Easier energy efficiency

As the Kyoto Protocol comes into force, the behaviour of companies in developed countries is coming under increased scrutiny.

Some 141 countries, accounting for 55% of greenhouse gas emissions, have ratified the treaty, which pledges to cut these emissions by 5.2% of 1999 levels by 2012.

While many businesses are broadly sympathetic to the concerns over climate change, there are those sectors that would have us believe that it is cheaper to lobby against climate change policies than it is to invest in the necessary technology to accommodate it. 

Nevertheless, industry is being urged to lead the way on energy efficiency, which is widely acknowledged as the cheapest, swiftest and most publicly acceptable method to meet environmental regulations and combat the impact of climate change.  

According to the UK government’s Energy White Paper, improved energy efficiency   can not only protect energy supplies but is also the most cost-effective way of cutting carbon emissions while contributing to over half of the 60% reduction target by 2050.

Those companies that choose to ignore sound energy management invite further economic implications. The policy measures proposed in the White Paper — including emissions trading and greater use of renewable energy — could add 10-25% to industrial electricity prices and 15-30% to industrial gas prices by 2020.

Andrew Warren from the Association for the Conservation of Energy (ACE), who will chair the high-level conference at the National Energy Management Exhibition (NEMEX, 24-26 May at the NEC in Birmingham: www.nemex-energy.co.uk) says: ‘Energy is a commodity that we cannot afford to waste. We spend around £50billion on fuel in the UK and the government has calculated that 20% could be saved cost effectively by investing in energy conservation.’

The advantages of energy efficiency are manifold. Money is saved through lower utility bills and Climate Change Levy payments. Compliance with domestic and EU legislation is facilitated. Environmental and quality assurance standards are met. Quality and output are improved through controlled production efficiency. Competitive advantage is gained through reduced energy consumption per unit of production. Reputation is enhanced with a greener image. Environmental impacts caused by global warming are diminished as less CO2 is released into the atmosphere.

According to Warren, a company that has never considered energy efficiency in the past can save more than 30% of its energy  costs by introducing energy efficiency measures.

Energy management techniques are often divided into three categories — high, medium and long-term priority. High priority tactics can be simply good housekeeping. Switching off machinery, adjusting controls, isolating power supplies, using timer switches and thermostats are measures that can be implemented quickly and require minimal investment.

Altering building components, alternative components such as energy efficient lighting, insulation and modernising controls are of medium priority and do require some expenditure.

These measures take longer to implement and payback will normally be within three years. Long-term energy management tactics, such as updating or replacing plant equipment, require more detailed study and payback is generally longer than three years.

For example, investing in CHP is a capital intensive, longterm issue but plays a key role in reducing carbon emissions. Energy efficiency is easily attainable and since 1993 over 200 UK organisations have gained official accreditation through the Energy Efficiency Accreditation Scheme.

Launched by the National Energy Foundation and since taken over by the Carbon Trust, both appearing at NEMEX, the scheme recognises organisations that have achieved significant energy reductions and is the national benchmark standard.

During the free Energy Efficiency Accreditation Scheme case studies on 24 May, visitors to NEMEX can learn how companies have managed their energy consumption and gained official accreditation. Put simply, all businesses and processes use energy and almost all could use less. The key to incorporating energy efficiency is good management.

Much like any successful business strategy, energy saving should be planned, organised, monitored and communicated internally. The energy policy should set out the organisation’s objectives on energy efficiency in a formal manner to run concurrently with other business policies.

It must be filtered throughout the organisation to demonstrate consistency and an obligation to energy efficiency at all levels.

Camilla Anderson is with IMS Consultancy, writing on behalf of the organisers of NEMEX.