Connecticut’s government has a goal to reduce the state’s greenhouse gas (GHG) emissions by 80% below 2001 levels by 2050. To meet this long-term goal, CT is taking steps now to develop interim reduction targets and strategies along the way.
CT’s Comprehensive Energy Strategy through 2019, for instance, will have an overarching goal of improving sustainability, particularly by reducing GHG emissions. Yet many CT businesses fear that this focus will come at the expense of affordability, thereby hurting companies.
“Policies adopted in recent years around the region show an overriding concern for climate change components and renewable over a long period, and the affordability component in the near term tends to be overshadowed,” said Carl Gustin president, New England Coalition for Affordable Energy, as quoted by the Connecticut Business & Industry Association (CBIA), speaking at CBIA’s business energy conference last fall.
However, sustainability and affordability do not have to be in opposition to each other. Instead, businesses can improve their energy management and by doing so, they can achieve lower utility bills and reduce GHG emissions.
Less Usage, Less Cost, Less GHG
CBIA views regional efforts to reduce GHG emissions from power plants as unsettling because it would raise CT electricity rates, the organization says.
Plus, says CBIA, limitations on gas-fired power plants could result in higher natural gas prices.
Yet even if that happens, businesses would then be incentivized even more to reduce their electricity and natural gas usage. Just as how a surge in labor costs would likely cause a company to review how they can more efficiently manage staffing, the risk of increases in CT energy rates could be the catalyst businesses need to improve energy management.
Many companies do not realize how much energy — and therefore money — they waste, both from unnecessary usage and inefficient equipment.
As an air conditioning system ages, for example, it can become less energy efficient and can accrue maintenance costs. Replacing it with a newer system could lower operating expenses and save the company money over time, and they could even avoid the upfront cost by financing it through an energy services company. Meanwhile, doing so can reduce GHG emissions, because air conditioners release strong GHG known as hydrofluorocarbons, which are primarily released at the end of the product’s life, notes the Dutch National Institute for Public Health and the Environment.
Reducing GHG at the Source
Businesses’ concerns over higher CT energy rates due to restrictions on energy sources such as natural gas can be alleviated by turning to alternative energy sources that reduce costs and GHG emissions.
CBIA notes that the state recently awarded bids for renewable power projects primarily to solar and wind projects without choosing any fuel cell projects. The good news, however, is that if businesses are concerned over the reliability or cost of solar and wind power, advances in distributed generation technology allows them to invest in their own projects, where they can use technology such as fuel cells to gain their own power supply, apart from the traditional power grid.
Similar to equipment upgrades, but at a larger scale, obtaining distributed generation assets enables businesses to reduce costs since they are not subject as much to price fluctuations from the main grid. At the same time, the distributed generation can come from renewable or more efficient sources, thereby reducing GHG emissions.
Using Analytics for Optimal Efficiency
By using energy analytics software (EAS), businesses can get better insight into all these areas of cost and GHG emissions so that they can decide which steps make the most sense for their unique situation.
For example, EAS users can see how their energy usage and cost fluctuates throughout the day, so they can see if they need to shift processes to another time or take actions such as reducing heating overnight. Likewise, businesses can use EAS to see the cost/benefit of equipment upgrades and the optimal times to use distributed generation assets.
All of these energy diagnostics enable companies to improve affordability with the added benefit of improved sustainability. And if they do want to particularly focus on GHG, they can track it through EAS and see how energy management adjustments specifically affect emissions.
Request a complimentary energy efficiency assessment to find out how Artis Energy’s RTIS® energy analytics platform can provide you with the visibility and insight to transform energy from a fixed cost into a distinct competitive advantage.