who agree to reduce their energy usage when energy demand is high. By working with utilities to balance energy demand, DR resources reduce the need for utilities to add expensive new generating capacity.
DR programs aimed at reducing peak load have proven to be particularly important during the summer when the grid is more likely to be overloaded due to increased energy demand. For instance, a 2005 study by the CUNY Institute for Urban Studies revealed that large multifamily residential peak limiting control programs in New York City was able to drop peak demand by 15 percent during critical peak demand times.
Technology improvements have enabled DR to evolve from an economic and reliability tool used in peak demand emergencies to a vehicle that allows utilities and end users to work together more consistently to maintain grid stability, reduce costs and drive greater energy efficiency.
As large energy consumers, the commercial and industrial sectors in particular stand to reap significant financial benefits by participating in DR activities. By participating in DR programs commercial and industrial customers can reduce their energy bills by cutting back on energy use during high peak, high cost times. Additionally, the Federal Energy Regulatory Commission (FERC) ruling 745 will require utilities and retail market operators to pay DR resources the market price for energy – this is a big step towards putting DR resources on par with traditional generation resources.
FERC ruling 745, along with the growing portfolio of intermittent renewable energy resources being added to the grid, are increasing the relevance of DR as a first-tier resource which will help drive greater participation in DR activities.
Demand response is continuing to evolve towards more real-time automation capabilities that will allow building management systems to communicate in real-time with the utility through electronic signals. Automated DR solutions and valuing demand side capacity on par with generation will be key factors in raising participation in DR programs, ensuring that utilities will be able to rely on tapping demand-side capacity, and that end-users will be motivated to effectively manage their consumption.
As energy demand fluctuates from season to season, DR resources provide a reliable solution which will bring significant benefits to both energy consumers and utilities including cost savings and power reliability, as well as energy efficiency improvements.
Written by Donald Rickey, Senior Vice President, Energy Business, Schneider Electric.
Is America Force Feeding American’s Oil?
May 23rd
On top of declining oil prices, declining petroleum consumption, a slight increase in the use of renewable energy, market launch of electric vehicles and the United State’s renewed sensitivity to greenhouse gas emissions, America is looking at reopening the door to offshore drilling.
Last week, The Obama administration announced an interest to “open vast expanses of water along the Atlantic coastline, the eastern Gulf of Mexico and the north coast of Alaska to oil and natural gas drilling, much of it for the first time”.
Politics aside, any immediate measures to reduce our dependence on foreign oil are in America’s best interest. With national priorities on energy security, economic prosperity and a cleaner environment, it makes sense to use domestic resources. However, with the door open, the question is when, if ever, will the door close to allow mainstream adoption of cleaner fuels?
To exasperate the situation, last week the National Research Council, an arm of the National Academy of Sciences issued a sharp warning that “not only is global warming real, but the effects are already becoming serious and the need has become “pressing” for a strong national policy to limit emissions of heat-trapping gases“.
Unfortunately, America’s energy policy makers have boxed us in with few viable non-carbon based sources of energy. Furthermore, President Obama’s campaign pledges to “ensure 10% of U.S. electricity comes from renewable sources by 2012 and 25% by 2025, and to establish a low national carbon-fuel standard” have evaporated as fast as a drop of water on the sun. The fact remains that after 40 years of federal spending on alternative fuels, renewables (not including hydroelectric power) constitute about 6% of U.S.’s energy consumption.
According to the Minerals Management Service, an arm of The Bureau of Ocean Energy Management, Regulation and Enforcement:
- “…85 percent of the U.S. offshore – known as the Outer Continental Shelf (OCS) – is currently restricted from oil and gas production.”
- “…federal offshore waters hold great potential for expanding domestic energy resources over the next 5 to 15 years.”
- “…U.S. Department of Interior estimates that there are currently 85.9 billion barrels of oil and 420 trillion cubic feet of natural gas available in federal offshore areas.”
- “…accessing these known reserves would provide enough oil to produce gasoline to run 192 million cars and heat 78 million homes for 15 years;”
- “…it is enough oil to completely replace current Persian Gulf imports for more than 60 years.
- “…known natural gas reserves in the OCS in the lower 48 states alone would heat more than 75 million homes for 60 years.”
- “Provided environmental safeguards are met, offshore development would serve the national interest as a means of improving energy security, diversifying supply, increasing economic development, and generating important local, state and federal revenue.”
In closing, it’s difficult to argue against any of these points. The fear now is; can America go another 60 years with our heads in the barrel!
Opinions expressed in this article are solely those of the author, Barry Stevens.
Dr. Barry Stevens is an accomplished business developer and entrepreneur in technology-driven enterprises. Barry has a depth and breadth of experience in the renewable energy, utility scale wind and solar power generation, electronics, chemicals & plastics, and manufacturing industries. He is the founder of TBD America Inc., a technology business development group. In this role, he is responsible for leading technology driven enterprises through ideation, development and commercialization.
