Energy Audit Explained
July 10, 2012
Yvette Batts
What exactly is an Energy Audit? Why do I need one? How much does it
cost? Unfortunately many think an Energy Audit is another piece of
expensive paperwork required to access low interest energy loans. An
Energy Audit is and can be much more.
An Energy Audit is an assessment of the energy usage at a facility. It
includes an analysis of cost-effective opportunities to reduce energy
usage, energy bills and greenhouse gas emissions. It can actually add
immediate value to an organisation by identifying simple no-cost and low
cost measures for energy conservation (EC) and cost reduction. These
include Energy Management practices, tariffs, operations improvement,
and culture. Our experience is that EC can result in as much as 12%
savings, sometimes more. As such EC measures may provide immediate
payback for the cost of the energy audit.
The Energy Audit can also go on to identify additional energy efficiency
(EE) measures that require investments, such as equipment retrofits,
upgrades, re-tooling and process improvement to further reduce
consumption. Investments can also include renewable energy (RE)
solutions, appropriately sized for the reduced energy footprint
resulting from energy conservation and energy efficiency. The result is
a package of energy saving measures that meet the financial criteria for
investment as specified by the customer and that can form the basis of
an Energy Strategy and Action Plan.
In short an Energy Audit facilitates improved energy productivity,
particularly important in an economic climate where cost control and
competitiveness are essential for survival.
There have been some questions/concerns arising from the local market
about
Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, says that approximately 29 per cent of the country
FOR the second straight week Petrojam has increased the ex-refinery prices of fuel.
The prices of 87 and 90 octane gasoline have gone up by $1.97 per litre. They will now be sold for $99.80 and $101.45 per litre respectively.
Automotive diesel oil has been increased by $1.43 and will now be sold for $100.72 per litre.
The price of Kerosene oil has been increased by $1.85, it will now be sold for $102.35 per litre.
Propane liquid petroleum and Butane liquid petroleum have seen price increases of 38 cents and $1.88. They will now be sold for $32.45 and $43.50 per litre respectively.
Retailers and marketing companies will add their respective mark up
Read more:
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren’t translating to lower rates for customers. Instead, United States electricity prices are going up.
Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country’s power, is 43 per cent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say.
“It’s caused us to scratch our heads,” says Tyler Hodge, an analyst at the Energy Department who studies electricity prices.
The recent heat wave that gripped much of the country increased demand for power as families cranked up their air conditioners. And that may boost some June utility bills. But the nationwide rise in electricity prices is attributable to other factors, analysts say:
In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven’t yet made their way to customers.
Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop.
The cost of actually delivering electricity, which accounts for 40 per cent of a customer’s bill on average, has been rising fast. That has eaten up any potential savings from the production of electricity.
Utilities are building transmission lines, installing new equipment and fixing up power plants after what analysts say has been years of underinvestment.
This may reverse what has been a gradual decline in retail electricity prices. Adjusted for inflation, the average retail electricity price has been drifting mostly lower since 1984, when it was 16.7 cents per kilowatt-hour.
“The ratepayer is going to have to foot the bill,” says David Wright, vice-chairman of the South Carolina Public Service Commission and president of the National Association of Regulatory Commissioners.
PRICE INCREASE EXPECTED
The average US residential electricity price is expected to be 12.4 cents per kilowatt hour for the June-to-August period, up 2.4 per cent from the same time last year. For the full year, electricity prices are expected to rise two per cent.
In a typical summer month, that would mean an extra $3 on a residential bill, which includes the cost of generating the power and delivering it to a home, plus local taxes and fees.
Electricity pricing is complicated, and it differs from state to state. In states where power providers are allowed to compete, such as Texas, Pennsylvania and New York, customers can shop around for cheaper electricity, although delivery charges are still set by regulators.
Natural gas has plummeted in price because of a dramatic increase in US gas production over the past few years and a warm winter that allowed supplies to build up.
Even though coal accounts for 38 per cent of all power produced in the US, natural gas plays an outsized role in determining the price of electricity.
The price paid for electricity from the last power plant fired up to meet demand at any given moment is what sets the wholesale price for a given region. And since gas-fired power plants are usually the most expensive, they tend to be fired up last.
– AP
http://jamaica-gleaner.com/gleaner/20120712/business/business1.html
THE EDITOR, Sir:
Over the past three months, the price of oil on the world market has fallen from a high in March of about US$105 per barrel to just under or around US$80 per barrel.
The drop in Brent crude has been even more precipitous, from US$124.70 in March to around US$91 today. These are reductions of more than 30 per cent since March.
Despite this, our gas, gas oil and oil-related product prices have trended down about five to seven per cent. What is amazing is that no one seems to notice or care.
In all other countries, the prices at the gas pumps, and of other oil-related products have fallen 15-20 per cent, or more, to match this fall since March.
Gas and gas oil at the pumps in Jamaica should be around $85 per litre.
Our gas pumps remain unaffected! Petrojam and the Government apparently remain oblivious.
Where does the buck stop? Who is ripping us off?
TROY VIRTUE
tdvirtue@hotmail.com
http://jamaica-gleaner.com/gleaner/20120709/letters/letters4.html
Businesses which undertake energy management and implement energy audits often enjoy annual savings on energy bills of up to 12 per cent, says the head of a local consultancy.
Yvette Batts, managing director of BCI Solutions, said an energy audit is an assessment of the usage at a facility, including an analysis of cost effective efficiency opportunities to reduce usage, bills and greenhouse emissions. She was speaking at the latest Wednesday Morning Seminar hosted by Myers, Fletcher & Gordon (MF&G) and the Jamaica Chamber of Commerce (JCC), which joined forces with the Development Bank of Jamaica (DBJ) and BCI in presenting the theme “Reducing Your Energy Costs While Improving Your Business Efficiency“.
Energy Audits are done at three levels: walk through, comprehensive and investment grade. The audit level is defined by the energy user, taking into account specific issues to be addressed, complexity of site, and the total budget available, said Batts.
She advised that energy audits and energy saving opportunities are best implemented in the context of an Energy Management Program (EMP) which should be in place before any audit is undertaken. An EMP should include a management structure with a formally appointed energy manager, the involvement of all staff in the programme, an energy management policy, and a system for monitoring energy bills.
While overall savings from energy saving programme may be rewarding, implementation can be costly.
The DBJ by its mandate to facilitate and promote economic growth has been providing loan financing through its network of approved financial Institutions, for projects in areas such as Tourism, Services and Agriculture among others.
Edison Galbraith, DBJ’s general manager, Loan Origination and Portfolio Management, said the institution provides loan financing for large projects in strategic sectors such as Renewable Energy through co-financing and direct lending. The DBJ’s also promotes and finances investments in energy conservation, energy efficiency and renewable energy technology at a rate of eight per cent to 9.5 per cent for up to 10 years. Additionally, assistance for energy audits is available, with funding to offset $200,000 of the cost of the audit. The institution also plays an active role in promoting energy conservation by facilitating public education, workshops and training. Notably DBJ has partnered with the Inter-American Development Bank to secure US$807,000 funding to promote energy efficiency/conservation in the SME Sector. To date DBJ has approved over $330M in energy loans to 20 projects.
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The United Nations
The government is moving to liberalise the renewable energy market with amendments to the Petroleum Corporation of Jamaica Act.