Improving energy efficiency can mean various things to industrial facility owners and managers. For some, it simply means replacing inefficient appliances with ENERGY STAR-rated counterparts. For others, it means efficient control and monitoring of electrical use. When you consider that industrial buildings are responsible for 31 percent of global energy consumption, which easily exceeds all other building types, it’s clear that facility owners and managers still have many opportunities to take advantage of available energy efficiency solutions.

But it’s important to note that a distinction must be drawn between energy efficiency, which is the desired end result, and energy management, or a strategic action plan designed specifically to achieve that result. Utilizing a four-step process that focuses on an active approach to energy management is the cornerstone of an energy action plan. It can help facility owners and managers be proactive with their energy usage and help achieve total energy control, help build accountability and change mindsets to make energy management a key component of corporate culture.

This image shows a Square D Powerlink NF3000G3 intelligent lighting control panelboard, which facilitates an active approach to energy management in an industrial facility by turning lights on and off based on a pre-set schedule.

Key energy management drivers

Keep in mind, there are many measures that could be deployed in an energy action plan for an industrial building, but facility owners and managers who understand the multiple drivers in this area will be best equipped to choose those that make the most sense for their unique needs. Those drivers include:

• Rising electricity costs: According to the U.S. Department of Energy’s Energy Information Administration, the per-kilowatt hour cost of electricity rose 28.8 percent from 2004 to 2008, and is expected to increase another 9.2 percent in 2010. 

• Green building certification programs: There are both marketplace and cost savings benefits of programs like the Leadership in Energy & Environmental Design (LEED) Green Building Rating System. LEED is a leading-edge system for designing, constructing, operating and certifying the greenest, most environmentally friendly buildings.

• The smart grid: Though in its infancy, the smart grid will allow for integration of new technologies that might further the efficiency of producing and distributing energy.

Where to start?

An energy audit may seem like the logical place to start. However, such studies typically don’t include mechanisms to ensure the audit’s recommendations are addressed. An energy action plan takes that crucial next step by developing a roadmap of ongoing energy planning and accountability. One such roadmap is comprised of the following four steps.

Step 1: Measure. The first step toward better energy management is ascertaining current usage. Collecting data from major energy consumers within an industrial facility allows for analysis of their impact on total energy consumption. Installing power metering and monitoring in this step is important to provide a baseline regarding utility usage and increasing energy awareness.

While an energy audit can provide a snapshot of the current state of a facility’s usage, unless the audit drives a strategic plan, it is of little value. It’s more important to take action based on the audit’s recommendations. Thus, a comprehensive energy action plan should address short-term improvements as well as future strategies.

Step 2: Fix the basics. Basic, simple fixes are typically the only tactic addressed by facility management in the wake of an energy audit. This can include installing low-energy consumption devices and improving the plant’s power factor.

While these are certainly important and can translate to as much as a 15 percent energy efficiency increase, such measures are typically a one-time improvement. For example, a new energy-efficient transformer has a useful lifecycle of two decades or more, but its greatest cost savings impact will be felt upon initial installation. Conversely, renewable self-generation options may lower current costs and help a facility deal with the impact of potential changes in emission requirements.

Step 3: Automate. Ongoing energy-efficiency improvements are best achieved by automating and regulating facility systems and processes. Measures such as schedule-based lighting control and occupancy sensors automatically turn lights on only when needed, while HVAC control regulates heating and cooling at optimal levels, which vary daily. Variable frequency drives regulate the fans and pumps central to a facility’s HVAC system and manufacturing processes so they aren’t constantly running at full capacity. Combined, these measures can provide up to a 15 percent energy efficiency improvement.

More importantly, these measures facilitate an active approach to energy management, because they can be adjusted based on future energy efficiency opportunities. One recent example is demand response, where pre-selected electrical loads are turned off based on a utility request or when electrical rates meet a pre-set threshold.

Step 4: Monitor and control. A strategic energy action plan ensures initial energy and cost savings don’t erode over time. Power meter installations, monitoring services, energy efficiency analysis and energy bill verification help achieve this goal. Another solid choice is an enterprise energy management (EEM) system, a tool that provides energy-related business intelligence to company stakeholders and one of the most effective ways to maintain benefits from the action plan. Essentially, an EEM system collects energy-relevant data such as water, compressed air, electricity, natural gas and steam values, production information, and outside air temperature. That information is then collated and presented as actionable business intelligence in a customizable dashboard.

The information an EEM system provides can be studied to find new ways to better manage energy usage or troubleshoot existing challenges. For example, an EEM system could be used to model one utility rate against another, or it could note that one department or plant’s energy usage is egregiously higher than others, which can be investigated and addressed.

Changing mindsets

An understanding of the drivers prompting an energy management project, combined with an energy action plan that includes the four steps listed above, can help industrial facility owners and managers be proactive with regard to energy usage — instead of reacting to the latest cost spike. This can help build energy accountability among individual departments within a facility — and even multiple facilities — and can help change mindsets across the enterprise to make energy management a key component of corporate culture.