Efficient Cooling in a Warming World
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Efficient cooling in a warming world Why and how businesses are taking action September 2020 a key opportunity for businesses to help Energy-smart companies deliver a green economic recovery after COVID-19. The 2020 EU stimulus funds, for Forward-thinking businesses are example, are projected to attract more poised to lead by example by improving than 1,000 climate-friendly projects,7 cooling efficiency across offices, including energy efficiency improvements. factories, retail stores, and hotels. As companies invest in more efficient By improving their energy heating, ventilation, and air conditioning productivity, companies can boost (HVAC) systems,8 their collective their competitiveness. purchasing power will help to build The Climate Group’s global EP100 market demand for high-efficiency initiative,10 in partnership with the cooling equipment. Alliance to Save Energy, brings Smarter energy use lowers emissions and together companies committed to doing helps keep energy bills in check. more with less energy. In the EP100 Cooling Challenge, seven members In its Efficient Cooling Scenario, the agreed to identify ways of cooling their International Energy Agency (IEA) operations as efficiently as possible estimates the potential for cost savings – helping them to reach their energy of up to US$2.9 trillion across power productivity goals. generation, transmission, and distribution between 2016 and 2050.9 By then, Their actions offer a cooling efficiency cooling-related emissions would be cut beacon for other companies to follow. to nearly 2016 levels due to efficient air- Together, they are driving faster conditioners alone. decarbonisation of the private sector. Introduction Did you know? Temperatures in some of the world’s most populous cities Demand for cooling is rising at an alarming rate. will increase between 2°C and 8°C by 205011 As the world adapts to climate change This is particularly so in non-residential impacts and as emerging economies grow buildings,3 with significant cost implications Air conditioning already and develop, electricity demand for air for the private sector. Rising temperatures accounts for nearly one tenth 12 conditioning worldwide is projected to across the globe4 mean that companies’ of global electricity demand 5 increase by more than 140% by 2050.1 cooling systems will need to work harder 6 Left unchecked, the related greenhouse and for more days per year. gas (GHG) emissions could nearly double The global commercial air- in comparison to 2016.2 Time for change conditioner market is projected to increase by more than a Cooling is the fastest growing consumer The economic stimulus packages now third between 2018 and 202613 of energy in buildings. being rolled out in many countries provide 2 Efficient cooling in a warming world 3 Examples of efficiency opportunities and trends in cooling applications District cooling is on the rise in the Middle East,20 where centralised cooling using environmentally friendly chiller water reaps multiple benefits in fast-growing urban centers Parts of Europe21 are exploring how efficient heat pumps (providing both heating and cooling) can be paired with renewable electricity More stringent energy efficiency Range of cooling 22 standards for ceiling fans can generate significant energy savings in efficiency measures India, especially in factories23 Cooling applications in Energy efficiency measures (EEMs) Low-/no- cost measures can typically be carried include equipment upgrades, improved out quickly and are often pursued first. businesses take a wide maintenance strategies, and operations Financing efficiency improvements They offer immediate, significant savings with variety of forms, ranging adjustments. They vary in complexity and in A variety of financing programmes are available to energy and cost saving potential. minimal effort. from high volume/low-speed support cooling efficiency improvements. Financing Examples include increasing fan belt tension models include energy savings insurance, revolving 14 Optimising the operation of chiller plants16 industrial fans, heat pumps, (to prevent 5-10% losses in power transmission 27 is an example of a complex EEM that can funds, and leasing programmes, as well as energy efficiency24 and indirect evaporative lower energy consumption by 20-50%.17 ), cleaning heat transfer surfaces efficiency incentives offered by utilities, and energy (to save up to 10% on cooling energy25), and savings performance contracting arrangements with cooling to absorption chillers Simpler, low-cost measures can also have a high impact: reducing fan speed and shortening HVAC schedules (to save up to 16% of energy service companies (ESCOs). powered by recovered energy used in