Confused About Energy?
The word energy is arguably the most commonly used word in the architecture/engineering/construction industry these days; and rightfully so. The increasing cost associated with energy, along with the threat of energy instability and America’s dependence on foreign energy sources are certainly matters that need our attention. In addition, the recent removal of rate caps in Pennsylvania adds another level of complexity.
The topic of energy has many facets; and with all of the conversations about energy ranging from legislation and government stimulus programs to renewable and alternative energy technologies, it can cause confusion. In addition, the varying viewpoints and recommendations given by professional product and service providers can make it hard to decipher between fact and fiction.
As business owners, operators, managers, designers and contractors, we are obligated to fully understand today’s energy landscape in order to develop a strategic energy plan for our business and for our clients. This requires an integrated approach to energy that considers all of the major drivers for energy conservation along with the strategies surrounding them. Any strategic energy plan should include tactics for energy procurement, conservation, improvements and continuous measurement and conservation.
The sections below cover the major components that should be considered when developing an informed energy strategy:
- Legislation & Deregulation
- Energy Measurement & Conservation
- Renewable & Alternative Technology
- Funding & Grant Opportunities
Barton Associates can provide a knowledgeable, unbiased, third party perspective that may help clear up some of the confusion surrounding the topic of energy. From understanding the latest laws and stimulus programs and helping to identify potential funding sources to conducting a needs assessment and energy analysis; designing renewable or alternative energy systems and performing ongoing commissioning services, we are here to provide an integrated approach to your strategic energy plan.
Legislation. Deregulation. What Does it All Mean?
There are many drivers shaping the energy conservation movement including national security, energy independence, economic development, climate change and others. These factors have sparked legislative action that requires all of us to take a closer look at how, when and where we use energy and make informed decisions about our energy use.
From recent changes in building codes and standards to national and local stimulus plans and statewide legislation associated with the removal of utility rate caps, it can be tedious to keep up with the incentive programs designed to promote energy efficiency, economic development and emissions reduction. Some of the most applicable legislation you should know about includes:
Act 129
Mandates that all Pennsylvania utility companies reduce annual electrical consumption by 1% by May 2011 and by 3% by May 2013. In addition, the Act stipulates that peak electrical demand be reduced by 4.5% by 2013. Utility companies are offering various incentive programs to customers who participate in energy conservation projects as a means of achieving these goals.
The Pennsylvania Alternative Energy Portfolio Standards Act
Requires that Pennsylvania utilities derive 18% of their electrical generation from renewable resources-8% for solar energy and 10% from other sources-by 2020. Currently, approximately 3% of electrical generation is derived from renewable resources. In order to meet these goals, utility companies have established programs to allow end users to install renewable generation facilities and provide a credit back to the utility companies to account for the renewable energy.
PA Alternative Energy Investment Act
Provides funding for energy efficiency improvements for homeowners and small businesses statewide and more than $200 million for solar photovoltaic systems and other renewable energy projects.
House Bill 2200
Imposes requirements on the Electrical Distribution Companies (EDCs) that are designed to enhance energy procurement, reduce energy demand and consumption and expand alternative energy sources.
The American Recovery and Reinvestment Act (ARRA)
While there are many facets of this Act that were designed to enhance our economy, $3.2 billion was allocated for energy efficiency and conservation block grants for energy efficiency and renewable energy projects.
Collectively these and other legislation changes, including current and forthcoming climate change legislation, have created a huge push for energy conservation and the development of alternative energy sources. They present a variety of opportunities for businesses to develop and execute energy generation and conservation projects.
Understanding the available programs and requirements is one part of the equation. Before deciding which improvements or technologies make sense, organizations first need a clear picture of how their facilities currently use energy.
Energy Measurement & Conservation. Where Do I Begin?
The first step in successfully reacting to the legislation changes and stimulus plans is to measure and evaluate your facility’s current energy performance to create a baseline from which you can use to develop a strategic energy plan for your facility.
