The Case for Energy Efficiency
Date Posted: January 20, 2015
Posted In: Ideas, White Papers,
Doug Sitton, PE, LEED AP, CPMP
President
Sitton Energy Solutions
When it comes to energy consumption, there is one thing that can be counted on – utility rates will continue to rise over time. This reality is a result of multiple factors, such as the shutdown of coal-fired plants, a shift to more costly renewable energy and natural gas power plants, aging infrastructure, increased demand and additional requirements for security and reliability measures. The good news is, however, a vast majority of facility owners can deploy energy efficiency tactics to offset future cost increases.
Making a facility more energy efficient can generate both short term and ongoing financial returns. With the proper tactics in place, many facilities’ energy usage can be reduced by 20 percent or more, delivering an annual rate of return of 100 percent or higher. And in addition to this immediate return of investment, energy efficiency offers a host of other financial, economic and environmental benefits. These include allowing owners to shift time and money to other aspects of the business or organization’s mission; driving innovation and create “green collar” jobs; improving employee health, comfort and productivity; increasing the facility’s value; extending the life of equipment; and, decreasing demand, which relieves pricing pressure. Opting to do business more efficiently also helps meet the increased environmental regulations, delays the need for new power plants and extends the life of natural resources.
In fact, a report issued in July 2009 by McKinsey & Company entitled, “Unlocking Energy Efficiency in the US Economy,” suggests that through energy efficiency the United States economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020. More efficient business practices would also eliminate more than $1.2 trillion in waste costs, which is well beyond the $520 billion upfront investment (not including program costs) that would be required. In addition, the reductions in energy use could result in the abatement of 1.1 gigatons of greenhouse-gas emissions annually—the equivalent of taking the entire United States fleet of passenger vehicles and light trucks off the roads.
According to the American Council for an Energy-Efficient Economy’s (ACEEE) 2008 State Energy Efficiency Scorecard, energy efficiency is considered the “first fuel” in the race for finding clean and secure energy resources. It is said to be the most reliable, cost-effective and quickest resource to utilize to address the rapidly increasing energy prices, constraints in energy supply and transmission, and the concerns surrounding the reliability of concerns.
Energy efficiency projects are often small in size, but when added up across commercial properties in the St. Louis region, they can have a major impact on our economy. As such, the sooner energy efficiency is implemented, the greater the savings and impact on our economy.
One easy way area facility owners can begin the process is by getting involved in the St. Louis High Performance Building Initiative organized by the St. Louis Region Chamber and the U.S. Green Business Council – Missouri Gateway Chapter. The goal of this program is to increase the square footage of third-party verified green space in the St. Louis region. Check out the array of free resources available at www.stlhighperformbldg.org, which are designed to help area businesses increase their bottom line and grow the St. Louis economy.
Doug Sitton, PE, LEED AP, CPMP, is the president and founder of the St. Louis, Mo., area-based Sitton Energy Solutions. He has over 30 years of diversified experience in the design and construction industry and is an energy efficiency authority known for his leadership, strategic thinking and complex problem solving. He chairs the St. Louis Regional Chamber’s Energy and Environment Committee, serves on the Chamber’s Board and Policy Council and is involved with a host of other area organizations and initiatives.