Legend Power Blog

A recent study by Pike Research ,”Energy Efficiency Retrofits for Commercial and Public Buildings,” finds that there are untapped opportunities in energy efficiency retrofits for commercial buildings in the US.

According to an article in GreenerBuildings that refers to the study,

Owners of commercial buildings in the U.S. could save more than $41 billion a year in energy costs, if all currently existing commercial space were placed in a decade-long energy efficiency retrofit program requiring an annual investment of about $22.5 billion.

The Pike study notes that while the best-funded energy retrofit projects are in institutional and government buildings, federal non-industrial buildings only represent 3% of commercial buildings and that the real focus should be on private commercial buildings.

According to GreenerBuildings, the report said:

If the goal of the energy retrofit industry is to spend a little money on efficiency, while total national demand for energy continues to grow, then present policy is functioning well. However, if the goal is to reduce the total demand for energy in buildings over time, by the 50 percent or more needed to address international competitiveness, global warming, and energy independence, then present energy policy needs a substantial retrofit.

If national carbon-emissions legislation addressed energy use in commercial buildings with a combination of high energy prices and reinvested incentives, then the market for energy efficiency retrofits (and for educating the workers in this market) would explode with activity.

Download the executive summary of the Pike Research report.

One viable option for commercial building owners to achieve these savings is conservation voltage regulation, an energy conservation technique that regulates the incoming voltage to buildings.

Legend Power’s conservation voltage regulation technology, the Harmonizer-AVR, is an electronic tap changers that regulates the voltage coming into a building. Tests show that the Harmonizer-AVR saves 6-10% of a building’s energy costs. For example, Honda Canada reduced their power costs by 6%.

For more information about conservation voltage regulation and Legend’s technology:

• How Energy Conservation Through Conservation Voltage Regulation Works
• Legend Power’s Smart Grid Technology
• How Legend’s Smart Transformer Earns You LEED Points
• US Energy Efficiency Incentive Programs

Conservation Voltage Regulation (CVR) is an energy conservation technique that regulates the incoming voltage to buildings.

To compensation for line loss along the power grid, buildings at the beginning of the grid receive voltage at higher levels than others. This leads to energy waste, higher energy bills and unnecessary carbon dioxide emissions. Over $1 billion is wasted per year by commercial buildings due to forced grid consumption.

How Conservation Voltage Regulatioin Works

There is an optimal minimum voltage level below the primary level (600V CA, 480V US, 400V EU) where lights, motors, etc, will operate comfortably with no effect on their practical performance. At 5% below the primary voltage (570V CA, 456V US, 380V EU) these loads are still within manufacturer’s specifications but will work with less waste heat, longer life, a lower carbon foot print and less energy.

CVR regulates buildings’ incoming voltages to optimal levels through a transformer and a tap changer.

Legend Power’s transformer and tap changer is called the Electronic Harmonizer-Automatic Voltage Regulator. It is an on-load automatic electronic tap changer with a high efficiency autotransformer that regulates voltage to the optimal level.

The Harmonizer component adjusts the incoming voltage to the optimum operating level for each facility as determined by an extensive pre-installation assessment. Currently, the Harmonizer can optimize the incoming voltage by 0% (bypass), 2%, 4% or 6%, creating a significant reduction in energy consumption and peak demand. Power grids will fluctuate on a regular basis so flexibility in the rate of voltage reduction is critical to maximizing conservation and eliminating risk.

The Automatic Voltage Regulator (AVR) continually monitors a facility’s incoming voltage level and automatically selects the correct tap setting on the autotransformer to ensure power is always entering the facility at an optimal level. If grid voltage levels drop below the minimum optimal, the system is immediately bypassed ensuring that the energy flow to your building is never negatively affected.

The Electrical Harmonizer-AVR maximizes voltage optimization, improves power quality and operates at an efficiency of greater than 99.5%.

