"If you get caught in one of those spikes, that's not good," said Shawn Rash, president of American Energy Solutions, who advocates a "reasonable" approach to energy management. "And a lot of times we don't know exactly what the end game is or where we're starting."
Instead, organizations need to do due diligence to know not only where they're heading, but also where they're coming from, Rash explained in a presentation at this week's ABB Automation & Power World event in Orlando, Fla. "Energy management is not just a single event," he emphasized. "It's ongoing."
As a service provider, American Energy Solutions focuses its efforts on reducing energy costs, reducing energy consumption, managing price volatility and providing sustainability solutions. Speaking of a typical customer relationship, Rash described first looking at an organization's energy rate, whether regulated or deregulated, then managing and reporting that on an ongoing basis. A rate optimization checklist would include an analytical review of compiled data, including cost and consumption, a detailed review of current and other available tariffs, a detailed review of existing purchase contracts and other elements.
American Energy Solutions was able to save ABB's plant in South Boston, Va., $104,700 annually, amounting to a 20% reduction in energy costs. After that initial success, the same ABB plant decided to evaluate its lighting. With a switch to LED lighting, ABB saved more than $45,000 just from the Energy Policy Act (EPAct), and another $21,000 through a retirement-of-current-fixtures tax benefit.
In addition to the tax and energy savings, the ABB plant saved more than 5.6 million pounds of CO2 emissions. Although it was a greater initial investment, switching to LED lights rather than an interim fluorescent move saved more than a million pounds more of CO2 emissions.
Rash contends that choosing the right partner can help you find the energy savings. "You can start picking off five or six projects that you can do," he said. "And then the next year, there will be an even better payback as energy prices go up and material costs go down."