It should be gratifying to learn from Govi Rao , President & CEO, Noveda Technologies, US (http://bit.ly/F4TGoviRao) that energy is getting increasing attention in boardrooms, especially when it comes to the cost management aspect. But this is just the first phase, he says, during a recent interaction with Business Line . “I am quite sure these discussions will be followed by increased interest and dialogue about GHG (greenhouse gas) emissions from building and preventive measures that can be taken by us today.” We continue our conversation over the email.
Excerpts from the interview.
What are the low-hanging fruits in energy management that enterprises can aim for in the near term, to make a difference to the bottom-line?
Here are a few to get started:
* Modify user behaviour to turn off lights, adjust thermostats, setting pool pump timers appropriately and taking other modest actions.
* Repair or replace inefficient heating and air-conditioning systems, seal ducts and address systemic inefficiencies in the home.
* Upgrade to newer, more efficient appliances, pool pumps and other less energy consuming devices.
* Upgrade to more energy efficient and environmentally friendly lighting technology like LEDs.
* Insulate, weather strip and otherwise weatherise “building envelope.”
* Install renewable energy systems such as solar water heaters, solar photovoltaic panels and other alternative energy devices.
* Retro commission the building to identify gaps in efficiency.
Can you describe a few examples of how enterprises stand to financially gain immensely by integrating energy management as part of their strategic vision and operating philosophy?
Companies that integrate energy management as part of their vision and operating philosophy will have lower operating costs, improved ratings, and better public standing, all of which directly (and indirectly) impact their bottom line. As part of integrating energy management into the operating philosophy of the company, there will be special and continued emphasis on energy efficiency programmes, behavioural modification and investment in renewables, all supported by real-time data transparency.
Do you see governments adopting bold initiatives to save energy costs?
Governments around the world are taking steps, some bolder than the others, but overall not as bold as they should be. There is a significant emphasis on solar and wind; however, the non-sexy energy efficiency opportunities have taken a back seat in many parts of the world. For example, we have been observing the ongoing discussion on carbon tax and feed-in tariffs, etc. Putting a price on carbon will be a first step. Eliminating subsidies for conventional fuels and technologies will be a bold step that we are yet to take!
Your observations on the deals and investments happening in the energy space.
There is an increased momentum in the investments in the extended energy space which also includes EE technologies, storage technologies, renewable, and building automation technologies. Several of the large majors are looking for smaller companies to acquire or partner with, in a hurry to get access to the next generation technologies. This is increasing deal flow and I believe this momentum will definitely increase through 2011. Interestingly enough, some of the early investors are exiting because they’re tired and are accepting valuations well below their original deal valuations.
What are the hurdles to the implementation of IT-enabled energy management solutions, especially in scaled up situations such as at country level?
Our biggest issues today in transitioning to an electronically controlled grid happen to be structural, storage and security related. In the current system, in most parts of the world, very rarely do we have one or two players influencing the value chain. This space has way too many players, and convincing all these various players about the smart grid could become our biggest challenge.
Also, in the West, most of the equipment used for generation and transmission is dated and aged. Upgrading these will require billions of dollars. Technologically, I believe we have platforms that are good enough and well advanced to make a difference now. However, due to the connected nature of the grid, we face huge risks in scaling technologies that have not been tested at this scale.
Some of the fundamental challenges we face integrating into a smart grid have to do with a lack of agreement globally on standards and who should issue them. These are standards on concepts like open architecture, Internet protocol, plug-and-play, non-proprietary, interoperability, etc. This is a big hurdle and one way that experts are working through this, is by developing micro-grids, where these concepts can be tested in real time operations and studied.
The third biggest challenge has to do with security. With the advancement of energy and information related technologies, Distributed Generation (DG) of electricity will be a reality and this poses some big challenges to protect the grid into which millions of users, now could connect into – as power producers (using renewable), not just consumers. As the cost of renewables comes down, we’ll see many installations in place and if they are connected to the grid this increases the need for grid security.
Distribution experts are working on various modes of switching and digital controls to minimise, if not eliminate, the risk. As we move to expanding our renewables portfolio, we will have to come up with sustainable ways to store the energy or find effective ways to distribute it efficiently and economically.
Do operating executives have sufficient data on their company’s energy footprint in real-time to enable strategic decision-making?
Most if not all energy data reviewed by operating execs is historical and definitely not enough for strategic decision-making. In most cases, buildings are not equipped to provide data at a granular level on a real-time basis.
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