Wednesday, April 09, 2014

British building owners can now make money by generating renewable heat

The first scheme in the world that will pay owners of domestic buildings for generating renewable heat has been launched in the UK by Energy Minister Greg Barker (seen right with MP Chloe Smith opening a 'Mr Renewables showroom' at the beginning of April).

Like feed-in tariffs for generating renewable electricity from technologies such as photovoltaic solar panels, the financial incentive scheme offers householders a fixed amount per kilowatt-hour generated from various technologies, even though the heat is only consumed in the home and not made available for others (as with home-generated electricity that is fed into the electric grid).

Called the Renewable Heat Incentive, it is based on a similar scheme for business, the public sector and non-profit organisations, that has been in operation for some time in the UK, as well as a smaller domestic scheme aimed at solid-walled, hard-to-heat homes, called the Renewable Heat Premium Payment.

Property owners apply to all schemes through the Energy Saving Trust, a government-sponsored body which promotes energy efficiency and renewable energy at the domestic scale.

The purpose of the RHI is to stimulate the renewable heat industry in the same way that feed-in tariffs have done for the solar PV industry. This has seen remarkable growth in the last four years with the cost of a typical PV system installation dropping by more than half.

The UK Government and industry body the Solar Trade Association (STA) have a target of covering over one million roofs with solar thermal and solar PV panels by the end of 2015. Over 200,000 solar thermal systems are already installed in the UK.

Global capacity for solar thermal is over 200GW - around double global installed capacity of solar power. The technology is proven and well established across Europe and elsewhere, and back in the days of previous support systems when grants were offered for installation of many types of renewable energy technologies, solar thermal was by far the most popular technology of choice for householders.

Stuart Elmes, Chair of the Solar Thermal Working Group at the STA, welcomed the launch of the RHI, saying: “Solar heating is popular with householders and quick to install, integrating easily with existing heating systems. We calculate that the returns from solar water heating are similar to those from solar power when you take into account the high price inflation for gas and heating oil.”

Paul Barwell, Chief Executive of the STA said: “With the launch of the Domestic Renewable Heat Incentive the final piece of support for household solar technologies slots into place. Together with the Green Deal for insulation improvements and the Feed-in Tariff for solar power, householders now have a great choice of Government-backed financial incentives to choose from to best suit their clean energy needs.”

Launching the scheme, the Government Minister for Energy Greg Barker (pictured right) said: "Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and get cash payments for installing these new technologies. It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan."

Technologies and payments

The technologies currently covered by the scheme are:
  • Biomass heating systems, which burn fuel such as wood pellets, chips or logs to provide central heating and hot water in a home. Biomass-only boilers are designed to provide heating using a ‘wet system’ (eg through radiators) and provide hot water. Pellet stoves with integrated boilers are designed to burn only wood pellets and can heat the room they are in directly, as well as provide heat to the rest of the home using a ‘wet system’ (eg through radiators) and provide hot water.
  • Ground or water source heat pumps, which extract heat from the ground or water. This heat can then be used to provide heating and/or hot water in a home.
  • Air to water heat pumps, which absorb heat from the outside air. This heat can then be used to provide heating and/or hot water in a home.
  • Solar thermal panels, which collect heat from the sun and use it to heat up water which is stored in a hot water cylinder. The two types of panels that are eligible are evacuated tube panels and liquid-filled flat plate panels.
TechnologyTariff
Air-source heat pumps7.3p/kWh
Ground and water-source heat pumps18.8p/kWh
Biomass-only boilers and biomass pellet stoves with integrated boilers12.2p/kWh
Solar thermal panels (flat plate and evacuated tube for hot water only)19.2 p/kWh
Only one space heating system is allowed per property but homeowners can apply for solar thermal for hot water and a space heating system.

The guaranteed payments are made quarterly over seven years for households in England, Wales and Scotland. (Northern Ireland has its own RHI scheme). The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and renewable heat alternatives.
According to renewable energy expert Richard Hiblen, who has more than 14 years’ experience in this field, the RHI tariffs are ‘good for some and better for others’, but even the worst figures make the technologies more attractive than installing oil or LPG heating.

Phil Hurley, managing director, NIBE Energy Systems Ltd., a renewable heating manufacturer, called the RHI "a game changer for the renewable heating industry". He continued: “The introduction of the domestic RHI gives the industry the security and confidence it needs to realise its growth potential".

But Neil Schofield, Head of External and Governmental Affairs at boiler (furnace) manufacturer Worcester, Bosch Group, cautioned that: “the funding is weighted heavily in favour of biomass, which is one of the most expensive systems to install and one requiring the largest amount of user intervention. Questions have already been raised over whether DECC has backed the right horse in this respect."

UK Solar Strategy

Earlier this week, the UK Government also launched its Solar Strategy, which contains plans to turn the Government estate as well as factories, supermarkets and car parks in cities around the UK into “solar hubs”.

Energy Minister Greg Barker  said he believes that “there is massive potential to turn our large buildings into power stations and we must seize the opportunity this offers to boost our economy as part of our long term economic plan. Solar not only benefits the environment, it will see British job creation and deliver the clean and reliable energy supplies that the country needs at the lowest possible cost to consumers.”

The UK has an estimated 250,000 hectares of south-facing commercial rooftops, and the government believes that solar increasingly offers efficient and cost effective onsite generation opportunities to both businesses and domestic consumers.

In a further initiative, the Department for Education is working on ways to improve energy efficiency across the 22,000 schools in England, to reduce their annual energy spend of £500 million, and to encourage the deployment of PV on schools alongside promoting energy efficiency. The British Education Secretary Michael Gove said: “Solar panels are a sensible choice for schools, particularly in terms of the financial benefits they can bring. It is also a great way for pupils to engage with environmental issues and think about where energy comes from.”

Wednesday, March 26, 2014

The One Planet Life

Hoppi Wimbush, who lives at Lammas, one of the case studies in the book.
David has finished his latest book, The One Planet Life, about making a way of life that is more sustainable and using ecological footprint analysis to establish what's working and what isn't. Both a manifesto for a change in attitude towards development, planning and land use, and a 'How To' book about energy, land management, food growing, sustainable building, sustainable transport and water, it has 100,000 words, 400 illustrations, 20 in-depth case studies and introductions by Jane Davidson (Wales' foremost former environment minister) and Pooran Desai (BioRegional). It will be out towards the end of the year.

Monday, February 03, 2014

Flood adaptation and mitigation - What are the key solutions?

Floods SomersetFloods have been devastating parts of Europe and the east coast of America to name but two parts of the world over the last month. It has brought to the front of our minds the need to protect human habitation from the increasing number and severity of such events.

