Sustainability and efficiency take on new importance in U.S. businesses

Renewable energy and energy efficiency have grown hand-in-hand in recent years.

When American political leaders first started to push the idea of energy efficiency in the 1970s, many business leaders remained fairly hostile. Energy, it seemed, had always been cheap, and any change was a failure of foreign policy, not economic policy. Similar complaints were raised about calls for sustainability.

As the global political and economic structures have steadily shifted over the past decades, however, it has become readily apparent that high energy costs are a very real fact of life in the modern day. Businesses would need to adapt to this new reality or get pushed out by those that did, and sustainability would increasingly play a role in economic competition.

More and more, however, a new report from Bloomberg New Energy Finance and The Business Council for Sustainable Energy found that businesses have readily adopted these philosophies in recent years, implementing new technologies from solar power to building automation systems.

New energy picture
With older energy sources slowly being challenged by up-and-coming sources like natural gas and renewables, the report, entitled “Sustainable Energy in America 2013,” makes it clear that the U.S. energy picture as a whole has changed dramatically.

Just six years ago in 2007, renewable energy accounted for only 8.3 percent of all electricity generation; last year, it came to 12.1 percent. In the same period, natural gas – benefiting from booming production in places like the Marcellus shale of Pennsylvania – rose from only 22 percent of total generation to 31 percent.

Efficiency makes its mark
While natural gas was largely credited with the rapid reduction in American carbon emissions the past few years, however, some of the most dramatic effects can be seen from energy efficiency.

Despite impressive economic growth over the past three decades, the commercial buildings have managed to cut their energy intensity by 40 percent. Businesses have secured these immense energy savings despite a steady rise in electricity consumption, as more devices have become an integral part of everyday life.

The increasing emphasis on energy efficiency continues even as some prices have begun to drop again as well. On the whole, the U.S. saw its energy consumption fall by 6.4 percent from 2007 to 2012.

“Success in the clean energy industry is twofold,” Lisa Jacobson, president of The Business Council for Sustainable Energy, said in a statement. “We have demonstrated over the last ten years that not only can we reduce emissions and carbon output but we can also have economic growth as a country.”

Policy having an impact
While many businesses have been frustrated with government efforts to enforce energy efficiency, some of the policies have at least proven effective. The Energy Star program launched by the U.S. Environmental Protection Agency and the Department of Energy more than doubled the square footage of certified buildings from 2008 to 2012.

Industry has had its effect as well. Energy used for air conditioning alone has fallen by nearly half since the mid-1970s thanks to the increasingly strict efficiency standards for new equipment set by the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE).

Building automation opens doors for demand response

Intelligent buildings are helping to balance loads on electric grids.

As much as cutting energy costs can be a major boon to businesses, the potential of demand response programs to help both individual businesses and the grid as a whole is an all-too-often overlooked benefit of intelligent buildings.

American efficiency
When businesses talk about adopting building automation systems, most often they are considering the potential cost reductions associated with energy savings. Lowering natural gas and electricity usage can help improve profitability over the long term, often even with modest up-front investments.

However, the Institute for Building Efficiency notes that nearly every state in the country offers some kind of demand response program, at least in certain parts.

The vast majority – 34 states – offer a combination of wholesale demand response, which offer improved rates for available standby capacity, and retail demand response, in which consumers agree to cut their own consumption to limit pressure on the grid. Fourteen different states offer only retail programs, while Montana runs only a wholesale option and Alabama currently has no demand response.

In fact, demand response to this point is a uniquely American approach. Environmental Leader reports that the latest Demand Response Tracker from Navigant Research identified more than 1,300 demand response programs worldwide – nearly 95 percent of which were located in North America, and the U.S. in particular.

Bearing the load
For some small-scale consumers it can be hard to imagine how turning down lights and shutting off air conditioners can have that significant impact on the grid, but for larger businesses who understand the potential energy savings just from their own efforts it becomes much clearer. And some parts of the country are already starting to see a major effect from growing demand response.

The Energy Collective reports that PJM Interconnection, which serves the Mid-Atlantic region from Pennsylvania to West Virginia, has seen a steadily declining access to reserve electricity generation capacity over the past few years. This vital margin ensures that disruptions on the grid or outages at individual power plants will not lead to outages, but PJM’s reserves have declined steadily over the past few years from roughly 17 percent of capacity to below the recommended 15 percent.

With several older coal plants set to phase out, the margin is expected to drop as low as 9 percent.

And yet, the transmission organization has expressed confidence in its existing resources, not because it thinks its generation capacity is sufficient, but rather because it boasts an already massive and growing demand response program.

Total existing resources actually amount to more than 20 of the region’s capacity, and it should be able to maintain that level through at least 2015, giving PJM more than enough capacity to manage growing demand.

Intelligent Buildings
While demand response is not inherently tied with building automation, interconnected controls make it a much simpler task for grid operators and other businesses to rapidly scale back consumption in a region. And more responsive controls make it more convenient for businesses to participate by allowing them to select more precisely where power consumption will be cut to limit the impact on their activities.

What is an Intelligent Building?

