Category Archives: Energy Efficiency

What the COVID-19 Pandemic Teaches Us About Climate Change

The world is fighting hard to minimize the health and economic impacts of the COVID-19 pandemic. Based on news reports, some nations have carried out policies that have achieved moderate success, while, in other cases, there has been failure. The crisis can provide us insights for ways to act for the next big global crisis we face: climate change.

The “good” news of the COVID-19 pandemic is that global actions can be implemented quickly when faced with a crisis. Except for a couple of outliers, just about every nation in the world did act, although some were painfully slow. Many nations deserve credit for actions, imperfect as some are, given that there is no “playbook” for handling this crisis. We are learning about the coronavirus “on the fly” and thus, prescriptive remedies (do this and the virus will disappear) do not exist. It is human nature to be careful and not embark on a strategy unless one is sure of success. That is not the case here. Nations implemented extreme lockdown measures, at the risk of upsetting their populations and causing economic hardship, to slow down the virus’s spread, without a guarantee of success (how compliant would people be? would it actually slow the spread?).

Another bit of “good” news coming out of the COVID-19 pandemic is that the efforts to combat the spread of the virus, such as the lockdown and closing of many businesses has resulted in noticeably cleaner air, as much data now confirms and pictures demonstrate. For those who worry we can never reduce greenhouse gas emissions, here is proof that it can be done. Now, how can we keep reducing levels even more as businesses re-open and people begin to move toward “normal”? Can some of these changes (telecommuting, home school, reduced auto/plane travel) become permanent?

However, the COVID-19 pandemic teaches us hard lessons in case of a future crisis or for dealing with climate change. Ultimately, the world was poorly prepared, despite warning signs, such as other pandemics (SARS, MERS, Ebola) causing huge numbers of deaths in recent decades. If we had planned for this pandemic using the lessons of past ones, COVID-19 would not have been avoided, but probably would have been less deadly. We now see early warning signs of climate change-caused effects on Earth. We should plan and invest smartly to lessen future climate change worst-case scenarios.

Another lessen is that national borders do not hinder the spread of the coronavirus. Thus, coordinated national and international planning and communication are critical. Even the many robust local responses to COVID-19 may be for naught if other places are more lax in containing the virus hastening its spread. We learned cooperation is critical for distribution of equipment (ventilators) and PPE. Thus, we must make an effort to coordinate a global response to climate change. Reducing global GHG emissions and coping with its worst physical impacts will similarly require concerted global action.

Finally, what will our economic recovery be like? It is an opportunity not just to bring economic activity to life, but, with a concern for climate change, we can recover smartly by favoring energy efficiency and clean energy which would also address the next crisis, climate change. It is a simple fact that for most businesses recovery will be slow. With high unemployment, few people have the money to buy what they have to offer. Thus, revenue recovery will be slow. That’s all the more reason that companies need to cut their expenses, and reducing energy costs is a very good, long-lasting way to do so and put yourself in a more competitive situation. CCES has the experts to suggest proven, company-specific strategies to significantly reduce energy costs and manage their implementation for your benefit. To minimize the inconvenience to reduce your expenses. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Spending More Time At Home? Make it Healthier and More Energy Efficient

Many of us are staying home. Whether we are working or staying home for safety, this is the most important thing we can do during the COVID-19 pandemic – stop the spread of the coronavirus. For many, our homes are a place to sleep, have a few meals, watch TV, and, maybe, not much else. But now that we are spending more of our time there, it is important that it be healthy for us and energy efficient for our wallets.

With many people having free time, this is an opportunity to upgrade your home to be more energy efficiency and healthy. The good news is that material is available to help you improve your home in these areas. For some, incentives exist so that others pay part of the cost. Many energy efficiency upgrades improve family health, as well.

Projects, such as improved insulation and sealing, reduce the impacts of extreme weather (the chance that your home will be unhealthily hot or cold) and reduces infiltration by pests and allergens, improving family health (fewer asthma or allergy attacks). If you are hesitant, remember that such projects also reduce the amount of heating and cooling needed, saving energy costs, making the effort more worth it.

