Energy usage consultancy helps with Climate Levy

An Alstom Power Conversion product story

Edited by the Engineeringtalk editorial team Dec 21, 2000

The UK government will introduce the Climate Change Levy on all non-domestic energy use from April 2001, and Alstom Power Conversion has appointed a team of experts to look at minimising energy usage

In an effort to encourage UK industry to reduce its energy consumption, the UK government will introduce the Climate Change Levy on all non-domestic energy use from April 2001.

This will result in an average 12% increase in industrial customers' energy charges.

Nevertheless, there are many ways to reduce energy consumption, thereby reducing expenditure.

For example, a 20% reduction in fan speed reduces energy consumption by a massive 50%.

It as been estimated that some 65% of all energy consumed by industry is used in the control of electric motors.

Conventional pumps and fans are often run at full speed; but full speed is not always needed.

With 50% of all low voltage motors over-rated by more than 25%, many companies are unnecessarily throwing money out of the window by wasting energy.

To help those companies, Alstom Power Conversion has appointed a team of experts to look at minimising energy usage.

As a manufacturer of an extensive range of variable speed drives, the company is able to undertake 'energy walk throughs' in factories and plants, identifying areas of energy wastage.

Variable speed drives are used to control the speed of electric motors, and can be retrofitted to existing motors at any time.

They improve the performance of countless industrial motor applications through energy saving, improved process control and reduced maintenance.

Cost justification reports are offered by Alstom free of charge, and equipment can be loaned from the company to prove savings prior to purchase.

The payback time of Alstom's equipment as a result of energy savings is usually around two years, but can be as little as 10 months.

However, one of the most significant concessions in the Climate Change Levy proposals is the Government's Enhanced Captial Allowance Scheme which grants 100% capital write-off in the year of purchase for certain energy saving equipment, which includes variable speed drives.

In short, any purchaser of variable speed drive equipment for use in fan or pump control to reduce energy consumption will be able to reclaim all capital costs, including installation and commissioning fees, further helping to conserve the world's resources.

Manufacturers, including Alstom, have applied to have their products included in the UK Energy Technology List published in November 2000 in the Chancellor's Pre-Budget Report.

This list will include eligible products and their manufacturers.

Enhanced Capital Allowances will apply to new equipment bought after the list is published.

This is just the beginning.

In respect of the Climate Change Levy and Enhanced Capital Allowances, Alstom Power Conversion will be announcing a number of additional help measures and energy related news over the forthcoming months in a bid to encourage industrial companies to reduce energy consumption.