Intelligent Building? To someone unfamiliar with the commercial building industry, this might sound like a joke.  But intelligent buildings or smart buildings are no joke – they are the future! Intelligent buildings are opportunities for incredible energy savings, can boost building security and comfort, and make sound financial sense. This infographic was designed to give some ideas about what makes an intelligent building.

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The drive for energy efficiency can be traced back even past the oil shocks of the 1970s, but that was definitely the biggest spark for key programs everywhere from the federal government to some of the world’s biggest manufacturers. But if the will was there, the technology in many cases simply was not.

The continuing development of intelligent building technologies, however, has now made it increasingly simple to implement building-wide efficiency measures.

Modern building automation systems cover a broad range of options from heating systems to bathroom sinks.

Modern HVAC systems depend upon temperature controls that can use a variety of sensors and programmable settings to maximize comfort while minimizing  energy usage. Many also incorporate air monitoring systems that help to control contaminants such as dust, pollen and other potential health hazards.

These heating and cooling systems depend on several types of centralized equipment, many of which have grown significantly more efficient in recent years, including fans that circulate air and compressors that cool it. One of the most important innovations to help bring down the energy needs of this equipment has been the variable frequency drive – a system that allows devices to operate at multiple settings so that they are not working harder than necessary. These systems can also be extremely helpful for a variety of industrial equipment as well, much of which has historically had nothing but an on and an off switch.

Other automated systems offer easy energy savings as well, including automated lighting and plug load controls. The first can offer a range of different types of sensors to ensure that lights are left off unless a room is actually being used, while the second will automatically shut off electrical outlets for equipment that is not in use to help combat phantom load.

Even water usage can be improved through building automation, however, with increasingly reliable systems available to control sinks and toilets in modern bathrooms.

And, of course, all of this energy and water usage is increasingly being tracked in real time and transmitted to web-based monitoring platforms that can give building managers and businesses a clear picture of where the money is going in their buildings. This can help to identify where the biggest waste is coming from and how best to address it.

Looking for more information? Visit our Niagara videos page to watch videos that provide an overview of what an intelligent building can do.

LMCT-100 Digital Wireless Configuration Tool

WattStopper offers a remote for your lighting controls.

There are a number of important aspects to building integration, from equipment that can be carefully controlled to accurate and reliable sensor systems. But if you’re talking about building controls, one of the biggest concerns is the actual control interface itself.

WattStopper’s digital lighting management system offers one of the most convenient controls available in its sleek, simple LMCT-100 Digital Wireless Configuration Tool.

Barely the size of an iPod, the configuration tool features only a few very simple buttons that combine with an easy to read, high-definition LED screen. The device readily syncs with any of WattStopper’s other equipment, including lighting controls, different types of sensors and switches.

The two-way infrared communication allows the controller to upload information to the devices are receive data from individual devices, giving you the background you need to make informed decisions about your lighting usage without needing any kind of bulky interfaces.

With all of WattStopper’s equipment designed on a plug-n-play principle, the configuration tool adds a deeper level of control without necessarily increasing the complexity of operating the equipment for those who are looking for a simple set of commands.

These controls can allow you to set a variety of different parameters for when to turn on lights, at what level and under what conditions they should be shut off. You can make these controls as broad or as detailed as you like, making it easy to control systems manually or to set up the most efficient systems to maximize energy savings. These configuration tools are designed to allow users to manage a number of different systems easily as well, which is perfect for larger buildings.

The device itself runs on three standard AAA batteries, meaning no obscure parts to replace. And the remote is quite hardy as, like much of the company’s equipment, WattStopper offers a five-year warranty for the device.

WattStopper lighting controls offer many benefits, visit CCI’s website to learn more!

New York looks to efficiency as nuclear plant nears closure

New York could get millions to invest in energy efficiency.

CCI works with control contractors throughout New York that purchase controls online through ControlConsultantsOnline.com. We think there’s business opportunities for you as New York state regulators are considering a new policy that could end up putting hundreds of millions of dollars in energy efficiency projects in the state, according to GreenBiz.com.The idea came up as the state wrangles with the difficult issue of what to do with the Indian Point nuclear power plant, north of New York City. Completed in the 1970s, the plant has two operating reactors that can produce more than 2 gigawatts of electricity, according to the U.S. Energy Information Administration, making it one of the largest operating plants in the state.

Giant shoes to fill
However, Indian Point’s two reactors are quickly approaching the end of their 40-year operating licenses, forcing the federal Nuclear Regulatory Commission to consider whether or not to extend the life of the plant. The NRC seems inclined to let the plant keep operating so long as it can prove it is being run safely, but Governor Andrew Cuomo and a number of other state lawmakers are pushing hard to close the reactors down when their time comes.

According to the EIA, though, New York got more than 30 percent of its electricity from nuclear power in 2010 and Indian Point is particularly important as a reliable source of power near the country’s largest city.

To replace that massive generation capacity, the state is not looking to natural gas or coal or even renewable energy, but rather at energy efficiency. The New York Public Utility Commission hopes to replace most of the 100 megawatts with energy savings rather than new generation, based both on the potential for lower costs and for limiting the state’s environmental impact.

