Energy efficiency People, systems and technological solutions

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1 Energy efficiency People, systems and technological solutions

2 How much is inefficiency costing you? The potential for energy savings currently represents between 3.5 billion and 7 billion worldwide. With an estimated growth rate of 15% to 20%, this could well rise to tens of billions of pounds in the long term. Schneider Electric is positioned as a powerful player in this market, developing services and products that help you significantly reduce your carbon footprint, and claim your share of the savings.

3 Creating a climate for change The UK Government has long been focused on creating a climate for change in both business and domestic consumption of energy. Following the launch of the Kyoto Accord, the UK established the Climate Change Programme, which has a target of reducing carbon emissions by 20% by This programme saw the introduction of the Climate Change Levy (CCL) a tax on all energy supplied to industrial and commercial users. By reducing energy consumption, companies will minimise the impact of this tax. MtC3 The UK is unlikely to hit its 2010 target Source: HM Government Publications Climate Change The UK Programme 2006, Annex A Total CO 2 emissions and removals Target At the same time, the Government introduced the Enhanced Capital Allowance scheme. This enables businesses to offset the impact of the CCL through investing in energy efficient products and technologies, and permitting the full cost of the investment to be relieved for tax purposes against the taxable income of the period of the investment. Qualifying products and technologies are registered on the Energy Technology List (ETL), managed by the Carbon Trust.

4 At a European level, the Energy Performance in Buildings Directive has been introduced. This requires all buildings that are non-dwellings to have energy ratings, similar to those seen on consumer white goods today, and to display these ratings in the building s public areas or reception. The Government expects an average 25% reduction in energy consumption from the introduction of this bill. As far-reaching as the legislation is, perhaps the biggest impact on businesses is the steep rises in the cost of energy. Between February 2005 and today there has been an increase of around 74% on the cost of wholesale electricity and gas. This poses a big problem for businesses as their profit margins are squeezed and they are faced with the dilemma of whether to take the cut on their bottom line, or to pass the cost increase through to the prices of their products and services and therefore risk being uncompetitive.

5 Navigate through the energy maze Are you energy aware? Is your organisation equipped for energy efficiency? Changes in legislation and regulations are forcing building occupiers to get ready for carbon management. Are your staff trained? Can your financial teams find their way through the enhanced capital allowance scheme? How would you evaluate your success? Can you demonstrate this to your customers? Can you account for 90% of your energy usage? The building regulations call for 90% of your estimated annual energy usage to be accounted for, including electricity, gas, water, oil and steam. Who uses your energy? Applying effective monitoring and targeting measures to energy consumption increases the success of energy efficiency. However, without the buy-in of the people who are using energy in your organisation, savings will be unsustainable. Do you monitor awareness levels and attitudes towards energy efficiency in your company?

6 Do you know your requirements? In order to determine where to start, you need to know where you are now. However, taking advice can be a risk, unless the advice is backed with experience and knowledge. Begin with a study of your facilities built around your objectives. Do the recommendations show you your route to energy efficiency? Do you understand the next steps? Who delivers on energy efficiency? You are in the driving seat, and with the right investments come savings. A poor implementation of an energy efficiency scheme could significantly reduce the potential for savings. Do you have the resource to manage the procurement and installation of equipment and ensure you stay on track?

7 Your route to successful efficiency When it comes to energy efficiency it can be difficult to know where to start. Almost all aspects of modern business uses energy in some form, and the way in which people interact with energy can also dramatically impact energy consumption. We focus on the three dimensions of people, systems and technology, to identify the best approach for energy efficiency in your business. Managing Director With increasing utility costs and growing consumer concern about climate change, energy efficiency is now a key issue for business leaders. By setting the energy agenda and developing a culture to support it, successful energy efficiency starts at the top and is driven through the entire organisation. Financial Director Nobody can ignore the rise in cost of energy, especially the responsible financial party. Being provided with detailed return-on-investment calculations highlights where the focus should be to give the biggest impact on the bottom line. Facilities Manager If it s too hot or too cold you will be the point of contact and with an 8% impact in your energy bill for a 1ºC change your action has a wide impact. Having information at your fingertips will enable you to control the facility more effectively. Energy Manager If energy efficiency is your key responsibility then all three dimensions are your concern. You have to be able to drive and direct people through the introduction of process, and the deployment of technology.

8 Schneider Electric is committed to reducing energy consumption for its customers by offering a wide range of products and services including advice, implementation strategies, monitoring and control solutions and ECA compliant products all backed by an excellent service activity to maintain the savings. Energy studies Our specialist energy consultants measure and analyse energy consumption across a customer s site or business, and identify areas where energy savings can be made. Remote monitoring of energy consumption Experts remotely monitor energy consumption via wired or wireless links to the customer and the customer s electrical installations. Based on data collected, the expert makes recommendations that the customer can apply in real time. Variable speed drives Our range of variable speed drives offers more efficient management of energy intensive applications such as ventilation, pumping and compressed air installations. Our products can be integrated into new plant or used to upgrade existing equipment. Transparent Ready Our Transparent Ready offer delivers solutions for optimising electrical installations. These solutions, which comprise an extensive range of products, equipment, intelligent controllers and control devices, can reduce the energy consumption of a commercial or industrial facility by around 20%. Lighting solutions We have a number of lighting control solutions available that enable our customers to optimise their lighting systems in terms of functionality and energy usage.

