Energy efficiency implementation: Difference between revisions
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The '''energy efficiency implementation''' industry |
The '''energy efficiency implementation''' industry pertains to the firms which retrofit or replace inefficient equipment with the goal of reducing [[domestic energy consumption|energy consumption]] and GHG emissions.<ref>{{Cite journal |last1=Regnier |first1=Cynthia |last2=Sun |first2=Kaiyu |last3=Hong |first3=Tianzhen |last4=Piette |first4=Mary Ann |date=2018-01-15 |title=Quantifying the benefits of a building retrofit using an integrated system approach: A case study |url=https://www.sciencedirect.com/science/article/pii/S0378778817318832 |journal=Energy and Buildings |language=en |volume=159 |pages=332–345 |doi=10.1016/j.enbuild.2017.10.090 |bibcode=2018EneBu.159..332R |issn=0378-7788 |osti=1436663 |s2cid=115352317}}</ref> Retrofitting can enhance existing equipment by increasing operational energy efficiency at a lower cost. As a comparison, complete replacement of equipment may be more costly, but can reduce the implementation complexity. The overarching goal of energy efficiency implementation is to save [[kilowatt hour]]s (kWh is a measurement of energy actually consumed). |
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Retrofitting enhances existing equipment by increasing operational energy efficiency at a lower cost. As a comparison, complete replacement of equipment may be more costly, but can reduce the implementation complexity. The common goal is to save [[watt|kilowatts]] (kW) and [[kilowatt hour]]s (kWh). The difference between these two measurements is that one is a [[power rating]] (kW) and the other is a measurement of energy actually consumed (kWh). |
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== Public policy == |
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{{See also|Renewable_energy_commercialization#Public_policy_landscape}} |
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[[Public utilities commission|Public Utility Commissions]] in many states mandate that their utilities design and implement energy efficiency programs. The funding for these can be reflected in their rates or are collected through a surcharge in monthly customer bills. Some utilities design their own programs and implement them using a rebate form or other application, and administer the programs using their own staff. Most major utilities hire implementation contractors who are responsible for the design and implementation, and some implement programs already designed and approved by their PUC. Some programs require a co-pay by the customer, some are installed at no-cost. |
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| ⚫ | Energy sector regulators can have wide discretion in the implementation and/or monitoring energy efficiency (EE) initiatives. The most likely roles involve giving technical advice to the agency developing EE initiatives, since changes in demand patterns will have implications for the operations and investment plans of utilities. Particularly when the EE outlays are by the utility, the energy sector regulator needs to monitor outcomes to ensure that the resources are being used in ways that are consistent with overarching public policies. Furthermore, interactions of utility initiatives with other EE policies need to be taken into account when evaluating whether the scale and scope of existing utility-based demand-side management programs. Utilities are in a position to analyze bills and conduct on-premises energy audits to identify areas of saving. Regulators could require utilities to undertake costly audit programs. A high tech approach to improving operations and the customer interface involves [[smart meter]]s and information systems that enable the utility to track system performance in real time.<ref name="PURC">{{Cite web |title=Renewable Energy and Energy Efficiency: Eight FAQs |url=https://regulationbodyofknowledge.org/renewable-energy-and-energy-efficiency/ |access-date=2024-03-20 |website=regulationbodyofknowledge.org}}</ref> |
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| ⚫ | The costs of implementing such systems need to be balanced against the benefits, including the possibility that outlays on other projects might be more cost-effective. Thus, the role of regulators primarily involves providing technical input into the development of EE policies initiated by other agencies or via legislated tax programs.<ref>{{Cite web |title=International Confederation of Energy Regulators, ICER (2010). A Description of Current Regulatory Practices for the Promotion of Energy Efficiency, June 21, Ref. l10-CC-02-04 (pdf) 1-176. |url=http://www.iern.net/portal/page/portal/IERN_HOME/ICER_HOME/ABOUT_ICER/Publications/Reports/ICER%20Energy%20Efficiency%20Executive%20Sum.pdf |url-status=dead |archive-url=https://web.archive.org/web/20140826222202/http://www.iern.net/portal/page/portal/IERN_HOME/ICER_HOME/ABOUT_ICER/Publications/Reports/ICER%20Energy%20Efficiency%20Executive%20Sum.pdf |archive-date=2014-08-26 |access-date=2013-05-29}}</ref> In addition, the regulator must determine, unless specified in law, which [[Cost–benefit analysis|benefit-cost test]] is appropriate for evaluating utility-based EE programs. The regulatory tests include the participant cost test (will participants benefit over the measure's life?), the program administrator cost test (will utility bills increase?), the ratepayer impact measure (will utility prices increase?), the total resource cost test (will the total costs of energy decrease?) and the societal cost test (is the utility, state, or nation better off, including environmental impacts?).<ref>{{Cite web |title=California Standard Practice Manual: Economic Analysis of Demand-Side Programs and Projects, (2001). |url=http://www.energy.ca.gov/greenbuilding/documents/background/07-J_CPUC_STANDARD_PRACTICE_MANUAL.PDF |url-status=dead |archive-url=https://web.archive.org/web/20120201054634/http://www.energy.ca.gov/greenbuilding/documents/background/07-J_CPUC_STANDARD_PRACTICE_MANUAL.PDF |archive-date=2012-02-01 |access-date=2013-05-29 |publisher=California Energy Commission}}</ref> |
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Utilities invest in energy efficiency for the following reasons: |
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# Social interests: environmental issues and resource conservation |
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# Economic interests: to prevent costly construction of power plants or the purchase of more energy |
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The result is that utility companies have more energy to sell. That is, they are able to sell their excess capacity to more customers in the area without increasing their production capacity. |
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== |
== Effects == |
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{{See also|Efficient_energy_use#Aims}} |
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The results of energy efficiency implementation are all beneficial for the energy consumer. It reduces operational costs, reduces [[carbon footprint]], and it can even improve [[quality of life]]. Energy efficiency implementation can also play a role in increased revenue when consumers choose a “greener” product over another that is not.<ref>[http://www.gbb.org/news/green-marketing-pr-study] {{webarchive|url=https://web.archive.org/web/20100616094315/http://www.gbb.org/news/green-marketing-pr-study|date=June 16, 2010}}</ref> |