Disagreement over cost
Of course, the problem with this approach is that different groups have dramatically different views on how much a policy like this would actually cost.

Consumer Power Advocates estimates the price at around $200 per kilowatt of reduced demand, which would work out to $20 million for the entire project.

The region’s utility operator, however, offered its own estimate of the cost at 15 times that amount. With the first Indian Point reactor slated to shut down after 2014 and the next following in 2016, the need for rapid adoption of building integration and other efficiency technologies could force the utility to offer much larger incentives than might normally be necessary.

The New York State Energy and Research Development Authority offers a somewhat more moderate estimate, putting the cost at $155.5 million – still significant, but likely less expensive than many generation options.

In the meantime, the PUC hopes to benefit from the review process itself.

“One of the things we will be looking at is the value of some of these upgrades — energy efficiency — even if Indian Point stays open. At least some of the projects would probably fall into the category of something that may be valuable under any circumstance,” said PUC Chairman Garry Brown.

It remains possible that Indian Point will receive a renewed license, but New York businesses likely will benefit from increased efficiency incentives in coming years regardless.

LMBC-300 Digital Network Bridge

WattStopper’s Digital Network Bridge for digital lighting management.

Lighting controls have emerged as one of the most common types of building automation systems.

The difficulty with automating lighting systems, however, is that there is generally no single central control system for all of a buildings’ lights. There is no main boiler or integrated HVAC system, or even the same kind of active monitoring of energy use as with a great deal of industrial equipment.

Every room has its lights, and each room has its light switch, which tends to mean every room gets its own set of sensors and automatic controls.

This can make it more difficult to implement certain types of usage monitoring and control systems that have made building integration so popular and effective.

As a solution, WattStopper created its LMBC-300 Digital Network Bridge, a device that can easily and reliably connect separate lighting automation systems into a single larger network.

Once the individual lighting controls are collected into a network, they can then be connected to an overarching digital lighting management platform that allows businesses to remotely manage their lighting usage across all of their properties. This provides the in-depth controls available for each system at a central location so that company-wide policies can be effectively rolled out at once.

Just as importantly, the system operates on a simple Plug n’ Go principle, allowing minimal setup in order to connect any given network. The device goes through a reliable self-configuration process that should limit the need for input from users.

The WattStopper bridge is particularly useful for use in retrofit projects, where lighting controls are being added on not as a central design feature of the building.

Visit CCI’s WattStopper page to learn more about this and other lighting controls we carry.

Building integration on the leading edge of a new revolution

Energy efficiency is now as much about entire buildings and cities as individual appliances.

The field of building controls has come a long way in just the past decade and it doesn’t take much to notice. Basic manual thermostats have upgraded to automatic temperature controls with high-definition touchscreens and even aspects of building operation that often went ignored have started to draw attention.

A new report from GreentechMedia, though, shows that the changes in building integration are hardly just aesthetic. In fact, Jeremy Rifkin, president of The Foundation on Economic Trends, argues that energy efficiency technologies have reached a critical point in their development where they could start to revolutionize the global economy.

By combining active building controls with growing interconnectivity and improved data collection and management resources, energy efficiency could spark what Rifkin calls the “third revolution” in the global economy.

“We are hitting an inflection point,” Greg Turner, vice president of global offerings at Honeywell Building Solutions, told GTM. “The interchange of information is creating a new paradigm for the energy efficiency market.”

While it might seem odd to point to energy efficiency as the critical trend with so many other emerging trends, Rifkin argues that different technologies can often combine to have an outsized impact on the market.

His first revolution, back in the 19th century,merged the printing press with steam engine technology to bring literacy and a wealth of new knowledge to people around the world. Then in the last century the combination of the automobile and mass media through radio and television helped to create a culture of consumerism that has continued to this day.

Now, with a growing emphasis on energy savings in businesses around the world, many buildings are starting to install increasingly complex monitoring and control systems on equipment ranging from furnaces to manufacturing tools.

These systems have created a wealth of new data that in earlier years would likely have gone to waste. However, with the inception of “big data,” businesses benefit from a growing capability to store, process, analyze and act upon vast amounts of information coming from these building controls.

The businesses themselves are not the only ones to benefit either, as utilities have started making use of this improved information to better tailor their generation and transmission to customers’ needs.

“In the past, energy efficiency was seen as a discrete improvement in devices,” said energy efficiency expert Skip Laitner. “But information technology is taking it to the next level, where we are thinking dynamically, holistically, and system-wide.”

And early evidence suggests that the energy savings from this shift could be enormous. The GTM report itself was sparked in large part by a study released last summer by the American Council for an Energy-Efficient Economy, “A Defining Framework for Intelligent Efficiency.”

The paper suggests that the U.S. could cut its electricity consumption by as much as 22 percent with the intelligent implementation of building integration technologies. As the the ACEEE argued, “The key to understanding the rise of “intelligent efficiency” is to stop thinking about energy efficiency simply in terms of individual devices and to start thinking about it in terms of complex systems  connected through Internet and computer technologies.”