Benefits of Conservation Voltage Regulation

The Electronic Harmonizer reduces energy consumption by 6-10% by:

• Reducing energy consumption: kWh
• Reducing real power: kW
• Reducing reactive power: kVar

In addition to reducing energy consumption, CVR technology increases the life expectancy of equipment. All electrical equipment is designed to operate at +/- 5% of their rated valued. Voltage optimization ensures that equipment is operating at the lower limit, which increases the life expectancy of equipment. For example, after Science World installed the Harmonizer-AVR, they doubled the life of their exterior light bulbs on their geodesic dome, and went from having to change the bulbs once a year to once every two years.

Overall, Conservation Voltage Regulation benefits both the end user – through power savings and improved equipment efficiency – and utilities – through reduced power losses. CVR benefits both groups by reducing carbon dioxide emissions.

For more information about Legend Power’s Conservation Voltage Regulation technology, download our technical brochure (PDF) or watch our corporate video:

Last month CleanTech released it’s CleanTech Investment Monitor 1Q 2010 Report. CleanTech’s Investment Monitor is a  quarterly report on cleantech investment trends. Last month’s report highlights the growth of cleantech markets, particularly in energy efficiency. Some of the report’s key findings:

“VC funding continues to bounce back led by North America.”

Global cleantech venture investment for the first quarter of 2010 reached $2.1 billion — the highest quarterly investment total since 3Q08. North America had 82% of the share of the investment total.

“Transportation and energy efficiency lead the way in sector preferences.”

Although the amount raised by energy efficiency companies, $296 million, was down 5% from 4Q09, the most number of deals for the quarter was in energy efficiency, at 42 deals.

The report states, “Of the top three sectors this quarter, it is energy efficiency where we continue to see the strongest interest on a forward looking basis, particularly focused on the buildings segment.”

The report goes in to say that the increase in investment in lighting is because of the following factors:

• Exit opportunities: Because the major players are eager, there are various exit opportunities for investors.
• Government stimulus finding: Tax incentives and regulatory changes are making energy efficiency an appealing investment category.
• Market size: Many energy efficiency technologies have very large market opportunities.
• Energy efficiency theme: There is an overall move towards energy efficiency as a cleantech investment category.

“Utilities and corporates continue investing in cleantech.”

Corporate direct investments announced during the first quarter of 2010 increased by 140% from 4Q09.

Utilities are focusing on increasing direct investment in alternative energy generation and smart grid projects because of government incentives, improved market conditions and in order to comply with standards.

The report states, “Companies continue to invest and integrate cleantech to improve energy efficiency and reduce carbon emissions in order to reduce costs, mitigate energy price volatility risk, and comply with existing and pending regulations around carbon and climate change risk disclosure.”

For more information on clean technology investment trends, CleanTech clients can download the report here.

Legend Power is featured in Alternative Energy eMagazine’s June/July 2010 issue. The article profiles our case study of how we helped Honda Canada save 6% of their power costs:

In 2007, Legend Power completed a beta installation of a 500 amp Electrical Harmonizer-AVR to help reduce Honda Canada’s electrical energy consumption.  After completing the installation, initial measurement and verification found Honda Canada had successfully saved electrical energy.  In 2009, Legend Power completed a technical review of this project to verify that the Electrical Harmonizer-AVR installed in 2007 is still effectively saving electrical energy…

As a result of installing an Electrical Harmonizer-AVR, Honda Canada has achieved the following results:

Annual kWh Savings: 76,271
Average kW Reduction: 8.73
Percent Savings: 5.98%
Dollar Savings: $4,400

The savings achieved through voltage optimization is expected to persist over the life of the Electrical Harmonizer-AVR.  After 10 years, Honda Canada will have saved an estimated 762,710 kWh of electrical energy and $44,000.

Read the full article.

The Financial Post has been running a series the last few months called “Ontario’s Power Trip”. In the series, Parker Gallant, a retired Canadian banker, explores the finances and politics behind Ontario’s power sector. With power that’s already priced 65% higher than Quebec and Manitoba, it’s about time someone explored the problems with Ontario’s power.