And, remember that governments and utilities have incentive programs that pay out billions of dollars annually to building owners who implement an energy efficiency upgrade. The US Dept of Energy has a Weatherization Assistance Program to provide information and resources to help improve inefficient homes by offering costs to implement such projects or even to repair or upgrade existing HVAC equipment.

According to the American Council for an Energy Efficient Economy, in the State of Ohio, energy efficiency programs also resulted in positive health impacts, saving 187 lives and $1.5 billion in avoided costs in 2017. Similar results were seen in other states.

While upgrading one’s kitchen and entertainment equipment, insulation, windows, HVAC equipment, etc. are positive financial investments, simple changes in home procedures can also save energy costs and improve health.

• Cooking has become family fun time. It is best to clean and maintain kitchen equipment and perform operations at the same time.

• Hand washing is so important to inactivate coronavirus. However, many studies show that the water temperature is unimportant. Cold water cleans as well as hot or warm. Therefore, use cold water to wash hands. The use of soap is the key. The same is true of laundry. Cold water is as good as hot. And make sure your laundry and dishwasher is full before using.

• Adjust the thermostat based on actual use. If one is leaving a room or area, make sure the AC or heat is off in the area. Set the temperature to a comfortable and not extreme temperature.

• Use equipment efficiently. It is not good for one parent to watch one video, the other to stream an old show, and each child play separate games. Try to do activities (and use electricity) together and have fun, too.

The COVID-19 pandemic is making us all spend more time at home. Let’s make sure that they (for ourselves, family members, and friends) are healthy for us to live in (so we do not come down with another malady) and is energy efficient, too.

And remember, as we begin to move toward normal, such upgrades will also improve health impacts and energy usage of commercial buildings you work or shop in, too.

CCES can help you and your firm develop and implement appropriate, proven energy-saving strategies to improve health and save significant energy costs. Our technical professionals have done this for many different building and company types. Contact us today at 914-594-6720 or at karell@CCESworld.com.

Best Practices to Protect Your HVAC Equipment

By Bud Hammer, Atlantic Westchester

As many facilities are having to reduce operating hours or temporarily cease operations, it is important to still maintain your building’s environment as well as your bottom line. Building owners and operators are actually in a position to take precautions to help prevent spread of infections. When you return to full capacity at your building, the reassurance of improved air quality and facility safety is a must.

There are things that can be done with your HVAC systems to support a healthy indoor environment and help protect against the spread of flu viruses like COVID-19. Here are some recommended procedures to follow while buildings are closed or minimally staffed:

1. Keep HVAC systems running. Even if buildings are unoccupied, insufficient temperature and humidity control can lead to mold growth.

2. Reprogram standalone programable thermostats and adjust BAS/DDC temperature setpoints and occupancy schedules to avoid unnecessary spend.

3. Maintain a temperature between 55⁰F and 80⁰F and a proper indoor relative humidity (50% RH) maximum humidity of 60%– Viral transmission occurs at higher rates when indoor humidity levels are either very low or very high. Studies have shown higher person-to-person transmission levels occur when indoor humidity is lower than 40% RH than occur at 50% RH. This has to do with the evaporation process. Increasing the reliance on outside air can help increase the humidity in commercial buildings to an optimum level to help inhibit airborne transmission of viruses.

4. Use high-efficiency filters, preferably HEPA (MERV 13). Upgrade filters. High-performance filters (MERV 14-16) can remove particulates down to the size of the COVID-19 virus. Filters come in a variety of ratings. As their rating increases, so does the price. Standard pleated air filters entrap larger particles and are sufficient for most purposes, but they cannot scrub the air of bacteria and viruses. Improved filtration may be worth the investment given the great concerns about viral transmission. Supplies of these filters are limited.