Before implementing any energy improvement initiative, you should consider the following three-step approach to energy measurement and conservation:
Energy Audit
Performing an energy audit will provide a clear picture of where, when and how much energy your facility is using. This information is then compared against benchmarks to identify outliers, or areas of improvement, with the greatest return on investment.
An energy audit allows for the development of utility profiles and is integral to developing recommendations for improvement and developing a procurement plan. It also provides a baseline for energy modeling, which is the next step in the measurement & verification process.
Energy Modeling
Energy modeling is a critical step in determining the most logical energy strategy for your facility. It provides a forecast of energy use and associated costs over a period of time, as well as evaluates the impacts of various design alternatives and calculates life cycle cost for energy improvements.
Various software programs are available on the market, but it is important to use one that is approved by the department of energy. It is also important to have a qualified professional conduct your energy model as they are complex in nature and could result in inappropriate recommendations if applied incorrectly.
Energy Conservation Measures (EMCs)
Contrary to popular belief, there are a number of low-cost solutions for improving a building’s energy performance including:
Retro-Commissioning
A process for investigating, analyzing and optimizing the performance of a building’s MEP systems.
Behavior Modifications
Simple operational changes such as shifting schedules to minimize the use of energy during peak demand hours turning off energy-consuming devices when not in use.
System Replacement or Upgrades
Energy-efficient building automation, plumbing, HVAC, lighting and power distribution systems, as well as improvements to the building envelope.
Energy audits, energy modeling and energy conservation measures are three essential steps in evaluating your facility’s current performance and mapping a direction for the future and should be implemented before considering any form of alternative energy technology. Avoiding these essential steps could result in missed opportunities and wasted resources.
Once a facility’s current performance has been measured and opportunities for conservation have been identified, renewable and alternative energy technologies can be evaluated in the context of the broader energy plan rather than as isolated solutions.
What We Call “Alternative” Today Will Soon Become Mainstream
The technology surrounding alternative and renewable energy solutions continues to evolve as more emphasis is placed on economic development, climate change and America’s dependence on foreign energy sources. The stimulus programs initiated on the federal, state and local levels have also increased awareness and promoted interest in these technologies and strategies.
The term alternative energy refers to an energy source that minimizes negative impacts to the environment. These are sources that are produced without the use of fossil fuels such as gas, coal and oil. Alternative energy includes alternative fuel sources such as renewable energy sources such as wind, solar, and geothermal power, as well as biomass.
Some of the most common alternative energy solutions seen in our region are:
- Photovoltaic arrays
- Solar domestic water heating
- Combined heat and power systems
- Biomass systems
- Geothermal.
It is important to know that each of these technologies requires careful analysis to determine whether they are applicable for their intended use. Site conditions and physical space requirements, along with the availability of resources such as solar power and wind are just a few factors to consider when evaluating these types of energy improvements.
An energy model can help to determine which, if any, of these alternative solutions align with your strategic energy plan and meet your facility’s goals in terms of cost, maintenance, and operation.
Once the right conservation measures and energy technologies have been identified, the next question is often how to fund them.
Show Me The Money
Along with new legislation surrounding the energy conservation movement comes a number of funding streams available to businesses and organizations like yours to implement energy improvement projects.
Both energy conservation and alternative energy projects may be eligible for the following funding opportunities:
- Stimulus Programs
- Federal and State Grant Opportunities
- Low Interest Loan Programs
- Utility Rebates
- Equipment Rebates
- Alternative & Renewable Energy Credits
- Carbon Credits
- Tax Incentives
Developing a strategic energy plan requires looking at these components together rather than treating legislation, energy use, conservation measures, alternative technologies, and funding as separate decisions. Measuring current performance first can help organizations identify the improvements that make sense, evaluate which technologies support their goals, and determine where available incentives or funding may help move those projects forward.
Barton Associates can provide an informed, unbiased third-party perspective throughout that process, from interpreting laws and incentive programs and identifying potential funding sources to conducting needs assessments and energy analyses, designing renewable or alternative energy systems, and providing ongoing commissioning services.
For more information about energy planning, conservation measures, renewable energy options, or available funding opportunities, contact us to discuss how these strategies may apply to your facility.