CRC Energy Efficiency Scheme
The choice of cabling used in a network can also make a difference to energy use and CO2 emissions.
with the argument for reducing energy consumption now purely a financial one. Regardless of the changes and consultation underway and the controversy that is raging, the IT industry need be in no doubt that energy efficiency remains at the top of the network management and data centre agenda for 2011, and cabling infrastructure has an important role to play in this.
Increasing consumption Energy efficiency has been at the forefront of the public agenda since the 1970s when companies, governments and academics started arguing for the need to build economies without increasing energy consumption. In recent years, discussions on climate change and global warming have increased the pressure on organisations to
improve their energy efficiency and we are now seeing legislation being introduced by governments around the world in an effort to reduce the world’s energy consumption. Energy costs account for up to a fifth of business expenditure and the IT industry is one of the biggest spenders. In its report, ‘Cloud Computing and its Contribution to Climate Change’, Greenpeace projects that data centres alone could consume up to 1 million megawatt hours of power by 2020, with the telecoms sector using another 950,000 megawatt hours. Whilst projections vary the demand for data usage marches inexorably on and electricity bills continue to spiral. At a time when companies are watching every penny that is spent and fuel costs are volatile energy efficiency has a very real impact on the bottom line, especially when you’re talking about cutting chunks off data centre bills that run into many millions. There has been a change of psyche within the IT industry regarding this, unarguably spurred on by the announcement of the CRC back in 2008: energy efficiency is not just good for the environment but it is good for the purse. Becoming energy efficient is another matter.
The history
On 1st April 2010 the CRC Energy Efficiency Scheme came into effect in the UK. Formerly known as the Carbon Reduction Commitment, it formed a central part of the government’s plans that by 2050 greenhouse gas emissions will be reduced by 80 per cent from 1990 levels.
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It was originally designed as a cap- and-trade scheme for public and private organisations with an annual energy bill in excess of 6,000MW (or roughly £500,000 per year given the changing price of fuel). In its initial form the CRC was expected to affect approximately 20,000 organisations, each required to measure and report their energy consumption and purchase allowances from the government for every tonne of CO2 emitted. The first auction was due to take place in April 2011 with plans to publish a CRC league table later this year showing the comparative performance of the top 5,000 participating organisations. But a single, significant paragraph in October’s spending review changed all this: ‘The CRC Energy Efficiency Scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011. Revenues from allowance sales totalling £1 billion a year by 2014-15 will be used to support the public finances, including spending on the environment, rather than recycled to participants. Further decisions on allowance sales are a matter for the Budget process.’ What had been designed as an incentive scheme to reduce CO2 emissions had, to all intent and purpose, become a business tax, and one that is currently still being ironed out. Despite the uncertainly about the exact financial implications and a lack of decision about how and whether to publish a league table one thing remains clear: cutting energy consumption means savings on electricity and tax bills. Putting in place the right hardware, software and processes to achieve this is where the focus now needs to be. Looking at this from a glass half full point of view, there is also more time now to do this. Additionally, the government has shown its true colours and, judging by comments made by the energy secretary Chris Huhne to the CBI in November about the CRC being ‘just the beginning’ when it comes to carbon taxation, companies that are ahead of the game with energy saving plans will win out. This is underlined by the many other energy saving initiatives that exist.
Energy efficiency initiatives
Although the UK is the first European country to have a mandatory energy reporting scheme, the US is also moving ahead with planned energy efficiency legislation and there are several other initiatives designed to promote energy
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