Europe takes measured steps to a sustainable energy future

Energy-Smart Businesses are exposing their energy waste and doing something about it. Significant advances in wireless-mesh and internet technologies for monitoring and control for demand-side energy management are making it possible, on a wider scale, to understand exactly how energy is being consumed in multiple buildings and operations.

In a series of world leading decisions the European Union has set the course to a sustainable energy future, by committing member states, public and private sectors, to transform how energy is supplied and consumed. In 2008, the European Parliament agreed to promote a low-carbon economy and increase energy security. The agreement established legally binding targets, by 2020,
• to cut greenhouse gas emissions by 20%,
• to establish a 20% share for renewable energy, and
• to improve energy efficiency by 20%. 

This move strengthens the actions already in motion. Member states and leading businesses had already begun to develop and execute plans in response to Directive 2006/32/EC, in 2006, on energy end-use efficiency and energy services. The recent agreement charts incremental annual targets and charges that all measures must be verifiable and measurable or estimable. The direction is toward a more diverse and open energy market, emphasizing the use of renewable/green energy and energy conservation. Central to driving success is removing barriers to change and enabling energy-conscious consumers in a new energy market. This market will include clean energy alternatives and information flows for smarter consumption through behavioral change, intelligent energy management and benchmarking.

From a business perspective, information technology is a proven change agent to transform  energy consumption across an enterprise. It is a well understood adage that “You can't manage what you don't measure”. Much of the Directive 2006/32/EC and resulting action plans describe the need for data and calculation methods to report on progress to achieving the goals and enabling consumers to make continuous progress through operational change and infrastructure investments. For example, with regard to End-use load data the Directive states, “Energy use of a building or facility can be fully monitored to record energy demand before and after the introduction of an energy efficiency improvement measure. Important relevant factors (e.g. production process, special equipment, heating installations) may be metered more closely.” Until recently such energy consumption data did not have top-level-visibility. If measured at all, it was an inconsistently captured element of operation or utility bill detail.  Moving forward, CIOs and senior management can now see the value of monitoring and controlling energy consumption elevated to enterprise-wide strategic importance, a strategic asset or currency.

An Opportunity
Already businesses are taking measured steps. Driven not only by social and political pressures, executive leadership and wise investment of capital are driven by a business strategy to lead and seize the opportunity to become a more sustainable, efficient and competitive organization. It is now recognized that lack of visibility and control over energy waste is comparable and as detrimental to business survival and future performance, as other deficiencies (i.e. finance, inventory, quality and supply chain) addressed in prior business cycles.  

Consider this analogy: Decades ago the retail industry recognized they had problems. They had no idea what their customers bought. Their only metric was the cash in the drawer each night. So they wastefully pushed the wrong product out to the market. Poor inventory tracking enabled shrinkage that cut into profits. Today, the retail industry uses Point-of-Sale registers and other technologies to reduce shrinkage and to optimize their operations. In addition, they gained a greater understanding of customer buying preferences and behavior to become more intelligent in targeting sub-markets. Today, most companies have similar gaps in energy information.

So what can be done about the information gaps and energy waste? 
The Energy-Smart Business needs to have the point-of-use capability for energy, like the point-of-sale capability adopted by retailers. Energy consumption in buildings must be measured and controlled so managers become informed to operate smarter. For businesses, consuming energy across many facilities, it is vital to establish energy policies, enable and enforce compliance, measure performance and develop a culture of continuous improvement across the enterprise. This is a change process that many organizations currently use for quality improvements and IT governance.  

Let’s start by outlining a pragmatic and actionable strategy for the Energy Smart Business:
1. Expose the waste and enlighten consumers, managers and cross-functional teams with visibility to detailed, accurate and real-time energy consumption information from every room or major equipment (point of use).
2. Enable managers to rapidly and broadly establish a consistent and sensible energy policy in every building. 
3. Elevate awareness and motivation through an enterprise dash board to benchmark and compare buildings even beyond organizational boundaries.
4. Empower decision makers with the quality of information necessary to make informed decisions about energy policies in every building and guide investments for further improvements.

The Measured Step Forward
Best in class companies are already moving forward to lower waste and exposure to energy costs, guided by economics that demonstrate substantial savings and paybacks within one to two years. Utility and government incentive programs to improve energy efficiency and conservation make it even more attractive for businesses to take action. Executive guidance is provided by many sources including ISO 14000, and each nation’s response to the requirements of Article 14(2) of the Energy End-Use Efficiency and Energy Services Directive (ESD) of Directive 2006/32/EC. 

