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Industrial strength energy efficiency

Industrial strength energy efficiency | Sustainable Energy | Scoop.it

What do you think of when you hear the phrase, “energy efficiency?”  Compact fluorescent (CFL) lighting?  Maybe Energy Star appliances or adding insulation to your attic.

What all of these things have in common is that they are all residential solutions, but despite their greater numbers residential customers use far less electricity than do commercial and industrial customers.  Certain industries (e.g. cement, steel, aluminum) use enormous amounts of power, but the efficiency conversation rarely touches on these users.

That’s unfortunate because industry is where the big potential savings are.  Consider that while all lighting (residential, commercial, industrial combined) accounts for around 5.5 percent of total electricity consumption, electric motors in industrial applications alone use nearly five times as much, fully 25 percent of all electricity consumption.

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Energy Service Contract Helps Dublin Upgrade in Tough Financial Times

After a few years of hard work on various projects, the City became aware of the concept of energy services contracting, wherein the cost of energy efficiency upgrades are paid for with the savings garnered from implementing the energy improvement projects. These projects do not require out of pocket expenses from the City and there are no budgetary impacts. The mechanism of energy service contracting provided the City with an opportunity to leverage the significant work it had already accomplished, and provided the City with an opportunity to complete a number of capital projects that would have otherwise waited years for full funding. Energy services contracting may not be the right solution for every city in every case, but in this economy where municipalities are looking for any and all opportunities to save money by cutting costs, an energy services contract is worth exploring.

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The US Energy Services Company Market

The energy service company (ESCO) market for energy efficiency project installations and services exceeded $5.1 billion in 2011. Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, this market is expected to continue to grow faster than the domestic economy and reach $16 billion in sales by 2020.The majority of ESCO work is conducted for the municipal, universities, schools, and hospitals (MUSH) market - largely for public entities and institutions at the state or local level - which represents about 73% of all ESCO activity.

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