| Delivering on carbon emission targets |
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| Written by Alan O'Brien, CEO, Sabien Technology Group plc, 2008 | |
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Alan O'Brien of Sabien Technology Group discusses the importance of implementing a cohesive companywide energy strategy and the vital role energy efficiency plays in its delivery.
Volatile energy prices and the increased focus on managing carbon emissions have resulted in senior management having to accelerate their plans of offsetting the impact both of these have on their companies.
Changing your company's behaviourImplementing behavioural solutions is a relatively simple and inexpensive initiative. The increased media focus on climate change has brought energy conservation to the forefront of people's minds, which will help underline and reinforce your message. There are typically five key strategic actions that can be put into place to effect behavioural changes across the company:
Awareness of the key initiatives the company is delivering both internally and externally will elevate the importance of energy reduction, provide momentum and buy-in across the company, and demonstrate the company's commitment to reducing carbon emissions. This can deliver up to 5 per cent reduction of the company's energy target at a low cost. Energy efficiency can deliver up to 50 per cent of your targetsEnergy efficiency will involve the greatest level of investment and focus. Reduction in energy consumption can be up to 50 per cent of the energy reduction targets. Energy efficiency can be comprehensive, including technology such as lighting, heating/cooling controls, BMS and insulation. A starting point can be:
Consider the suppliers' capabilities:
Many clients primarily look for payback and a proven capability and experience of delivering projects nationwide across entire building portfolios. The ability to provide full project management and installation can be a deciding factor in securing repeat orders. The strategic actions for energy efficiency are listed below and provide the key areas of focus:
Energy procurementThe volatile utilities market places further focus on energy procurement. The option of purchasing renewable energy is seen as a relatively easy option and doesn't involve using internal resource. However market analysts Datamonitor surveyed 3,500 of the UK's biggest energy users wanting to buy 34 TWh of renewable energy, nearly three times the 12.2 TWh of accredited renewable electricity produced in the UK. Buying renewable energy may not be an option for every organisation. The primary focus of this strategy is around energy demand management. However, it is essential to support the procurement/purchasing group in purchasing utilities at best cost:
The action plan will enable the business to record, measure and track the performance of each energy-saving initiative year-on-year (possibly through a dynamic spreadsheet), which will also record the associated annual cost savings. However, to ensure a like-for-like comparison against the standard base year, normalisation of actual consumption should be carried out annually. Figure 1 attempts to illustrate the impact that behavioral solutions, energy efficiency solutions and procurement will have on delivering the energy and carbon targets. ![]() Figure 1. Forecasted savings delivered by behavioural solutions, energy efficiency solutions and procurement. It is clear from Figure 1 that the single biggest influence on achieving the energy-saving targets is the ongoing investment in energy efficiency solutions. Embed a culture of saving energyAll industry intelligence points towards a continued increase in energy costs and increases in absolute energy consumption over the next few years. Accepting these implications, there are also very strong corporate responsibility drivers to reducing energy consumption. The government's energy White Paper targets an extremely challenging reduction in CO2 emissions of 60 per cent by 2050 and they expect 50 per cent of it to be through improved energy efficiencies. The Carbon Reduction Commitment is being introduced in two years' time with energy consumption being based this year for any organisation consuming more than 6,000,000 kWh of electricity a year. Targets will be set for these organisations and a league table of top and low performers will be published. Commitment from top management to reducing energy consumption is essential and it is necessary to build on this by embedding a culture of energy saving throughout the company through raising awareness of energy efficiency. That said, realistically, the vast majority of the energy to be saved will be through specific energy-saving initiatives and projects, and to this end it is critical that the capital investment fund is maintained year-on-year. Alan O'Brien is CEO of Sabien Technology Group plc. Please visit www.sabien-tech.co.uk Reference 1. Uncovered: a needless waste of energy. EIBI March 2008. |
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