Part of a series taking important new concepts and wording them so you can pass basic information to your colleagues and contacts. And why these are important.

Background
When building owners or managers hear about energy efficiency, they tend to shrug their shoulders. They know it’s important and useful. But it’s rarely a high priority. Thus, that means it won’t be addressed in the near future, if at all. “There are many other things on my plate I have to do now”, the manager says.

Who am I to argue with that? However, I will make argue that improving energy efficiency will likely provide so many benefits that some of those other headaches in managing a building may be reduced and you will have extra money (without raising rents or going deeper in the budget) to address those concerns. So, addressing energy efficiency, in the proper, professional way, will make your life easier.

Why Is Energy a Concern?
Simply put, nothing in a business gets done without energy, whether it be simple lights, operating machines, your comfort. We take for granted that lights go on when we flick a switch; the computer, the coffeemaker turn on, etc. Electricity needed does not appear magically. It is there because of a complex infrastructure starting with a plant burning a fuel (or using renewables) to create electricity which is then transported, in many cases, hundreds of miles, to get to our building. Many things can go wrong (fuel availability, the way the plant operates, transmission lines, etc.). On top of this, energy demand is growing with economic growth and people buying more “stuff” and driving bigger cars. “Smart” technology was supposed to save us, but not always. It used to be you come home from work on a hot day to a hot home, so you then put on the AC and suffer a little before cooling off. But now you can turn on your home AC from your office, thus, both your office and home ACs are working at the same time. Multiplied by many, many thousands – a big electric burden. In the summer of 2019, New York City’s utility purposely caused brownouts in certain neighborhoods to keep the whole system intact. It has been well chronicled that many parts of the US have poor energy infrastructure.

In addition to availability (where would your business be without electricity, even for minutes?) is the cost. Energy costs (electricity, gasoline, etc.) are rising faster than inflation. But it’s worse than that. While inflation has more or less been steady, energy prices tend to be quite volatile, making the expense of energy a real “bull in the china shop” for many companies, hard to keep track of and to budget.

Perhaps the biggest concern. Why does a company want to make its utility rich, especially for energy wasted? Isn’t that money more useful in your budget? The good news is that there has been a revolution in reducing energy waste and saving you cost.

The Many Financial Benefits of Energy Efficiency
So the real issue is energy management, of which reducing energy waste is important. Here are ways a smart, comprehensive energy program will benefit your business:

• It’s Not So Expensive. Conventional thinking is that incorporating smart energy features is prohibitively expensive. Generally, not true. Most energy strategies (LED lights, solar, better HVAC) have dropped in price because there is more interest and competition. Also, many utilities and governments want to save on infrastructure, so they offer tax or other incentive programs to pay part of the upfront cost of a smart upgrade directly to you.

• ROIs and Paybacks Are Great. Most important is the payback. How much will the energy strategy save you in energy usage and, thus, costs? When will you get that initial outlay back and how much extra money (“gravy”) will you have during the life of the technology? ROI is a great measure. If a strategy is planned right, you can get an ROI of 20, 30, 40 or more % per year. I always say, what bank pays 20 or more % annual interest? What Wall St. investment pays this with no risk? The answer, of course, is nobody. But this is achievable in energy. Even if you don’t have the money upfront, these ROIs make it clear you can borrow the upfront and come out ahead, especially now with historically low interest rates.

o Skeptical? Here is a real-life example. A commercial building explored upgrading their lights to more modern, energy efficient ones. They spent $79,000 in a recent year just on electricity for lighting. We recommended lamps that produced more light and used one-quarter of the wattage of the existing ones, saving about $60,000 per year on electric costs. The price tag: $150,000 (which included not only the bulbs, but all new fixtures and code installment), of which the local utility would pay them $50,000 upon installation. A net of $100,000 spent, saving $60,000 per year means a 1.6 year payback of the $100,000. The lights were warrantied for 7 years (will likely last much longer). Based on this and the annual cost savings, that’s $300,000 in “gravy” over the last 5 years from the $100,000 cost. What investment matches this return risk-free (the lights work and really use less electricity)?