The Independent Panel on Climate Change official report states that global average sealevel rises over the next century could be as much as 3 feet on business as usual and given the amount of greenhouse gases currently in the atmosphere. But some scientific evidence supports even higher numbers, five feet and beyond in the worst case.

The East Coast of the United States will experience rises higher than average because the land is sinking at the same time. Tide gauges along the East Coast show an average rise of 1.5 inches per decade.

As a result, towns like Norfolk in Virginia are having to spend millions on raising streets and improving drainage to cope with routine flooding.

 floods in Pisa

Floods in Pisa, Italy.

Wild weather has been experienced along the East Coast of the United States of America since Christmas. But the flooding risks are not confined to America. Severe storms and flooding have also been affecting Europe:
  • areas of Italy and France are on flood alert as heavy rain brings chaos to parts of Europe. Hundreds of people were forced to evacuate their homes in the Italian city of Pisa as the Arno river threatened to burst its banks on Friday;
  • two people have died and more than 150 people have been airlifted to safety following floods in south-eastern France;
  • high seas are causing widespread flooding along France's and the UK and Ireland's Atlantic coast;
  • facing flood risk is the most immediate of problems to be tackled by an Inter-American Development Bank (IDB) loan to the Trinidad and Tobago Government;
  • parts of England such as the Somerset levels have been underwater since Christmas.
At the same time as flooding is causing massive devastation in the UK, the government is cutting back on spending on flood risk mitigation and adaptation. This decision has been lambasted by the UK's Chartered Institution of Water & Environmental Management, which has called for Government funding for flood and coastal erosion risk management (FCERM) to be extended instead.

It says: "funding is crucial not only to mitigate the impacts of flooding, but also to educate the population about the impacts of climate change," and "for maintenance activities alongside capital improvements to prolong the life of existing flood and coastal defences and also ensure floodwaters are conveyed through the land drainage network". These lessons apply everywhere.

Many issues are at stake here but it's not just about pouring concrete.

Scientific knowledge says that flooding can be reduced by planting trees in the uplands and yet many government policies support the continued removal of trees and forestry in these areas and replacing them with monoculture agricultural practices.

Amidst raging public controversy in Britain over the recent flooding environmentalist George Monbiot has pointed out a research paper on upland reforestation practice which estimates that if all the farmers in a catchment area reforested just 5% of their land, "flooding peaks downstream would be reduced by about 29%. Full reforestation would reduce the peaks by about 50%".

Further down the catchment area, in the foothills and lowlands, different agricultural practices affect the risk of flooding, such as, Monbiot  says: "the misuse of heavy machinery, overstocking with animals and other forms of bad management [that] can – by compacting the soil – increase the rates of instant run-off from 2% of all the rain that falls on the land to 60%."

To these findings a new risk is highlighted by a new study published in Hydrological Sciences Journal, which examines the key reasons for increasing frequency and severity of floods. The authors combine the outcomes of the IPCC Special Report on “Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation” (SREX report) with more recent research to give a rounded view of the cost of flooding (both human and material), the causes of increased flood risk and predictions of future global flooding patterns.

These show a clear link between population density and flooding. Currently 800 million humans are living in areas vulnerable to flooding. This is predicted to rise by a further 140 million during 21st century as we see continued economic and population growth.

So at the same time as a reduction of woodland, changing river flow and the urbanisation of flood plains, we are continuing to exacerbate global warming, raise sea levels and destroy wetlands, particularly in coastal areas, which also help to absorb storm surges.

It seems like the perfect storm, an unparalleled combination of exactly the wrong policies and practices if we want to reduce the risk of flooding, not just of coastal settlements but inland ones also.

What are the correct policies, then? This is the subject of an exclusive webinar to be held on the Sustainable Cities Collective website on Monday 10th of February at 12 PM Eastern Standard Time. Register here.

The participants will include:
  • Natasa ManojlovicNatasa Manojlovic is a senior researcher at the Institute of River & Coastal Engineering (TUHH) and is a visiting researcher at the UNESCO-IHE in Delft, NL. Her research and teaching is focused on flood risk management (flood resilient technology, systems, tools and strategies as well as capacity building of stakeholders- phD research), environmental hydraulic engineering a with the scientific research directed to urban hydrology.

  •  Thomas ColbertThomas Colbert, AIA, an Associate Professor at the University of Houston. His research concerns the preparation and evaluation of architectural and planning responses to the threat of climate change and extreme weather events impacting the Texas-Louisiana Gulf Coast. Prof. Colbert holds degrees from Princeton University and the University of Cambridge.

  • Paul O'HarePaul O'Hare, is a Lecturer in Geography and Development at Manchester Metropolitan University. His primary research interest revolves around efforts to engage ‘the public’ in governance and planning decision-making processes. Previous research has been funded by the European Union (SMARTeST EU Flood Resilience Project), RCUK (Re-Design) and the ESRC (PhD). His most recent work in the EUFP7 SMARTesT project (led by the Building Research Establishment) examined social, economic and cultural issues regarding the use of property level protection for flood risk management.


You can register for the webcast here.

The UK fails to deliver: fuel poverty is up, support for energy efficiency down

Ed Davey, UK Secretary for Energy and Climate Change The UK is letting down its population by failing to deliver on energy efficiency. As a result, fuel poverty is up at the same time as fuel prices, and support for energy efficiency has plummeted and will continue to do so at the current rate.

This is happening under the watchful eye of Ed Davey, UK Secretary for Energy and Climate Change (right).

The most expensive and exclusive homes in Britain are the least well insulated, while the majority of the UK’s local authorities (LAs) are in breach of European regulations, and needlessly wasting energy, according to new research.

Not only that, but despite a year of public outcry about the cost of energy, the number of energy efficiency installations around the country has plummeted and Government has told energy companies that they can get away with insulating far fewer homes than before.

Whereas 1.61 million lofts were fully insulated in 2012, in the year to the end of October 2013, just 110,000 had been treated - a staggering 93% drop.

The same kind of drop has happened with cavity wall insulation, from 640,000 in 2012 to 125,000 in the year to October 2013, a pro-rata fall of 77%. These figures are official, from the Department of Energy and Climate Change (DECC).

The reason is because grants for such measures were dropped when the Government launched the Green Deal, a loan system that was intended to see a swathe of energy efficiency makeovers across the country, but which has so far failed to ignite public enthusiasm.