Gallant says,

As a former banker, I have no direct expertise in the electrical sector. I was simply curious as to why my electricity bill in Ontario went up when my consumption went down. What I found as I researched is a bewildering story of a province whose electrical sector is in trouble. Ontario is a high-price energy province and, under current policy, it is poised for a further escalation in prices. In short, Ontario is pricing itself out of the market and will not have the ability to attract any manufacturers or service sector companies that require significant energy in their daily processing.

It appears that Gallant was first inspired to write the series after examining Hydro One’s annual report. In his post on February 24th, Ontario Power Risk he notes that the annual report (deemed not newsworthy by the press) shows that while the company is handling less electricity, both their costs and debt are rising. Gallant notes that this should alarm electricity consumers and Ontario taxpayers, predicting that “many more rate increases will follow.”

In his April 14th post, Ontario’s power trip: Priced out of the market, Gallant examines the regime behind Ontario’s power sector, calling it a “complex, unproductive, costly and expanding beehive of corporate and institutional activity that produces less and less electricity at ever rising cost.” With 6 institutions making up the power structure, including parts of old Ontario Hydro and government appointed groups, here’s the breakdown he provides:

1. Ontario Power Generation (OPG), which produces electricity.
2. Hydro One, which manages the province-wide transmission and distribution grid.
3. Independent Electricity System Operator (IESO), which manages the hourly power needs and also operates a trading and pricing system.
4. Ontario Electricity Financial Corporation (OEFC), which holds the stranded debt of the old Ontario Hydro and acts as a funding arm.
5. Ontario Energy Board (OEB) , which regulates electricity.
6. Ontario Power Authority (OPA), which acts as the government’s policy execution vehicle.

Gallant asks “What is this conglomeration of government-controlled agencies doing? One thing is clear. They are doing much less for a lot more money than they used to…The number story is simple: Less electricity, higher costs.”

And higher costs is right. Gallant notes in his May 11th post, Ontario’s Power Trip: The 20% hydro grab, that early in May Toronto Hydro told the National Post’s editorial board that rates will be increasing by about 20% and similar increases will effect all of Ontario. With this news, Gallant takes apart his power bill to see where the costs are coming from and what he can expect in the future. This is what he finds:

Under the regulated price plan (RPP) my bill (assuming I use 2480 kwhs over two months) will increase by $61 (up 20.5%) for two months’ worth of power. Under the TOU plan [beginning on May 1 Ontario consumers with Smart Meters will be under a new Time of Use (TOU) system], it will increase by $53 (up 17.9%). That means my electricity bill will jump $366 on an annual basis under the RPP and $318 under TOU.

In order to help Ontarians understand their electricity bills, Gallant created a useful chart that breaks down all of the complicated costs.

So what can you do?

Our solution to these price increases is an electronic tap changer, the Harmonizer-AVR. It regulates energy at your building’s power source to help your building conserve 6 – 10% of its energy.

See how Ikea saved 7% on electricity with the Harmonizer-AVR.

What are some other solutions?

Now when you install Legend Power’s smart transformer, the Electrical Harmonizer-AVR, in your building it will contribute up to 5 points to your LEED certification. Kyle Anders, a Sustainable Design Specialist, states:

5 points is a very noteworthy contribution in my experience, it is rare that a single product/technology can have this high of an impact.  I don’t have experience with evaluating other voltage optimization technologies, but since LEED emphasizes reductions in energy cost (rather than just energy), Legend has the advantage over many other energy savings technologies since it impacts electricity (the more expensive portion of a building’s energy use), compared to other technologies that may generate heating fuel savings but not electricity savings.

Read the full press release.

According to the U.S. Green Building Council (USGBC), LEED, which stands for Leadership in Energy & Environmental Design, is an internationally recognized certification system for green building. Originally developed by the U.S. Green Building Council, it certifies both residential and commercial buildings, providing third-party verification (through the Green Building Certification Institute) that a building is operating in the most sustainable way possible. 

As the Canada Green Building Council notes, LEED certification gives you recognition for your sustainability efforts and allows you to qualify for government funding incentives.