• Reduced O&M. Most energy upgrades result in reduced O&M costs. LED lights do not “burn out”; efficient HVAC equipment are effective longer, etc. For example, most LED lights are warrantied for 7-10 years, unlike fluorescent tubes which typically last about 2 years. This means your maintenance staff has more time for high-priority projects, plus reduced accident risk (ladder falls). Longer-lasting bulbs also means fewer needed in reserve, freeing up your budget.

• Reliability. A more energy efficient building means a more reliably functioning one, again, reducing your O&M needs and staff. One also gets satisfied renters, as reliability means better productivity and their businesses are doing better.

• Higher Rents, Better Tenants. By reducing energy waste and being more reliable, you can maintain the tenants you have and/or attract more tenants who understand the importance of reliability and cost savings. And a building’s resale value is higher because potential buyers know that energy costs will be lower.

• Environmental Progress. While this article has focused on financial benefits, let’s not forget that energy efficiency results in indisputable environmental benefits, too, particularly in this age of a greater portion of the public being very worried about Climate Change. Energy efficiency means less energy needed, directly resulting in lower greenhouse gas emissions (one’s “carbon footprint”). More and more governments and the public think this is important and you can undeniably be a “hero” to many with efficiency.

CCES has the experts to help you assess your buildings and help you get started with a useful, beneficial energy program. We can organize it for you seamlessly to save you aggravation. We can also manage the projects you select to provide the maximum financial benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

This month Hurricane Michael caused widespread destruction on the Florida panhandle, southern Georgia, and the Carolinas, entering as a Category 4 hurricane with 155 mph winds and storm surges of many feet. Now the process of assessing the personal and property losses and rebuilding is beginning. Total losses for property damage and disruption of business are likely to be in the billions of dollars. It will likely take months for power and services to be fully restored, and years to rebuild and recover.

Insurance

Many properties suffered damage from both the high wind and water surge. There is confusion and heartbreak as some property owners may not be covered by their insurance policies, which, in some cases, cover losses caused by wind (and wind-driven water), but not damage caused by “flooding” (defined to include “storm surge”). Some property owners will only receive payment for damage demonstrated to be covered by the wind only, and not subsequent flooding. For example, if extreme wind removes the roof from a building and the policy covers wind damage, then the homeowner is clearly entitled to a new roof. But if the subsequent rain and storm surge, which may not be covered in some policies, damages the inside of the house, that damage may not be covered. There is litigation ongoing concerning insurance coverage for “concurrent” actions of wind and water acting independently, but causing damage. There are lessons to be learned for anybody in a hurricane zone wishing to be properly covered.

Did Climate Change Cause Hurricane Michael?

The consensus from the scientific and, specifically, the meteorological community, is that Hurricane Michael would likely have happened anyway, but reached its extreme intensity because of climate change. The Gulf of Mexico contained much more energy in heat and warm water, than normal for this time of year, making the hurricane more water-intensive and stronger. This also accounted for the speed of its intensification. It was originally predicted to be a low-level hurricane, strength-wise. But in the last couple of days before landfall, it intensified greatly due to the high energy in the Gulf, surprising many residents and prognosticators. This complicated evacuation efforts, as officials did not communicate the true intensity of Michael until the last moments before landfall.

Building to Withstand Extreme Storms – It Can Be Done

It was interesting to see that so many of the homes in the path of Michael were not just torn away, but leveled into little bits and splinters. Yet, in Mexico Beach, one home survived with minimal damage, while neighboring homes were completely destroyed. This NY Times article describes this building: https://www.nytimes.com/2018/10/14/us/hurricane-michael-florida-mexico-beach-house.html?action=click&module=Most%20Popular&pgtype=Homepage   The owners built this home anticipating storms in the future, and built this to withstand such wind speeds (up to 250 mph) and on stilts well above any anticipated storm surge. The building was more expensive than the others in the area, but was obviously worth it given how it needs minimal repair, while the neighboring buildings were completely destroyed.