an HVAC system26). cleaning air filters can reduce energy use As an alternative to traditional financing models for 15 18 19 thermal energy, thermal by 15% and 20% respectively. Over the last year, EP100 Cooling Challenge cooling upgrades, the cooling-as-a-service model28 participants have identified opportunities for energy storage, and The first step is to take stock of cooling enables customers to pay per unit of cooling they energy savings in a facility. energy consumption and identify consume through a local district energy provider or a district cooling. lease of higher performance equipment, rather than opportunities for improvement. They committed to adopting EEMs to optimise the investing capital upfront in cooling equipment. contribution of efficient, clean cooling in meeting their energy productivity goals. 4 Efficient cooling in a warming world 5 Case Study The EP100 Cooling Challenge has helped us be more precise on where we want to be for cooling efficiency in the next 5-10 years.” Ramnath Vaidyanathan, GM & Head, Godrej Group Projected annual Projected annual EEMs to be implemented by 2022 cost savings (US$) energy savings (MWh/yr) Upgrading to a more efficient chiller 20,200 201 at Valia & Ambernath Turning off chiller for 24 hours per week 20,200 192 Reducing pressure setpoint for compressor 1,800 17 New venting system 750 7.2 Regularly cleaning cooling towers 720 6.9 & fins of air-handling units Taking positive steps Investing in real-time monitoring and controls will further optimise the setpoints Godrej engineers engaged in various cooling and heating activities At its chemical facility in Ambernath, Godrej of Godrej’s cooling equipment and achieve plans to modify its schedule for flaker deeper savings. operations to enable the facility to turn its chiller off for at least 24 hours each week. Top-level support for Turning off the equipment could save more than 190 megawatt hours per year sustainability (MWh/yr) and reap US$20,000 in cost Support from the top has been critical to Godrej Industries savings annually. Godrej’s sustainability accomplishments. Godrej is also investing in measures with Management identified cooling efficiency Factories in Valia, Ambernath, Uppal, a payback period of more than two years. as a key area of opportunity, and then For example, it purchased a new chiller established goals and processes that and Taloja, India for its chemicals facility in Valia that is enabled its facilities to move forward. significantly more energy efficient and uses a lower global warming potential Godrej offers incentives to employees (GWP) refrigerant. – in both the corporate offices and in Godrej Industries – a holding Having already made strides in increasing plants – who achieve their sustainability The new equipment came at a higher energy efficiency, reducing water use, performance targets. upfront cost but will yield US$14,000 in company doing business in and incorporating renewable energy, the cost savings annually. consumer goods, real estate, EP100 Cooling Challenge helped Godrej assess the long-term implications of its agriculture and gourmet retail cooling loads and create a vision for – has set its sights on cooling greater cooling efficiency. efficiency for the long haul. As the company works to achieve carbon The drive for sustainability comes neutrality, improving cooling efficiency from Mr. Godrej himself.” stands out as a key opportunity to both cut costs and decarbonise. Ramnath Vaidyanathan, GM & Head, Godrej Group 6 Efficient cooling in a warming world 7 Case Study Our prime driver in the EP100 Cooling Challange is to minimise our carbon emissions while maintaining the same level of customer experience across our assets.” Ibrahim Al-Zu’bi, Chief Sustainability Officer, Majid Al Futtaim At a facility in Qatar in 2004, Majid Al The company plans to phase out most Futtaim reduced its utility bill by 10% by R-22 refrigerants in its facilities by the end deploying a chiller management system. of 2020 and use more climate-friendly refrigerant options. After an ASHRAE Level 1 audit at Dandy Mega Mall, Majid Al Futtaim considered several opportunities to improve the Continued energy efficiency of the mall’s cooling systems management and decided to take the following actions: Majid Al Futtaim closed door refrigerators with LED lights To maintain momentum on cooling Install flowmeters for pumps to help efficiency, Majid Al Futtaim includes maximise their performance. Leveraging cooling targets within its sustainability the flowmeter data could reduce each plan. pump’s energy use by 5%, saving an Every year, the company conducts estimated 3,600 MtCO2e annually. audits on its facilities to meet its sustainability goals. Majid Al Futtaim Install occupancy sensors for lighting control, reducing the heat load generated Majid