Green Lights

 

 
  July 30, 2007
 
New York's Marriot Marquis has seen the light. It has upgraded the lighting infrastructure inside its nearly 2,000 room, 50 story hotel to cut energy consumption by 790,000 kilowatt-hours per year.

Ken Silverstein
EnergyBiz Insider
Editor-in-Chief

Commercial and industrial sites are often some of the most voracious users of energy. Because a lot of industrial facilities are old, for example, they may be using antiquated equipment that is not energy efficient. Many companies are realizing that they can save big bucks if they implement some sensible conservation features and apply new operating procedures. Business can't control the price of energy. But they can manage how much power they use. Going green is, indeed, paying off.

"Energy efficiency is getting more time with managers," says Mike Perna, vice president of marketing and business development for Con Edison Solutions in White Plains, N.Y., that has been working with Marriot Marquis since 2004. "Companies are beginning to ask what they can do to ensure a sustainable future. We will see a lot more activity."

The government sector is actively seeking ways to cut its energy consumption. He estimates that public entities account for about 80 percent of all upgrades and retrofits, adding that they are less inclined to worry about fast pay-back times. The industrial and commercial sectors, on the other hand, typically like to earn a return on their investments within three years. Essentially, they have been more concerned with increasing capacity at their plants as opposed to creating new efficiencies. The exception is when a utility or government authority gives them incentives to offset the initial capital costs.

In any event, experts can study a facility's technologies and operating protocols and determine where the pitfalls lie. They can then provide a good range of retrofits and the potential savings that those innovations would produce. The costly part would be any detailed engineering that is necessary to execute the plan.

Simple moves for offices might include cycling the air conditioning so that it turns off at night or does not go full blast if rooms are only sparsely populated. Or, in the case of a manufacturing complex, processes could include using combined heat and power that captures the steam and then reuses it to heat or cool a building.

Risk Profiles

In the case of Marriot, it is cutting energy consumption by upgrading lighting in non-guest areas through lamp and ballast replacement, as well as fixture replacement. It's all part of an effort by the local utility, Con Edison, to cut power demand during peak times because the local distribution network is nearing capacity.

"We have standard templates for determining risk levels and returns on investment whether it be energy upgrades or new build-outs," says Bill Michell, director of engineering for the hotel. "We identify the opportunities, the cost component and the actual investment. We then ask if there are incentives tied to that. We plug it into our formulas. The bottom line is that as long as it fits within the profile we like and the returns can be achieved within three years, it will capture our interest."

Michell says that the lighting project spearheaded by Con Ed paid for itself in less than two-and-half years. While those kinds of returns fit within Marriot's risk formulas, he says that the hotel also wanted to do its part for the environment. That's also in accordance with the wishes of the hotel's customers.

Other businesses, he adds, probably want to do the same but may not know the starting point. He therefore suggests calling the local utility or finding a consultant to make suggestions. In some cases, companies can pay for the services based upon their level of energy savings, which is then used to finance the needed equipment change-outs. Other businesses may prefer to start from scratch and pay for it all themselves.

Consider SAP Americas: In June, it hosted a groundbreaking ceremony for its new green building expansion in Newtown Square, Pa. that will cost $105 million. The first phase of construction will be 202,000 square feet that will be completed in two years. The second phase will double the size of the project and will be completed in 2012.

The software vendor says that as a business leader it not only felt the need to create a positive working environment for its employees, but also that it had to do its part to deal with climate change and ecological preservation. Its research shows that that 47 percent of the total carbon gas emissions come from commercial buildings, as opposed to only 27 percent from all transportation.

With statistics like that, SAP says that it would like to set an example by getting certified as a green building by the U.S. Green Building Council. That entity, in conjunction with like-minded organizations, has issued a memorandum asking building owners to make their properties carbon-neutral by 2030. Those facilities would use no energy from external power grids and could be built and operated at fair market values, it says. It adds that the average building that is certified under the council's standards uses 32 percent less energy.

"Going green is not difficult at all," says Chris Camino, general manager for the national utilities practice at SAP Americas. "While we chose to make our new building `Platinum,' there are other levels of certification available. Upgrades and improvements to existing buildings can also qualify for certification -- and the U.S. Green Building Council has been an incredible partner and educator to us. There's so many ways that a company can go green -- from using environmentally-friendly cleaning products to the kinds of copy paper it utilizes -- and every action taken makes an impact."

Energy prices may be volatile. But companies of all sizes can add a level of calm and predictability. To do so, some are spending millions. Others, though, are taking smaller steps. In all cases, businesses that are ecologically-minded are discovering that it leads to goodwill among customers and communities.

More information is available from Energy Central:

Consumers Owed Efficiency: New Approaches to Limited Capacity, EnergyBiz, July/Aug 2007

Energy Central

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