This is all despite the country having a Climate Change Act and an Energy Efficiency Strategy, which has an aim of cutting energy use by 196TWh by 2020 (an 11% cut), and carbon emissions by 41 MtCO2.

 the case for energy efficiency

The Rich Don't Seem To Care

The rich don't seem to care about saving money, heat or climate change. In the exclusive parts of London, most occupied by millionaires, a staggering 83% of homes in Kensington and Chelsea and 79% in Westminster have uninsulated walls and a lack of loft insulation, coming at the bottom of a national league for energy efficient homes.

At the other end of the country, in colder Aberdeenshire and the Outer Hebrides, homes are insulated to the highest standard, with 65% and 66% respectively having installed wall insulation.

Utility company npower found these figures in data licensed from the Energy Saving Trust. They reveal that over half the 26 million homes in Britain allow too much heat to escape through the building fabric.

As a result, together with rising fuel prices, fuel poverty is higher than ever in the UK, with seven million people, including 2.2 million children, living in fuel poverty in England, a rise of 26% compared to a year ago. People are going without food in order to pay their energy bills. No wonder they can't afford the insulated their homes. This is exactly why they need help.

A telephone survey by npower found that just 20% of households asked have insulated their domestic hot water storage tank. When asked, the main reasons given for not installing energy efficiency improvements were:
  • 42%: not being able to afford it;
  • 36%: lack of government support;
  • 33%: I can afford to waste energy (or words to that effect).
On the positive side, one third of those asked said they had made some improvements, such as installing loft insulation (39%), a new boiler/furnace (33%) and cavity wall insulation (30%).

The Green Deal Flop

The UK Government launched the Green Deal last year as a flagship policy to enable households to invest in home energy efficiency at little cost to them. But it has been a shambles, due to the difficulty of finding assessors, lack of publicity, and the cost of getting an assessment done.

Greg Barker, Energy MinisterThis week, Greg Barker (right), an Energy Minister, claimed that: "It has been an encouraging first year for the Green Deal. It has not exactly developed in the way we anticipated [but] together with the ECO, the Green Deal has improved over 400,000 homes in their first eleven months".

He puts a nice spin on it. The ECO is the Energy Company Obligation under which utilities are forced to install energy efficiency measures in their customers' homes. The detailed figures show that 98% of those 400,000 homes' improvements were conducted through ECO, and not through the Green Deal.

The figures actually show that just 1,612 households had Green Deal Plans up to the end of 2013.

At this rate it would take 16,000 years to treat all of the nation's homes.

It Will Get Worse

The situation is going to get worse, not better. The Chancellor George Osborne announced in his Autumn Statement that the energy companies’ ECO target for insulating solid wall homes will be slashed by two thirds – meaning they are now only required to tackle 100,000 homes by 2017.

This change in policy comes after profits of the 'Big Six' energy companies (British Gas, Npower, Scottish & Southern Energy (SSE), Scottish Power, E.ON and EDF) rose 75% in 2012 on 2011, according to the regulator, Ofgem. The same companies complained to George Osborne before his Autumns Statement about 'green tariffs' such as the ECO adding to their costs.

The Green Deal has been slammed by many, such as the members of the Federation of Master Builders (FMB), whose chairman, Brian Berry, has politely said that the scheme "has not achieved the desired results in its first full year, with the majority of SME installers and homeowners failing to engage, and the financial package underpinning the scheme proving unattractive to most consumers."

He repeated the oft-made call that: "the single most effective measure to kick-start demand would be to reduce the rate of VAT from 20% to 5% on all domestic energy-efficiency work".

Paul King, chief executive of the UK's Green Building Council, was more forthright this week when speaking at a conference on the Green Deal. He called on the Government to "recognise energy efficiency as a national infrastructure priority and be prepared to delve into its purse to make its flagship policy more appealing through stronger incentives and more attractive finance options".

Local Authorities Flout the Law

Government and local government don't even practice what they preach themselves.

Separate research conducted by the Property and Energy Professionals Association (PEPA) has found that over half of local authorities throughout the UK are failing in their obligation to display up-to-date 'Display Energy Certificates' (DEC), as required by the European Union's Energy Performance of Buildings Directive (EPBD).

PEPA, the trade body that represents business engaged in the provision of Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs), says that as a result they are missing out on the opportunity to use them as effective tools to reduce energy costs.

PEPA conducted a freedom of information exercise with all local authorities in England and Wales and found that only 47% of authorities claimed to be compliant with the DEC requirements, meaning 53% are potentially ‘breaking the law’.

A 2011 study by the Chartered Institute of Building Service Engineers (CIBSE) showed that where DECs had been used in government buildings as a proactive means of managing energy usage, savings of nearly 14% were achieved.

If these figures were applied to the estimated £750 million per annum of energy costs incurred by local authorities then energy savings of £65 million could be possible. This is a significant sum at a time when local authorities are cutting public services.

£1.9 million of public money is given to local authorities' Training Standards officers each year to ensure compliance with the EPBD regulations. But PEPA believes it is never used for that purpose since it isn't ring-fenced.

"There seems to be no political will within DCLG (the government department responsible for local authorities) to address non-compliance with the EPBD regulations and anecdotally is believed to regard the Directive as unnecessary European bureaucracy, something which is likely to end up with a fine from Brussels," said Stephen O’Hara, Chairman of PEPA.

“The whole situation regarding DECs defies logic and common sense. The proactive use of valuable energy information has been proved to reduce costs to the taxpayer, but government, both central and local, are either ignorant of this fact or do not seem to care. It is irresponsible of DCLG to show disdain for the regulations which they themselves have laid down as the law of the land, and potentially to incur swingeing financial penalties from Europe as a result.”

“Regardless of your views on climate change and reducing carbon emissions, saving money and reducing pressure on hard pressed energy supplies must surely make sense even to those who want to cock a snook at Europe.”

Employment Down

The drop in energy efficiency measures has had a knock-on effect on employment in the industry.

There are now at least 7,000 fewer people were employed in delivering insulation in homes than in 2012, according to Andrew Warren, CEO of the Association for the Conservation of Energy. “A lot of people went out and set up new small companies," because they thought the Green Deal would mean an increase in the amount of work. "They have been completely sold down the river,” he said, by the failure of government to deliver.

Andrew has for three decades been championing the cause of energy efficiency.

It's just a shame that no one at Whitehall, or in the town halls up and down the country, is really listening.

Notes

The European Union is conducting a household energy affordability study in conjunction with the University of York. You may take the survey here: http://energyaffordability.eu/?lang=en

The Energy Saving Trust says that the average (gas-heated, semi-detached) three bedroom home in the UK could save the following each year on their energy bills:
  • Cavity wall insulation - £140;
  • External Solid Wall insulation - around £490;
  • Loft insulation - up to £180;
  • New boiler (furnace) - up to £310.

