Firstly let's start with the basics. Energy management is simply a program of well planned actions aimed at reducing an organisation's energy consumption and demand and therefore reduce costs and the associated Carbon emitted (ie greenhouse gas emissions).
This program will also provide improvements in operational efficiency, such as increasing the comfort (wellness) for occupants or increasing production.
To gain high levels of energy efficiency we must:
- avoid wasteful energy use (if the system is not required – switch it off)
- reduce the energy consumption (and energy demand) of systems (in essence by introducing a more efficient system).
So what do businesses, property owners, facility managers need to do? Here’s my top tips in a structured approach:
1. Develop a high level energy efficiency strategy
I am sure Albert Einstein has been over-quoted on this classic "Insanity: doing the same thing over and over again and expecting different results"... However I see so many mid level managers stuck between the findings of an audit and trying to gain senior management support (read: funding) for energy efficiency projects.
My lesson here is to get the team on board early, use a workshop to develop an energy masterplan.
Facilitated Workshop
A great way of getting buy-in from stakeholders (especially senior management or the"C" suite) is to carry out a facilitated workshop. This is the most efficient method to share information and to develop an effective solution. At the workshop it is vital to gain the time of the organisations senior management; they have a responsibility to take ownership of energy, costs, GHG emissions and can provide a vision for the future.
Development of an energy master plan
Following the workshop, the outcome should be the development of an energy master plan that includes the key points from the workshop.
2. Stakeholder engagement.
The late and great Douglas Adams (Hitchhikers' Guide to the Galaxy) wrote of a device called an SEP - Someone's' Else's Problem; which could render objects invisible - because the mind just avoided seeing the problem. I am convinced that energy is treated in a similar fashion. If the workers on a site or tenants in an office could see and understand the cost and impact of wasted energy they would be concerned.
A stakeholder can be defined as a person, group or organisation with an interest in energy efficiency. The question, really, is who do you need to inform about a proposed energy efficiency project? The answer, of course, is everyone who needs to know. If we could introduce staff awareness it would help turn around underperforming businesses.
One common factor in very successful energy management programs is successful stakeholder management.
As a building owner carrying out work in a building, all the building's tenants, the incumbent contractors, the financial team, the facilities management team all need to know and have a very good understanding of the goals, process and outcomes. Don't forget the cleaners!
3. Measurement and benchmark
The old adage has stood the test of time "If you can't measure it; you can't manage it"
The first step to understand the present energy consumption in the building or facility.
What is the energy consumption? Not only electricity and natural gas but any other fuel.
What is the energy demand? Most networks (the poles and wires) charge demand tariffs and this can be a high percentage of the electricity invoice. It's great to know what this is and to reduce it.
You also need to know the metrics.
The buildings' net lettable area or gross floor area is a vital piece of information.
How many people work in the building?
What is the building operational hours?
In audits of manufacturing or production we will also need other items to obtain an accurate metric. (for example how many widgets are produced hourly)
With this information a benchmark can be carried out.
Sometimes the benchmark is straight forward, the NABERS rating scheme, for example, is a widely used benchmarking system for greenhouse gas emissions across a range of buildings.
Benchmarking is vital for determining the next steps; are you good, bad or average? The actions taken next flow directly from this benchmarking.
There are a number of monitoring systems on the market that can provide business with information. The best advice is to develop a "needs statement", shop around and select the most suitable system.
4. Carry out an energy audit / Building Improvement Plan.
Energy review
The first stage in an audit / building improvement plan is to benchmark the energy use / current building or plants' performance . This comprises the examination of energy data to determine "out of scope" performance, base electricity / gas loads and unusual load profiles.
Current situation
Many of the commercial buildings / industrial plants will have will have a range of problems causing high-energy consumption, ranging from:
- Ageing inefficient HVAC plant (chillers, boilers, pumps and fan systems);
- Old / outdated control systems;
- Inefficient lighting (light fittings and the control systems);
- Ineffective sub metering systems, and;
- Lack of funding for maintenance or re-commissioning.