5. Clean air ducts and coils.

6. Perform any preventive maintenance now (HVAC, power, and lighting assets) while buildings are unoccupied.

7. Exercise your emergency backup power systems to ensure uptime when needed.

8. Augment staff for increased connectivity to suppliers and reduction of potential downtime.

9. Increase the volume of outside air (OSA) to achieve more air changes – HVAC systems are the source of fresh outside air for occupants. Increasing the amount of OSA reduces the amount of recirculated air through the HVAC system. “Ventilation represents a primary infectious disease control strategy through dilution of room air around a source and removal of infectious agents” (CDC 2005). Replacing contaminated indoor air with fresh OSA is an important step in improving occupant health. ASHRAE is the organization that sets the standards for the HVAC industry. Its most recent advisory guidelines states that now is not the time for energy-saving techniques like demand control ventilation (DCV) that reduces the amount of OSA. We recommend increasing outside air levels to 20% – 40% of the air handling capacity of the HVAC unit. The mild temperatures of spring reduce the energy penalty that this action would otherwise create under more extreme summer or winter outdoor temperatures. Units equipped with variable speed fans can cost-effectively accommodate an increase in ventilation rates.

10. Ensure equipment is in proper working conditions. All of the above recommendations assume equipment is in proper working condition and supply fans run continuously whenever the building is occupied. Commercial buildings should never run in the “auto” mode unless steps are taken to periodically “over-ventilate” the building. It is common for retail and small offices to run fans improperly. Make sure to educate your tenants and facility teams on the importance of running fans continuously. It is established in the building codes and national standards.

Atlantic Westchester (AW) is a commercial Heating Ventilation Air Conditioning (HVAC) company dedicated to making buildings smarter while providing the highest quality service in the industry. Since 1961, AW has catered to clients across the NY metro area with proactive maintenance, remediation and installation services based on their unique facility needs. Our professional, well-trained team works as a trusted partner to provide our clients with intelligent, energy-efficient solutions that optimize building performance, lower operating costs, and improve comfort. For more information, AW’s website is: https://www.atlanticwestchester.com/ or contact Ms. Cathy Hoffman at choffman@atlanticwestchester.com or at 914.666.2268.

The Pandemic’s Effects on the Energy Efficiency Sector

The COVID-19 pandemic is, of course, having a tremendous impact across the U.S. One hundred thousand or more will likely perish and tens of millions will have lost their jobs or had their businesses greatly weakened – including those in the energy sector.

1. Most companies are not thinking about energy right now. Of course, any company’s main concerns these days will be the health and safety of themselves and their employees, making sure technologies work so people can work from home, and maintaining their systems if they are allowed to function. Nobody is thinking about energy and upgrades and how to save usage and cost.

2. No or few site visits. Most companies and buildings that were seriously looking at energy upgrades are not going through with them. Many contractors are prohibited from or do not want to work in places where health is unsure. Many energy firms have had business losses “overnight” and have had to lay off staff.

3. Lack of capital. Potential customers for energy efficiency upgrades will be hard put to find the money to pay for potential projects – even if they understand the many benefits. The pandemic has put the U.S. in a recession, meaning there is less money available for projects and businesses looking to rebound will focus on projects with immediate paybacks or ways to re-attract their customer base. The many business failures probably will mean reduced revenue for many utilities and governments, meaning less money available for incentive programs. The good news is that the potential follow up to the CARES package is rumored to contain stimulus provisions for energy. Plus, several states want energy efficiency to be part of their recoveries, as well, as they understand that energy efficiency is one way to benefit businesses (help them reduce costs).

4. Losing motivation.  There is a concern that society will lose its motivation for energy management and sustainability as more data is published that the new recession and lockdown situation has caused traffic, power demand and green-house gas emissions to decline rapidly. Of course, a need for energy efficiency may return if people will return to our previous high consumption lifestyle.