LEED measures a building’s performance in the following areas:

• Sustainable Sites – looks at where a building is built and its impact on the ecosystem.
• Water Efficiency – encourages smarter water use.
• Energy & Atmosphere – promotes efficient and clean energy use.
• Materials & Resources – encourages sustainable building products and materials.
• Indoor Environmental Quality – promotes improving indoor air quality and access to natural daylight.

According to USGBC, Building’s are rated out of a possible 100 points, with the potential for 10 bonus points. Certification requires 40+ points, Silver is 50+ points, Gold+ is 60 points and Platinum requires 80+ points.

LEED Rating Systems include:

• New Construction
• Existing Buildings: Operations & Maintenance
• Commercial Interiors
• Core & Shell
• Schools
• Retail
• Healthcare
• Homes
• Neighborhood Development

The first step to LEED certification is registering your building or project. To register in the US, visit LEED Online. Canada has adapted USGBC’s rating system to work within it’s own climate and building regulations. To register in Canada, visit Canada Green Building Council.

Commercial energy efficiency measures generally gain wide-spread adoption through utilities — either with their use of the technology or with their approval.

But how do utilities filter through all of the products and options available to decide on what energy efficiency measures to support? What do utility managers want to see when they’re considering new technologies?

In our experience at Legend Power, utilities look for technology that is proven to save energy and that won’t cause problems on the power grid (harmonics, poor power factor etc.). They also look at the cost effectiveness of the technology when making their decisions.

The following items help show a product is proven and won’t cause problems to the grid:

• UL approval. This may be costly but well worth the investment.
• Case studies & pilot projects with third party verification of energy savings.
• Well researched whitepapers.
• Patience. Many utilities often move slow and businesses like to move fast. It is possible to push a utility to move quickly, but a delicate approach is needed.

The key is that the technology must be able to be implemented by the customer. In terms of demand-side management (DSM) the utility may provide incentive funds that can be used to encourage or speed up adoption of DSM technology. It is important that the customer is able to implement the technology — if they can’t, then it doesn’t qualify as DSM.

The other key point is Measurement & Verification. Many utilities have to answer to a government body and have conservation targets to achieve, so the ability to verify the savings achieved is very valuable.

What are your experiences with utilities? Are they similar to ours or do they differ?

Photo Credit: http://www.flickr.com/photos/seattlemunicipalarchives/ / CC BY 2.0

A couple of weeks ago we looked at BOMA Toronto’s Conservation and Demand Management (CDM) Program and the incentive funding available through BOMA for the Toronto area. This week, we’ll look at incentive funding in British Columbia through the Public Sector Energy Conservation Agreement (PSECA).

PSECA is a project between BC Hydro and the Province to fund public sector building retrofits. The purpose is to significantly reduce energy consumption across more htan 6,500 public sector buildings.The project will invest $200 million in new technology, energy innovation and retrofits.

By 2020, the project is aiming for a 20% reduction in public sector energy consumption or a net savings of 342 gigawatt hours of electricity annually. This is enough to power 34,200 homes.

According to the original press release, PSECA includes:

• Provincial investments in energy efficiency upgrades and retrofits in government buildings.
• Implementation of energy conservation projects across the public sector, and promotion of technology innovation at public sector buildings.
• An employee engagement component to encourage government employees to be energy conservation leaders at work and at home.

Goals

Reduce electricity consumption in existing provincial buildings by 5% by 2011, 14% by 2016, and 20% by 2020.

Eligible Building Types

• Provincial government office buildings
• Crown corporations
• Schools, universities, and colleges
• Hospitals
• Social housing

Duration

The agreement is in effect from 2008 through 2020.

________

To register with the PSECA Funding Program contact PSECA Administration.

To apply for funding opportunities with PSECA, you must have an established BCeID account. Download the instructions for registering with BCeID (PDF).

Suppose your CEO calls tomorrow and asks, “What are we doing about power consumption?” What will you say?

Reducing consumption by turning off computer monitors and equipment requires lifestyle changes to be adopted through the entire organization. These are easy choices to make but they are hard to implement and substantial return on investment is not assured.