CCES can help your firm understand and cope with Climate Change better. Contact us today at 914-584-6720 or at karell@CCESworld.com.

In this blog, we are constantly referring to Climate Change and measures that can reduce its effects. It has been awhile since we re-examined the basic facts about Climate Change and whether it has changed and just how strong the effect is. Here is a brief discussion so you can talk about this with your bosses and colleagues and share with your children! These facts have been published by mainstream organizations who study and measure this, such as the USEPA, the World Resources Institute, the World Watch Institute, NASA, and the US Green Building Council.

• 97% all scientists in this field agree that warming trends over the past century are very likely caused by human activity.
• The main greenhouse gas, CO2, trapping radiation and releasing it as heat, causing this overall global warming trend reached levels exceeding its historic, stable atmospheric concentration of the previous 400,000 years beginning around 1950, and continuing to grow since. The average concentration of CO2 is about 407 ppm, well above the historic stable concentration of 270 ppm.
• The average worldwide temperature increase in the last century is 1.5°F. This doesn’t appear to be much, but consider the huge circumference of the Earth and 50,000 feet above the entire surface. That’s a lot of excess heat released to raise that volume’s temperature by that 1.5 degrees Fahrenheit.
• Global sea levels have risen on average 8 inches over the last century. The rate of rise has nearly doubled in the last two decades.
• In 18 years since, 2000, nearly all, 16, were record-setting hot years. 2016 was the hottest year yet.
• The 9 most explosive fires in US history have all occurred since 2000, with the biggest one burning 10.1 million acres of land.
• The acidity of the world’s ocenas have increased 30%.
• The estimated economic loss to the US by end of the century if no action is taken on climate change is $180 billion.

Of course, CO2 emissions are derived mostly from combustion of fossil fuels and people love to burn gas, oil, coal, etc. for comfort, electricity, movement, etc. Increases in US and world wide energy consumption (requiring more combustion of fossil fuels) is tied to higher concentrations of CO2 in the atmosphere and the atmospheric temperature rise.
• Domestic US energy consumption in the commercial, industrial and transportation segments totaled 70,930 trillion BTU’s in 2017 – a 35% increase over 2013.
• Operations using the most energy and, thus, causing largest emissions of greenhouse gases:
Space Heating 25%
Other (mostly plug load) 13%
Lighting 10%
Refrigeration 10%
Ventilation 10%
Cooling 9%
IT/Office 8%
Cooking 7%
Water Heating 7%

Type of building and its average annual energy use per square foot:
Building Type            Electricity (kWh)                  Natural Gas (cf)
Health Care                       23                                           110
Office                                  17                                             32
Retail                                  14                                              31
Grocery                              49                                              50
Restaurant                         38                                            141

Sources of CO2:
• Solid fuels, such as coal: 35%
• Liquid fuels such as oil or petroleum – 36%
• Gaseous fuels such as natural gas – 20%
• Industrial gas emissions from manufacturing or processing plants – <1%
• Deforestation which increases emissions by decreasing the cleaning performed by forests – 5%
• Consuming 70% of US electricity, structures account for more greenhouse gas emissions than from the industrial or transportation sectors.

CCES can help your firm develop your own Climate Change or Sustainability program to evaluate how much energy your entity uses and greenhouse gas emissions into the atmosphere. Quantifiable changes will both make your company be a leader in the growing Climate Change movement and, if done intelligently, can reduce costs and provide other direct financial benefits, as well. Contact us to help you begin a program at karell@CCESworld.com or 914-584-6720.

July 2016

News affecting the US energy and environmental areas happens. CCES will keep you up-to-date on important issues quarterly. We may not cover every issue and jurisdiction. Make sure you work with a qualified professional to determine how such news affects your business and career. But we hope this will help keep you up with changing US trends.