5. Real estate changes.  We simply don’t know what the future of the workplace and its real estate will be, causing businesses to wait until that is worked out to design space more efficiently. People have gotten used to working from home and using video conferencing. When the lockdowns end, will businesses move to smaller spaces, encouraging staff to continue to work from home? Or might they wish to move into larger spaces to enable greater distances between employees as we continue to have social distancing at least until the virus is completely controlled? Until businesses decide on these trends (likely, many months or years), companies may be hesitant to invest in energy efficiency.

However, there are factors that favor a robust comeback of the energy efficiency sector.

1. Energy efficiency will be critical for businesses making a comeback. For most such businesses, it will be hard to bring back staff, make one’s product, get back customers, etc. Sales may lag for some time, even when lockdowns are lifted. Thus, it will be more important than ever for a company to lower costs, one of the greatest ones being energy. As long as energy projects are seen as financially beneficial with a short payback, it will be important for a business trying to come back to reduce regular costs, and energy efficiency meets this.

2. Prepare for the next “big thing”.  The pandemic hurt businesses so much and so quickly, certainly making people realize that one must prepare for circumstances that can potentially change rapidly. One way to prepare is to lower costs and operate more “lean and mean”. Being energy efficient is certainly an example to help businesses weather the next potential “storm”.

3. Climate Change may be the next “storm”.  While the pandemic was caused by a microscopic virus, perhaps the next big effect on people’s health and businesses is the opposite extreme. The changes to huge planetary systems, encompassed by Climate Change will surely cause large-scale death and business upheavals. Of course, the best way to deal with upheaval is to be efficient. Given Climate Change is so linked to energy, energy costs will likely rise significantly in the future, so controlling these costs by being energy efficient and using renewable technologies will likely be favored greatly.

For these reasons, it would appear that the energy efficiency business market will suffer in the short-term, but can undergo tremendous growth in the longer term.

CCES has the experts to help your company develop an energy plan and help you incorporate energy efficiency in your future growth plans to provide many competitive financial benefits. Contact us today at karell@CCESworld.com or at 914-584-6720.

Yes, It’s Time to Think About Energy & Sustainability

As I write this, we are in, perhaps, the most difficult period of our lives. We are mostly holed up at home and seeing how tens of thousands of fellow Americans have died (so far) from COVID-19 caused by exposure of the novel coronavirus and millions of people have lost their livelihoods or had their companies gravely damaged, as a result. It will be months, if not a year or two, before things get back to “normal”, if that is possible again.

But I maintain that this is the time to begin to think about your business’ energy profile and how to use it to your advantage when things move toward normal. The vast majority of businesses have been impacted by the pandemic. Those that survive when the worst of this passes will suffer great losses, possibly in the trillions of dollars in revenue. Certainly, there will be changes in the way business will be done.

What might those changes be? Many people are working from home now. Might it stay that way when people can commute to their offices again? What are the real estate implications of this? Many companies will need to reconfigure their offices. Some will learn from this and look to add more space with the same number of staff (office social distancing). Some will downsize their space as staff will continue to work from home.

Another given is that companies will need to make up for the shortfall of revenue of many months. Getting your product, sales, delivery, and other systems running again and reliable for your customers is important. And there will certainly be gimmicks and other inducements to get customers back.

However, part of the equation for being a viable business again is to cut expenses, and a great way to do this is through sustainability. What can you do to make your business more sustainable, your staff more healthy and productive, and cut back on energy and water usage and waste generation? As you await the end of the lockdown and prepare for your business to operate again, take some time to plan actions your business will implement to be more sustainable, have your staff more productive, and reduce those pesky expenses, by being more energy efficient.

Here is a true story that just happened. In February, I presented an industrial client a proposal to change their fluorescent lighting to LEDs. With utility incentives, the client would have to lay out $6,000, but would save about $70,000 in avoided energy costs in 5 years. What a deal! But they turned it down. They said they would go to the local hardware store, buy the LEDs, and install them themselves; after all, they were very handy. Well, March came with all of our issues with lockdowns and the client certainly did not have the time to go out and buy the LED tubes. The company, like so many others, is still operating, but has seen a significant drop in revenue. They realized they have to react to this by cutting expenses; they have asked for a new proposal for LEDs.

