Think in £s not kWhs and Start Reaping the Rewards
October 8, 2014 Leave a comment
Often considered an unwelcome expense, the truth is that investing in energy saving initiatives offers significant financial benefits, as well as enhancing an organisation’s environmental credentials. I’m Steve Browning, marketing manager of Trend Control Systems and in this blog I will explain how a Building Energy Management System (BEMS) can increase the bottom line.
Although better energy management and the need to reduce carbon emissions are both moving to the forefront of the corporate agenda, they are doing so far too slowly. Rising prices, combined with the increasing scarcity of resources and a growing raft of environmental legislation, means that addressing the issue of how energy is used is no longer just an option, but something that requires serious attention by all businesses.
To put the issue into perspective, the long-term framework outlined by the Department of Energy and Climate Change (DECC) sets out plans for achieving the reductions stated in the Climate Change Act 2008. When compared to 1990 levels, this equates to a reduction of at least 34 per cent by 2020 and at least 80 per cent by 2050. As they are responsible for 17 per cent of the UK’s carbon emissions, the nation’s 1.8 million non-domestic buildings are at the very heart of meeting this challenge.
The government is also ramping up the pressure to comply. In addition to the CRC Energy Efficiency Scheme, the Climate Change Levy (CCL), Air Conditioning Assessments, Display Energy Certificates (DECs) and Energy Performance Certificates (EPCs), earlier this year the Energy Savings Opportunity Scheme (ESOS) was introduced to address the requirements laid out in Article 8 of the European Union (EU) Energy Efficiency Directive.
It means that ‘large enterprises’ employing 250 or more staff, or that have an annual turnover of in excess of around £42m and an annual balance sheet total of around £36m, must complete regular energy audits. The first must be undertaken by 5th December 2015, and then at least every four years.
The government hopes that ESOS will drive the take-up of energy efficiency measures amongst businesses, enhancing their competitiveness and contributing to the wider growth agenda. Furthermore, for organisations wishing to comply with increasingly popular international standards such as ISO 50001, a certified energy management system (EnMS) must be in place.
It is therefore a constant source of bemusement and irritation to me that some organisations aren’t making the obvious correlation between investing in technology that can reduce energy use and saving money. By failing to ensure that energy is being used as well as it could be they are, quite literally, paying the price.
One reason for this could be that for energy bills are often low compared to items such as wages, research and development, and property rental. However, companies must consider other issues such as brand reputation, employee expectations and competitive positioning, while customers expect them to play an active role in reducing the carbon footprint of their operations and products.
Even more frustrating is that in many circumstances it doesn’t even involve a vast capital outlay on new technology – for example, by simply maximising the potential of an existing BEMS energy savings of 10-20 per cent are easily achievable. This could equate to a 0.1-0.4 per cent saving on a company’s total cost base, instantly increasing profitability.
When a BEMS is first commissioned it is configured around an existing building layout and occupancy patterns. These can change over time and incorrectly configured time clocks and setpoints, new layouts, and repartitioning can all lead to poor control and energy wastage.
Failure to maintain a BEMS on an ongoing basis will result in degradation of the building’s energy performance. In order to rectify this, it is advisable to undertake an audit that ascertains what can be achieved and identify any energy saving opportunities. While items such as boilers, chillers, air conditioning, and pumps can be checked to make sure they are working correctly, any maintenance issues to do with the BEMS itself or the building services equipment use can also be addressed.
BEMS providers will be able to offer expert advice on how to enhance the operation of plant by installing items such as variable speed drives. The investment can pay for itself in a matter of months – for instance a centrifugal pump or fan running at 80 per cent speed consumes only half of the energy compared to one running at full speed.
It is critical to achieve stakeholder buy-in for any business enhancement programme and by using a standard Internet browser, software based packages are available that act as a window to a BEMS. It is also possible to access utility meter readings from a BEMS and present a continually updated record of a building’s energy consumption and carbon emissions – showing employees and visitors whether they are on, below or above performance targets.
Hopefully, I have demonstrated that reducing carbon emissions and lowering energy expenditure are closely linked. The savings that can be made through the use of a correctly specified and maintained BEMS are considerable and will help achieve compliance with environmental legislation. My advice is to take action before it is no longer a choice!
You can read more BSRIA blogs about BEMS here. BSRIA’s WMI team also produce a BEMS market report –Building Energy Management Systems (BEMS) in Europe and the USA – which is available to buy from the BSRIA website.