Energy Efficiency, a First Step Toward Decarbonization

Three weeks ago, I had the pleasure of representing ALL4 at the Association of Energy Engineers (AEE) World Energy Conference, in Nashville, Tennessee. It was great to spend time with other Certified Energy Managers and energy industry professionals, talking about the rapidly changing field of energy management as we transition toward a carbon-free economy. It was exciting to hear about some of the new technologies and creative solutions that are being developed to decarbonize industry. It was reassuring to hear that we don’t have to wait for new technologies to reduce energy demand and greenhouse gas (GHG) emissions.

It reminded me of a quote that I recently heard in a TED Talk by Johnathan Foley, Executive Director of Project Drawdown, when he said that “now is better than new, and time is more important than tech.” What he meant was that taking any actions we can to reduce GHG emissions and mitigate the impacts of climate change now are better than waiting for that ‘shiny’ new technology to finally be developed and commercialized so that we can all use it. But what actions can we take now, and how do we get started?

The answer to those questions is energy efficiency. According to the U.S. Department of Energy (U.S. DOE) energy efficiency is a foundational, cross-cutting strategy for near-term decarbonization and should be the first action taken because it is the most cost-effective and can lead to significant energy savings and GHG reductions. So how do we start addressing energy efficiency?

Energy Efficiency Audits

One of the best ways to start improving energy efficiency is to conduct an energy efficiency audit. Energy efficiency audits can be used in a broad range of settings to identify opportunities to improve energy efficiency. Heavy manufacturing industrial facilities, warehouses, office buildings, university campuses, retail shops, and even apartments and single-family homes can all benefit from an energy efficiency audit. However, the level of effort involved, and the level of energy management expertise required, will obviously vary widely across this range. A certified energy manager (C.E.M.) or energy engineer is recommended, and may be required to perform these audits, especially at the higher levels. In general, the field of energy management recognizes four basic levels of energy efficiency audits: Benchmarking, Level 1, Level 2, and Level 3 audits. Each of these levels have specific characteristics that are discussed below.

Benchmarking Audit or “Preliminary Energy Audit”

A benchmark audit may also be known as a “Preliminary Energy Audit.” The characteristics of a benchmark audit include:

• May not require a site visit.
• Utilizes existing actual energy use records from utility bills or other sources.
• Calculates benchmark values such as Energy Use Index (EUI) and Energy Cost Index (ECI).
• Compares actual energy use to normative values, such as DOE’s Energy Star Portfolio Manager.
• Quickly identifies performance compared to averages for the type of facility or process.

Level 1 – “Walk-Through Audit”

A Level 1 audit may also be known as a “Walk-Through Audit.” As the name implies, this audit is conducted fairly quickly and can identify the simple or easy-to-implement opportunities or energy conservation measures (ECMs). This walk-through may also identify opportunities where further data gathering or engineering may be required to realize greater potential energy savings and GHG reductions. The characteristics of a Level 1 audit include:

• Requires an on-site visual inspection and review of prior audits or actions. Typical audits require 1-3 days, depending on facility complexity and size.
• Reviews operation and maintenance practices and identifies issues and opportunities for improvement.
• Identifies “No-Cost” or “Low-Cost” opportunities for improvement.
• Includes rough estimates of potential costs for implementation and potential savings.

Level 2 – “Energy Survey and Analysis”

A Level 2 audit requires greater data collection and provides a higher level of detail and engineering analysis than a Level 1 audit. A Level 2 audit can potentially identify ECMs that may cost more to implement, but can result in greater savings and decarbonization potential. The characteristics of a Level 2 audit include:

• Multiple on-site and remote components, over a short term (weeks to months).
• Measurements and data collection, potentially using temporary meters or data logging equipment.
• An energy use breakdown at the facility/building by use category and energy type.
• A review of operation and maintenance procedures in detail, including:
  • Qualitative assessment of maintenance practices
  • Review of set points, operating schedules, start-up, shutdown, and idling practices, etc.
• Provides detailed savings and cost analyses of potential projects, including estimated energy use according to equipment size, loads, rated efficiency, hours, etc., and provides recommendations.
• Lists capital-intensive ECMs or improvements that may require further analysis.

Level 3 – Detailed Analysis of Capital-Intensive Projects

The Level 3 audit demands the most effort because it requires the most data collection and provides a higher level of detail and engineering analysis than a Level 2 audit. Typically, a Level 3 audit is restricted to the evaluation of capital-intensive projects that will require capital funding and will have relatively long implementation times. The characteristics of a Level 3 audit include:

• A focus on selected capital-intensive opportunities.
• Data collection that will likely include detailed field data, quotes from equipment vendors, and may include computer modeling of the options. This data collection may require months to complete.
• Project life-cycle cost analysis and risk assessment of options.
• A detailed project cost and savings information with a level of confidence to make major capital investment decisions and include in capital investment requests, either from banks or other capital sources.

Benefits of Energy Efficiency Audits

As previously stated, energy efficiency is the best first step toward decarbonization and energy savings. Energy efficiency audits are an excellent way to reduce GHG emissions and save money on energy expenditures. When performed sequentially to address opportunities of increasing complexity and increasing improvement potential, these audits are a cost-effective means to improve performance. Conducting these audits can also improve production performance, employee comfort, and reduce indirect costs.

If you would like to discuss how ALL4 can assist your company with energy efficiency improvements or performing energy efficiency audits, please contact me, Daryl Whitt, Technical Director, Climate Change & Sustainability, P.E., C.E.M. at dwhitt@all4inc.com or your project manager. Together, we can improve your energy efficiency and begin to decarbonize your operations and meet GHG reduction goals.