Energy efficiency infographic courtesy of The Trillion Fund

Thursday, January 16, 2014

How to make the financial case for sustainability

Barriers are often found to the implementation of sustainability measures in persuading senior management to make investments and commit to projects. These can include a lack of understanding, conflicting priorities, misaligned financial incentives, hassle cost and lack of financial backing. Managers fighting for sustainability have to master successful tactics to overcome them. Here are a couple of ways of presenting and comparing the financial case for different measures.

Marginal abatement cost curves


A marginal abatement cost curve (MACC) is a helpful, visual aid to providing an idea of the annual potential to reduce emissions and the average costs of doing so for a wide variety of technologies. We first met them in the Introduction. MACCs are a useful tool for cost-effectiveness analysis. But how are they compiled?

In Britain, the Committee on Climate Change (CCC) has produced several MACCs for energy efficiency that incorporate research generated by three other important models:


  • BREDEM (the Building Research Establishment’s Domestic Energy Model);

  • N-DEEM (the Non-Domestic buildings Energy and Emissions Model), which is based on detailed assessments of energy use in around 700 buildings, since they are extremely diverse in nature; and 

  • ENUSIM (the Industrial Energy End Use Simulation Model), originally designed to model industrial energy use by considering the take up of energy saving technologies in industry.



MACC curve


Source: CCC A marginal abatement cost curve (MACC) illustrating the technical potential for improvements in the non—domestic sector. Each column represents a particular measure. The vertical axis represents the cost per megaton of carbon dioxide saved. The horizontal axis represents megatons of carbon dioxide saved throughout the lifetime of the measure. Measures to be taken on the left of the graph with columns descending beneath the horizontal axis have a negative cost; i.e., they save money. The ones on the right with columns are sending above the horizontal axis have a net cost; i.e., they cost more than they save. The further right that a measure is positioned, the greater its lifetime cost. All energy management measures have a negative cost and save money, as do many efficient heating and cooling methods.

The MACC for the non-domestic sector is illustrated above. The CCC concludes that, for the UK as a whole, there is “a very significant contribution from improved energy management. These measures include turning monitors off at night, adjusting heating times or adding improved controls to lighting. These measures are almost entirely low cost measures with the potential to save over £800m countrywide per year for firms with very little (if any) up front expenditure. They could save over 8 MtCO2 per year. “


MACC curve for CHP


Source: CCC A marginal abatement cost curve (MACC) illustrating the potential for CHP (combined heat and power) in different sectors. It shows that even within a sector, whether is a particular project is cost-effective depends on individual conditions. This is why, for each sector, there are different instances (illustrated by columns of the same colour), some of which are above the line (net cost) and some below the line (net benefit).


Estimating payback


MACCs are arrived at by calculating the payback for various measures. Projects are usually sold to management on the basis of return on investment. This can be expressed in two ways: as an effective interest rate, based on the net present value; and as a payback period, i.e. the length of time it takes for the initial investment to be recouped by the savings earned or income generated.


Simple payback


The most basic of these is simple payback. However, it does not always illustrate the true benefits of an investment. Suppose an organisation demands a two-year payback period from any investment. Then, as the following example shows, it would miss out on the benefits of a project with a six-year payback period that actually had a better return on investment.

A project costing £60,000 which receives £30,000 in benefit per year following completion but which only lasts for three years would yield a total of £90,000. A project which costs the same amount, but only yields £22,000 per year, yet lasts for six years would give a total of £132,000. However if it were only evaluated on a two-year basis, it would lose out to the three-year project.

A project which repays its cost every three years is demonstrably better than one which promises to return the investment in three years. To help establish this, the concept of Discounted Cash Flow is introduced.


Discounted Cash Flow (DCF)


Discounted Cash Flow provides a more realistic way of establishing payback. There are three stages for estimating DCF:


  1. Estimate the resulting cash flow;

  2. Apply the discount rate;

  3. Calculate the end value (net present value).


The cash flow is taken from the estimated savings in energy cost resulting from the measure taken. This will depend upon projections of future energy cost. For example, energy prices over the last three years can be projected on a median basis into the future. But this will then need to be discounted at a discount rate to be chosen. Discount rates are a function of the rate of inflation and represent what one unit of currency will be worth in a year's or 10 years' time. An average price [P] is calculated this way for each year of the projected lifetime [L] of the project. Each of these figures is then multiplied by the amount of energy [E] expected to be saved every year.

The lifetime period chosen for the project will depend upon the expected lifetime of the technology. If it were a boiler, for example, it could be 15 years. Should it be an insulation measure, it could be 30 years. The total cost savings [S] generated by energy not used compared to not doing the project, over the lifetime of the project will then be:

S = E x [P(year 1)] + E x [P(year 2)] + E x [P(year 3)] ... E x [P(year L)]

What discount rate should be chosen? The industrial model ENUSIM uses private fuel prices and a 10% discount rate to reflect the incentives faced by firms. Some UK organisations adopt the rate used in the UK government Treasury's Green Book, that sets out the framework for the evaluation of all policies and projects, which is 3.5%. Others simply adopt the current rate of inflation, or interest rate on a loan taken out for the purpose of the measure that would need to be repaid. It is useful to run the calculation several times with different discount rates.


Net Present Value (NPV)


The figure for the total cost savings, [S], is not the final step in our calculation. We now need to deduct the cost [C] of taking the measure, which gives us a figure called the net present value [NPV] of the project. This is the value in today's money of all of the net profit that will be generated from taking this measure. It is the most useful way of comparing the value of different measures. It takes account of the full value of the project and presents it in easily comparable form. The net present value is therefore:

NPV = S - C

This is how all of the figures were arrived at that are represented in the MACC graphs above. Applying this to the two projects above, with a 10% discount rate, lets us see the following:

Project 1 yields:

£30,000 (year 1) + £27,000 (year 2) + £24,300 (year 3) = £81,300, not £90,000

Project 2 yields:

£22,000 (year 1) + £19,800 (year 2) + £17,820 (year 3) + £16,038 (year 4) + 14,434.20 (year 5) + £12,990.78 (year 6) = £103,082.98, not £132,000

Both projects cost the same, £60,000. Subtracting this from the cost savings reveals that the NPV of the first is just £21,300, while that of the second is £43,082.98, over double.


