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Thursday, April 9, 2009

Cutting Costs - The Role of Energy Management

In the current economic climate and the need to cut unnecessary costs, energy efficiency has never been higher on the business agenda and any business looking to its future competitiveness needs to look at energy efficiency.

A recent study commissioned by Sustainable Energy Ireland (SEI) estimates that the commercial sector could save up to 25% of its current energy use through investment in economically viable efficiency opportunities. Typically, an initial expert assessment identifies immediate savings of more than 10% of current energy costs.

People ultimately determine how energy is used and energy efficiency is about much more than technology. The starting point is commitment from the top, supported by a systematic and structured approach to identifying and implementing opportunities for energy savings.

Often, a large part of a firm’s energy usage comes from a small number of users or pieces of equipment. It may be lighting, small process equipment, compressors, conveyors or IT equipment permanently switched on. By focusing on these key users and identifying priority actions, a company can achieve immediate results.


BIG SAVINGS CAN BE MADE
BY SWITCHING IT OFF
OR UNPLUGGING IT
WHEN NOT IN USE


In the Office

  • Switch off lights and heating in the office when they're not in use
  • Take advantage of natural daylight as much as possible
  • Turn computers off at night or if they are not going to be used for more than an hour.
  • Switch off office equipment such as printers, scanners and photocopiers, when not in use
  • Don't overfill the kettle

    Computers and monitors account for half the electricity wasted in an office every day. According to UK government figures, if all your PCs were turned off overnight and at weekends, they would save £63 (€67) a year each. So, for a business with 100 computers, that’s an annual saving of £6,300 (€6,700)
    Note that screen savers are not energy savers. In fact, using a screen saver may use more energy than not using one, and the power-down feature may not work if you have a screen saver activated.
    Some employees might not turn off their computers because they forget or find it a nuisance to have to boot up every morning. To solve this problem, you can buy “Automatic Shutdown” software that will shut down PCs at a set time and restart them in the morning before their users arrive for work.

In the Plant

  • Switch off lights, if safe to do so
  • Turn equipment and machinery off when not in use
  • Don’t leave trucks and fork trucks running when not in use or loading
  • Keep warehouse doors closed to conserve heat

The greatest savings are made when energy efficiency is built in from the start. Whether it’s a product, process or building design, the best opportunities are those seized at the outset, before work has even begun. This should apply to all design decisions and equipment purchases. No amount of retrofitting can catch all the opportunities available at the design stage.

Some good news stories

Cork-based Musgrave Group’s new sustainable head office building delivered operating cost savings of around 40% a year. Throwing out a conventional office proposal and committing to an energy efficiency-led design approach allowed retail group Musgrave to bring energy costs down by almost 40% at its new Group Head Office in Cork. Not only is the 2000m2 building very energy efficient, it features solar-thermal water heating and a geothermal heating and cooling system that prevents the need for air conditioning. Instead, the primary energy source for space heating is the renewable thermal energy of ground water on site.


Other key features of the office building:

  • Increased insulation of exterior cladding and high-specification glazing
  • Intelligent lighting, including occupancy and daylight level sensors
  • An energy management system to optimise energy use
  • Alignment of the building to make the most of shelter from prevailing winds
  • Central atrium and internal layout that maximise ambient daylight
Musgrave had corporate environmental and energy commitments in place prior to this project, and decided to bring them to bear at an early stage of design work. Through iterative re-working of the original proposal, the total energy load was reduced by 75%, with CO2 emissions savings of 65%.

At Shamrock Foods new lighting equipment has cut the company’s energy bill for lighting by over 70%. Shamrock Foods embarked on a project to reduce lighting energy use in its Dublin distribution facility. With lighting accounting for 60% of overall electrical energy consumption, it was a key user to target. The results could hardly have been better – a massive 70% cut in lighting energy use.

The solution was to replace 700 inefficient high-bay metal halide lights with half the number of modern efficient fluorescent lights (each consuming half the energy), all fitted with movement sensors. Spin-off benefits included a cooler building, as the old lighting generated significant heat, and maintenance savings because of the longer life of the new lights.

Government Energy grants for business

Accelerated Capital Allowance (ACA)
The ACA, introduced by the Government under section 46 of the Finance Act 2008, offers a tax incentive for companies to purchase energy efficient equipment. The entire purchase cost of products on the list can be written off against corporation tax in the year of purchase. The ACA offers an incentive to companies who are planning to purchase equipment in 5 specific categories: Building Energy Management Systems, Lighting, Lighting Controls, Motors, Variable Speed Drives. More info aca@sei.ie

Renewable Heat Deployment Programme
Grants are available to help businesses, public and community premises fund the cost of switching to renewable heating systems. Financial support of up to 30% will be provided to install wood chip or pellet boilers, solar hot water heating systems and heat pumps. Applicants must carry out a feasibility or design study when applying for the grant and meet the technical criteria laid out by the SEI. More info here

Combined Heat and Power Deployment Programme
40% funding is available for the cost of qualifying feasibility studies and 30% investment grant support for small-scale fossil-fired CHP projects in industrial, commercial, service and public sectors. More info here

Start Saving Money Now
From the smallest to the largest, savings are available to any business that tackles its energy use. Any program should start with a look at current energy use – where is it being used and why. Action should start in the place where most energy is being used and where most savings can be found.



Action item:
Carry out an energy usage evaluation immediately

Sustainable Energy Ireland (SEI) offers supports to all kinds of businesses interested in tackling energy costs. From free advice to advanced training, from where to start looking to how to reach the highest standard of efficiency. For information on any aspect of SEI's services for business. Contact the Industry team at: T: 01-8082100 email: business@sei.ie

Brendan Palmer MBA
http://www.electronic-recycling.ie/

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