Energy Management Strategies That Can Save Facilities Thousands
In today's tough economic times, companies considering operational innovations can reduce their uncertainty with a solid energy risk management strategy.
Winter 2011
Energy Conservation Measures (ECMs) are the easiest ways to cut costs and improve sustainability. These ECMs can come with no cost, a smaller expense, or a more significant investment. Industrial locations are challenging, as many sites' energy usage encompasses a greater percentage of the cost of goods sold. For example, retail sites use energy to power lights and cash registers, but this consumption does not necessarily affect the price of the merchandise.
However, if you are an industrial customer and electricity and natural gas play a large part in the cost of goods sold, the way you use energy, either from managing usage or managing cost, has a direct effect on profitability and the bottom line. The expense is directly proportional to the type of industrial facility. Industrial users that consume large amounts of energy, like steel plants or conveyor sites, must track energy usage closely.
The First Step
An owner must first focus on the drivers of energy usage and how to control them to reduce costs. Answer these basic questions: What are the energy consuming devices, processes, and tools? What consumes the most energy? What building controls could be improved?
For example, if a site has loading docks, the amount of building space exposed to outside air and leaking air-conditioned or heated air can increase energy consumption. Sites with significant refrigeration, or the constant temperature regulation of a distribution center, are other industrial-specific drivers.
Energy management service consultants can help categorize energy usage into process and non-process loads and identify ways to purchase this energy in a deregulated market. Non-process energy loads include electricity consumed by computers, lighting, HVAC, and general daily operations. Process loads include energy used by melting steel and welding, to running conveyors and other manufacturing processes.
To manage process loads, an owner must rely on internal engineering staff to identify ways to reduce consumption. These engineers know the plant operating systems inside and out, and will know exactly which operations run on which types of energy and for how long. They may also advise on switching an operating system from electricity to natural gas or another cost-effective source.
Industrial owners should focus on four categories to reduce energy consumption and waste and cut costs.
HVAC
Heating and air conditioning systems are a major contributor to energy consumption. Implement temperature set points and the difference of a few degrees could save hundreds without affecting employee comfort. The temperature set point is the most energy efficient temperature for a facility. Raise the temperature in cooler seasons and lower it in the warmer seasons. This can be done with an existing energy management system, programmable thermostats, or manually.
Next, verify optimum start and start programming, an energy conserving feature for HVAC systems that automatically adjusts the equipment's operating schedule depending on the temperatures inside and outside. Start and stop programming will slash energy waste and spending. This programming starts HVAC systems as late as possible and shuts them down as early as possible while maintaining temperature set points during occupancy.
Check internal control systems for optimal performance. While it might feel like a comfortable 72 degrees, the system could be working too hard. A professional can observe and retrofit underperforming control systems, dramatically conserving energy and reducing consumption.
Project Announcements
AESC Expands Florence, South Carolina, Operations
03/28/2024
Alticor Expands Ada Township, Michigan, Operations
03/27/2024
Eastman Plans Longview, Texas, Production Operations
03/27/2024
DHL Supply Chain-Vantage Data Centers NV11 Plan Nevada Operations
03/26/2024
Big Jet Expands Pittsburgh, Pennsylvania, Operations
03/26/2024
Landmark Ceramics UST Expands Mt. Pleasant, Tennessee, Operations
03/25/2024
Most Read
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
The Logistics Analysis That Drives Industrial Site Selection
Q4 2023
-
Manufacturing Momentum Is Building
Q1 2024
-
Technology’s Influence on Workforce Development
Workforce Q4 2023
-
37th Annual Corporate Survey: Economic Pressures Exerting Greatest Effect on Decision-Makers
Q1 2023
-
Industry in the Era of the Electron
Q1 2024