Energy efficiency: achieving sustainability

Bill Wright, Head of Energy Solutions at the Electrical Contractors Association,

Why is it that renewable energy seems to get all the publicity? We continually hear about the
latest wind turbines, placed in extreme locations and with the premise being bigger produces
more. Biomass systems are flavour of the month as the Renewable Heat Incentive
encourages more people to install these systems. PV installations crop up everywhere even
though the government cant seem to decide whether or not it wants them; the original tariff
was so good everyone installed them then the tariff was slashed, thereby cutting demand
overnight. It has been a start- stop scenario ever since and, although the industry seems to
have recently settled down to a reasonable level, confusion still reigns in respect of some
larger systems.

What seems to have been lost in this mass of renewable energy systems are everyday
energy reduction measures, and energy efficiency. It is both cheaper and better to reduce
energy than to build new capacity conventional power systems or subsidised renewable
power systems. We, as a nation, use far too much energy, and energy prices are continually
in the news - but it appears that the price of energy is not high enough yet to force us to take
energy efficiency seriously. Many countries in Europe, such as Denmark, which exports wind
energy, pay a far higher price.

Domestically, we still continue to use energy-hungry appliances and run our homes
inefficiently. Commercially, many firms do not take energy usage seriously, often seeing it as
a mundane overhead that does not merit senior management attention. It only takes a stroll
through the City of London on a Sunday night to see the number of lights left on in
unoccupied offices and hear the A/C systems hum to realise that wasted energy is not even
on the to-do list.

Yet it is cheaper and more sustainable to reduce energy than to produce it, by whatever
means. The government has at last realised this and more policies are being produced that
encourage energy reduction rather than energy production. Commercial energy users should
realise that energy costs come straight off the bottom line so any reduction in energy boosts
profits. The cost of electricity is forecast to potentially double by 2020 so any cost saved now
will reap additional benefits in the future. If your energy bill is 500k, which it is for many firms,
then saving just 10% (generally easily achieved) will give an additional 50k profit. By 2020
this profit could double to 100k.

How do we do this?
Energy efficiency is not the rocket science or black art that many suppliers would have you
believe. Major savings can be made by a series of small steps, and useful savings can be
made at no cost if no initiatives have previously been applied.

Do you know what your current energy usage is and what it costs? You would be
surprised at the number of firms that do not monitor their energy bills or even understand
them. Start by looking at, and noting down, the cost and energy usage per month.
Suppliers will provide itemised bills, so these figures are easily available. Allocate a
person to do this on a regular basis and build up a picture of what your energy usage is.
There is an old energy proverb you cannot manage what you cannot measure. How
true.

The Institution of Engineering and Technology is registered as a Charity in England and Wales (No.
211014) and Scotland (No. SCO38698). Michael Faraday House, Six Hills Way, Stevenage, Hertfordshire, SG1 2AY,
United Kingdom.
 If in doubt, turn it off. There are constant cries of we cant turn that off- it is essential!.
Look at what lighting is required; do you really need the lights on when the sun is
streaming through the windows? Do you really need to keep all the systems on overnight
or do you really need to keep your office cooled so it is comfortable to enter first thing in
the morning? If in doubt turn it off and see what happens or who complains (obviously
taking safety into account).

At this point you could carry out a simple energy survey of the building and processes.
Take a new look at why those lights are on, why switch this machine or that fan on? Take
a deep critical look. Even an untrained person can find many areas of energy wastage.

So far, a lot can be achieved at no cost. You will have gauged the amount you spend on
energy and had an initial superficial assessment of the potential for savings. At a small
cost, it pays to educate staff on energy basics as they are the ones using it. A simple
course on basics can provide major paybacks. If no initiatives have been carried out in
the past then savings of around 10% have been made at companies who have educated
and incentivised staff to reduce energy usage.

Once the easy bits have been identified, deeper surveys can then be carried out to
identify further savings. These could be undertaken by in-house engineers or trained
energy assessors or by external bodies. Many consultants or contractors provide these
services, sometimes as part of other work being carried out on the premises.

After the no-cost initiatives come the more engineering based changes, such as the
installation of sensors, change to LED luminaires, installation of variable frequency drives
for fans and pumps etc. All of these can be costed and assessed as to whether they are
economic. If you are carrying out a survey and have provided costs it pays to find out
what the financial requirements are in terms of return on investment. Many companies
have fixed terms for payback and an analysis and business case has to be produced for
the accountants who will assess how the cost of energy reduction compares to the return
on investment in the core business. In many cases it is more cost effective to invest in
energy efficiency than into the core business. It is now also increasingly likely that firms
come under pressure from shareholders or those with a stake in the company to say how
sustainable the company is. This will undoubtedly affect the response from the finance
departments!