In your preparation to re-start or bring your company back to where it was, give some serious thought to energy conservation and sustainability to give your business a better footing to weather future situations.

CCES has the experts to help find ways to reduce your energy and water usage, saving potentially significant costs for you. We have saved others both cost and greenhouse gas emissions. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Small Buildings Reluctant To Do Energy Upgrades

Energy efficiency upgrades are often at the bottom of building owner or manager’s list of priorities, particularly for smaller buildings, defined as under 25,000 square feet, which comprises nearly 90% of US commercial building stock. According a 2015 report published by National Institute of Building Sciences (NIBS), entitled “Financing Small Commercial Building Energy Performance Upgrades: Challenges and Opportunities”, owners face several challenges in terms of financing such projects. NIBS recommends that government and other organizations make it easier to obtain credible financing.

Barriers to Energy Efficiency for Small Commercial Building Owners

According to the document, the main barriers are skepticism that energy retrofit projects will actually deliver the financial benefits calculated, financing, and technologies favoring larger buildings. Delivering benefits leads to three discussions.

Building owners, like most business people, crave certainty. While the engineer can explain the likelihood of the success of the retrofit, the owner – not knowledgeable about technology – is naturally skeptical about things they don’t personally know. Also, management usually does not have experienced staff who can review and oversee specific design and building performance vis-à-vis energy efficiency.

Second, management tends to focus first on urgent repairs and delay long-term upgrades. There are not many periods when there is not something crucial pending. Management culture, therefore, is more day-to-day rather than long-term. What then often happens is that management is forced to implement an upgrade because of failing equipment, putting the team under pressure, costing more money, and limiting options.

Third, building management tend to look at investments in the short-term if, for no other reason, their salaries/bonuses/promotions are based on short-term profit.

Another issue is financing which is potentially troublesome for many building owners who often borrow for other types of projects and may have checkered histories.

Finally, most strategies to improve commercial energy efficiency are more financially beneficial for larger buildings than small ones. Since there is a base price for a technology, building it larger or being more comprehensive does not add a lot to the cost, but could be more effective in reducing energy use. Smaller buildings do not get the potential benefit a larger building with more tenants and activities do.

Overcoming These Obstacles

One way to overcome the skepticism is to have the energy specialist come in with turnkey solutions. The company will develop the opportunity, bring in the proper vendors to design, build, and install the technology, and test it to ensure that minimum standards are met. One company that the building owner trusts oversees all aspects gives that owner more confidence that the implementation will be proper and goals obtained.

The NIBS report recommends that government, and, particularly, the federal government, link existing loan and other programs to assist small businesses. Existing Small Business Administration loan programs do not address energy or environmental upgrades. Working with the Dept of Energy, such programs focused on realistic energy savings and upgrades can be successful.

Property-assessed clean energy (PACE) and on-bill financing are options the report recommends. PACE loans are repaid through property tax assessments bills and are administered by government and considered higher-priority than mortgages. On-bill financing programs fund retrofits via utility bill savings over time.

Loans specific to upgraded equipment loans, managed energy service agreements, and real estate investment trusts (REITs) may also encourage more energy upgrade projects. In managed energy service agreements, customers pay an energy firm a set straight energy fee. The firm pays the utility what is actually used and makes money from the difference, which occurs by making the building more energy efficient. The firm takes the risk and the owner pays a set fee.

Understanding the building owner/manager’s culture and pressures will make it easier for energy professionals to propose energy upgrade projects which don’t just make technical and financial sense, but also makes the owner comfortable about success and minimizes risk.

CCES has the experts to evaluate any type of building and develop and project manage energy saving projects with a robust payback and to improve productivity at the same time. We can see projects from initial design and calculation to final. Contact us today at karell@CCESworld.com or at 914-584-6720.

