Focussing on the key priorities

11 January, 2010

As I pointed out in my last column, a holistic and successful energy management strategy is essentially a journey that should ultimately lead to a powerful combination of achievement in the three areas mentioned above.

I would like to highlight how some particular technology solutions can play an active and fundamental role in helping to maximise energy management strategies in these areas. I will also offer some pointers around the thorny issue of finance and suggestions on how a company’s energy efficiency focus can be paid for.

Firstly, electric motors are well known to be a major contributor to high energy usage. Estimates demonstrate that such motors account for over 50% of all electrical energy use across industry and commerce and, indeed, a 75kW motor can cost upwards of £1m in energy use to run throughout its lifetime.

Motor management

With forthcoming mandatory motor standards coming into force from 2011, as IE2 motors become the minimum efficiency standard, followed by an even higher IE3 standard set to be in place from 2015, it is clear that businesses need to adopt a motor management policy to encourage the start of high efficiency motor purchase. In my view, a sensible approach would be to instigate a review of all major applications to assess the correct motor sizing (in my experience many are not correctly sized for the application), and would the application, for example, benefit from the installation of a variable speed drive (VSD) to help cut energy consumption dramatically.

Use of VSDs has been strongly advocated in recent times. It is proven that substantial energy cost savings can be achieved by controlling the speed of motors in many applications, in particular, fans, pumps and turbo compressors. Savings often work out at between 30-50%. The payback period for VSDs is short (often a few months), but the long term benefit is significant. It is also certainly worth seriously considering such technology where high energy use occurs, even in demanding applications such as mixers and conveyors.

Companies should also be aware that VSDs and high efficiency motors are currently eligible for enhanced capital allowances (ECAs), as this adds a further financial benefit.

Seeing the light

Lighting accounts for approximately 19% of electricity consumption and some six percent of the UK’s total CO2 emissions. With the EU dictating through its Energy Using Products Directive (EuPD) a timetable for withdrawal of inefficient lamps, this is leading to the advent of new, low energy lamp technology which has advanced via developments in high efficiency halogen, compact fluorescent and LEDs which can offer up to 80% reduction in energy consumption.

However, thinking beyond just bulbs and lamps, it has been verified that a higher proportion of cost saving can be achieved through the introduction of overall intelligent lighting systems. Implementing schemes that incorporate DALI/KNX interface controls can deliver an estimated 44% reduction in energy cost through the utilisation of features such as daylight harvesting, constant light control and presence detection in rooms. Again, with payback a critical key performance indicator (KPI), examples of even the more sophisticated intelligent lighting schemes have paid for themselves within 24 months.

Buildings

Buildings use around 40% of energy and technologies such as intelligent building control systems and heating and cooling optimisation can also provide substantial energy reductions whilst also delivering a return on investment benefit within two years of installation. Industry should also remember that compressed air is one of the most expensive resources available and therefore, optimising its generation and use should be a key priority. Once the ‘demand management’ techniques are in place, users can then consider alternative and renewable energy sources. I have highlighted just a few of the current technologies that are readily available to help support company energy management strategies - laudable aspirations, but how can you finance these?

With the current economic climate still giving many companies cause for concern, there are a number of options available to help provide the investment required to deliver tangible energy management results. These range from the funding, via SALIX, available to public sector companies, to the interest-free loans on offer from the Carbon Trust. Such loans are applicable for energy efficient projects up to a value of £400,000 for SMEs in England and Scotland (although larger organisations may benefit in Wales and Northern Ireland).

It is also worthwhile considering the merits of innovative third party financing for energy projects as many, like those available from Siemens Financial Services, can help generate a positive cash flow contribution - without capital investment. Such arrangements can be constructed to cover a wide range of products and services within an overall managed service contract. Finally, on matters of finance, it may also be worth investigating if bodies such as regional development agencies have funding schemes that can support companies and encourage strategic energy management initiatives.

Source: Energy Management