There continues to be a significant amount of commentary from many interested parties around the issues of industrial energy use and carbon impact - with discussions highlighting the general confusion among the business community following high profile environmental summits such as Kyoto and Copenhagen.
The danger of lots of talk and little clear direction is that the status quo prevails and many energy users may settle for an ineffective 'business as usual' approach to their energy management and reduction issues.
It is imperative to manage demand and reduce energy costs for businesses, and this need will only increase with the attendant benefits of carbon reduction also becoming increasingly important as time progresses. We have proven cases that energy efficiency measures are the fastest and most effective way to reduce costs over the short term. Furthermore, reducing demand will ensure security of supply as traditional coal fired capacity is lost over the coming decade.
Demand reduction needs to be balanced with an appropriate move towards renewables as the country seeks to decarbonise energy supply - with new nuclear power stations, carbon capture and storage initiatives, high efficiency generation and transmission, alongside smart grid and smart meter technology.
Companies need to access the available range of proven energy reduction technology that offers exceptional returns of payback and adopt a systematic approach in line with EN16001 as the way to maximise energy reductions. Finance hurdles can be cleared through innovative solutions that allow project installations with zero capital investment. The subsequent additional benefits - reduced maintenance, improved system reliability and availability, simplified environmental compliance, lower carbon emissions, enhanced brand value, reduced business risk of energy price shocks or supply failures – make a compelling case to stop the talking and implement action sooner rather than later.
So enough of the strategic theory - what can companies practically do?
• Implement a recognised energy management process as supported by EN16001
• Use a professional expert audit to establish and benchmark the best options for your business
• Establish an effective automatic monitoring and targeting system alongside a robust deployment and education programme for staff
• Implement the most effective and proven cost reduction technologies based upon realistic installed cost/benefit calculations – many solutions now offer extremely quick "payback"
• Consider real 'lifetime costs' in your evaluations - a small saving on the purchase price could have expensive repercussions down the line
• Include all elements in the energy efficiency programme such as water, gas, effluent and waste
• Consider energy and water as key components in any lean manufacturing or lean office process
• Finally, for those organisations covered by CRC EES; did you register by the end of September deadline and how will the latest changes to the CRC payments which are now effectively a "carbon tax" affect you?
Most organisations will be able to achieve 10 - 30% savings with energy efficiency measures. Though it may not be well understood, the benefits of reducing energy costs equate to around £150 - £200 / tonne of CO2e – as well as the additional (expected) £12 / tonne carbon cost from 2012 following the Government announcement in October of the elimination of the recycling payments - although the exact costs may yet change again.
Either way, the message is clear. The need is escalating and the advice and solutions are readily available - so take action and get saving!
Steve Barker is head of energy and environmental care for Siemens, UK
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