Energy efficiency and the annoying guy next door
May 19th
Who would have thought backyards would cause so much trouble for the North American energy industry? First came the NIMBYs, ‘the not-in-my-backyard protesters’, who block power projects from being built near them. And now we have the GIMBBYs – ‘the give-me-a-bigger-backyard homeowners’, who are unwittingly getting in the way of energy efficiency.
GIMBBYs aren’t worried about seeing wind turbines or transmission lines from their backyards as are the NIMBYs. It’s the guy next store that they don’t want to see. And GIMBBYs number many among us. A recent study conducted for the National Association of Realtors found privacy to be very important in selecting a home for nearly half of the Americans surveyed.
What’s this got to with energy efficiency? To gain privacy we move to homes that are further from work, schools and stores, suburban and rural outposts that offer us bigger backyards. By way of disclosure, before I go any further, let me confess that I am a GIMBBY. I’d probably give up my lights, heat and air conditioning before my five acres of trees shielding me from others.
The Environmental Protection Agency calls big-backyard neighborhoods like mine “automobile dependent locations” and contrasts them with “transit-oriented” neighborhoods, places where you can hop a bus or easily walk to regular destinations. The agency recently looked at which kind of neighborhood uses the most British Thermal Units (BTUs) taking into account, size and type of house, its energy efficiency, and vehicle use of its occupants. This is known as Location Efficiency.
The EPA’s findings indicate that location really is everything. Transit-oriented neighborhoods offered up more energy savings whether the houses were single family detached, single family attached or multi-family. This is significant because homes that share walls typically require less energy for heating and cooling. But that advantage was not significant enough to overcome driving distance for the big-backyard neighborhoods. Travel requirements pretty much trumped all, indicating that a home’s location is “a major variable for household energy consumption,” the EPA said.
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“The takeaway here is that a location-efficient future does not necessarily mean a world of only multifamily housing. Far from it, location efficiency can enable greater housing choices, access to services, and more transportation options,” said Eric Mackres, communities program manager for the American Council for an Energy Efficient Economy in his blog.
So should all of us GIMBBYs pack up and move to the city? Clearly, that’s not going to happen. But our current housing development slump gives us time to reflect on how to design neighborhoods for the future. The graying of America is leading to an increasing number of childless households. And as the EPA study points out, these retirees often show a preference for “more walkable, vibrant urban places.” Demand will still exist for suburban homes with big backyards, but that demand is decreasing. So we may be entering a rare period when maximum energy efficiency and consumer desire go hand and hand. We may not have to look far afield to achieve significant energy savings; the answer might be in our backyards.
Written by Elisa Wood, who is the co-author of the recent white paper, “Exporting US Energy Efficiency”.
Vestas Wins 102MW CA Wind Turbine Contract
May 9th
Vestas Wins 102MW California Wind Turbine Contract
Vestas has been awarded a 102 MW order for a wind-energy project that is being developed in in Tehachapi, California. The owners of the wind development project, Brookfield Renewable Power (“Brookfield”) and Coram California Development Management, LLC (“CCDM”) have contracted Vestas to deliver, commission and provide maintenance to the V90-3.0 MW turbines for the next 2 years. Brookfield already has some experience with the V90 turbines. They are currently installing the same technology at the Granite Reliable Wind Project in New Hampshire. Once completed, Vestas will have 1,255 MW of wind turbine capacity installed in California.
Climate-Neutral Building Performance Theory vs. Reality
Some findings are starting to appear from the Model Home 2020 project. VELUX, which is managing the project, has learned that there is a distinct gap between theory and practice. The real challenge is to establish a bridge of dialogue to close this gap in order to qualify theory and thereby future practice. The project, which began in 2009, involved the construction of six houses in five countries across Europe. The goal of building these homes was to create climate-neutral buildings with a high degree of comfort. The homes are are being monitored in terms of quantitative and qualitative aspects. This includes capturing energy consumption and indoor climate numbers and the actual results are being compared with the assumptions made in the planning process.
Charter Fuels Joins Alliance AutoGas
Wisconsin based Charter Fuels has announced that they have increased their regional fleet propane autogas offerings through a partnership with the Alliance AutoGas network. The Alliance AutoGas network consists of companies that have goals to convert some or all their fleets to propane autogas. By converting to autogas, companies can see savings of more than more than $1 per gallon versus gasoline.
PJM Prepares For Summer Energy Demand
The PJM Interconnection is forecasting its energy supply this summer to meet it’s area’s electricity use. The grid operator has 180,400 MW of generation capacity to meet the expected demand for electricity this summer. For those that don’t live in the Northeast, the PJM Interconnection, provides grid services to 54 million people (20% of the U.S. economy) across13 states and the Washington DC area. Forecasts show peak power demand to reach 148,940 megawatts (MW), assuming typical summer peak weather conditions. Last year, the region broke the record for summer energy consumption, using 203,945,861 megawatt-hours (MWh) of electricity. The previous record was in 2005, with 203,415,406 MWh of consumption.
Energy Is the Lifeblood of Any Economic Unit
Apr 28th
Energy is the basic driver of all major economies. Nothing happens without an energy cost. That is virtually as basic as the laws of physics. Nothing is made, nothing is grown, nothing moves, without an energy cost. The lower the real cost of its energy, the more productive any economic unit will be. This holds true regardless of the size of the unit, whether it is a small company, or an entire nation.
