Why efficiency remains low-cost path to Green gains

In reading over a report from the American Council for an Energy-Efficient Economy (ACEEE) about industrial efficiency programs, I came across a compelling statistic for efficiency measures in industrial plants. According to the report (Industrial Energy Efficiency Programs: Identifying Today’s Leaders and Tomorrow’s Needs), the average industrial facility can achieve energy savings of between 10 percent and 20 percent given today’s technologies.

While savings of as much as 20 percent is attractive, given tight capital budgets, not many manufacturers can run out and buy new, highly efficient machinery, controls, or other gear such as combined heat & power equipment that could bring that 20 percent energy efficiency gain to a plant. OK, we all know about tight “cap-ex” budgets, but according to the report, as much as 30 percent of the potential energy savings comes from “behavioral changes” such as tweaks to operating procedures or maintenance activities.

This latter percentage constitutes the proverbial low-hanging fruit for energy efficiency. Just think, if the average plant can save as much as 20 percent on energy costs via investments and measures of all types, but through behavioral changes alone, can save up to 30 percent of that 20 percent, that still means that many plants could be saving roughly 5 percent on energy just by changing procedures or behaviors. I find that to be a compelling statistic, and probably one key reason why so many states, utilities, and other entities have run voluntary industrial energy efficiency programs for years.

The ACEEE report isn’t meant as a primer on energy efficiency tactics for end-users. Instead, it looks at leading industrial programs and successful program strategies, and suggests directions for entities running such programs. Nonetheless, it’s a good report to examine for manufacturing professionals involved in sustainability efforts, especially for those who might be asked to give feedback to administrators of industrial efficiency programs. I found the report’s introductory discussion to be a useful reminder of why efficiency measures at the plant level remain one of the best (and cheapest) paths to achieving a cleaner, greener company.