Challenges Remain In Investing in Energy Storage

Everyone now understands that clean energy, such as solar and wind, has so many positives. Renewable power is now cheaper to build and operate than a conventional fossil fuel-fired plant. It is clearly cleaner for a community’s health and emits no greenhouse gases. The problem, of course, is the intermittent nature of the power. Solar produces a lot of power when the sun is out, but little or none during cloud cover or at night. Wind does great, but only when there is wind. But people, businesses, etc. need power consistently. And utilities need a reliable supply to deliver at all times. Storage of excess electricity is the solution to this problem; but storage on a utility-sized level is not simple. Energy storage is a rapidly growing sector, and prices are dropping.

A growing number of entities (businesses, cities, states) are committing to a high percent of electricity used from renewable sources. This article accounts for the many areas in the US pointing toward 100% clean energy. https://innovation.luskin.ucla.edu/wp-content/uploads/2019/11/100-Clean-Energy-Progress-Report-UCLA-2.pdf. Globally, one article predicts a 13-fold increase in new renewable power plants just between 2018 and 2024 (https://www.woodmac.com/our-expertise/focus/Power–Renewables/global-storage-q3-2019/?utm_source=gtmarticle&utm_medium=web&utm_campaign=wmpr_globalstorq319). Therefore, energy storage must play a role to meet these goals.

Global investments will be needed to upgrade the grid with enough flexibility to account for the variable power generation profiles of renewable technologies, including electricity storage. As a new industry without an affordable, reliable solution, electricity storage does not motivate investors. Questions investors ask is how will an storage project generate income? While charging or while deploying electricity or both? Each plant likely has its own interconnection issues which may affect reliability and profitability.

Another consideration for investors is that electricity storage projects, for now, have a shorter lifespan (10 to 15 years) than that of renewable power itself. How do these technologies age during the lifespan? This can be worrisome to investors.

One more concern for electricity storage investment is reaction time and reliability. If a solar or wind farm suddenly fails to generate power for any reason, can the battery project deploy power into the grid immediately (in microseconds)? And to seamlessly shift back to store excess power again?

On the other hand, there is great motivation among utilities and governments to have reliable storage solutions in place to ensure uninterrupted power to consumers in case of a natural disaster (hurricane or other damage to the grid) and may ensure or guarantee the other risks to have such systems in place.

Therefore, energy storage as an investment opportunity for those with their eyes open.

Investment in electricity storage projects continues to grow, especially when paired with renewable technologies. This summer, a major large hybrid renewable project was announced, a 700 MW facility in Oklahoma, including 250 MWs of wind, 250 MWs of solar and 800 MWh of battery storage. More such hybrid plants or storage technologies added to existing solar/wind farms are being planned.

CCES can help you determine your electricity needs and whether renewable is in your interest and how so. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Lighting and Improved Productivity

Light emitting diodes (LEDs) have been around for nearly 100 years. The primary advantage of using LED lights is energy savings. It has become popular in the last couple of decades because its cost of manufacturing has come down, the unit cost of energy has risen, and the technology itself has improved. LED output can now be controlled automatically to suit the users’ needs.

Now that a cost-savings baseline has been established, more recent research has focused on improving light quality to improve the health and productivity of workers.

Recent research has helped us understand how light influences human behavior. Human circadian rhythm can be affected by different visible wavelengths, particularly in the blue-green region. Light coming into one’s eyes and stimulating the nervous system is a major influencer of the circadian system, which starts in the brain and regulates physiological rhythms throughout the body, affecting hormone levels and the sleep-wake cycle.
Certain neural receptors in the retina when they capture light of wavelength of about 490 nm which best causes the brain to stimulate other parts of the body (alertness). Furthermore, light with lower amounts of this wavelength range signals the body to settle down and prepare to rest.

Light can influence other activities, too, such as being energized during the day and falling asleep at night. Several university research laboratories and lamp manufacturers are trying to incorporate this into LED light technology. While LEDs can emit a very natural white color, part of its spectrum could contain a larger amount of rays in the blue-green region (470 nm to 520 nm wavelength), which can influence human circadian rhythm and behavior.

