Industrial Energy Efficiency Programs
Pennsylvania’s large utility customers shouldn’t opt out of paying their fair share to reduce energy waste
Currently there is an attempt in Pennsylvania’s statehouse to allow large utility customers to shirk their responsibility to reduce their energy waste. Senate Bill 805 would allow large industrial and commercial companies to opt out of Act 129, the Pennsylvanian statewide initiative to create a more energy-efficient economy.
The industrial sector represents a big opportunity for low-cost energy savings from utility energy efficiency programs. In general, investments in energy efficiency lower operating costs for manufacturers, which increases their productivity and improves competitiveness. When these investments are made through utility programs, businesses get the added value of access to technical expertise, project implementation support, and financial incentives that reduce initial costs.
There is a concern that any new environmental regulation can hurt the bottom lines of energy-intensive manufacturers. In the case of the EPA Clean Power Plan, states that comply with the rule by investing in energy efficiency will find the opposite is likely to be true: their businesses will be more productive and their economies will grow.
Buffalo, New York—The American Council for an Energy-Efficient Economy (ACEEE) presented four Champion of Energy Efficiency Awards last night at its Summer Study on Energy Efficiency in Industry. The awards recognize leadership and accomplishment in the industrial energy efficiency field. Winners are selected based on demonstrated excellence in industrial leadership, lifetime achievement, research and development, implementation and deployment, or energy policy. The winners for 2015 are:
How energy efficiency investment creates a ripple effect of multiple benefits for businesses beyond energy savings
Everyone knows that energy efficiency results in saving energy, but evidence points to an array of wider benefits. The term “multiple benefits” has emerged to describe the additional value that emerges with any energy performance improvement. The benefits that occur onsite can be especially meaningful to manufacturing, commercial, and institutional facilities. Energy efficiency’s positive ripple effects include increased productivity and product quality, system reliability, and more.
We’ve heard a lot lately about some large energy-using customers like large factories and retail chains seeking to opt out of energy efficiency programs. But what about the states and utility service territories where these customers are opting-in instead? It’s happening. It turns out that when efficiency programs are done right, customers are clamoring to participate.
Smart manufacturing, the integration of all facets of manufacturing through the use of information and communication technologies (ICT), is set to transform the industrial sector and its use of energy, raw materials, and labor over the next twenty years. Everyone in a company will have the information they need to make informed, data-driven decisions in real-time. Executives will have will have a panoramic view of productivity and managers will have an in depth view of their production costs, including energy.
What is the true value of energy efficiency? Well, we all know that manufacturers use energy to meet their production goals. Energy is the lifeblood of the process and the business of manufacturing. Energy drives not just the machines, but also the pace and magnitude of the wealth created by manufacturers. Because it permeates every stage of the industrial process, energy provides ample opportunity to influence operating margins, returns on invested capital, productivity and product quality. Energy also performs concomitantly with safety and emissions compliance agendas.
State and local governments are laboratories for innovation in energy efficiency policies and programs. Policymakers, regulators, and citizens at all levels increasingly recognize that energy efficiency is crucially important to their economies and are increasingly taking action and seeking information on policies and programs in their communities. Today ACEEE is launching a new database tool that highlights the energy efficiency leadership—and opportunities for improvement—of state and local governments around the United States.
Energy service outsourcing is a business relationship that relieves a large facility from the potential distractions imposed by the ongoing management of one or more energy functions, such as steam, compressed air, water treatment, lighting, or other activities. In essence, a facility would transfer these functional duties to a vendor per a contractual agreement, subject to periodic renewal. The facilities that choose this route anticipate that their energy functions will be performed in a more reliable and cost-effective way by the vendor.