Energy
| Energy efficiency |
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| Written by Tim Ashmore, Energy Services Manager, London Energy, July 2004 | |
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A huge amount of energy is wasted through lack of action on the part of users. But UK industry can address this issue, along with the latest challenges to energy usage, to achieve energy efficiency in a cost-effective way.
Energy efficiency measures often fall at the first hurdle due to the perceived high cost of implementing and maintaining such initiatives. Unpredictable consumption patterns and the apparent difficulties of devising energy efficiency programmes for industrial sites dissuade many firms from trying to implement energy saving measures. However, the combined effect of the Climate Change Levy (CCL) and the target for reducing CO2 emissions by 2010 has meant that UK industry is coming under increasing pressure to improve the environmental performance and cost-effectiveness of their processes and buildings. The low price of energy over the last few years has done little to encourage energy efficiency initiatives, especially as cost savings could be more easily made by reducing the unit cost of electricity. However, it is clear that a huge amount of energy is now being wasted through a lack of action on the part of energy users. Action Energy, part of Government-funded Carbon Trust, estimates that every year £12 billion of energy is wasted across the UK, which represents a staggering 30 per cent of the country’s consumption, with UK businesses losing up to £400 million per year just by neglecting to implement energy efficiency measures. In the last year energy costs have risen significantly, and if they continue to rise over the next few years, the current level of energy wastage will cost UK industry more and more. Of course, this rise in the base rate also means that the payback period for efficiency measures already taken will begin to shorten, thereby rewarding organisations that have addressed energy wastage. Apart from the financial burden arising from the increase in energy costs, industrial users may also find themselves liable for penalties imposed by the Government on wasteful users. One year ago, in February 2003, the Government published the Energy White Paper, confirming their views for the UK in a low carbon future. The paper strongly stated the need for more renewable energy and greater energy efficiency and outlined demanding goals for reductions in CO2 emissions, with targets or ‘ambitions’ set for 2010, 2020 and 2050. The Government proposes to meet these targets by encouraging generation from renewable sources and simultaneously reducing total energy consumption by promoting energy-efficient schemes designed to cut the level of carbon emitted over the next 50 years by 60 per cent. Actions aimed at limiting carbon emissions are already underway, in the form of the CCL and the Renewables Obligation, which requires electricity suppliers to sell a defined, and annually increasing, percentage of renewable electricity. As these measures continue to take effect, UK industry is realising that there is a growing cost implication for firms neglecting to properly address their energy wastage. The CCL and the Renewables Obligation, coupled with the current short supply of energy from renewable sources, has created an upward pressure on energy prices, which coincides with the current rise in the electricity base rate. The key to avoiding unnecessary penalties is to know how much energy is used and where, and then wastage can be identified and eliminated. Of course, those organisations already involved with CCL agreements are familiar with the need to monitor and record their energy consumption in order to be sure of meeting their CCL agreement targets. Measurement can itself be seen as a cost, but given that it can help firms fulfil their CCL obligations and also address energy wastage across the whole organisation, use of such a measurement system is extremely beneficial. Certain products are available which can aggregate and analyse energy consumption data. One example is London Energy’s Energy Performance Reporting Solution. Via products such as this, changes in consumption can easily be delineated and linked to a wide range of variables, helping firms measure the effectiveness of any energy efficiency initiatives that have been implemented. Such monitoring and analysis can even be done over multiple sites, making it suitable for comparing their energy performance. Of course the cheapest unit of energy is the unit not used, and staff awareness of simple energy saving measures can save an organisation a considerable amount of money. Even a small business can substantially cut its energy costs by merely turning off computers, monitors, photocopiers and televisions overnight, rather than leaving them on standby. Imagine the energy wasted, and hence the cost generated, by a large organisation that left all its computers and monitors on standby over the Christmas holiday. Lighting often accounts for around half of all energy used, so turning off lights, especially high-powered task lighting, is a very effective form of energy efficiency. London Energy actually offers free posters to its customers showing ways in which they use less energy, thereby raising awareness of the importance of energy saving measures ‘on the shop floor’. Recent research carried out by London Energy has revealed that it may be possible to convince staff to apply simple energy saving measures.The survey found that almost 80 per cent of companies believed that staff are responsive to simple energy efficient policies, such as turning off computers and photocopiers overnight, given suitable encouragement. The second stage of improving energy efficiency is to ensure that energy-using equipment is maintained correctly and regularly. This applies also to control systems for heating, air-conditioning etc. Poorly maintained plant and controls will almost always use more energy than necessary and often the cost of maintenance can be recovered by the savings from the reduced usage of energy. Whilst these simple measures are a very good starting point, other routes to energy efficiency, and hence cost savings, do require some initial investment. In terms of premises, buildings should be well insulated and have draught-proof doors and windows. Heating and air-conditioning units should be regularly serviced and well maintained. Companies that have energy-intensive core processes need to undertake a cost benefit analysis to ensure that old or poorly maintained equipment is not costing them more in the long-term than the up-front cost of upgrading to more energy efficient machinery now. The efficiency of high-energy use machinery is absolutely vital when tackling energy wastage. Whilst these measures can represent a large initial outlay, the consequent savings in energy usage are immediate and ongoing, especially when the rising cost of energy is factored into the equation. Of course, these measures also have knock-on benefits for the environment. Sustainable energy savings are not a quick fix. Therefore businesses need to take action now to begin using energy more efficiently in order to minimise any future financial penalties. Energy management has been too low on the priority scale for some businesses for too long. Upward pressures on the cost of energy should encourage businesses to begin using it more efficiently. Reducing consumption is not as difficult as it may seem and there are many solutions on the market that can help UK industry improve its performance – it simply needs to take the initiative. Further information Please contact: Tim Ashmore Energy Services Manager London Energy Tel: 01392 813 892 www.ebusiness-energy.com |
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