Internal rate of return (IRR)


The NPV can also let the projects be compared to what would happen to the same amount of money were it to be invested in a bank account with the same interest rate as the discount rate chosen. This is done by calculating the internal rate of return (IRR), or the interest rate on the investment, and is easily accomplished using Microsoft Excel as follows (and the figure below):


  1. The initial expenditure is typed into a cell on a spreadsheet.  This must be a negative number.  Using our original example, –60,000 would be typed into the A1 cell;

  2. The subsequent discounted cash return figures above for each year are entered into the cells directly under the first one.  Following the example in Project 1, this would mean typing 30,000 into cell A2, 27,000 into cell A3, etc.;

  3. The IRR is then revealed by typing into the next cell beneath all the values the function command "=IRR(A1:A4)" and pressing the enter key. In this case, the IRR value, 18%, is then displayed in that cell.



internal rate of return


Using Microsoft Excel to calculate the internal rate of return of an investment. The formula in the field at the top is entered into cell A5 and yields the percentage rate based on the figures above.

The IRR of the second project, calculated by the same method, is 20%, and so provides a better rate of return. It is relatively easy to set up a template in Microsoft Excel to enable the performance of a similar calculation for any capital investment project. Further costs that are unique in any given year can be added, such as figures for additional maintenance, additions or repairs, and, at the end of the project, a figure for resale of any equipment, for example its scrap value.

Earthscan Expert Guide to Energy Management in Buildings

Presenting projects in such a way to senior management will allow them to compare their value with other projects they may be considering, as well as enabling the energy manager herself or himself to prioritise projects.
This article is an extract from my new book, the Earthscan Expert Guide to Energy Management in Buildings published this month by Earthscan. This comprehensive book covers how to:


  • conduct an energy audit

  • plan a monitoring and verification strategy

  • make any energy-saving campaign successful

  • evaluate and make the financial case for energy-saving measures

  • make use of free energy for lighting and managing heat loss and gain.

Monday, January 06, 2014

Energy managers: the hidden army that toils to save the planet

The Scottish Parliament building in Edinburgh was designed to minimise energy use
The Scottish Parliament building in Edinburgh was designed to minimise energy use.

 


An army of secret warriors is being deployed increasingly by cities and managers of the built environment around the world. Their vital task is to make visible where energy is being wasted, saving carbon and money for everyone. 


They are energy managers are the hidden footsoldiers of the twenty-first century's war against climate change, a foremost phalanx amongst those professions that are struggling to make urban environments more sustainable.


For the most part unseen and unnoticed by the public, they toil in buildings everywhere, from hospitals to hotels, factories to data centres, from office blocks to leisure centres. After all, the energy used in buildings forms about 40% of all energy used and 36% of the world's CO2 emissions. 


Their training leads them to sense the hidden flows of energy as it courses through pipes, wires, spaces and materials. They don't perceive a static situation, such as a boiler switched on, a light glowing, the window open, a tap dripping. They see this as part of a set of processes through time, visualising it as a series of transformations from one type of energy to another, such as, to take the example of a motor, from electricity to kinetic energy to dissipated heat energy.


For them, saving energy is eternal delight, in an evolution of the visionary poet William Blake's famous aphorism, "energy is eternal delight". Consequently these heroes are constantly struggling against the limits of the second law of thermodynamics, striving to prevent useful thermal or electrical energy from being dissipated irreversibly.


Their catechism derives solely from the primum movens that "No process is possible in which the sole result is the absorption of heat from a reservoir and its complete conversion into work".


Energy efficiency


Energy efficiency is frequently described as the “low hanging fruit”. The sector is expanding at a rate of 5% per year. It is estimated that the global market value of innovative products in this sector could reach around £488 billion by 2050, and that on average, most organisations can easily save at least 28% of their energy costs with low-cost actions. 


In the UK, innovative energy saving measures in non-domestic buildings could save 18Mt CO2 by 2020 and 86 MtCO2 by 2050, depending upon the rate at which the measures can be deployed. [i]


In the USA, American Energy Manufacturing Technical Corrections Act was passed at the end of 2012, a modification of the Enabling Energy Savings Innovations Act. This promises to produce a boom in the sector. The U.S. market for energy efficiency and services topped $5.1 billion in 2011, according to Pike Research, and is now expected to reach $16 billion in sales by 2020. 


The need for energy managers

For city management, measuring sustainability, of which energy use and therefore carbon emissions form a great part, is becoming a way of measuring the quality of management overall. For a city to be truly sustainable it must totally transform the way it works, with its employees, citizens, investors and its supply chains.


This effect has yet to filter down. Nevertheless, for city executives to have appointed energy managers signifies that they have acknowledged the importance of sustainable energy use.


Then there are the tens of thousands of building managers and facility managers in urban environments, only part of whose responsibilities includes being responsible for energy management. With their labour, management often saves a considerable amount of money, more than enough to pay their salary, and reduces the risk exposure to volatile energy price increases. 


But it is not just money they save, although that may be their employer's primary motivation. They are also saving carbon, which is increasingly a quantified activity featuring in company annual reports, and as such doing their bit to challenge the advance of global warming and promote the good reputation of the company for sustainable housekeeping.


The UK Government’s 2020 Energy Efficiency Marginal Abatement Cost Curve.


The UK Government’s 2020 Energy Efficiency Marginal Abatement Cost Curve. The graph quantifies the lifetime cost-benefits of various energy efficiency measures across different sectors, and is discussed in more detail in Chapter 10. The y-axis represents the cost effectiveness of a measure, each of which is represented by an individual coloured bar. Any measure which costs more than it saves over its lifetime is represented by a bar which goes over the horizontal axis. The overall message is that the vast majority save money over their lifetime. The net present values are calculated in 2012 terms. The EE-MACC is based on an estimate of the feasible rollout of energy efficiency measures and takes into account supply constraints for energy efficient products, only including technology that is already available in the market.


Legal requirements

In the USA, there is no nationwide law governing the energy efficiency of existing buildings. Little has been done in this sector and there is huge potential for savings, despite the encouragement of the Energy Independence and Security Act of 2007 (EISA), and the American Recovery and Reinvestment Act of 2009. These have provided finance for improvements, for instance under the Energy Efficiency and Conservation Block Grant (EECBG) Program. The building sector is the largest consumer of energy in the United States, around 41% of total US energy use; the industrial sector is also responsible for 20% of energy use.


LEED  certificateThe LEED (Leadership in Energy and Environmental Design) Green Building Rating System is a voluntary standard for sustainable buildings. An example of a certificate is on the right. LEED includes a standard of measurement for defining a 'green building', and achieving LEED certification is a means of recognising environmental leadership in the building industry and raising awareness of the benefits of environmental building.