Proven, existing efficiency technologies — in everything from lighting to climate control and voltage regulation — can unlock the untapped reserves of efficiency gains buried in many non-residential buildings. Plus government incentive programs remove the barriers to implementation by making the up-front costs and payback periods affordable.

In high-cost energy states such as California, the state government has allocated $3.1 billion for energy incentives for the next three years. New York State also passed legislation at the end of 2009 to make loans available for businesses that want to improve their energy efficiency.

Each state’s programs require different application processes for commercial and institutional buildings and industrial facilities, which means that despite the availability of funding, many building owners and facility managers leave this money on the table, in part because they overestimate the cost of saving energy and forfeit researching their energy saving options.

So when the CEO comes calling, consider whether you are being overbilled for your energy and review the options and funding.

IKEA, for example, saved 7% of its annual energy consumption and saw a 50 kilowatt reduction in peak demand after installing Legend Power’s voltage regulation device in it’s Richmond, BC, facility. The electronic tap changer regulates incoming voltage and reduces energy consumption and costs, extends the life of equipment and does not require workflow changes.

Lighting retrofits, and the replacement of air conditioning sytems, industrial motors and other devices that consume electricity are other commonplace solutions covered by incentive programs.

To give you an idea of what is available, the following chart lists the states with the most expensive energy costs, the number of incentive programs that are available, and the state budget for energy efficiency projects.

To save money, reduce greenhouse gas emissions, and conserve power, find the incentive programs in your area:

The Database of State Incentives for Renewables and Efficiency lists all of the incentive programs in the US, by state.

The US Department of Energy explains each state’s energy incentive programs.

An explanation of inefficiencies in the power grid.

http://www.flickr.com/photos/badcomputer/ / CC BY-SA 2.0

The Building Owners and Managers Association (BOMA) is a commercial energy conservation success story. By working to promote the commercial real estate industry through leadership and advocacy, BOMA is having significant impact on commercial energy conservation, particularly through it’s two programs — BOMA CDM and BOMA BESt.

BOMA CDM

BOMA Toronto’s Conservation and Demand Management (CDM) Program is a $60 million incentive funding program to encourage building owners and tenants in the Toronto area (416 Area Code) to take on commercial energy conservation projects in their buildings.  The program offers incentives for annual energy savings, in kilowatt hours (kWh), and peak summer demand reductions, in kilowatts (kW), and reducing tons of cooling (for geothermal projects). Up to $5,500 is initially available to individual projects and the program ensures that the cash incentives are easily accessible – they promise that after the Project Completion Report is finalized you’ll receive your incentive payment within 30 business days.

Target
Large commercial buildings with 25,000 square feet or greater.

Eligible Building Types

• Offices
• Hotels
• Retail Stores
• Mixed Use
• Industrial Buildings
• Warehouses
• Private Institutions

Duration
4 years, ending December 31, 2010

Incentive Level
$800 per kilowatt of on-peak demand savings or $0.10 per kilowatt-hour annual consumption savings for non-lighting projects; $400 per kilowatt of on-peak demand savings or $0.05 per kilowatt-hour annual consumption savings for lighting projects; $250 per cooling ton (for ground source cooling projects).

Incentive Cap
Incentive payment limited to 40% of total Eligible Costs.

According to this recent press release,

The CDM Program currently involves over 383 projects, with energy savings equaling the consumption of 26,300 Ontario homes, eliminating 31,000 tonnes of emissions and creating approximately 1,700 Ontario jobs. This represents more than $105 million in capital investment.

For more information, visit the BOMA CDM Website. To apply for incentive funding, fill out the Application Form.

BOMA BESt

BOMA’s Building Environmental Standards (BESt) program is a national environmental standards certification program. BOMA BESt has four levels of building certification and provides building managers with an environmental management tool, recommendations for areas of improvement and an online assessment tool.

Last week’s press release stated that,

the average BOMA certified building consumes roughly 11 per cent less energy than it did a decade ago. Some BOMA buildings have adopted aggressive energy management strategies and undertaken building retrofits to reduce their energy use by as much as 30 per cent.

For information, including application costs, visit the BOMA BESt website.