Finally, research is showing that the ideal wavelengths to show effects on human behavior also depends on the age of the subject, due to changes in the eye’s shape and cornea with aging. In general, as one ages, the wavelength needed to influence human behavior goes up. However, even as one may adjust the wavelength, the influence on behavior declines as one ages; again, the effects of aging on the physiological and hormonal properties.

Therefore, imagine an office where the lights are programmed to emit white light at all wavelengths, but especially around the 490 nm mark, the high point for alertness for young people, but also higher wavelengths for older workers. And then changing the mix of wavelengths to higher ones to get people to settle down at the end of the work day. That time may come sooner than we expect.

CCES has the experts to help you evaluate your lighting to optimize the energy savings, be more green, and improve your workers’ productivity. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Start of 2020’s Notes on Clean Energy

Chicago is the nation’s leader in energy-efficient office buildings, according to the 2019 National Green building Adoption Index. Also in the top 5 were San Francisco, Atlanta, Minneapolis-St. Paul and Los Angeles. The ranking was based on total space in office buildings having either the EPA ENERGY STAR label, USGBC LEED certification, or both. According to the report, in Chicago, 1,411 representing 71.1% of all office buildings, over 167 million sq. ft., are market-certified green.

Renewable electricity will surpass coal soon. The world’s consumption of coal is declining. Global investment in new coal-fired power plants has slowed sharply in recent years, as countries and investors finding that clean energy, such as solar panels and battery storage, are often a cheaper way to produce electricity and because of the major public health effects of the air pollution caused by coal combustion.

Renewable energy is expected to surpass coal as the world’s dominant source of electricity by 2030, growing to 42% of global generation. Natural gas, while emitting less greenhouse gases than coal, but still producing some, is also growing at the expense of coal. However, hundreds of existing coal plants will continue to do so to satisfy investors unless incentives can be implemented to retire these plants early. Carbon capture and sequestration technology remains unreliable. Watchdog agencies are not permitting CCS until it is proven beyond a shadow of a doubt that CO2 is removed for a long time. Wind is also growing, with expectations of nine-fold growth by 2040. Companies in the US, China, South Korea and Japan are planning major off-shore wind farms, joining several European nations who have already built such farms.

Electric car sales are growing. But so are SUVs. In 2019, consumers worldwide bought about 2 million electric cars, spurred by a combination of declining costs and generous vehicle incentives. Sales of electric cars are expected to continue to grow. As a result, global gasoline and diesel use for cars might peak by the mid-2020’s.

But despite this good news, sales of larger SUVs, which consume more gasoline than conventional cars, is expected to grow, too. In 2000, just 18% of passenger cars sold worldwide were SUVs. Last year, it was 42%, negating the gains in greenhouse gas emission reductions from the transportation sector from hybrid and electric car sales. Can a carmaker successfully manufacture and market an electric (battery-powered) version of an SUV?

Energy efficiency efforts are slowing. Energy intensity of the global economy (the amount of energy used to result in revenue), a measure of efficiency, made major gains in the first half of the last decade, but then slowed down. In 2018, the energy intensity improved by only 1.2%, a very slow rate. This may be due to many countries weakening their policies, such as US, which plans to roll back the standards that would have encouraged more efficient lights.

Another disappointment is the lack of inclusion of energy efficiency in building codes. According to one report, 2/3 of new buildings worldwide are being built without having to meet any type of energy efficiency codes and standards. Since a new building now will be functioning and, presumably, wasting some energy for the next 60 or more years, this is a concern.

Development in Africa is crucial. Africa is expected to grow economically and urbanize starting this decade. Will it do so powered by coal or another fossil fuel or will it do so primarily with renewable power, as sun and wind are plentiful in most of Africa? One report states that Africa has about 40% of the world’s potential for solar energy but is generating less than 1% of the world’s solar power.

