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The Climate Change Levy and the resultant increase in electricity costs is now underway and industry will soon be getting the first new look electricity bills. The good news for industry is that the potential for savings is much greater than the 10-15% than the Levy will typically be adding to the bill. The government's Climate Change Levy is a serious attempt to focus minds and get industry more committed to energy saving solutions, enabling the UK to meet its international commitments to reducing the damaging CO2 emissions that are threatening the world's climate. While the Climate Change Levy is the stick designed to get industry saving, it also comes with a carrot - the Enhanced Capital Allowances will provide a positive financial inducement to choosing energy efficient solutions. There is also a second carrot, although this one was in existence even before the Climate Change Levy was thought of, and that is the staggering savings available through the use of variable speed drives and energy efficient motors. In variable speed pump and fan applications, savings in excess of 50% are not unusual when upgrading the system with a variable speed drive. Just installing high efficiency motors in fixed speed applications can make significant savings - it is startling to realise that an 11kW motor costing about £500, can consume over £50,000 worth of electricity over a 10 year operating life. There are about 10 million motors installed in UK industry alone, accounting for some 65% of industrial electrical energy consumption. It is estimated that only 3% of these are controlled by variable speed drives, so the savings potential is enormous. One manufacturer, ABB, recently launched a six-step energy plan to help industry understand the Climate Change levy and the impact energy efficient motors and drives can have on reducing their energy consumption. "Industry only tends to see the Climate Change Levy as an added cost," says Steve Ruddell, Sales Manager for Drives and Motors at ABB. "In fact, in most cases, the potential for energy savings is much greater than the cost of the levy. The payback time can be remarkably short and can be made even shorter by claiming the ECAs. By taking action, companies will see their electricity consumption drop, probably below what they were paying before April, in spite of paying the Climate Change Levy. "Our six-step plan aims to dispel any confusion, fill in the gaps and show the way forward. So far, it has been received very well, with most audiences confessing that they have learned a lot about the relationship between energy, drives and motors." So, what are the six steps? Step 1 - The Facts This involves understanding all the facts: What is the Climate Change Levy? How will it affect your industry? What is an Enhanced Capital Allowance and how does your process, system or plant qualify? This section explains the figures of the increased costs as well as of the Enhanced Capital Allowances (ECAs), which makes energy efficient equipment more affordable. ECAs apply to both variable speed drives and high efficiency motors but there are qualifying conditions which must be met, of which the users must be clearly aware. Step 2 - The Savings Before energy efficiency measures can be implemented, an energy survey needs to be undertaken. ABB's energy appraisal scheme takes half-a-day and investigates key energy absorbing applications, helping users find out precisely where the greatest savings can be made. The Energy Appraisal includes an Executive Summary and a detailed Engineer's Report, giving actual energy saving in Sterling and the value of the ECA that can be claimed, if applicable. Step 3 - The Finance This step explains how the new equipment can be paid for. Leasing agreements are not allowed under the rules of the Enhanced Capital Allowances, however ABB is offering a pay as you save scheme, enabling users to pay for new drives with the energy saved and transferring the cost from capital expenditure to operating expenditure. Step 4 - The Products Today's motors and drives are vastly more efficient than a decade ago. High efficiency motors are generally 3-5% higher in efficiency than basic designs. In the case of a 90kW motor this means a saving of £1,000 per year in energy costs alone. Motors in the highest efficiency class, EFF 1, qualify for ECAs. AC drives reduce energy wastage in all phases of operation. Changing production volumes by mechanical means is very inefficient. AC drives save energy by changing the motor speed so it uses only the electrical energy that is required by the process at any given time. Further energy savings can be achieved by using regenerative drives. Step 5 - The Proof This section shows a selection of real life examples where great energy savings have been achieved with motors and drives. This includes: · A cement plant that upgraded its ID fans, from damper control to a 630kW variable speed drive. This reduced the power consumption by 163 kW, saving some 1,250,000 kWh/year. It also reduced reactive power and maintenance requirements. The payback period was 1.8 years. · A chemical plant upgraded its fin fan coolers, which are fans that normally lie in the vertical plane, drawing air from the outside and blowing it downwards into a heat exchanger. Variable speed control gave large savings on the 100kW of fan motors, reducing electricity consumption by some 438,000 kWh/year. It also reduced reactive power and maintenance cost. Step 6 -The action For users wishing to take action, there are a number of seminars available. ESTA (Energy Systems Trade Association; www.esta.org.uk), representing over 90 suppliers, is organising a series of events across the country. ABB itself is also organising a series of Business Breakfasts and Technology Days. There is also a number of websites on the subject, the most notable being that of the Department of Environment, Transport and the Regions (DETR) at www.environment.detr.gov.uk/climatechange and the dedicated web site for Enhanced Capital allowances, www.eca.gov.uk. Top of the page |
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