Meeting the challenge of energy efficiency

Industry is undoubtedly a major contributor to climate change. But while technology has contributed to accelerating carbon emissions, it also presents solutions to reduce it. Some analysts suggest that global energy consumption will double in the next 30-40 years - India and China’s rapid development is resulting in huge demand for electricity, while the surge of data centres in developed countries is the leading growth area in electricity consumption. So how can we curb energy consumption without impeding development?

Schneider Electric* believes that energy is the #1 challenge to our community and together, as energy consumers and the electrical industry, we can help tackle it.

Renewable energy sources are worth pursuing, but they’re also costly, long term and limited in their contribution to abatement. Even the most optimistic projections amount to only 20-25% reductions. Our most effective opportunity is through technologies that deliver energy efficiency.

Technologies that improve energy efficiency are highly effective in leveraging carbon reduction, considering that one unit of energy saved at the power point saves three units at the power plant. The electrical industry has the opportunity to use currently available and economically viable technologies to offer tangible paybacks for clients.

Consuming 18% of Australia’s electricity, commercial buildings are the obvious place to start. Less than 20% of our office buildings are energy efficiency rated, with 2-stars NABERS representing the average Australian building, giving scope for contractors and consultants to apply their skills to improve energy efficiencies.

Energy-efficient buildings are attractive to blue-chip companies with sustainability policies and, while such initiatives are currently voluntary, it may not be long before they’re legislated. And large companies typically being big energy users, it’s also in their financial interests to be energy efficient.

However, energy efficiency is often not a key focus of small-to-medium enterprises. But they too can benefit from energy-efficiency measures, while contributing to carbon reduction. This is a big opportunity for our industry to take a leadership role to introduce such companies to energy-efficiency strategies and upsell them current and low-cost technologies like low-consumption lighting, lighting controllers, sensors and timers that deliver immediate benefits.

The federal government is proposing a mandatory disclosure scheme for office building energy efficiency from July, requiring disclosure of energy-efficiency ratings of office buildings at the point of sale or lease. This will allow buyers and tenants to clearly understand the operational performance of such buildings and will drive efficiency improvements, again presenting us opportunities to be active contributors to a low-carbon future.

Energy management is reshaping Schneider Electric’s role in the electrical industry. We’re focused on making energy safe, reliable and efficient, to allow individuals and organisations ‘make the most of their energy’. We want to be part of the solution for the environment, not part of the problem. In endeavouring to establish ourselves as the global specialist in energy efficiency, we have developed a four-step process that we encourage building owners and facility managers to adopt and the electrical industry to promote.

Step one: Install better energy metering systems. It can be difficult to persuade people to recognise that measurement can drive improvements in energy efficiencies, but it’s an important first step to help identify dysfunctions and potential savings.

Step two: Identify and fix the basics - passive upgrades and refurbishments to electrical equipment that can yield fast paybacks. Fitting power factor correction, efficient lighting and reflectors are easy-to-do upgrades.

Step three: Install active control systems to monitor and control HVAC, lighting and other services to optimise occupant comfort and building functionality. Being long-term strategies, the challenge here is to draw the user’s attention to the significant improvements that can be made through energy efficiency.

Step four: ‘Close the loop’ by monitoring, maintaining and optimising the gains made through the first three steps. This is an excellent opportunity for contractors to add value, because end users often don’t have the time or attention to ensure the gains made aren’t lost over time.

To drive this change, our products, solutions and services support each step of the energy-efficiency cycle through our businesses.

* Lionel Finidori has been the Managing Director of Schneider Electric’s Pacific operations since 2007. Joining Schneider Electric in 1993, Finidori has held operations and finance roles in Sweden, Indonesia, France and USA.