14 Sep 2011 How Your Business Can Manage Rising Energy Costs
News & Events
Events
The Government of Ontario recently published a brochure to educate residential homeowners and businesses about changing energy prices. In this case, "change" is simply a euphemism for increase, and is based on a focused energy plan for the future to place a heavier reliance on renewable energy sources.
Electricity bills are currently forecast to rise approximately 3.5% per year over the next 20 years, with larger increases of 7.9% per year over the next 5 years. The larger short-term increase is due to investments in energy supply and upgraded infrastructure to support future activities and includes:
• Improving transmission and distribution lines to homes, hospitals, schools and businesses
• Upgrading nuclear plants that produce (and will continue to produce) approximately 50% of Ontario's energy supply
• Constructing hydro-electric projects such as the Lower Mattagami River in Northern Ontario
• Building new, clean sources of electricity such as wind turbines and solar farms
Although individual homeowners can take steps to reduce energy consumption during peak rate periods by shifting their household activities to cheaper rate periods and purchasing high efficiency appliances, businesses don't usually have similar options. Businesses typically contain their operations to hours which fall into the peak rate period, although some manufacturers run 16-24 hours per day and through all rate periods. High-efficiency equipment that would help offset some of the energy cost for businesses can cost tens of thousands of dollars, which puts this solution somewhat out of reach for many business owners who need to invest in research, development and innovation activities to remain competitive and profitable.
TSI can help businesses on metered time-of-use billing with high peak usage, particularly those with manufacturing operations, by reviewing your current energy consumption and offering alternatives such as retail contracts. Just ask us how to get started.
How else can business owners save money on their electricity bills? The Ontario Power Authority (OPA) has introduced saveONenergy, which has several programs which are available to commercial and industrial enterprises. These programs are designed to help you assess current energy usage, including time of use and equipment rating, complete light or heavy duty retrofit projects, participate in conservation initiatives (and get paid for it!), and can even assist with complete renovations or new green builds.
• Audit Funding – this program assists companies to understand how energy is being used to begin reducing operating costs and improve the energy performance of their facility. Funding consists of:
|
Buildings up to 30,000 Square Feet |
Buildings Larger than 30,000 Square Feet |
|
$.10/square foot to a maximum of 50% of the survey and analysis costs, whichever is lower |
$3,000 for the first 30,000 square feet and $.05 for each incremental square foot to a maximum of 50% of the survey and analysis costs or up to $25,000, whichever is less |
• Process and Systems Program – this program assists companies to find and hold onto major energy savings through upgrading/modernizing key systems for enhanced productivity and product quality and has 5 components:
|
Capital Incentives |
Embedded Energy Managers |
Engineering Studies |
Meter Lending Libraries |
Monitoring & Targeting |
|
The lowest of: $200 per MWh for annualized electricity savings OR 70% of the eligible project cost OR Achieving a one-year simple payback |
Up to 80% of the annual salary and up to 80% of reasonable expenses
Roving Energy Managers are also available on a short-term basis at your facility |
Up to $10,000 for a preliminary study
Up to $50,000 for a detailed study based on the preliminary recommendations |
Short-term loan of metering equipment, including:
|
Up to 80% of eligible costs to a maximum of $75,000 per site to purchase, install and make operational a monitoring system |
• Retrofit Program – this program assists companies to install energy-efficient equipment or solutions to reduce energy demand and costs and is broken into 3 components:
|
Prescriptive |
Engineered |
Custom |
|
| Lighting |
Per unit incentives |
The greater of $400/kW of demand savings OR $0.05/kWh of first year electricity savings |
The greater of $400/kW of demand savings OR $0.05/kWh of first year electricity savings |
| Non-lighting including lighting controls |
Per unit incentives |
The greater of $800/kW OR $0.10/kWh of first year electricity savings |
The greater of $800/kW OR $0.10/kWh of first year electricity savings |
• Demand Response – this program helps to reduce demand in commercial and industrial enterprises when the power system is experiencing peaks in demand and incentives vary depending on whether your participation is voluntary or contracted:
|
Payment Type |
Voluntary |
Contracted |
|
Available payment for capacity |
Between $2,000 per MW and $4,000 per MW of weighted average demand response provided over all activation periods |
Companies must be operating & available during a pre-defined scheduled of about 1,600 hours per calendar year. Within those hours, companies select their participation in activations of up to 100 or 200 hours per year.
Companies will receive “capacity” payments for each hour of their participation, plus additional “energy” payments for the actual amount of energy curtailed during an event. |
|
Utilization payment for energy |
Up to $170 per MW for energy delivered as part of the Demand Response provided and made monthly using the Hourly Ontario Energy Price (HOEP)
Companies must validate their Demand Response capability once per year through an activation test |
• High Performance New Construction – this program assists companies to reduce energy consumption in new builds and facility renovation and increase energy efficiency. Any activities under this program must comply with Part 3 of the Ontario Building Code and are available in one of two ways:
|
Prescriptive |
Custom |
|
Up to $250 for every verified kilowatt saved and up to $60 per appliance |
$250 for every verified kilowatt saved for up to 25% above Code
$300 for every verified kilowatt saved for between 25% and 50% above Code
$400 for every verified kilowatt saved for greater than 50% above Code
|
Each of these programs entails a specific application, and requires applicants to work closely with their local electric utility company. Some program components require the services of a professional engineer, certified engineering technologist, certified energy manager or certified measurement and verification professional.
If you would like to discuss your energy initiatives or obtain more information on how TSI can assist you in choosing the right energy program, please contact Tracey Wills at 905-738-6770 x2200 or via [email protected].
No Comments