ELECTRICITY COMPANIES NEWS

05 July 2010 • David Lancaster

Prioritising resource efficiency

The benefits of renewable energy generation are perfectly apparent and incentives to adopt these technologies with the introduction of the Feed-in Tariff (FiT) make the opportunities even more commercially attractive. However, the starting point for businesses considering renewable energy generation should be reduction of overall energy usage through improved energy efficiency.

After all, the advantage of investing in expensive facilities like wind turbines and solar panelling is lost if electricity is systematically lost through inefficiencies. And there are very few un-assessed energy systems where savings – as much as 10-20 per cent in ADAS’ experience – cannot be made through the adoption of both no cost and low cost interventions.

The obvious driver for the adoption of reduced energy consumption is the rising and more volatile costs of both electricity and gas. In energy intensive businesses, this is already a hugely worrying cost and all the indications suggest that prices will continue increasing – perhaps by as much as a quarter within the next decade. It is these sorts of price rises that could start affecting the viability of some businesses, especially if they have a significant process or manufacturing element to their operations.

However it is not the only driver. Sound environmental credentials are important to a growing number of businesses keen to demonstrate to their customers and stakeholders that they are acting as responsible companies.

Where to start?

Establishing a baseline of current energy consumption is a crucial first step, both for understanding usage patterns and for subsequent monitoring. Obviously implementing the interventions that carry little or no cost implications are a logical next step – turning off unused machines and lights, reducing heat use and assessing work flow patterns and so on – a step which many companies have already taken. For these measures to be successful, however, the buy-in of employees needs to be fostered as their input will be crucial to the success of these initial energy reduction measures.

From here, though, many businesses will require a more detailed technical analysis of energy consumption to identify the next, more challenging stage of energy savings.

Mapping ‘hidden energy savings’

It is here where ADAS has seen a significant rise in demand for its energy mapping and sub-metering services – an innovative systems approach adopted from the automotive industry which can now be deployed across a range of sectors. It has been particularly useful among food processing and manufacturing sectors where the correlation between energy input and production unit costs is strong – for example chicken and milk processing operations. The mapping and sub-metering process is designed to highlight the hidden energy inefficiencies like pumps working sub-optimally or larger system inefficiencies, including compressors and refrigeration.

It is only through the use of sub-metering and process analyses that a comprehensive Action Plan can be put in place to maximise energy savings. The argument for this extra step is compelling: while the recommendations might carry extra capital costs, the resultant savings could be up to 20 per cent of total energy requirements, depending where the company is on its energy saving journey.

When savings of this magnitude are realised, the opportunity to maximise the investment from the installation of renewable energy infrastructure – both in terms of using the electricity or selling it back to the National Grid becomes undeniable.

For more information about ADAS resource efficiency services please contact David Lancaster on 01775 680878 or email David.Lancaster@adas.co.uk .

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