The three value factors of energy include its cost in money per unit of energy, the cost of minimizing environmental damage, and the cost for transport from where it is to where it is used. These three factors affect the sum total cost of energy to any user in many ways. Since the cost of energy directly affects the value and profitability of any economic unit, it is important that every person, every organization, do what they can to lower overall energy costs. There are only two ways to do this, reduce energy consumption, and/or reduce energy costs.
Reducing energy consumption—conserving energy—is important only where energy efficiency can be increased, something that may not be practical in many cases. Also, this must be done without increasing environmental or transportation costs. While it is quite easy to assess direct costs, even that of transport, calculating the real cost of environmental damage is much more difficult.
An example of one very successful effort at a major change was that undertaken by the port of Long Beach and the Port of Los Angeles started in 2006. This change was undertaken principally to reduce air pollution, a major environment cost to the area. It had to be done in a manner that was as cost effective as practical. The following is a direct quote from the book Energy, Convenient Solutions.
“California set forth a ballot initiative that would free up $5 billion for deployment of a million LNG vehicles on state roads. In 2006, the ports of Long Beach and Los Angeles adopted a plan to reduce drastically pollution from more than 16,800 Class-8 tractor trailers. The basis of the plan was promoting the massive conversion of diesel trucks to LNG, Liquid natural gas. These big trucks, the only trucks strong enough to transport the heavy containers in and out of the ports, were contributing considerable amounts of pollution to the air in the LA basin.. The ports chose LNG for many reasons including safety and cost. Even with the expense of replacing diesel engines with LNG engines the ports look to save around $350 million each year. The ports have announced the approval of a new $1.6 billion Clean Truck Superfund. Wal-Mart, which operates one of the largest truck fleets in America, is testing four trucks to measure the possible money saved by the switch. I am certain other truck users are carefully watching the results.”
The ambitious Clean Trucks Program has reduced air pollution from harbor trucks by nearly 80 percent as of January 1, 2010. The Port banned trucks with 1993 and older engines, and almost all trucks with 1994-2003 engines. The program will also ban all trucks that don’t meet 2007 emission standards by 2012. With the industry replacing vehicles much sooner than expected, the result is a major reduction in air pollution two years ahead of the original schedule.
This is but a single instance of successful efforts to change one energy system and simultaneously reduce both environmental and operating costs. Currently, there are many other such efforts underway throughout the country. These range from hybrid and pure electric vehicles now coming to market to new systems for generating electricity, to new non fossil fuels.
There is no one answer to our energy problems. Whether or not we are running out of cheap petroleum is actually irrelevant. No matter how you look at it, it is quite obvious that petroleum products are continuing to rise in price. This can make alternative energy systems more attractive to buyers. There are countless technologies that could not compete successfully when oil was at $20 a barrel that would be very competitive with oil at $100 a barrel. Electric cars that were at a per mile cost disadvantage when gasoline was $1.50 per gallon now cost a third of cars powered by $4 per gallon gasoline.
Many new and different technologies will compete for the energy buyer’s dollar. This competition will gradually weed out poor performers and expand those that show the lowest cost. Then there is always the specter of catastrophic global warming driven by increasing atmospheric carbon dioxide. Whether real or not, there are enough believers to make it necessary to at least consider it
Increasingly, environmental costs are being considered in the overall equation. Many times these types of improvements have been found to pay back the investment in less time than anticipated. That is an everybody wins scenario. There is a major change underway. It will be quite some time before the marketplace determines the winners and losers.
Written by Howard Johnson, engineer/author. The opinions expressed in this article are solely those of Howard Johnson.
How Carbon Capture and Storage Work
Feb 13th
We are currently heading towards irreversible climate change. Too much CO2 in our atmosphere is leading to global warming, which is causing climate change. The world’s leading scientists have warned that unless the rise in average global temperature is kept below 2°C, devastating and irreversible climate change will occur. More >
Beyond Energy Management Systems: The Economic and Environmental Impact of Maximizing Real Estate Utilization
Feb 1st
Integrated energy management systems (EMS) are quickly becoming a necessity for companies worldwide as they look for innovative ways to reduce their carbon footprint, cut energy costs, abide by new government regulations, or simply to help the environment. Although employing these systems is a good way to start gaining better control over how energy is being consumed, an EMS alone simply isn’t sufficient to accurately and efficiently implement a comprehensive energy management program. More >
How To Ensure That Your Company Saves Money While Going Green
Jan 30th
For most companies, “going green” has to be synonymous with “saving money.” Luckily, there are a number of opportunities in most companies to reduce operating expenses significantly through a targeted, cost-effective sustainability program. More >
Facilities Management and the New Economics of Sustainability
Jan 25th
Energy Management is a term, which more and more, is becoming synonymous with facilities management. Throughout the private and public sectors alike, facilities directors are spending more of their time focusing on strategies to improve how their facilities use, and even source, energy and organizations are expanding the amount of resources, which they allocate towards “managing” energy. More >
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