Energy Savings in Buildings, Offices, and Manufacturing Plants | Strategies and Tips
According to data by the United Nations Act Now, the energy supply sector contributes 35% of the total greenhouse gas emissions in the world. However, due to continued efforts to raise awareness of the impacts of energy use on the planet, the rate of growth in global greenhouse gas emissions has slowed. And in many countries, there is also a drop in overall greenhouse gas emissions. Data from the US Environmental Protection Agency (EPA) show a decrease of 7% in total US greenhouse gas emissions from 1990 to 2020. This change shows the positive impact of environmental efforts, including energy efficiency.
Why Is Saving Energy Important
If you’re a manager or owner, you must be wondering, “Why is saving energy important?” To answer this, you need to look at its implications for your business, the economy, and the environment. Focusing on energy efficiency in the design and operation of buildings provides a win-win solution.
Data from the US ENERGY STAR show that a commercial building wastes 30% of its purchased enegry. These numbers translate into a higher utility bill for the energy that isn’t used. When you invest in energy-efficient building design, appliances, and fixtures and follow best practices, it leads to savings. Energy savings consequently lead to lower operational costs and more opportunities for profitability. Energy-efficient businesses have a higher profit margin, giving them more elbow room to either increase their prices or lower them to gain market share.
- For a larger business, regular energy benchmarking could save you $120,000 on utility bills annually. If you have a 500,000-square-foot (50,000 m2) building, you could increase your business’s asset value to over $1,000,000 in three years.
- For a small business, energy-efficient heating and cooling systems could lead to around $2,000 in savings a year, while LED lighting could lead to $249 in savings, including rebates and incentives.
According to 2020 data from the EPA, over 13% of total greenhouse gas emissions came from offices, commercial and residential buildings. These figures represent the potential impact of energy-saving technology due to sustainability efforts. As more companies recognize the benefits their businesses can reap by cutting energy costs, the more significant their impact will be in reducing greenhouse gas emissions that cause climate change.
To understand why is saving energy important, here are some of the significant achievements made by the US ENERGY STAR‘s energy-efficiency program in 2019:
- It saved 230 billion kilowatt-hours of energy consumption.
- It lowered over 170 million metric tons of greenhouse gas emissions.
- It led to a cut of over $14 billion in energy bills.
Why Industrial Energy Savings Is Even More Important
If the commercial and residential industries can bring in a big change in sustainability efforts, imagine what the industrial sector could do. The US Energy Information Administration’s (EIA) report shows that the industrial sector accounted for 33% of US energy consumption in 2020. Unfortunately, a great deal of this energy is wasted through inefficient use. This wasted energy costs companies money, resources, and profit. Hence, energy efficiency should be a crucial part of the strategic energy management of all industrial facilities.
To illustrate why industrial energy savings is even more important, let’s look at its impact on global energy demand during the COVID-19 pandemic when industrial and manufacturing operations were partially halted. The EIA made some of these crucial points:
- Overall global energy demand decreased by 3.8% in 2020, considered the most significant drop in the past 70 years.
- While many factors contributed to the decline, one factor is shifting energy demand from industrial and commercial to increased residential energy use.
- The lockdown partially suspended economic activity, which dropped industrial electricity demand by 21% and reduced commercial electricity demand by 15%.
- Global carbon emissions reduced by 5% in 2020.
- Global coal demand plummeted with a reduction of 8% in 2020.
Data on Energy Consumption in Industrial Sector
| Industry type | Percentage shares of total industrial energy consumption |
| Manufacturing | 77% |
| Mining | 12% |
| Construction | 7% |
| Agriculture | 5% |
The second table shows how an average manufacturing facility uses electricity, based on data from the EPA.
| Uses in a manufacturing building | Percentage of electricity consumption |
| Machinery | 50% |
| Direct uses (heating, cooling, ventilation, and other electrochemical processes) | 29% |
| Other non-processes | 17% |
| Boiler fuel | 2% |
| Not reported end-use | 2% |
Reducing Energy Costs Fundamentals for Buildings, Manufacturing Plants, and Factories
This section provides you with strategies for reducing energy costs in buildings, manufacturing plants, and factories.
1. Building Energy Benchmarking
Energy benchmarking is a tool that several countries implement as it helps building owners assess the relative energy performance of their buildings. It compares your energy usage to similar buildings, looks at your energy history, and may evaluate if it passes state or local government standards, such as a building energy code. Furthermore, energy benchmarking is an effective way to evaluate if your building uses energy efficiently. It helps you identify if wastage is high, and some benchmarking tools may provide advice on how to improve energy performance.
- Annual energy saving of around 2.4%, based on ENERGY STAR’s benchmarking program.
- It helps you determine and replicate energy-saving best practices carried out in energy-efficient buildings.
