Monthly Archives: August 2019

Energy Strategies For The C-Suite

For many firms, energy is recognized as its third largest expense, behind labor and real estate costs. Some companies spend millions of dollars directly on energy each year—and more indirectly (supply chain, transportation, etc.). However, except for energy-intensive industries, most firms have historically taken energy for granted. When they turn on the switch, the equipment goes on and vice versa. They don’t pay much attention to the volatility and risks of energy availability and costs.

In the last few years, however, energy is climbing up the corporate agenda, due to greater environmental and climate change awareness, increasing pressures on natural resources, as recent large-scale fires in Latin America show, and innovations in energy technologies together with dropping renewable energy prices.

In recent years, more critical business functions depend on reliable electricity and fuels. IT, data centers, and cloud computing have grown in complexity. These are energy-dependent and energy-intensive operations. Lose electricity for even a few seconds, and millions of dollars worth of data, not to mention records, reputation, lawsuits, are lost or become issues. Major companies are realizing this and are thoroughly evaluating risk related to energy. And conclusions are reaching the C-Suite, as risks are becoming existential for many companies. C-Suiters are also influenced by the growing quilt of energy- or climate change- rules, as well as the growing costs of energy.
More major firms are devoting effort to increase renewables in their energy mix and improve energy efficient, given the large costs involved. But it is not just “high tech” companies; others understand energy is a significant business issue. Agriculture is responsible for about one-third of greenhouse gas emissions. A number of leading firms in the food field have developed and are meeting stringent energy and carbon goals.

Whether your firm is major or not, it is a good idea to develop and implement an energy management plan. However, it is critical not to just “jump in there”. Planning is critical for your energy plan to succeed and minimize its costs. Perhaps the most important area is “political” success; “political” meaning getting all major factors on board, including, and most importantly, the CEO him or herself and all other major players in the company, so there is unity behind the effort and respect for the results. It is also important to coordinate efforts, to ensure you have enough staff to track energy at all levels throughout the company’s assets. Finally, it is important – before you start – to work through that there are resources to invest in smart energy projects (energy efficiency and/or the switch to renewables). Good, potential projects will not wither and not go forward. If these areas are worked out – or if you know the potential barriers that may occur in certain circumstances – the chances of success are raised tremendously.

CCES has the experts to help your firm develop and execute a smart energy plan with distinct financial benefits. We have helped firms prepare their plans to understand their strengths and weaknesses so they go in with firm goals and procedures to do it right. Contact us today at (914) 584-6720 or at karell@CCESworld.com.

Asia Moving From Smokey Energy To Renewables

Momentum is building for green energy in Asia, a region long known for fossil fuel dependency. Asia uses a lot of some of the most polluting sources of energy around, coal and wood. Particulate pollution from coal power plants and from individuals burning wood in non-professionally designed and built units is thick it coats buildings, cars, and, most important, lungs. There are many images of Asians associated with masks performing routine events on a daily basis.

But things are changing. China was faced with worldwide shame and condemnation at the Olympics it hosted in 2016 by the images of people and athletes wearing masks or breathing from oxygen tanks to avoid the toxic smog – despite efforts to clean the air in the months before the games. Ironically, China was the number one manufacturer of solar panels then, but nearly all for export. However, China quickly changed its policy, learning that the visible and potent air pollution not only made them a laughing stock, but had an adverse effect on their economy given the robust health effects it has on workers (lost productivity) and costs to take care of so many sick – costs and lost lives that could have been avoided. Plus, the government understood that visible air pollution was a factor that could lead to unrest and rioting. China now has the world’s largest installed capacity of renewable power, accomplished in a short time.

Vietnam is another example. This country had been aggressive in growing economically and attracting capital investment in industrial facilities. However, the huge growth in coal-fired power plants and wood burning from convenient jungles has worsened the country’s air quality and causing profound health effects. They are on an ongoing path to reduced fossil fuel combustion coordinated with economic growth.