Reducing Methane Emissions

The Obama Administration is entering its final months, and there is concern that they have not properly tackled all options concerning reducing greenhouse gas (GHG) emissions in response to climate change. While the focus has been on reducing CO2 emissions from fossil fuel combustion, it is understood that methane (CH4) emissions (21 times more potent than CO2) must be reduced, as well. There is a debate on how to do this. Recent technological advances, such as fracking, has encouraged conversion of coal and oil plants to natural gas, effectively reducing CO2 emissions. However, increased usage of natural gas means greater leakage and emissions of CH4 such that GHG emissions are not being cut significantly in total. While the Republican candidates for President have not discussed the issue, different factions of the Democratic Party have different strategies, ranging from a total ban on fracking to supporting fracking under certain conditions, such as minimizing water and CH4 leakage. The platform of the Democratic Party deals with this in compromise form, requesting minimizing CH4 leakage, requiring companies to publicly list the chemicals used in fracking, and banning fracking in communities or states that oppose it.

The Obama administration has pledged to reduce CH4 emissions from the oil and gas sector by 40 to 45% below 2012 levels by 2025, and has begun to draft standards for CH4 emissions through the Clean Air Act, although they will likely not become law until the next administration.

US Court of Appeals Delays Hearings on Clean Power Plan

The US Court of Appeals for the DC Circuit announced that it was delaying oral arguments concerning the Clean Power Plan until September 27 in front of the entire Circuit. The Clean Power Plan would establish federal standards for CO2 emissions from existing power plants. The timing is such that a decision by the full Circuit would probably be made after this November’s elections. Who becomes the new President may itself alter the landscape and breadth of the Clean Power Plan. The losing party to a Court of Appeals decision after Election Day would likely appeal it to the US Supreme Court which could hear arguments and rule by June 2017.

The Obama Administration and the USEPA believe they have the statutory authority to amend the Clean Air Act to include such regulations. Arguments against the Clean Power Plan include whether the USEPA exceeded its authority under the Clean Air Act to set CO2 emission standards that rely on emissions beyond a facility’s control (if other facilities combust high-GHG emitting fuels or use renewables). The Clean Air Act allows the USEPA to only regulate activities at the actual power plant to reduce emissions (e.g., efficiency improvements). The USEPA responded by stating that the Clean Air Act allows it to take “generation-shifting” measures to determine emission reduction targets.

Obama Administration’s Initiative for Solar for Low, Moderate Income Housing

The federal government announced in mid-July the Clean Energy Savings for All Initiative, aiming to increase the use of alternative energy by 10-fold in low and moderate income housing. See https://www.whitehouse.gov/the-press-office/2016/07/19/fact-sheet-obama-administration-announces-clean-energy-savings-all.
The program aims to increase solar use by about 1 GW by 2020, covering about 1 million additional low and moderate income homes.

Key elements of the Initiative:

• New guidance to use Property-Assessed Clean Energy (PACE) financing;

• A “Community Solar Challenge” to award teams in many communities up to $100,000 in cash or technical assistance, to develop innovative models to increase solar installations and reduce low income communities’ electric bills;

• DOE will provide technical assistance to qualified low income housing groups;

• Solar-related job training for low- and moderate-income people; and

• Over 120 housing authorities, rural electric co-ops, power companies, and others in over 36 states have committed to investing $287 million for over 280 MW of solar energy projects in low- and moderate- income communities.

New NPDES Standards for Discharges from Construction

The USEPA is expected to shortly update its NPDES General Permit for Discharges from Construction Activities (GCP) to go into effect next year. The proposed updates to the GCP are intended to clarify current permit language and contain new requirements that non-stormwater discharges from external building washdown not contain hazardous materials such as PCBs, revise current effluent limits, require cover or other appropriate temporary stabilization for all stock or debris piles unused for 14 or more days, require waste containers to be closed or covered when not in use, and impose requirements on the demolition of structures exceeding 10,000 sq. ft. of floor space, which were built before 1980, to limit PCB-containing building materials entering stormwater.