It is based on well-founded scientific standards and incorporates sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.  Mandatory Residential and Commercial Energy Conservation Ordinances (RECOs and CECOs) have been implemented by a handful of municipalities as a way to bring the existing building stock closer in line with the energy code requirements for newer buildings.


In 2009, President Obama mandated federal agencies to make significant reductions in energy consumption, hoping that government would "lead by example" by upgrading many of its facilities. Two years later, the administration tried to jumpstart that work by setting a goal for federal agencies to enter into at least $2 billion of energy efficiency projects within two years. In President Obama's second term, this trend is likely to be accelerated.


In Europe, the EU’s Energy Efficiency Directive has a target of 20% energy savings for the EU as a whole by 2020. It mandates energy audits and energy management by large firms, and stipulates that 3% of public buildings that are owned and occupied by central government must be renovated every year.


The recast EU's Energy Performance of Buildings Directive (EPBD) was transposed into national legislation in 2012. Member States are required to set energy use at cost-optimal level, and be measured for a whole system, (such as a heating system) rather than at a product level, such as a boiler. This will have to be proven by the installer or designer.


 Display Energy CertificateIn the UK, energy performance standards are set for new buildings and benchmarks for existing buildings. 'Consequential improvements'  are required to the energy efficiency of buildings undergoing refurbishment, and all buildings must have an Energy Performance Certificate (EPC) available when offered for sale or rent. A small number of buildings are exempt (e.g. some heritage buildings). The EPCs of large buildings to which the public has access must be displayed in the form of Display Energy Certificates, pictured right.


The UK's Energy Efficiency Strategy hopes to achieve 196 TWh of energy savings in 2020, with a reduction of around 11% over the business-as-usual baseline, and a reduction in carbon emissions of 41 MtCO2. The Energy Management Alliance, a forum for the UK’s energy management companies and industry bodies, foresees a huge growth in the sector as a result. However, recent political infighting may dampen this expectation.


Barriers to energy efficiency

Changing to LED street lighting can save<br /> a lot of energy and maintenance costs.

Changing to LED street lighting can save
a lot of energy and maintenance costs.
If energy efficiency is such a good idea, why is it not practiced more widely? The UK’s Energy Efficiency Strategy has identified several barriers:


  1. Misaligned financial incentives: the person responsible for making energy efficiency improvements is not always the one who will receive the benefits of these actions;
  1. Lack of management buy-in: boards may think that energy lacks strategic importance, in comparison to other imperatives, especially if energy costs are a small proportion of overall business costs;
  1. Hassle costs: perceived disruption caused by making the improvements, for example building works or production lines halted;
  1. Lack of awareness: many people are unaware of just how much can be saved by taking even simple measures. There is a lack of access to trusted and appropriate information, especially at key decision-making times. Even when present, information may only be generic and not specific and tailored to the situation;
  1. Lack of supply: the energy efficiency market itself is under developed, with a supply chain that is still gaining maturity in some areas;
  1. Lack of financial support: often financiers fail to appreciate the benefits of investment in energy efficiency, especially if the financial argument is complex. Companies are often reluctant to invest in energy efficiency, seeking short payback times, even if a project is cost-effective at usual interest rates, or on a life-cycle basis.

This article is an extract from my new book, the Earthscan Expert Guide to Energy Management in Buildings Earthscan Expert Guide to Energy Management in Buildings, published this month by Earthscan. This comprehensive book covers how to:


  • conduct an energy audit
  • plan a monitoring and verification strategy
  • make any energy-saving campaign successful
  • evaluate and make the financial case for energy-saving measures
  • make use of free energy for lighting and managing heat loss and gain.

It also contains special chapters on:


  • ventilation, heating and cooling
  • demand management through automated systems
  • lighting
  • most requirements of industrial facilities
  • regulatory requirements in Britain, Europe and the United States
  • the use of smart meters and monitoring
  • how to achieve zero energy buildings
  • the use of renewable energy.

I wrote it to be of assistance for all professional energy, building and facilities managers, energy consultants, students, trainees and academics. It takes you from basic concepts to the latest advanced thinking, with principles applicable anywhere in the world and in any climate.


‘Provides a complete introduction to the subject of energy management, and will, I’m sure, be useful to both trainees and novices and industry veterans seeking an updating of their knowledge with the latest developments. David is a clear writer, who manages to make the most technical subjects accessible. He has a clear overview of all sectors and technologies.’ —Nick Bent, Editor of Energy Focus Magazine


[i]  UK Energy Efficiency Strategy, Department of Energy and Climate Change, November 2012


Thursday, January 02, 2014

At last: the affordable solar house that makes a profit for residents

The solar house with solar farm behind

Glen Peters is a man with a mission to show how truly sustainable and affordable housing can be a solution to the housing crisis. Having made a good profit from a solar farm in his field (seen behind the house in the picture above) he's putting it to good use and demonstrating a new model for sustainable housing.

The solar house from the frontWorking with a team of architects and designers he has produced a prototype two-storey detached three bedroomed house with a radical new take on passive house principles. Called Ty Solar (Solar House in Welsh) it is of timber frame construction and insulated with blown cellulose; and is potentially able to export more electricity to the grid than it consumes itself in a given year.

The larch used for the frame and cladding is sourced locally and assembled to specifications that are beyond those required by Building Regulations, giving it a Code for Sustainable Homes 5 rating (out of a maximum of 6). But this doesn't tell the whole story by any means.

By using recycled newsprint (the blown cellulose) as the only insulant around the entire building envelope and local timber, the house is locking up atmospheric carbon in its structure for an indefinite period, unlike buildings that use fossil fuel-based insulants that have emitted carbon during their manufacture.

Hallway of the solar house

The embodied energy of the house is therefore already very low, an important factor given that for normal buildings between 10 and 20% of their life-cycle energy consumption is used during the phase of extraction of raw materials and construction.

The final purchase price has been set at a maximum of £75,000. The principal watchword throughout the design process that has enabled this to be possible has been simplicity.

Almost heretically for passive house construction it eschews ventilation and heat recovery, and the only source of energy is solar: both passive solar through the abundance of south-facing windows and active through reliance on solar photovoltaic panels for electricity and top-up space and domestic water heating.

The demonstration house includes lithium iron batteries to store 12 kWh of power but is also grid connected to enable the export of unused electricity and the use of the grid as a backup at other times.

The battery bank is optional and really only for stand-alone houses. Glen says: “A group of 10 or more houses generating in tandem with a local smart grid could form a miniature power station and generate a considerable income, perhaps £1000 per year, for each of the households, or the power could be used to charge electric vehicles which could be shared between them."

Research commissioned by the Welsh Government estimates that over 14,000 new homes are needed every year in Wales for the next 15 years.

