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FEAT RE FEA ATURE


ENERGYM


GY MANAGEMENT SYSTE


NT SYSTEMS


Green Shoots: Nurturi Nurturing the growthg the growth evin Price of Info


KevinPr eof Infor ooksathow Kev for looks at how owmanufa nufacturers can meet emssions targe facture rg rers canmeet emissions targets without underm getswithoutundermininggrow g growth rowtowth


effective energy management represents one of the best options manufacturers currently have for making direct and immediate savings, particularly when you consider the unpredictable nature of energy costs in a post-Brexit economy. These savings can only be realised if manufacturers adopt new ways of working, make some potentially tough investment decisions and in some cases, bring in new skills.


Up to 80%of the energy consumed by certainmanufacturing systems iswasted or lost and a 2015 productivity review highlighted how


alonewastes a stagge W


e’re currently mid-way through the third trading period of the EU


Emissions Trading System(ETS), the first large (and still the biggest) greenhouse gas emissions trading scheme in the world. Phase three runs until December 2020, with phase four set to commence in January 2021.


Depending on who you speak to the ETS has either been a great success, already exceeding its target of reducing Europe’s emissions by a fifth compared to 2005 levels, or an expensive exercise, costing over $287 billion, which has had a


,


negligible impact on overall EU emissions, leading to amissed opportunity to achieve a 40%reduction in emissions had the money been used in amo re targeted way .


POS BREXI UNCERTA POST BREXIT UNCERTAINTY AINTY


In terms of the UK, those ETS detractors may be heralding the recent Brexit vote as a sign that UK businesses will soon no longer be subj


bject to the framework of ETS


targets in place through to 2030. But, in reality, the UK’s ongoing participation in ETS will be entirely dependent on whatever future relationship is negotiated.With as much as 90%ofUK environmental


Also if the UK does deci de to leave th e ETS entirely, it won’tmean that emissions reductions targets are a thing of the past. The UK’s own Climate Change Act of 2008 goes beyond any EU requirements, with the UK Government’s acceptance of the Fifth Carbon Budget fromJune 2016 securing the UK’s legal commitment to reducing its


regulation originating fromthe EU, that’s an awful lot of legislation to consider. ,


10 SPR 10 SPRIING 201 2017 | ENERG MANAGEMEN ENERGY MANAGEMENT


emissions by 57%by 2030 (relative to 1990 levels).


SEEING THROUGH THE GREENWASH Also, if UKmanufacturers are no longer obliged to lower emissions to similar levels to their EU neighbours, or be subj


SEEING HROUGH HE GREENWASH bject to the


same environmental standards, there is a real risk that they could be left behind in terms of environmental best practice. In a marketplace where the need to be proactively, environmentally sound can mean the difference between securing a contract or not, regardless of legislation, manufacturers can no longer ignore the need to implement quantifiable and demonstrable environmental policies and procedures, proving their first-rate environmental credentials in a world of increasing levels of greenwash .


Asmanufacturers well know, reducing emissions doesn’t come cheap. The cost of these government initiatives to promote a low-carbon economy, the so-called “green taxes”, is squeezing already tightmargins further still, with the government itself estimating that the growing cost of its green policies could add 49%to the electricity costs ofmedium-sized


businesses by 2020 and 66%by 2030. As part of a global economy still verymuch in recovery and withmanufacturing in th e midst of a global productivity crisis, for energy-intensive UKmanufacturers in particular, such as those in the chemical or ceramics industries, it’s proving harder than ever tomeet environmental targets and


One certainty in stay profitable.


a sea of doubt is that


Figure 1: Nurturing a greener future will require considerable and ongoing investment


Figure 1:


Nurturing a greener future will require considerable and ongoing investment


energy a year before it even reaches homes and businesses. Taking a share of this and boosting both efficiency and profitabilit y would seemto be a reasonable starting point to begin offsetting some of the escalating energy costs and “green taxes”. Through addressing thiswasted energy, the potential is there


owthe UK electricity system gering£9.5 billion of re


re to reduce costs substantially, freeing up investment to focus on business growth and retaining a UK presence.


HOW ANMANUF CTURERS ADDRESS HIS WASTED ENERGY CONSUMP ION Unfortunately, no spreadsheet is capable of capturing and processing themillions of dynamic pieces of data necessary to effectivelymonitor,measure and analyse the energy consumption and performance of the broad range ofmachinery, heating, ventilation, air conditioning and transportation involved in running a manufacturing plant. However specialist software canmonitor,manage and ultimately save energy at this asset level, in order to work towards emissions targets, without compromisi ng profitability . The level of information and analysis provided by asset management systems can facilitate the action required to remove inefficient processes, parts and machines which are energy-hungry, and


HOW CAN MANUFACTURERS ADDRESS THISWAS ED ENERG


GY CONSUMPTION?


the lifecycle of an disproportionately


asset can often be extended through evaluation of its running costs against efficiency levels. In turn, this reduces wasted energy, ensuring that


manufacturers A) only pay for what they actually need and B ) excessive energ y consumption can be more well-informed


decision on its level reviewed, and a


of necessity or value can be made. Infor www.infor.com www.infor.com e: contact@infor.com / ENERGYMANAGEMENT ENERGYMANAGEMENT


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