The shining light

What would you do if someone told you that the multi-billion euro investment you’ve just made in a new power plant, that will take a decade to bring online, may not actually have been needed? Well it’s potentially not that far from reality.

We are in a time of very strong alignment. It is clear to see that energy demand is increasing everywhere and that CO2 emissions are on the rise, that urbanisation and new economies are going to drive a change in the economic and social order and that the global debt crisis is still hovering over many countries and regions. However, when it comes to the big question: “What are we going to do, so that we don’t cook the planet”, there appear to be many different schools of thought.

First of all – the ‘change the energy mix’ view that strongly believes in replacing base load fossil fuels with renewable sources (solar, wind etc). Secondly – the ‘low carbon fuel’ school of thought that feels that renewable energies will never be sufficient to act as base load and therefore high carbon fossil fuels should be replaced by low carbon fuels such as shale gas and hydro.

However, both of these approaches fail to address the big issue of our ever increasing need to consume energy and purely seek to satisfy demand. We need to move to a mindset of active efficiency, driving out every element of waste in our energy consumption and the related processes.

An abundance of efficiency
So what does active energy efficiency really mean? Well Schneider Electric’s headquarters in France demonstrated it in action back in June 2011, when it became the first site in the world to be certified ISO 50001 (the new energy management standard).
Having divided the energy bill by four since moving to the site in 2009, a combination of intelligent systems, detailed measurement, strong process and engaged employees has enabled a regular year∞on∞year energy reduction of up to 10 percent, reaching 80kwh/m2/per year, with a target of 50kwh/m2/per year by the end of 2012. This is driven by a four-step approach implemented across sites and with customers worldwide:
1. Measure: Know what, how much, when and where you are consuming through effective measurement and audits to be able to take appropriate action. A huge number of people still don’t know how much their energy bill is, let alone the dynamics of their consumption patterns.
2. Fix the basics:  With efficient technology (such as lighting, variable speed drives) and behaviour change – many inefficiencies can be from differing working practices among colleagues.
3. Optimise and automate: The process (a building, an industrial site, a datacenter for example) can be used to create a smart facility that is able to act in real time to the way it is being used.
4. Monitor and maintain: Monitoring performance and efficiency reductions through continuous improvement can be measured and quantified.

Positive change
But does active energy efficiency make sense? It does, and on many levels:
The technology is here. Whereas a few years ago, when passive efficiency (lightbulbs and insulation) were the only real options, the convergence of the worlds of energy and IT are now making intelligent energy and smart systems an actual reality.

The economics work. Changing mindsets and using an energy bill as an asset now enables companies and municipal authorities to pay for their investments with the energy savings they are making, and with the continued increase in the price of energy these projects are having a ROI of two to five years.

Policy and legislation will force change. Either you are ahead of the curve or you will have to react quickly to many of the new challenges being set by governments across all sectors and departments.

Public image is critical. With ‘green’ credentials ever more important to the general public, those who can demonstrate a sustainable way of operating will gain a competitive advantage.

Fossil fuel reserves need energy efficiency. For every unit of energy saved at the point of use, three units of primary energy (e.g. the coal used to produce that energy) are saved, therefore extending the life of fuel reserves significantly.

Access to energy is critical. Over 1.4bn people still have no access to energy and therefore the saving of energy by those who have, frees up capacity to provide those who have not and enables massive social, educational and economic possibilities in the areas that need it most.

So is it better to invest in energy efficiency or in building new power plants? Well it has to be both, not one or the other, however the correct balance needs to be struck between where the focus of policy, financing, incentives and legislation falls.

Active energy efficiency generates a fast ROI, which either reduces operating expenditure or frees up a new source of cashflow to invest and has a major impact on the energy dilemma that we are all facing at work, home and in public services. As many people are now paying for their investment through the savings they are making, it is one of the few activities that makes perfect financial sense.

While there is still an ongoing discussion on global warming and climate change, the energy dilemma has no doubters and we will only be seeing demand and energy prices continue to rise. So by implementing active energy efficiency you can have a big impact. Either you can help positively impact climate change, or if you don’t want to do it for the planet, do it for your wallet. tne

For more information
Jonathan Hart is SVP Corporate and Solution Marketing at Schneider Electric
www.schneider-electric.com