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Energy efficiency implementation can also play a role in increased revenue when [[Environmentalism|environmentalist]] consumers choose a "greener" product over another that is not.<ref>{{Cite web |date=22 March 2009 |title=Green Marketing and PR Success Study |url=https://www.gbb.org/news/green-marketing-pr-study |url-status=dead |archive-url=https://web.archive.org/web/20101201224144/http://www.gbb.org/news/green-marketing-pr-study |archive-date=1 Dec 2010 |access-date=20 Mar 2024 |website=Green Business Bureau}}</ref>{{Better source needed|reason=The current source is insufficiently reliable ([[WP:NOTRS]]).|date=March 2024}} Energy efficiency implementation may need to be tailored to one's environmental needs.<ref name=":0">{{Cite journal |last1=Abeelen |first1=Christiaan |last2=Harmsen |first2=Robert |last3=Worrell |first3=Ernst |date=2013-12-01 |title=Implementation of energy efficiency projects by Dutch industry |url=https://www.sciencedirect.com/science/article/pii/S0301421513009725 |journal=Energy Policy |language=en |volume=63 |pages=408–418 |doi=10.1016/j.enpol.2013.09.048 |bibcode=2013EnPol..63..408A |issn=0301-4215}}</ref> For instance, Christiann Abeelen's research on the energy efficiency projects in the [[Netherlands]] showed "Our findings show that large differences exist in the realized savings between individual companies. There is however no significant difference in savings observed between companies that participate in the [[Emissions trading|Emission Trading System]] (ETS) and companies that do not. Although it is impossible to disentangle the drivers behind the implementation of these projects, the amount of savings suggest that at least part of them was implemented because of different energy policy instruments."<ref name=":0" /> |
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Energy efficiency implementation can be extremely beneficial to large market segments like small businesses, schools, cement processing plants; basically any area that uses large amounts of energy. Small changes here add up to large savings. |
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Implementing energy efficiency measures in a home or business can also lead to [[behavior change (public health)|behavioral changes]]. When an energy efficiency change has been made and the energy consumer sees the benefits, more changes are often wanted to further their savings. These small changes create awareness and can be as simple as turning of lights when a room is not in use, or as complex as adding [[insulated glazing|window glazing]] or installing [[ventilation (architecture)|demand-control ventilation]]. |
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===Role of regulators=== |
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| ⚫ | Energy sector regulators |
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| ⚫ | The costs of implementing such systems need to be balanced against the benefits, including the possibility that outlays on other projects might be more cost |
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==Benefits == |
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===Operational costs=== |
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By making appliances, lighting or the [[HVAC]] system more efficient, energy consumption levels drop, which leads to a lower utility bill for utility customers. |
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===Carbon footprint=== |
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{{see|carbon footprint}} |
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By reducing energy consumption we are able to conserve natural resources and thus have a less dramatic impact on our environment. |
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===Quality of life=== |
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{{see|quality of life}} |
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Working in natural or well-lit areas contributes to performance and productivity.{{citation needed|date=January 2017}} [[room temperature|Comfortable temperature levels]] also factor into how well a person functions. This fact can be applied to any operation that requires the use of lighting or an HVAC system. |
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==Implementers== |
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Energy efficiency projects can be implemented by commercial property managers or by energy service companies or contractors. |
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Commercial [[property manager]]s that plan and manage energy efficiency projects generally use a software platform to perform energy audits and to collaborate with contractors to understand their full range of options. |
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Implementation companies normally focus on specific equipment or appliances that they specialize in retrofitting or replacing, or they provide this service by sector: residential, commercial or industrial. Energy efficiency implementation is a complex field, and in order to implement effectively, the implementer must be multi-faceted and have extensive experience in many areas of energy efficiency. |
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There are many systems, machines and methods that assist in creating energy savings including: [[Fuel gas|gas]], [[electricity]], [[HVAC]], [[lighting]], [[daylighting]], [[motion detection]], [[insulated glazing]], refrigerator strip curtains, [[revolving door]]s, [[Antechamber|anterooms]], [[Thermostat|thermostat controls]], [[ventilation (architecture)|demand-control ventilation]] and [[voltage optimisation]] |
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== See also == |
== See also == |
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* [[Jevons's paradox]] |
* [[Jevons's paradox]] |
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* [[Efficient energy use]] |
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* [[EU Energy Efficiency Directive 2012/27/EU]] – a 2012 [[European Union]] directive which mandates national [[efficient energy use|energy efficiency]] improvements |
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== References == |
== References == |
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[[Category:Energy conservation]] |
[[Category:Energy conservation]] |
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Latest revision as of 09:18, 27 December 2024
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The energy efficiency implementation industry pertains to the firms which retrofit or replace inefficient equipment with the goal of reducing energy consumption and GHG emissions.[1] Retrofitting can enhance existing equipment by increasing operational energy efficiency at a lower cost. As a comparison, complete replacement of equipment may be more costly, but can reduce the implementation complexity. The overarching goal of energy efficiency implementation is to save kilowatt hours (kWh is a measurement of energy actually consumed).