Even some of the new buildings I encounter can have design problems causing excessive energy use, particularly buildings with complex / multiple systems.
Site Audit
Following the energy review / benchmarking study a detailed site inspection including the following systems:
| Industrial Plant | Commercial Buildings |
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Audit Report
A comprehensive report will cover the investigations and analysis outlined above, including:
- Executive summary highlighting major findings and recommendations.
- Description of site and systems serving the site.
- Observations on the operation of the site equipment and systems.
- Review of energy data and comparison against relevant benchmarks.
- Energy end-use breakdown.
The report will rank the opportunities so that initiatives can be prioritised
Previous Audits?
But your company may have carried these out many times before! I know I came across companies who had multiple energy audits in a bottom drawer! If your site has carried out an Energy Audit spend some time reviewing this and updating. The changes in technology has improved the payback on many projects.
The audit process, while important to set the scene, will not deliver energy savings: the only way energy savings will be delivered is through the implementation of energy savings projects.
5. Energy Efficient Solutions
Energy Efficient Solutions:
There are a range of energy efficient solutions available for businesses / property owners.
In most commercial (base) buildings the Heating Ventilation and Air Conditioning (HVAC) systems will use up to 40% of the energy consumption and, due to their operation, Chillers increase the maximum demand characteristics of the electricity load. So HVAC systems are a great place to start. The new technology is a far cry from the early systems and can save energy and money plus provide reliability.
Hot Water Heaters use 80% of the natural gas in most commercial buildings. A standard 10 or 15 year old "atmospheric" hot water heater have low efficiency. A new hot water heater, in the correct installation, can operate at 85% efficiency. There are also biomass heaters that can move towards zero Carbon buildings - provided the correct fuel is sourced and the emissions are attended to.
Building Management and Control Systems are another great opportunity to make a step change improvement. We recommend following similar rules to the selection of a metering system: develop a needs assessment, shop around and select the most suitable system. Building diagnostics and fault detection is an evolving and growing market that can provide a wealth of data surrounding the building operation.
Tenants and the owners of buildings will find lighting upgrades very worthwhile. There are many light fittings and energy efficiency control solutions readily available to save energy and cost. Energy efficient LED lighting can reduce energy consumption by over 50% in most circumstances, often with improved light output. On word of warning, however, don't buy and import LEDs from dodgy web sites! Ensure the LEDs carry all relevant Australian approvals and are installed by qualified tradespeople following a safework plan. Also LED's may not be the only solution, it pays to investigate.
Power factor correction is another overlooked solution to save costs. Strictly speaking power factor correction systems don't save energy. Power factor correction will save money where the electrical supply has a demand charge.
When all this new kit is installed we recommend two final things
- Ensure all plant and equipment is commissioned
- Regularly review the energy consumption and performance of the building to ensure you are getting the results promised.
Finally, like a car, buildings require maintenance, not just the essential services maintenance required by Law, but a regular building "tune up". This will keep your investment in top condition!
6. Measurement & Verification
Measurement and Verification (M&V) is designed to provide transparency and accountability to project savings. M&V is very useful as a proof of savings particularly when you have put your vital organs on the line! If done correctly to international protocols it can be time consuming and fairly costly. There are alternatives. Earlier we spoke of building diagnostics and fault detection systems, which can be used to carry out M&V in a real time setting and allow for faults or non performance issues to be found - quickly.
At the top end of energy performance contracts the development and implementation of a Measurement and Verification Plan designed to International Protocol will often be required. This will require a framework that accurately compares the guaranteed savings in each year of the project to an agreed baseline.
7. Annual Review and Report
The final step is an annual review or for quicker projects - this could be a project report. I think it's important to note that this generally isn't a CSR (Corporate Social Responsibly) type report - although the information can definitely be used here.
The final report will identify a closing position of the project and clearly prove savings and outcomes. Savings will be financial, energy and greenhouse gas emissions. This report has a wider role: as education and encouragement to the stakeholders, to prove the energy master plan.