The hunger for affordable housing is reflected in lengthy waiting lists and increasing official homelessness figures. Wales' Minister for sustainable development has made the provision of affordable housing a high priority during his tenure.

The kitchen of the solar houseAll of this highlights the urgent need for houses of this nature. As Glen Peters says: "The bulk housing providers in the construction industry are ignoring affordable housing. They say that it doesn't work for them. I say they are missing a trick. We've proved it is perfectly possible to build low carbon housing that is truly affordable and that gives occupants zero energy bills."

With energy bills so high on the public agenda it is hard to see how local authorities and housing associations can ignore the potential that this house demonstrates.

Low embodied energy

This successful and attractive-looking house goes against the grain in terms of many of the current developments in sustainable housing.

Electric radiator for heating in solar house with simple controlsCompared to the Mark Group's demonstration house in Nottingham, BRE’s ‘Smart Home’, in Watford, and Velux’ CarbonLight demonstration home in Rothwell near Kettering, it scores very favorably on local sourcing, embodied energy, embodied carbon and simplicity of use. Above all it compares well on price.

All of these three supposedly cutting-edge demonstration homes contain extreme amounts of technology and sophisticated materials.

They represent corporate attempts to capture a high-end market in low or zero carbon housing.

The first utilizes an incredibly energy intensive over specified steel frame.

The second uses occupation sensors to control heating, lighting, ventilation, water and security, as well as heat pumps, solar thermal and PV.

The third is designed to be iconic in its extremely unusual shape and therefore expensive to reproduce. All of them make heavy use of smart electronics. And this is what puts up their price.

Simple controls for the solar house occupantsBut although they may score highly on low operational energy use this does not make them necessarily sustainable.

The real target of sustainable housing should be overall life-cycle impact. This means that in fact small homes that are zero carbon in operation, whose materials are sourced locally and are of low embodied energy, preferably built in bulk and perhaps in a compact urban terrace or block, will be inherently more sustainable than stand-alone large homes packed with different technologies and comprising a high embodied energy.

This makes Ty Solar's closest antecedent perhaps the ecological evolution of Walter Segal Method timber frame construction, as pioneered at the Centre for Alternative Technology. The Segal Method was, pointedly, devised by its architect to produce affordable homes.

Even the low pitch of the roof is designed to minimize the heated but unnecessary interior loft space and increased requirement for materials that are result of higher pitched roofs, while still permitting the solar panels which the roof supports to take advantage of solar radiation.

The larch cladding will protect the building for years to come with minimum need for maintenance. The fact that it is screwed on in panels also makes it easier to access the interior of the walls if needed.

The Passivhaus certified windows and doors are even made locally rather than in Germany.

The house sits on footings raised slightly above the ground to remove the need for unnecessary concrete in foundations.

Footings for the solar house“Gareth, Jens and I come from very different worlds but we're united in our goal to be a disruptive influence of traditional thinking about building homes. In this, manufacturing becomes a key component and we see ourselves as manufacturers rather than builders,” says Glen. “We have created a lot of goodwill in our community and hope to continue to do so as we expand, creating local jobs, sourcing locally and above all keeping things small."

The test is whether day-to-day the homes do result in their occupants reducing their energy use and bills. This depends on their habits.

To this end simple controls will be easier to manage (see picture above right).

Some developers seem to believe that the occupants need a degree in energy management in order to keep down their running energy and carbon costs. Utility rooms contain a bank of sails and buttons worthy of the cockpit of the Star Ship Enterprise.

Ty Solar, by contrast, scores highly on ease of use since ventilation is controlled just by opening windows when required, and space and water heating is controlled in the traditional way, with thermostats. There are no other controls.

Passivhaus certified windows made in WalesThe house has not been formally tested for Passivhaus criteria, nor does it mean to be. It has also yet to be independently pressure tested.

It is a trial house that will be monitored for one year. However, with two floors each of 44.16 square meters and a volume of 254 m³ it has achieved a SAP rated figure of 0.12 air changes per hour.

This compares very favorably to the Passivhaus standard of 0.6 a change as per hour or a permeability rate of 3.0 m3/m2h. Over a 200-day heating period, a typical British house with eight air changes per hour and a 100m2 floor area, heated to 20°C, will cost thirty times more to heat than an equivalent house with 0.3 air changes per hour, according to an energy calculator (SIGA). The SAP-rated space heating requirement of this house is just 32.39kWh/m²/year.

This high performance is shown by the U-values, which are as follows:

Element

Average / Highest W/m2K

Maximum permitted W/m2K

Passivhaus standard

External wall

0.13

0.30

0.25–0.16

Floor

0.13

0.25

0.18–0.12

Roof

0.14

0.20

0.13–0.09

Openings

0.90

2.00

0.85


It can therefore be seen that the house, according to the SAP ratings, compares favourably with Passivhaus.

LED lights are fitted throughout, making the annual lighting consumption just 371.49kWh. With no pumps or fans, there are no further electricity requirements over and above that which is used in day-to-day living by a family in any home – for appliances and gadgets. It is therefore predicted by the SAP rating to have a negative energy use of -3253.56kWh (minus appliance use) and negative carbon dioxide emissions of -596.92 kg/year.

All of this means that the Energy Efficiency Rating on the EPC goes off the scale at 107, with an Environmental Impact (CO2) rating of 108. In the Code for Sustainable Homes assessment it reaches Level 5. The SAP Assessment also predicts that there will be only a medium likelihood of a high internal temperature, or overheating, in July and August, which can easily be catered for by opening the windows.

"We've just bought a 400m2 cow shed to convert into our factory so we intend to minimize the impact on the land. We turned down offers of a brand new shed on a business park,” adds Glen.

Future houses could be semi-detached or terraced, and have one, two or three bedrooms, as demand dictates and housing associations or local authorities wish.

Clearly, Glen Peters is a man with an eye on the future - a sustainable future.

Tuesday, December 31, 2013

How businesses can become more sustainable and increase profits

In the drive to make industry more sustainable, when authorities attempt to pressurise the sector, squeals of "But jobs!" and "Competitiveness!" are heard.

Different sectors within industry respond to the "green-and-clean-yourself" call with varying degrees of enthusiasm. High energy users like cement and steel are notorious squealers. But all of them can benefit from not having a knee-jerk reaction and paying attention to leaders within their sectors who are heeding that call and seeing as a result a turnaround in their fortunes.

Because for an organisation to be able to survive into the future, it has to see all of its operations – its requirements in terms of materials, energy and water, its fixed assets – as equal in importance to its core activity.

