The More You Spend, The More You Save

3 11 2009

Talk about an oxymoron.  Years ago this was a favorite saying of my roommate and I as we lambasted dopey ads on TV, on paper, or over the airwaves.

Fewer years ago, once I got into this energy efficiency profession, I was speaking with a utility energy-efficiency program guy who frequently interacts with regulators.  This was during a stakeholder meeting for quantifying energy saving potential by sector and by technology.  (technology = lighting, furnaces, chillers, etc.)  Knowing buildings systems rarely work as they are supposed to, I asked, “Have you considered retrocommissioning (RCx) as an energy efficiency program?”  His answer in effect was, that would be great, but it would be double dipping since customers have already been incentivized for energy efficiency.  I didn’t have a response for that.  I do now.

Incentives are based on building systems working as they should.  Unfortunately, this is rarely the case.  Buildings almost always use more energy than they do on paper (or computer).  See the recent Illinois LEED performance report, Figure 14.   Buildings underperform badly compared to design models.  I would venture to guess that the majority of this discrepancy is lousy controls.

Therefore, my response to the “buildings have already been incentivized and therefore, RCx is double dipping” is twofold:

  • Incentives for efficient equipment and systems are many times actually too low.  The building’s systems and controls are performing so poorly that the boiler actually has to make more hot water and the chiller has to make more chilled water than planned.  The lights are saving more because they are on longer than they should be.  If you’re going to waste energy, you may as well do it efficiently (oxymoron alert).  The more you spend, the more you save!  Other measures probably under-predict savings but these are typically control measures and control measures make up a small fraction of incentives and associated savings that programs take credit for – a thesis based on my experience – a thesis I am very confident with.
  • Savings from RCx IS NOT double dipping.  When I poll our own recent RCx projects, I find that 75% of the savings are derived from measures that either (1) fix control issues that wouldn’t even be eligible for incentives in the first place or (2) implement measures that are required by energy code.  Some buildings aren’t built to comply with prescriptive energy code requirements – imagine that! and (3) implementing new measures that exceed code requirements.

Conclusions:

  • Incentives in many cases are too low because systems perform poorly (the more you spend, the more you save)
  • Incentives in other cases are too high because they are controls-based and the control sequences are wasting energy
  • Reducing over-use and fixing things that aren’t even incentive-eligible almost certainly outweigh fixing control issues on measures that were already incentivized.  Therefore, the net of RCx measures is all new unrealized savings.

By the way, the utility mentioned above has an RCx program now.

written by Jeffrey L. Ihnen, P.E., LEED AP

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7 responses

20 02 2010
Mike

Best oxymoron yet! Controls, Controls, and Controls

23 02 2010
Need Not Miracles «

[…] can waste energy like congress can.  See previous posts “Dermal Beauty, Ugly to the Bone”, “The More You Spend, The More You Save”, and “LEED and the Not Happenin’ Energy […]

11 05 2010
EE Ignorance «

[…] When I talk about energy efficiency in commercial and industrial facilities I talk about controls, systems and processes, NOT pieces of equipment and components.  At the end of the presentation I say all boilers are 80% efficient.  All chillers use 0.6 kW/ton.  All lighting fixtures produce 80 lumens per Watt.  Of course this isn’t literally accurate, but the point is, the building can be operating very poorly as a system, such that plus or minus 20% on these performance metrics is dwarfed by poor operation.  The control programming is awful.  The system could use some additional control points and maybe a few components need to be added.  When added up,  the waste generated by these controls and system operations dwarf the few percentage points for the boiler efficiency or one or two tenths of a kW per ton for the chiller.  See The More You Spend The More You Save. […]

5 10 2010
Upside Down Consequence of EE? «

[…] Down Consequence of EE? 5 10 2010 Many posts ago, I wrote “The More You Spend, The More You Save” explaining how poor system control wastes energy but results in even greater energy savings for […]

25 05 2011
Need Not Miracles | Michaels Energy

[…] can waste energy like congress can.  See previous posts “Dermal Beauty, Ugly to the Bone”, “The More You Spend, The More You Save”, and “LEED and the Not Happenin’ Energy […]

26 05 2011
EE Ignorance | Michaels Energy

[…] When I talk about energy efficiency in commercial and industrial facilities I talk about controls, systems and processes, NOT pieces of equipment and components.  At the end of the presentation I say all boilers are 80% efficient.  All chillers use 0.6 kW/ton.  All lighting fixtures produce 80 lumens per Watt.  Of course this isn’t literally accurate, but the point is, the building can be operating very poorly as a system, such that plus or minus 20% on these performance metrics is dwarfed by poor operation.  The control programming is awful.  The system could use some additional control points and maybe a few components need to be added.  When added up,  the waste generated by these controls and system operations dwarf the few percentage points for the boiler efficiency or one or two tenths of a kW per ton for the chiller.  See The More You Spend The More You Save. […]

31 05 2011
Upside Down Consequence of EE? | Michaels Energy

[…] posts ago, I wrote “The More You Spend, The More You Save” explaining how poor system control wastes energy but results in even greater energy savings for […]

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