Editor’s Comments: True Costs, Smart Methods
By Elizabeth Cutright
Most of the time, we measure our energy efficiency successes or failures by the number on our energy bill: Did it go down this month? Are we paying more or less?
But the truth is, energy efficiency is not just about dollars and cents. It’s not even solely about reduced consumption. To be truly efficient, you need to manage your resources wisely, use the right power in the right context and know when it makes sense to dim the lights instead of turning them off, or when you really must power down the heavy equipment or switch to onsite generation.
Smart energy use relies on smart energy choices, including using the right equipment for the right purpose and designing structures that not only require less power, but discourage energy waste.
In recognition of the connection between energy use and structural integrity, the California Energy Commission recently voted (4-0) to tighten building regulations in an effort to reduce energy waste and promote smarter energy use (http://smrt.io/NhocIO). The proposed changes to the state’s Building Energy Efficiency Standards are set to take effect by 2014, and are considered by many as a big move by the state to control costs, avoid the construction of new (and costly) power plants, and mitigate the effects of climate change.
“The update for building standards is the biggest incremental improvement in efficiency we’ve ever made in California,” said Energy Commissioner Karen Douglas in a statement about the Commission’s decision.
Under the new rules, builders will be required to insulate hot water pipes, design roofs to be installation-ready for future solar power systems, and engage the services of third-party inspectors to confirm all HVAC systems have been correctly installed. Sensor-based lighting controls will also be required. In addition to these requirements, the rules include a set of recommendations: solar roofs for commercial buildings (along with light-colored roofing to deflect sunlight), whole house fan ventilation, insulated windows, and insulated walls.
According to the Commission, these new standards are designed to “improve upon the current 2008 Standards for new construction of, and additions and alterations to, residential and nonresidential buildings.” The standards are anticipated to generate energy savings in the range 25 to 30% over current standards for residential and commercial buildings. The Commission estimates that these upgrades will add about $2,290 to the cost of a 2,200 square-foot home, but should yield a total savings of around $6,200 in reduced energy bills over 30 years.
Big savings are also anticipated once the Expanding Industrial Energy and Water Efficiency Incentives Act S. 3352 is approved by Congress. Introduced in June by US Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM), the bipartisan bill is aimed at creating incentives for the nation’s industrial sector to encourage end-use energy efficiency and water efficiency.
The industrial sector provides fertile ground for efficiency improvements, due in part to the ability to quickly enhance facility performance by replacing and retrofitting existing equipment. The bill includes incentives designed to encourage the replacement of old chillers and the swapping out of existing onsite power equipment for newer models that include advanced motor systems (including variable speed drives that can be interconnected with a Smart Grid). The hope is that the incentives proposed in the bill will invigorate the industrial sector and spur a new era of increased efficiency and productivity, while also providing a catalyst for new energy efficiency technologies, and trigger new jobs and new economic opportunity.
It may be years before these efforts pay off, but according to the Energy Information Administration’s recently released Annual Energy Outlook 2012 (AEO2012), we’re already reaping the rewards of previous energy efficiency efforts. The report details national trends in energy use and consumption, while also forecasting future results. According to AEO2012, US energy consumption should slow over the next several years-with growth at less than 1% per year from now through 2035.
The report predicts the US energy landscape will shift dramatically over the next few years, as domestic production of fossil fuels has increased and energy efficiency programs and regulations have begun to bear fruit, leading to lower energy consumption overall. Renewable energy is also expected to play a larger role in the nation’s energy future, generating about 15% of the country’s electricity by 2035.
All of which means we’re on the right track when it comes to reducing our energy consumption and making the switch to smarter, more sustainable energy sources. While the “amount due” on the energy bill may still be used as the main signifier of energy efficiency success or failure, as we begin to make smarter energy choices that number will not only go down, but will more accurately reflect the true cost of our energy consumption.
Elizabeth Cutright is a previous editor of Business Energy.