Other Asian nations have realized that it is critical to invest in clean energy and green technology, not only for the sake of climate change, but also for healthier air quality and a better economy. And they are doing so. The collapse of a fossil fuel power plant in Laos that killed 40 people was another spur toward renewables. Governments are investing in renewable power and have learned it is less labor intensive and now less costly to build. While it is unlikely that renewables will fully replace fossil fuels soon, more Asian countries are investing in renewables.

Working with US and European giants like GE and Siemans, several Asian companies are now planning to build renewable projects. Thailand’s Meta Corporation is a leader, preparing to design a 220-megawatt solar project in Myanmar, the region’s largest project. Philippines’ AC Energy plans to spend over $1 billion on solar and wind projects by 2025. India is expected to invest $80 billion over the next 4 years in wind energy. Like China, India has massive public health problems due to air pollution yet is trying to expand electricity to the over 400 million people who have no access to it.

Of course, coal is still king in such nations as China and Malaysia. While renewable technology can replace coal, these and other governments feel an obligation to coal workers and are afraid of potential disruptions that could happen of anything “new.” So there is a lot to overcome financially and psychologically before Asia is high in renewables.

CCES has the experts to help you assess your company’s energy needs and sources. We can help you plan to have a resilient, flexible group of energy sources and determine if renewable power is right and beneficial for you. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Want to Be More Energy Efficient? Go After The Weak Point!

Numerous studies demonstrate that so much of our energy usage comes from the buildings we spend time in, whether they be our home, office, school, or other place. An ideal building, of course, will keep conditioned air (heated in the winter, cool air in the summer) in the building and minimize infiltration of non-conditioned air from the outside. There are many places in a building from which such an exchange can happen. With the exception of large openings, the most common place where air can be exchanged is at windows. Windows being transparent can also allow air to go through, and are much thinner than any walls. As one says in the field, “A bad wall is better insulation than a good window.” So a focus on any area to minimize air movement from inside to outside or vice versa is to strengthen the windows.

The problem with upgrading windows to minimize conditioned air loss is that new windows are expensive compared to the cost of electricity saved by using the air conditioner less in the summer or gas or oil saved by using a boiler less in the winter. Often building owners wait until there is a noticeable draft before upgrading windows; at that point the conditioned air effect is great. Because windows often have a long payback – often beyond what is “acceptable” at many companies – one idea is to create a hybrid project of window upgrades and LED lighting, whose payback is short. Together, they could yield an acceptable payback to upgrade windows before it is very late. If a company separates projects and only goes for short paybacks then window upgrades can take a great amount of time. Window film is a way to improve insulation properties somewhat fairly inexpensively without the capital cost or installation.

Recent research is trying to turn windows into not only better insulation for a building, but into electricity-generating items, too. Materials scientists have embedded light-absorbing films in window glass to keep heat out in the summer. But films can also be used to generate electricity; solar panels on windows. Such films, however, give windows a reddish or brown tint that building owners and architects find unappealing.

Newer solar window technology absorbs more invisible UV or IR radiation, leaving the glass clear while blocking the UV and IR radiation that can normally transfer through the window, resulting in unwanted heat in the building and raising the demand on the AC system. These new UV/IR absorbing windows can cut heat gain while generating electricity. For a glass building it could be possible that the building will power itself.

Research is also ongoing about a new class of opaque solar cell materials, called perovskites. They are improving in efficiency, approaching 22%, only a little behind standard crystalline silicon whose top efficiency is about 25%. Perovskites provides the interesting potential option that they can also be adjusted chemically to absorb specific frequencies of light if it is important to remove a certain frequency from the area or allow other frequencies to travel through.

CCES can help you assess the conditioned air losses in your building and recommend upgrading your windows or other ways to tighten your building and save energy usage, demand, and cost. Contact us today at 914-584-6720 or at karell@CCESworld.com.