CCES has the experts to help you plan your own energy plan to be more efficient, save costs, and have a demonstrably greener entity. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Start A Simple Energy Management Program–Part 1

Most companies have whole departments for sales, to control expenses, to manage employees, manage leases and other contracts. However, one area that many firms do not devote any time or resources to is energy. Many feel that energy is not controllable. We need lights and can’t function without them or need various motors and complex equipment, but we can’t do anything about their energy use. Some feel that energy is a small cost to them compared to salaries, rent, etc., so why spend resources on it.

Energy usage and costs are significant and are manageable. Perhaps business leaders feel otherwise because they never learned about it in business school. Nothing seen; therefore, not a factor. However, efforts to reduce energy usage, if done smartly, will usually lead to financial gains, paying back the cost and effort to implement the cost reduction strategy in a reasonable timeframe. Energy can be managed and minimized without impacting operations. While energy costs are lower than payroll and rent for most companies, that does not mean they should be ignored.

Perhaps you don’t have the labor, resources, or the will to develop a whole new group for energy, or even one person devoted to this. That is understandable. But there are simple things you can do to study and improve energy usage to gain these benefits.

The first thing to do is gather basic data. How much energy does your company use? What form (electricity, oil, gas, steam)? Is the use/need consistent or does it vary by time or season? Does it correspond to certain operations? Are their trends (energy use rising or falling)? Answers can lead to smart strategies to reduce energy use and costs.

How to gather such data? There is one item which your firm receives that is a treasure trove of information on your energy use – your energy bill. If your firm gets your monthly energy bill and just passes it on to Accounting to pay and that’s it, that is not good. You should begin to scan and save electronically your energy bills and invoices (such as oil deliveries) and set up spreadsheets with basic data from these bills. How many kilowatt-hours does each facility (meter) use monthly? Does it change over time and correlate to particular needs of your operations (i.e., greater production or sales? weather?)? By managing data, you can see trends and elicit control over your energy use.

One item that most overlook is your rate class. For example, I worked with a religious institution that for decades just paid its monthly energy bills without reviewing them. I saw right away that their rate class for electricity was of an industrial source, not the discounted rate of a religious institution. Nobody noticed this. Fortunately, the utility had a 6-year lookback program that paid the religious institute the overcharge with interest. Was this religious institution happy when it got a check for $84,000 from the utility! Sometimes buildings change functions, but nobody knows to change the rate class appropriately. Take a look at your utility bill and make sure you are charged properly.

Electricity, gas, etc. bills are typically divided into 2 parts, supply and delivery. By law, the utility can only deliver; it cannot supply the electricity or gas. Utilities, therefore, allow you, the user, to pick a supplier. If you do not pick one, then the utility will pick one for you; and – trust me – it will not necessarily be the cheapest! You can save significant energy costs at no cost to you by researching and selecting a lower-cost supplier.

The final simple item to look for is that most utilities not only charge you for electricity usage for the entire period (usually in kilowatt-hours), but also for your peak demand (kilowatts). What is the most electricity drawn for a short period (often 15 minutes) during the billing period? The utility had to provide you that amount of power through their lines during that short period and if it is high, then you will pay a high rate for this, even if usage is otherwise low. So, study your usage and peak demand charges. Do you have periods of very high electricity demand where several high energy-usage equipment is used at the same time? If there is any way to spread out your operations to lower the short-term peak demand? Can certain operations be done at night or early in the morning instead of in the middle of the day? You can save significant cost. For example, using your air conditioning systems more at night (when the peak demand charge is lower) and less during business hours or performing mechanical operations at night and less during the day will save you significant energy costs.

While these are simple tips that do not require great expertise, they can result in significant energy cost savings. Perhaps you can try this, have some success, show your upper management, and they can see that energy savings can be significant and manageable and worthy of a more sophisticated program. Good luck on this in 2020.

CCES has the experts to help your firm manage your energy use and reduce costs and provide greater flexibility for you in operations. Contact us today at 914-584-6720 or at karell@CCESworld.com.