Energy Use in Commercial Businesses

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One question frequently asked by facility energy managers is "How does energy use at my facility compare to other facilities in general, and to other facilities that are engaged in the same type of operation?" Figure 1-3 shows general energy usage in commercial facilities, and Figure 1-4 shows their electricity use. While individual facilities may differ significantly from these averages, it is still helpful to know what activities are likely to consume the most energy. This provides some basis for a comparison to other facilities—both energy wasting and energy efficient. In terms of priority of action for an energy management program, the largest areas of energy consumption should be examined first. The greatest savings will almost always occur from examining and improving the areas of greatest use.

The commercial sector uses about 16 percent of all the primary energy consumed in the United States, at a cost of over $125 billion in 2001 [1]. On an end-use basis, natural gas and oil constitute about 41.5

Figure 1-1 U.S. Energy Supply 2004

(100% = 99.66 Quads) Source - U.S. Department of Energy EIA (2005)

Oil Gas Coal Nuclear, Hydro, 40.3% 23.1% 22.5% Other Renewables

Figure 1-2 U.S. Energy Consumption 2004 (100% = 99.66 Quads)

Source - U.S. Department of Energy EIA (2005)

Industrial Trans- Residen- Com-36% portation tial mercial 27% 19% 16%

percent of the commercial energy use, mainly for space heating. Over 58 percent of the energy use is in the form of electricity for lighting, air conditioning, ventilation, and some space heating. Electricity provides over half of the end-use energy used by a commercial facility, but it represents about two thirds of the cost of the energy needed to operate the facility. Lighting is the predominant use of electricity in commercial buildings, and accounts for over one-third of the cost of electricity.

Commercial activity is very diverse, and this leads to greatly varying energy intensities depending on the nature of the commercial facility. Recording energy use in a building or a facility of any kind and providing a history of this use is necessary for the successful implementation of an energy management program. A time record of energy use allows analysis and comparison so that results of energy productivity programs can be determined and evaluated.

Space Space Lights Office Miscella- Hot Water Refrigera- Cooking Ventilation Heating Cooling 13.5% Equipment neous 6% tion 5% 4.3%

Figure 1-3

Commercial Energy Use 1999 (end-use basis) Source - U.S. Department of Energy EIA (2005)

Space Lights Office Miscella- Refrigera- Ventilation Space Cooking Hot Water Cooling 23.1% Equipment neous tion 7.3% Heating 2.1% 1.2% 25.6% 17.9% 9.3% 8.6% 5%

Figure 1-4

Commercial Electric Use 1999 (end-use basis) Source - U.S. Department of Energy EIA (2005)

1.2.4 Energy Use in Industry

The industrial sector—consisting of manufacturing, mining, agriculture and construction activities—consumes over one-third of the nation's primary energy use, at an annual cost of almost $138 billion in 2001 [2]. Industrial energy use is shown in Figure 1-5 and industrial electricity use is shown in Figure 1-6.

Manufacturing companies, which use mechanical or chemical processes to transform materials or substances into new products, account for



Use 11.3% Figure 1-5

Industrial Energy Use 2002 (end-use basis) Source - U.S. Department of Energy EIA (2005)

DC Drives 8% HVAC 2%

Figure 1-6

Industrial Electricity Use (end-use basis)

Source - Federal Energy Management Agency

DC Drives 8% HVAC 2%

Figure 1-6

Industrial Electricity Use (end-use basis)

Source - Federal Energy Management Agency about 85 percent of the total industrial sector use. The "big three" in energy use are petroleum, chemicals and primary metals; these industries together consume over one-half of all industrial energy. The "big five," which add the pulp and paper industry, as well as the stone, clay and glass group, together account for 70 percent of all industrial sector energy consumption.

According to the U.S. Energy Information Administration, energy efficiency in the manufacturing sector improved by 25 percent over the period 1980 to 1985 [3]. During that time, manufacturing energy use declined 19 percent, and output increased 8 percent. These changes resulted in an overall improvement in energy efficiency of 25 percent. However, the "big five" did not match this overall improvement; although their energy use declined 21 percent, their output decreased by 5 percent—resulting in only a 17 percent improvement in energy efficiency during 19801985. This overall five-year record of reduction in energy use of the manufacturing sector came to an end in 1986, with total energy use in the sector growing by 10 percent from 1986 to 1988. Manufacturing energy use has continued to grow at a slower rate since 1988, but industrial output has grown at a faster rate [9]. Use of new energy efficient technology, and the changing production mix from the manufacture of energy-intensive products to less intensive products has accounted for much of this difference.

Continuing this record of energy efficiency improvements in manufacturing will require both re-establishing emphasis on energy management and making capital investments in new plant processes and facilities improvements. Reducing our energy costs per unit of manufactured product is one way that our country can become more competitive in the global industrial market. It is interesting to note that Japan—one of our major industrial competitors—has a law that every industrial plant must have a full-time energy manager [4].

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