9 Focus on success Case study: Tarmac Southern Limited Location: Hayes, Greater London Offer: Return-on-investment based VSD installation With more than 10,000 employees and a turnover of 1.48 billion, the Tarmac Group is the UK market leader in aggregates, mortar, concrete blocks and asphalt. It is also number two in ready-mixed concrete. Tarmac Southern Limited is an integrated business producing and marketing aggregates, ready-mixed concrete, mortar, asphalt and road surfacing across the South of England and East Anglia. When it comes to saving energy, Tarmac Group has made a public corporate commitment to significantly reducing CO 2 levels. Schneider Electric Services & Projects were approached by the Energy Manager of Tarmac Southern to work with him in identifying energy saving opportunities across the Tarmac Southern Asphalt plants. Solution Services & Projects carried out an energy saving audit on the Hayes site and identified substantial energy savings which could be made on the main extract fan, an essential part of the asphalt plant. By measuring the power utilisation of the fan over an agreed period, Schneider Electric Engineers are able to apply their specialist knowledge to analyse the data, accurately predicting potential energy savings backed by a Schneider Electric guarantee. Services & Projects installed and commissioned the variable speed drive and carried out a post installation survey, whereby the true benefits of the upgrade could be established. The resulting energy savings are shown below. Without VSD With VSD Reduction % Savings Average Power Used 104kW per motor 40kW per motor 64kW per motor Electricity Cost for Fan / 1000Te / 1000Te / 1000Te CO 2 rate 459,000kg / annum 175,541kg / annum 283,459kg / annum 62% Total Annual Running Cost 34, , , / year Payback Period for this installation 10 months with ECA claim 14 months without ECA claim

10 Case study: William Grant & Sons Location: Girvan, South Aryshire Offer: PowerLogic metering and monitoring Schneider Electric PowerLogic systems are helping whisky producer William Grant & Sons Distillers Ltd to win an 80% rebate on its Climate Change Levy (CCL) energy bill. William Grant & Sons Distillers Ltd, maker of the world famous Glenfiddich Whisky, was encouraged to review its energy costs at its Girvan manufacturing site when faced with impending higher energy bills arising from the CCL. The company identified three areas for investigation: the energy intensive grain whisky and grain neutral spirit production facilities, and miscellaneous facilities such as offices and storage areas. Of all the options, Schneider Electric provided the best integrated package of meters and software to analyse the data. They were also the only company that had offices local to our plant, making it easy for them to support us. We particularly needed to identify the proportion of energy used in the energyintensive areas as opposed to the miscellaneous use said Colin Martin, Project Engineer. We have signed up to a discount scheme whereby we get back 80% of the extra energy costs arising from the CCL, but to do this, we must prove that our non-intensive loads make up less than 10% of the overall consumption. The monitoring system, designed and installed by Schneider Electric, is based on 32 PowerLogic PM620 power meters. These transmit data via Modbus RS485 and Ethernet Gateways to a central PC with SMS1500 software. The software performs calculations on the data to produce information on energy use throughout the plant, much more quickly and accurately than manual methods could. "We are now much more informed than before about energy use and the effects of particular actions. For example, leaving a chiller on is an extra load on the system, approximately a quarter of demand. Information from the PowerLogic system provides a way of bringing effects like this to the attention of energy users in the plant and helps us change the culture so that things like monitors and computers are not left on unnecessarily.

11 Case study: Schneider Electric Energy Action programme Location: UK-wide Offer: Energy efficiency consultancy, project delivery & implementation and lifecycle services Schneider Electric is the world s power and control specialist and provides expertise in electrical distribution, automation and control through its Merlin Gerin, Square D and Telemecanique brands. In 2004 the company launched an energy management and conservation policy, but even with this in place our costs increased by 38% for electricity and 57% for gas between 2005 and The senior management team was looking for a practical solution to managing and mitigating the impact of rising market prices of energy. This solution was to be implemented on all UK sites owned by Schneider Electric and had to be flexible in its approach to meet the individual needs of each site. Solution The starting point was to understand the baseline for each site. Schneider Electric s in-house energy consultants performed energy studies which determined seasonally adjusted energy consumption levels, the level of energy efficient products and technologies currently installed, and the behaviour and attitudes of site employees towards applying energy efficiency in their place of work. From these surveys we were able to understand where there were key opportunities to implement energy saving product, technologies and behaviours. There was no standard solution that we could implement across each site as they had different energy plant installed, had different purposes (some offices, some manufacturing) and had different levels of experience with applying energy efficiency techniques. Return-on-investment calculations were performed to highlight the opportunities that provided a maximum 3-year payback in terms of the energy savings they gave once installed. These options were presented to the UK Managing Director for approval. It was essential to get senior management buy-in, as this would drive the culture of the business towards a focus on energy efficiency. Once we had approval to go ahead with the delivery and implementation of our energy efficiency solutions, a steering group was formed.

