In Energy Contracts, a Shift to Efficiency

In Energy Contracts, a Shift to Efficiency

In the energy industry, issues lurk within the traditional infrastructure. Predominantly, maintenance contracts for energy consuming systems--HVAC in buildings, automobiles, planes, industrial equipment, computers--possess a fundamental flaw. Their focus lies on system reliability, not energy efficiency.?

Imagine a world where every maintenance contract defines the expected energy consumption of the device. Instead of merely fixing problems as they arise, imagine if contracts strived to maintain the system's original energy efficiency over years of operation.

In this vision, the International Performance Measurement and Verification Protocol (IPMVP) could serve as a guidepost. Developed by the Efficiency Valuation Organization (EVO), the IPMVP provides a set of broadly accepted protocols for determining the water and energy savings resulting from a given energy conservation measure (ECM).?

Consider the implications if these principles were applied to maintenance contracts. Instead of a static agreement, maintenance contracts would actively incentivize energy efficiency, pushing for the continuous performance of systems against a pre-determined benchmark. Payment for the maintenance contract, in this scenario, would index to the system's energy efficient performance.

Now, cast a light on the possible impact. The U.S. Energy Information Administration data shows that commercial and residential buildings consume around 40% of the nation's total energy, and 74% of all electricity. HVAC systems make up about 48% of energy use in commercial buildings and 39% in residential buildings.?

Meanwhile, the transportation sector accounts for about 28% of total U.S. energy demand. With automobiles and planes often operating below their original fuel efficiency due to poor maintenance, the potential for savings is considerable.

As for industrial equipment, the Department of Energy estimates that energy losses from steam systems alone can account for up to 20% of total energy use in industrial applications. And let's not forget about IT equipment. In 2016, data centers in the U.S. consumed about 70 billion kilowatt-hours of electricity, accounting for 1.8% of total U.S. electricity consumption.

With performance degradation over time in HVAC systems, transportation, industrial processes, and IT equipment due to inadequate maintenance, the potential energy savings are immense. Implementing contracts tied to IPMVP protocols could result in substantial reductions in energy use and associated costs.?

In this restructuring of the maintenance contract industry, the benefits reach beyond just the contract holders. The ripple effects would touch every corner of the energy industry, propelling the drive towards greater sustainability and efficiency in a world increasingly conscious of its carbon footprint.?

Maintenance contracts tied to energy efficiency, leveraging the principles of IPMVP, could revolutionize the energy sector. The question remains: will stakeholders seize this golden opportunity?