Public policy
[edit]Energy sector regulators can have wide discretion in the implementation and/or monitoring energy efficiency (EE) initiatives. The most likely roles involve giving technical advice to the agency developing EE initiatives, since changes in demand patterns will have implications for the operations and investment plans of utilities. Particularly when the EE outlays are by the utility, the energy sector regulator needs to monitor outcomes to ensure that the resources are being used in ways that are consistent with overarching public policies. Furthermore, interactions of utility initiatives with other EE policies need to be taken into account when evaluating whether the scale and scope of existing utility-based demand-side management programs. Utilities are in a position to analyze bills and conduct on-premises energy audits to identify areas of saving. Regulators could require utilities to undertake costly audit programs. A high tech approach to improving operations and the customer interface involves smart meters and information systems that enable the utility to track system performance in real time.[2]
The costs of implementing such systems need to be balanced against the benefits, including the possibility that outlays on other projects might be more cost-effective. Thus, the role of regulators primarily involves providing technical input into the development of EE policies initiated by other agencies or via legislated tax programs.[3] In addition, the regulator must determine, unless specified in law, which benefit-cost test is appropriate for evaluating utility-based EE programs. The regulatory tests include the participant cost test (will participants benefit over the measure's life?), the program administrator cost test (will utility bills increase?), the ratepayer impact measure (will utility prices increase?), the total resource cost test (will the total costs of energy decrease?) and the societal cost test (is the utility, state, or nation better off, including environmental impacts?).[4]
Effects
[edit]Energy efficiency implementation can also play a role in increased revenue when environmentalist consumers choose a "greener" product over another that is not.[5][better source needed] Energy efficiency implementation may need to be tailored to one's environmental needs.[6] For instance, Christiann Abeelen's research on the energy efficiency projects in the Netherlands showed "Our findings show that large differences exist in the realized savings between individual companies. There is however no significant difference in savings observed between companies that participate in the Emission Trading System (ETS) and companies that do not. Although it is impossible to disentangle the drivers behind the implementation of these projects, the amount of savings suggest that at least part of them was implemented because of different energy policy instruments."[6]
See also
[edit]References
[edit]- ^ Regnier, Cynthia; Sun, Kaiyu; Hong, Tianzhen; Piette, Mary Ann (2018-01-15). "Quantifying the benefits of a building retrofit using an integrated system approach: A case study". Energy and Buildings. 159: 332–345. Bibcode:2018EneBu.159..332R. doi:10.1016/j.enbuild.2017.10.090. ISSN 0378-7788. OSTI 1436663. S2CID 115352317.
- ^ "Renewable Energy and Energy Efficiency: Eight FAQs". regulationbodyofknowledge.org. Retrieved 2024-03-20.
- ^ "International Confederation of Energy Regulators, ICER (2010). A Description of Current Regulatory Practices for the Promotion of Energy Efficiency, June 21, Ref. l10-CC-02-04 (pdf) 1-176" (PDF). Archived from the original (PDF) on 2014-08-26. Retrieved 2013-05-29.
- ^ "California Standard Practice Manual: Economic Analysis of Demand-Side Programs and Projects, (2001)" (PDF). California Energy Commission. Archived from the original (PDF) on 2012-02-01. Retrieved 2013-05-29.
- ^ "Green Marketing and PR Success Study". Green Business Bureau. 22 March 2009. Archived from the original on 1 Dec 2010. Retrieved 20 Mar 2024.
- ^ a b Abeelen, Christiaan; Harmsen, Robert; Worrell, Ernst (2013-12-01). "Implementation of energy efficiency projects by Dutch industry". Energy Policy. 63: 408–418. Bibcode:2013EnPol..63..408A. doi:10.1016/j.enpol.2013.09.048. ISSN 0301-4215.