12 This included members of the senior management team, one of our Energy Consultants, the UK Energy Manager, a project manager and representatives from Finance, as well as the implementation teams. One of the critical success factors of the project was employee involvement. We recognised that a solution would not work long-term without buy-in from employees, so we deployed a full hearts and minds campaign with information posters, and intranet awareness campaigns and booklets containing tips for employees to use at home to save money, as well as at work. Competitions were run to get people actively thinking about energy and internal Energy Champions were selected to drive energy efficiency actions at a peer level. At a product and technology level, we were able to install many solutions from our own range of energy efficient products, which are listed on the Government s Energy Technology List. These included PowerLogic metering and monitoring solutions, Clipsal C-Bus and Lubio lighting solutions, Altivar variable speed drives, Clipsal energy controllers and control and command devices. These were linked to intelligent control systems that automatically varied the lighting and temperature levels in the buildings depending on the external weather conditions. To ensure we get long-term benefits from energy efficiency, we have implemented monitoring solutions that prominently display energy consumption on each site, and give us a real time view of any unexpected peaks in consumption. We have also developed an Energy Policy for Schneider Electric in the UK and use a balanced scorecard to measure our ongoing performance. Benefits Implementing energy efficient solutions on our own sites have provided Schneider Electric with sustainable savings. On a constant price base, they have saved us 14% of our total consumption costs. By running a hearts and minds campaign we have created an environment where energy efficiency is owned by the employees, and sponsored by senior management. We have measures in place, which are reviewed regularly and will ensure the focus on energy efficiency does not go away. An additional benefit is that our employees will be able to re-use the energy efficiency techniques learned here at home to save them money, and to help the environment.

13 A trusted partner for energy efficiency The combination of rising energy prices and increasingly punitive legislation is creating pressure for all businesses, and for a growing number of Schneider Electric s customers energy usage is now a board level issue. Schneider Electric will work with you to understand your business, and pinpoint the key opportunities for reducing energy use. We have a dedicated energy team who can provide the consultancy, project implementation, in-depth product and application knowledge and lifecycle support services needed to deliver sustainable energy reduction programmes. Our energy consultants will make sense of the profusion of energy-related legislation coming from the UK and European governments, and advise on how this affects you and your business. Whether your needs are a metering strategy driven by Part L2 of the building regulations, the development of an energy policy for your business, or simply some help interpreting legislative requirements, our team can offer support and expertise. Reduce energy costs Management of demand changes Automatic load shedding Maximising return on investment Visibility of usage Control technologies Maximising natural resources Change management programmes Operation and maintenance savings Predictive maintenance Energy reviews Strategies to maintain efficiency levels Saving on capital investment Operational savings Asset management

14 Nationwide support on one number - call the Customer Information Centre on Fax Schneider Electric s local support Schneider Electric is committed to supporting its customers at every stage of a project. Our 180 sales engineers, the largest dedicated sales force in the UK electrical industry, operate from 4 customer support centres. Our sales engineers are skilled at assessing individual requirements and combined with the expert support of our product specialists, will develop the most effective and economical answer taking relevant regulations and standards fully into account. To access the expertise of the Schneider Electric group, please call Each customer support centre includes facilities for demonstrations and training, and presentation rooms fully equipped with audio visual and video, providing excellent meeting facilities. Merlin Gerin is a world leader in the manufacture and supply of high, medium and low voltage products for the distribution, protection, control and management of electrical systems and is focused on the needs of both the commercial and industrial sectors. The newly launched VDI Network Solutions offer provides flexible, configurable ethernet systems for all communication needs. Square D is a total quality organisation and its business is to put electricity to work productively and effectively, protecting people, buildings and equipment. Its low voltage electrical distribution equipment, systems and services are used extensively in residential and commercial applications. Telemecanique is a UK market leader and world expert in automation and control. It provides complete solutions, with its range of components, Modicon range of high technology programmable controllers (PLCs), multiple fieldbus and ethernet communication networks, HMI, motion control systems, variable speed drives and communications software. In addition, it offers power distribution through prefabricated busbar trunking. Local customer support centres Scotland Schneider Electric Ltd Unit 18 Claremont Centre 112a Cornwall Street South Kinning Park Glasgow G41 1AA South West Schneider Electric Ltd PO Box 41 Langley Road Chippenham Wiltshire SN15 1JJ North West Schneider Electric Ltd First Floor Market House Church Street Wilmslow Cheshire SK9 1AY Product showrooms Industrial systems and solutions showroom Schneider Electric Ltd, University of Warwick Science Park, Sir William Lyons Road, Coventry CV4 7EZ Building systems and solutions showroom Schneider Electric Ltd, Stafford Park 5, Telford, Shropshire TF3 3BL Energy and Infrastructure systems and solutions showroom Schneider Electric Ltd, 123 Jack Lane, Hunslet, Leeds LS10 1BS member of.co.uk SE5929.V3 DEC 2008