As with today’s financial, quality, manufacturing and supply chain processes, the value of energy information depends on its accuracy and timeliness, Real-time, bottoms-up data enables an enterprise-wide perspective on energy consumption before and after investment.  This information can be compiled as indicators for:
• The entire company
• Departments
• Individual equipment and processes   

This provides senior management visibility to the company's overall progress and priorities. Departmental indicators enable organization to organization and facility to facility comparisons and benchmarks. Business-energy policies and processes can be established, enforced, monitored and continuously improved upon. Detailed real-time load profiles and operational data help identify opportunities to improve energy efficiency. Indicators can be used to compare:
• Machines of different capacities
• Processes which use different technologies
• Machines which produce similar products
• The efficiency of similar machines.

Many of the easy fixes for improving energy efficiency have already been done, often by upgrades to existing facilities or by designing ultra-efficient new facilities. However, sustaining performance requires an on-going and active management effort. Much more remains to be revealed by retrofitting buildings to gain visibility to energy intensive areas and taking control. This requires an approach that leverages existing infrastructure (facility assets), and enables a new level of monitoring and ability to change policies, operating procedures and upgrade facility assets required and supported by current information.  

Enterprise energy management solutions are well aligned with this approach. They combine wireless sensor networks (within a building) and web-based software (across the enterprise) as key enabling technologies. Wireless is ideal for retrofitting; installations are simple and non-invasive. Web-based solutions offer secure access and visibility to managers at multiple levels (so energy information is not hidden in the boiler room and monthly energy bill). This makes it possible to rapidly and affordably deploy monitoring sensors and controllers across huge portfolios of buildings in a consistent manner.

Some Best in Class Examples
A common objective of Best in Class companies is to determine and eliminate energy waste and to be able to better respond to energy peak demand. Taking an enterprise-wide approach, these companies find it cost effective and advantageous to rapidly deploy wireless sensor networks comprised of monitoring and control devices especially designed for ease of deployment and robust low cost operation. The devices are installed within minutes on selected energy points of use such as lighting, HVAC and production equipment. The wireless network is designed to automatically form and manage itself without administration or IT support. Each building in the deployment is linked via internet to provide enterprise-wide visibility and management. 

For example, a major retail chain, operating approximately 1000 supermarkets, is in the process of such an enterprise-wide deployment. Starting in 2008, they began deploying a Millennial Net wireless system comprised of devices to read utility meter outputs and other devices to measure various temperatures. To monitor major electric circuits and equipment (e.g. lighting, HVAC, refrigeration), they install a few to several dozen sub-meters by LEM, Inc. at each site. The LEM submeters and other vendor supplied devices communicate and work together to form a system based on Millennial Net’s MeshScape wireless mesh sensor network. The deployment is managed by a European-based system integrator. After a 3 month startup, during which the installation methods and centralize software application were refined, installation rates accelerated and deployments are now more governed by scheduling and authorization processes. To date a deployment in one European country of around hundred sites is nearing completion, as plans are being made for the next set of countries. The company expects to realize a payback on the project within 12 to 18 months.    

Prior to having energy management systems, those paying the bills and managing costs relied solely on monthly consumption data, which seriously limited any in-depth analysis. Now, commercial real estate owners plan to use similar wireless deployments across their portfolio as a way to reduce the total cost to tenants and increase the value and attractiveness of their properties. Banks, restaurants and retailers, who operate tens to hundreds of branches and stores, now have a solution to monitor, control and benchmark sites on a comparative basis.  Benchmarks and "competition" between sites manager can create a positive dynamic to reduce  consumption. Private and public schools free-up money for education by reducing energy consumption 30%, and gaining valuable insights into the performance of their HVAC systems. 

However to realize this progress, organizations need proven technologies that can be easily deployed and rapidly absorbed. An affordable and non-invasive wireless sensor network is an attractive solution, but it must be able to perform to the needs for monitoring and control and, at the same time, be sufficiently scalable, robust and reliable to operate in commercial and public building environments. 

These retailers, businesses, schools and others use Millennial Net®’s Energy Management Solutions to closely monitor, control and analyze energy use within each site and take measures on both a local and enterprise basis. Within minutes of the installation temperature, humidity, electrical sub-meters and many other sensors can be online, measuring and transmitting electric consumption and other vital data. Immediate benefits include the ability to monitor current and historical energy consumption information in detail, aggregate and comparison, including:
• Real-time status of each separate zone
• Electric demand spikes
• Historical trends to look back on a particular period
• Comparison of consumption profiles that reveal differences in operational load and anomalies

Global and Pragmatic Approaches
With the opportunity of many thousands of commercial and public buildings, businesses and government organizations can look make a substantial and measured step toward its goal of a  more productive and sustainable Europe, by retrofitting buildings with wireless energy management. Continuous energy monitoring and performance metrics enable executives to see the real benefits of capital and operating improvements. The bottom line is that exposing and reducing costs related to energy waste can help reduce the pressure to cut other necessary line items.

Citizens, managers, investors and taxpayers see value in taking action that improves sustainability for both the planet and their budgets; therefore energy savings is good for the community, the world and your business. 

For more information see www.millennialnet.com/energy.