We hope that this information is useful to you and your firm. Please speak to professionals in the appropriate fields before implementing any strategy or addressing any regulation. CCES can provide the technical advice to help you comply with a new environmental or energy regulation and to help you prosper as you do so. Contact us today at 914-584-6720 or by email at karell@CCESworld.com. And feel free to comment on these articles or suggest topics of interest.

As a licensed professional engineer and Certified Energy Manager, I have reviewed hundreds of utility bills and tracked energy consumption of many buildings to determine the feasibility of energy-efficiency upgrades. While I have been successful helping many buildings incorporate common-sense new technologies to save money, there is another, much simpler, risk-free way to save energy costs. In reviewing bills, I have come across seemingly obvious errors, such as incorrect tax rates and delivery taxes for ESCO accounts. With utility costs being a greater percentage of a building’s costs and ever-more complex electric, gas and water bills, there is a growing number of potential errors that could result in overcharging; errors that are difficult for even experienced building managers to catch even if they knew what to look for.

The way to avoid such issues and to not be overcharged on utility bills is a new and growing sub-field in energy services: BILL RECOVERY.

What is Bill Recovery?

It is simply the organized process of having your utility bills carefully scrutinized for errors by experts using complex algorithms that look at taxes, tariffs, meter-read errors, utility rates, and other issues that make up the over 100 components of a typical electric, gas or water bill.

Bill recovery services are generally contingency-based so there is no out-of-pocket cost to you. If no errors are found, the review will not cost you anything, and you will know that you were correctly charged. If errors are found, the company recovers the refund from the utility and sends you a pre-negotiated split of the recovery. Plus, you will have the assurance that you will be charged fairly in the future, and thus save future costs, too, compared to not having the review performed. For larger accounts, it has been shown to be worthwhile to go through the utility bill review process a second or even a third time as errors missed by other bill recovery companies have been found or due to changes in billing that occur subsequently.

I found the argument compelling. You should consider having a Bill Recovery analysis performed. Again, there is no cost to you for the analysis, and potentially much money to be recovered that you would not know about otherwise if errors are found.

However, make sure it is done by an experienced expert, using up-to-date software. You can contact Jean Hamerman at Vantage Energy at jean@vantageetc.com with any questions or just to learn more about a potential Bill Recovery program for you. No obligation. Vantage Energy (www.vantageetc.com) has extensive experience in this area, saving its clients millions of dollars in improperly assessed utility costs.

Two months ago I posted a blog article on sub-metering and its many benefits, such as providing a fair measure of what different users use in terms of electricity and other utilities in order to avoid or to resolve landlord-tenant disputes and to get real readings to encourage energy and water savings (when people see what they really use, they readily invest in technologies to save). At least two cities, New York and Philadelphia, have promulgated laws to mandate electricity sub-metering in certain situations. A recent report in EE Reports (www.EEReports.com) provides robust guides on the basics and how-to of sub-metering.

OK, you have agreed with the arguments that sub-metering will lead to eventual significant cost savings and avoid disputes before they start. There are 3 steps to implement sub-meters, as follows:

• Site Survey. Review drawings and walk the site to understand the layout and the site’s needs. Decide what you wish to sub-meter for. Electricity (the most common) only? Gas, water, other utilities, too? Have in mind the reason(s) you are sub-metering (M&V, demand response, cost allocation, optimizing building performance, and/or bill verification). How many sub-meters may you need, a number based on the number of tenants? Generally one sub-meter can accommodate one single phase or three-phase load and up to 7 connecting wires. An important item to consider is how will the sub-meters interface with your current (or perhaps future) building management or automation system. Wireless? Ethernet? Proper planning is so important.

• Commissioning. After installing your sub-meter (by a certified, experienced electrical contractor), don’t have the attitude of “set it and forget it”. You’ve invested the money and time; make sure the sub-meters provide reliable, accurate, accessible data. Compare values from the sub-meter with that of data measured by BMS software. Take 2 readings around a desired timeframe (ex. 1 hour apart) to determine usage, and compare. Take multiple readings in time. If the sub-meter readings are significantly different, then contact the vendor and/or installer to determine why. It could be faulty wiring or a faulty sub-meter. Perhaps a different model or type of sub-meter is needed to handle the load.

