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.
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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.