Case study: Low carbon tomatoes

Low carbon tomatoes - grown on waste CO2 from a factory next door.Terra Nitrogen, a company based in Billingham in the northeast of England, produces nitrogen chemicals and methanol for industry, but as an unfortunate by-product also produces a lot of carbon dioxide emissions.

It linked up with John Bader Ltd, which now diverts carbon dioxide from the plant into 38 acres of greenhouses erected next door to grow tomatoes.

Terra Nitrogen is also supplying electricity to the greenhouses, allowing them to continue production through the winter and removing the need for the UK’s supermarkets to import so many tomatoes from Spain.

The benefits include the successful reuse of waste heat, reduction of 12,500 tonnes of carbon dioxide emissions and the creation of 65 new jobs.

Case study: Unilever

Unilever is a much larger company that is leading the way. Its CEO, Paul Polman, is the visionary behind a Sustainable Living Plan, launched in November 2010, which seeks to double sales and halve the environmental impact of its products.

It is working. He believes that this fundamental shift in the business paradigm is partly a reaction to the financial crisis, from a rules-based one back to a principles-based one, but it has financial benefits.

Procurement of new equipment

It follows that a policy like this should translate into a procurement strategy. Part of any such strategy should be to purchase equipment that is sustainable and consumes the least energy, or has the least environmental impact, over its lifetime compared to comparable products.

Lists of these products, together with standards, may be found on the website of the U.S. Energy and Efficiency and Renewable Energy office, and on the European Market Transformation Programme website, with further information on the Energy Using Products Directive website.

Standby power load should also be a choice factor in procurement. For instance, US federal agencies must purchase products with a standby power level of 1W or less. Standby power typically occurs when the product is switched off for not performing its primary purpose. The standby power data centre lists compliant products.

Sustainable procurement is a specialism in itself. Specimen framework agreements to ensure the supply of sustainable goods and services are available from the website of the UK Sustainable Procurement Centre of Excellence (currently down but may be available via the UK National Sustainable Public Procurement Programme (NSPPP)). There, you might also find a knowledge base of information on sustainable procurement, commodity areas, carbon reduction, whole life costing, legislation, toolkits, case studies and best practice.

For ICT, ENERGY STAR® is a voluntary labelling scheme for products which use less than a specified energy consumption in typical use. It was originally developed by the US Environmental Protection Agency (EPA) for common computing equipment, but is now a joint activity with the European Commission.

This means that specification of ENERGY STAR compliance in tenders is compatible with EU procurement rules. A list of compliant models is at www.euenergystar.org.

A key factor in the energy consumption of ICT is user behaviour. It is now possible to purchase software which monitors actual PC use within an enterprise. Advanced versions permit energy managers to set power policies that reflect a certain level of usage, reducing both energy consumption and carbon emissions. They reveal when users are using their PCs by monitoring key strokes and mouse movements.

Energy managers can then match the power state of each subset of PCs, by location, with the activity level of employees. They can also identify unused or underutilised PCs on the network, further eliminating the management overheads of maintaining these machines; ensure that a computer in a low-power state can be woken up and accessed on demand when a user is working remotely; and that applications which prevent a PC from being powered down can be overridden while the PC is not in use.

Supply chain optimisation

It then becomes necessary for businesses and organisations seeking to reduce their carbon footprint to turn attention to that of their products and services, and this involves looking at their supply chains.
According to the American Council for an Energy-Efficient Economy (ACEEE), supply chain optimisation can result in up to 60 per cent of energy intensity reductions. For example, in food production and distribution, much perfectly good food is wasted due to spoilage, both in the supply chain and at the retail level. This means that all of the energy embedded in the food is wasted as well.

By modelling the supply system throughout the chain, opportunities may be identified to significantly reduce waste by changing processing, handling, packaging and delivery systems. The result is frequently fresher food delivered faster and of a more consistent quality. There is less waste and greater savings.

Case study: PepsiCo

UK snack foods manufacturer Walkers, and its parent company PepsiCo, have been working with the British Carbon Trust on energy efficiency and carbon management. They have saved over 2,000 tonnes of CO2 per year, reducing energy bills by approximately £225,000 (US$350,000).

Having done this they moved on to looking at their supply chain in order to demonstrate a continuing commitment to emissions reduction. They began by looking at their raw material production, which includes potato and corn producers, sunflower oil and vegetable oil manufacturers, corrugated cardboard manufacturers and so on.

They then began to optimise the distribution of raw materials using logistics and network planning. They have already optimised the manufacture of products. The next step was product distribution, again tackled by the network strategic planning department. Finally, they wanted to make sure that redundant packaging could be recycled.

Energy Management in Industry

Energy Management in Industry: The Earthscan Expert GuideThis is an extract from my latest book, Energy Management in Industry: The Earthscan Expert Guide, which is a companion to my Energy Management in Buildings, published in November 2013.

Energy demand reduction is fast becoming a business activity for all companies and organisations because it can increase profits regardless of the nature of their core activity.

The International Energy Agency believes that industry could improve its energy efficiency and reduce carbon dioxide emissions by almost a third using the best available practices and technologies.

This guide looks at the many ways available to energy managers to achieve or even exceed this level of performance, including: base-lining consumption planning a monitoring and verification strategy metering (including smart, wireless metering) energy supply management motors and drives compressed air and process controls.

It also looks at topics covered in greater detail in its companion volume, Energy Management in Buildings: insulation, lighting, renewable heating, cooling and HVAC systems. Uniquely, it includes a whole chapter on greening data centres. Further chapters examine minimising water use and how to make the financial case, both to prioritise measures for cost effectiveness, and to get management on board.

This title is aimed at all professional energy, industry and facilities managers, energy consultants, students, trainees and academics and can be read alongside training for ISO 50001 - Energy.

'David Thorpe's book Energy Management in Industry is an easy to read book about how you can save energy in your company…He does this without [needing] to over complicate it with technical details and scientific formula. I enjoyed reading this book and would highly recommend it to energy managers and anyone who would want to reduce energy consumption.' - Kit Oung, Energy Consultant and author of Energy Management in Business, Committee Member, British Standards Institute BSI-KSA.

Selected Table of Contents

Preface. Introduction. 1. Measuring Energy Consumption 2. Metering 3. Airtightness and Insulation 4. Lighting, Daylighting and Controls 5. Heating and Cooling 6. Heating, Ventilation and Air Conditioning Systems 7. Energy Reduction Technologies 8. Motors, Drives and Compressed Air 9. Refrigeration 10. Process Controls 11. Data Centres 12. Minimising Water Use 13. Making the Financial Case Conclusion. Appendix.