• Evaluate your savings. Now that the sub-meters are installed and operating, collect data to show how the electricity, water, etc. is now distributed among tenants and compare it to past readings (before the sub-meters) to determine long-term savings. Determine usage trends and tie them to location, time of day, building activities, etc. See in what areas your building can focus on to take the greatest advantage in terms of tenant leases, demand management, etc. Are the promised savings being met? Repeat these evaluations at least every year to see how the sub-meters continue to operate and to save your building money.

See www.EEReports.com to see the full “Metering and Sub-metering 101” and “102” Guides. CCES can help you assess the value of sub-metering your buildings and can plan and manage its complete implementation to maximize your financial benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

This is the second in a series of articles on smart, effective energy upgrades that will not only save you significant energy costs (if done right), but will also result in many other benefits. In the first article last month, I discussed the revolution in lighting technology in the past few years, highlighted by LEDs, which can reduce electricity usage by two-thirds or more compared to conventional lights and have other benefits. Let me add one more thought. If you are worried that LED lighting is a risk or “experimental”, don’t think so anymore. Major financial firms, such as JP Morgan Chase and Deutsch Bank, have recommended in writing to their clients that they switch to LEDs. The technology works, they stated, is reliable, and the firms who supply them are, for the most part, financially secure. And in addition: those who invented LEDs just won a Nobel Prize. And now a final word: several LEDs have just gone on the market in the last month or so that exceed the magical 100 lumens per watt mark. For more, see: http://www.energymanagertoday.com/several-leds-surpass-100-lumens-per-watt-0106402/  In contrast, CFLs produce 55 – 70 lumens per watt, and incandescents produce 13-18 lumens per watt.  LEDs work and they are a cost saver!

Reducing electricity costs by two-thirds is great. But how about an opportunity to reduce lighting electricity costs to zero?! That’s lighting controls. Reliable technology has been developed that can control your lighting to levels appropriate for the use of a room or area, turning off or dimming lights when not in use. These are occupancy sensors.

Some claim they don’t need occupancy sensors because the janitors will turn off lights in rooms at night as they clean up. There are many examples of crews who routinely forget to turn off the lights. Occupancy sensors can react to situations and turn off, dim, or light an area quickly. Of course, you first need to do a total assessment of lighting needs. In fact, a simple switch of lights to LEDs is good, but is more beneficial if you also have done a lighting assessment to see if some areas are under- or over-lit. Also, determine which rooms or areas have the longest periods of non-use; these would be the best candidates for sensors. These would include conference rooms, lockers, bathrooms, individual offices, warehouses, and hotel rooms.

Once you determine which rooms or areas should have lighting controls, look for the best controls. Don’t go to Home Depot or Lowe’s and pick up a bunch of cheap ones; they will not be worth it. There are three types of sensors. First, there is Passive Infrared (PIR), which detects heat from humans. These are relatively inexpensive, but may not work well if people are behind partitions. Ultrasonic is becoming most common. It emits and receives sound waves and reacts to changes in reflections to adjust lights. It is programmable, reliable, and can cover an entire room. Finally, a relatively new type is microwave. These appear to work well, but their long-term reliability is unclear.

Occupancy sensors can work effectively if designed well. For example, I was at a multifamily residence recently with hallway lights controlled by sensors. As soon as I stepped out of the elevator – in less than a second – the hallway lights went from off to on. Traditionally, for security purposes, multifamilies have many lights on at full wattage all night even though almost no one uses the area. What a savings to provide security, but also have hallway lights off for over 90% of the long period of night!

And there is more. Controls can also regulate light (and, of course, electricity usage) based on the natural light in the room, known as daylighting. If sunlight comes into a work area, having all of your lights on at full blast is a waste. Let lights only be on when sunlight does not enter the area. Daylighting control sensors regulate lumens of light from fixtures based on light coming in; a consistent amount of light hits the target.

