District Energy - 2008 Third Quarter

Members
Speak Out
It’s the Efficiency,
Stupid!
David W. Wade, PE, President, RDA Engineering Inc.

Efficiency relative to greenhouse gas production

Efficiency relative to energy transmission Efficiency relative to energy storage Efficiency related to LEED^®points

You may be able to think of other efficiency measures that are important in your organization and community. The point is, simple fuel conversion efficiency is no longer the only metric. Our industry must address numerous efficiency measures to deliver the services important to district heating and cooling users.

Simple fuel conversion efficiency
is no longer the only metric.

Editor's Note: “Members Speak Out” runs in each issue of District Energy magazine. Its purpose is for a member to briefly share his/her district energy experiences and opinions – and obtain feedback from fellow members. If you have comments on this column, please email David Wade at dww@rdaeng.com – or email IDEA with your response for publication in the next issue.

Forgive me for paraphrasing the Democratic Party’s U.S. presidential campaign strategy from 1990, but one thing is becoming clear: It’s the efficiency, stupid! Over the past few months I have watched gasoline surpass $4 per gallon, natural gas prices close at more than $13.10 per MMBtu, and the price of oil continue its march to $200 per barrel. It is no wonder that efficiency is the new byword with respect to purchasing decisions. It has been years since we have seen so much emphasis on miles per gallon in car advertisements and shiny full-size SUVs collecting dust in the dealership showroom.

I have pointed out before that there is little hope for the district energy industry receiving much attention as long as the public is focused on the immediate problem of high gasoline prices. Even though the spotlight is directed at the transportation industry today, energy supply for buildings and indus-

There is little hope for the
district energy industry receiving
much attention as long as
the public is focused on the
immediate problem of high
gasoline prices.

try will receive attention in due time.

Reflecting on the energy news and listening to numerous presentations at IDEA’s annual conference in Orlando caused me to focus on the concept of efficiency, i.e., “desired output/required input.” Our industry has long focused on fuel conversion efficiency, including increased fuel-use efficiency through combined heat and power. We can quickly calculate the monetary effects of efficiency on the delivered price of energy to our customers. Throughout the 20th century, most energy-use decisions have been made based on how efficiencies affect costs. That is, increases in efficiency were related to reductions in costs.

In the 21st century, however, we must expand our thinking to include other efficiencies. Consider the following efficiency measures:

Efficiency of capital utilization Efficiency of sustainability

Efficiency relative to pollution

Before the spotlight shines on us, now is the time to identify the efficiency measures important to you, your customers and the nation. Determine where you stand in these efficiency measures. Once you have identified efficiency measures and determined where you are on the scale, you can develop an action plan to increase efficiencies. At the same time, it would be a good idea to make an assessment of how efficient the competition is.

You can be sure in the not-too-distant future that your customers will be considering all efficiency measures that are important to them and that groups outside our industry will be exerting pressure on politicians to regulate those efficiencies and steer the country in the direction they believe is the most efficient. Times are changing, and there are many opportunities for us as district energy industry professionals to sharpen our pencils and work together to be the most efficient in every category.

David W. Wade, PE, is president of RDA Engineering Inc. in Atlanta and has been an IDEA member for more than 25 years. He has served on IDEA's board and is a past chair of ASHRAE's national technical committees dealing with building steam and hot water systems and district heating and cooling. Wade may be reached at dww@rdaeng.com.