- State and local governments can help identify facilities that need improvement in their energy management systems. It also allows officials and stakeholders to improve their metrics and standard performances, such as building energy codes.
- By disclosing their energy usage, high-efficiency buildings receive rewards and recognition. ENERGY STAR-certified buildings have increased their valuation by 31%. In addition, building owners can charge premium rentals and still have high occupancy rates.
- Energy-efficient buildings contribute to sustainability efforts by reducing greenhouse gas emissions and decreasing pollution.
- Collecting data from different utility companies or meters can be tedious and time-consuming.
- Depending on what the building is used for, it may be hard to find a benchmarking tool to use.
- The data presented is mainly numerical and does not consider the direct and indirect factors that contribute to the success of energy-efficient buildings. A higher budget for new technology, the company’s sustainable core principles, and so on are examples of these factors.
2. Use of Energy-Efficient Equipment and Machinery
- Petroleum refining could reduce energy use by 10% to 20% using high-temperature reactors and advanced process controls.
- Machinery used for drilling and threading that uses efficiency improvement measures can reduce the energy use of electrical motors and inverters by 52%.
- Another machine, DMC 80 H duoBLOCK, made for face and plunge milling that uses energy-efficient technology can cut energy costs by 30%.
- There are also electro-mechanical drives that use energy-efficient technology to reduce the usage of braking resistance, consuming less energy.
- High cost of energy-efficient machinery and equipment.
- It may require changes to the entire processing system.
- New solutions may be needed to retrofit existing machines with energy-efficient components.
3. Use of Energy-Efficient Lighting and HVAC
Benefits
- LED lighting can reduce lighting energy use in industrial buildings by 40% to 80%.
- Commercial LED lighting fixtures last much longer than traditional light sources.
- LED lighting also has a lower impact on the environment and ecosystems.
- Commonly HVAC energy usage can be reduce by 30% through energy efficiency measures.
- Tax credits, incentives, and rebates are available when using ENERGY STAR-certified LED lights and HVAC systems.
Challenges
- Initial up front investment required.
- Equipment upgrades may be disruptive to normal operations
- Few businesses look at total cost of ownership over the lifetime of equipment, and are more inclined to buy the cheapest product, not necessarily understanding how higher operating costs decrease profitability.
4. Use of Renewable Sources of Energy
Data from the EIA shows a growing interest in renewable energy. In the USA, renewable energy production accounted for a record high 11.7% of total energy production. The increase was mainly driven by solar and wind energy. In 2021 in the state of South Australia, wind and solar energy sources accounted for 65.7% of total energy consumed.
The United Nations Development Organization (UNIDO) has set a goal that by 2050, up to 21% of the energy used in manufacturing should come from renewable sources. Here are the potential benefits and challenges of switching to renewable energy:
Benefits
- Solar cells can produce electricity with zero contribution to noise and air pollution. They also requires little maintenance.
- Commercial solar modules are gradually improving in efficiency, meaning a panel of the same size produces more power.
- Reduces energy costs.
Challenges
- High up front capital costs.
- Site constraints, such as shading, can limit the potential benefits of solar PV.
- Wind farms need more space and area, while solar cells are dependent on weather conditions and location.
- In areas with high renewable energy penetration, significant investment in energy storage and transmission networks is required to make effective use of the energy produced.
5. Following Energy-Saving Best Practices
Benefits
- Energy-efficiency measures become a concerted effort within the organization.
- Opportunity to increase awareness of sustainability and energy efficiency.
- It may facilitate employee engagement.
- It may encourage teamwork and can produce better results.
Challenges
- Consistency in implementing best practices can be hard to maintain.
Energy Savings and Industrial Competitiveness Act
The bill aims to reduce energy waste, provide jobs, and reduce carbon emissions. According to the American Council for Energy-Efficient Economy (ACEEE), the potential impacts of the provision by 2050 are:
- It could lead to savings of around $50 billion.
- It can reduce carbon emissions by about 1.3 billion tons.
- It has the potential to cut down energy waste by 32 quadrillion btu.
- It could create more than 100,000 jobs.
Building Energy Codes
Strengthen DOE Industrial Assessment Centers (IACs)
Promotes Industrial Efficiency and Competitiveness
- The DOE will be available, upon the request of manufacturing owners, to conduct on-site assessments on their energy management system.
- Establish a Supply STAR program to certify and recognize energy-efficient products, practices, methods, and technologies.
- Provide competitive tax credits and incentives such as the Energy Saving Motor Control Rebate Program and the Energy Efficiency Transformer Rebate Program.
- The DOE will provide funding to encourage states to promote energy efficiency measures for retrofitting existing large facilities, typically used for commercial, multi-family, and other mixed-use purposes.
Are Energy Audits Worth It
How to Undertake Investment-Grade Energy Audits