And one more thing. The same controls that regulate light usage can also control your temperatures, too. A smart building manager can save significant energy costs with controls that reduce the need for heating or cooling an area not being used. The sensor can adjust a thermostat so that an empty area is only heated or cooled when people are using it or if the temperature reaches an extreme. Another major area of cost savings.

CCES has the experts to help you plan out a lighting upgrade to determine where best to put lights, what types of lights, and how they can be controlled to maximize your energy cost savings, but still have a productive work staff. We can plan and buy smart for you, resulting in the greatest benefits to make you look good. Contact us at karell@CCESworld.com or at 914-584-6720.

The US Energy Information Administration (EIA) publishes nationwide and regional energy use data (http://www.eia.gov/forecasts/aeo/data.cfm). While changes from year to year are not great, a longer view reveals a lot. From 2007 to 2013, total US energy use dropped 5%, while the GDP rose 6%. The US is becoming more energy efficient.

Our mix of energy sources has changed over this time, too. The percentage of energy from coal dropped from 23% to 19%; oil from 39% to 33%. Meanwhile, the percentage of total energy from natural gas rose from 23% to 27% and from renewables (including hydroelectric) from 6% to just under 10% during that span. These trends will get greater in the future as prices of natural gas and renewables continue to drop relative to other fuels. For example, unit prices on solar panels fell by 80% from 2008 to 2013.

While some of this has been caused by big power companies shutting down units or whole power plants using coal or oil and replacing the demand with natural gas and renewables, another factor is the growth in distributed or decentralized energy (DE). More communities, corporate parks, and industrial facilities are beginning to build their own power plants to become independent of big centralized systems and to better manage power.

Combined heat and power (CHP) is a great example, raising thermal efficiency to as high as 80% or greater and generating electricity from the same fuel combusted. Communities are building microgrids, small power plants serving their needs. Finally, more buildings are using renewable power and/or fuel cells. These forms of DE will be beneficial as they result in much fewer transmission lines and reducing the loss of electricity. More and more states recognize the value of DE in terms of saving existing infrastructure, which otherwise would cost the utility or state many tens or hundreds of millions of dollars to maintain or expand for demand. Therefore, many states and utilities offer incentives for companies or groups to build their own DE plant.

How do these trends affect your company? Do you have facilities that may be fit for a fuel change or installation of DE? In general, switching to natural gas or installing renewables is relatively inexpensive with fairly quick paybacks because the fuel source is cheap (natural gas) these days or free (sun, wind, etc.). DE requires a much larger investment upfront, but it may be spread among a number of users of the technology. CHP, microgrids, etc. often are functional for 20 or 25 years or more. So while the payback of the initial investment may be relatively long, you have an opportunity to save quite a bit of money in total. Perhaps more important is the reduction in risk of costs from losing power in a storm (a tree taking down a faraway line that serves your facility).

What should you do? Perform an energy evaluation of your facilities. What energy source does each facility use for electricity and heat/hot water? Is it feasible to switch one’s boilers to natural gas (is there a natural gas line nearby)? To switch to CHP (room to install it, investment capital)? To install and operate renewables, such as solar, wind, geothermal (proper conditions)? What might the costs be to switch or install CHP, renewables, etc.? What are the potential savings based on current and projected energy prices? What added benefits may you gain from such an energy uplift (reduced risk, lower emission rates and permitting requirements, better productivity or fewer distractions of your workers, such as fewer oil truck visits)? A thorough energy evaluation can lead you in the right path and save you much money.

CCES has the experts to perform a meaningful, cost-saving energy evaluation for your facilities. We can pinpoint benefits of different options, including incentives which your facility may qualify for. We can manage the implementation of any energy upgrades (efficiency, fuel change, etc.) you choose and ensure you get the maximum benefits possible. Contact us today at 914-584-6720 or karell@CCESworld.com.