As you seek further savings it pays to start monitoring energy usage at more local levels.
The suppliers meter and any meters at the main incoming switchboard will only give you
global consumption. You need to find out where the energy is being used and when.
There are an increasing number of easy-to-install meters that can monitor individual
circuits. Many systems are now IP addressable, enabling remote monitoring. Once
installed, local energy use can be monitored from anywhere in the world, a kind of benign
Big Brother. The profiles of energy usage so obtained can give an accurate picture of
what is happening and you can hone in on areas of high energy use.

The steps above are all very simple and yet they can have a very high return on investment.
There are too many systems for saving energy to go through in a short article, but do the
simple, inexpensive things first. You will be surprised at what can be achieved on a small
budget. Experiment with switching times and the use of sensors. If the mains voltage is too
high and the company has its own transformers, try tapping down the voltage before installing
any voltage optimisation measures. When installing a new lighting system use LEDs as first
choice. Take advice from specialist engineers. Major savings can be easily achieved.

The Institution of Engineering and Technology is registered as a Charity in England and Wales (No.
211014) and Scotland (No. SCO38698). Michael Faraday House, Six Hills Way, Stevenage, Hertfordshire, SG1 2AY,
United Kingdom.
What is the Government doing?
There are an increasing number of initiatives by the government through the Department of
Energy and Climate Change (DECC) and the Department of Environment, Food and Rural
Affairs (DEFRA) to encourage consumers to reduce energy. The Carbon Reduction
Commitment (CRC) was first introduced to incentivise high-spend users to reduce energy by
pricing the carbon they were responsible for. It was changed dramatically by the Chancellor
who decreed that the government would keep the income from the purchase of carbon
allowances and the cost of carbon would be part of their budgetary process! At the initial 12
per ton of carbon it raised the cost of electricity by about 0.6p per unit. However, this is still an
incentive as it makes the rate of return of investment potentially better.

The Energy Performance Certificates (EPC) and Display Energy Certificates (DEC)
introduced by the Energy Performance of Buildings Directive all have recommendations for
the recipient on what measures can be undertaken to reduce the energy use and improve the
rating.

There have been recent Consultation Documents, Private Rented Sector Energy Efficiency
Regulations (Non-Domestic) and Private Rented Sector Energy Efficiency Regulations
(Domestic), which sought feedback about minimum energy performance standards in the
private rented sector. It is proposed that all properties being rented out should reach a set
minimum, E, EPC level. If this is not reached, the landlord must bring it up to this minimum
level of energy efficiency before it can be let. This could have a profound effect on the private
rented sector!

Another initiative is the requirement for all FTSE listed companies to publish their Greenhouse
Gas Emissions in their company reports. This forces companies to at least look at their
energy usage and carbon emissions.

A very recent addition to this encouragement is the Electricity Demand Reduction auction.
This is a 10M pilot auction to encourage companies to reduce their demand (though not
necessarily their consumption) at peak times in the winter.

The recently published EU Energy efficiency Directive requires governments to ensure that
regular audits are carried out on larger companies energy consumption. The Energy Savings
Opportunity Scheme (ESOS) is being introduced to meet this requirement. All eligible
companies will have to have an energy audit carried out by December 2015 or they may be
subject to penalties. Guidelines have recently been published by DECC and companies will
have to carry out four-yearly audits. One drawback is that they do not have to implement the
findings of the audit. It is hoped that many will see the advantage in carrying out the efficiency
recommendations produced in the report.

Finally, the much-maligned and often-ignored Green Deal is an attempt to encourage

The Institution of Engineering and Technology is registered as a Charity in England and Wales (No.
211014) and Scotland (No. SCO38698). Michael Faraday House, Six Hills Way, Stevenage, Hertfordshire, SG1 2AY,
United Kingdom.
Energy Efficiency is the first thing that should be carried out before any installation of other
power sources. It can easily repay any investment and as we have seen it is far better to
reduce energy use than to only look for new ways to produce it.

The Institution of Engineering and Technology is registered as a Charity in England and Wales (No.
211014) and Scotland (No. SCO38698). Michael Faraday House, Six Hills Way, Stevenage, Hertfordshire, SG1 2AY,
United Kingdom.