Drives can make you a Climate Change Levy winner

An Omron Electronics product story
Edited by the Engineeringtalk editorial team Oct 6, 2000

There will be winners and losers with the Climate Change Levy imminent, says Omron's Gary Busby, but a good drive - which should offer the user an energy optimisation system - will help

There will be winners and losers with the Climate Change Levy imminent, says Omron's Gary Busby.

From April 2001, companies may find themselves being taxed according to their energy usage.

However laudable the principle, it could be a bitter pill for industry to swallow.

But the key point is that it is a voluntary programme designed to encourage best practise for energy efficiency, by offering rebates on National Insurance payments as a carrot and extra tax as a stick.

Therefore, if you address the Levy's requirements correctly you should come out at least no worse off and possibly even a net winner.

The Climate Change Levy is the UK's response to the 1997 Kyoto Treaty, and aims to cut greenhouse gas emissions by 12.5% of their 1990 levels by 2010.

But with many industrial nations not signed up, the global effect may be negligible! With greenhouse gas emissions being linked directly to energy consumption, it was always going to be industry that would bear the burden of achieving the Kyoto goal.

The Levy proposes to tax industrial and commercial use of energy.

The implementation of the Climate Change Levy will be a somewhat rethought version of the document that was first drawn up - which could have had disastrous consequences for UK industry.

In the most recent draft, the Government has committed to balancing any money collected from the tax by cutting employers' National Insurance Contributions.

Whether this pans out in practice remains to be seen, although inevitably for every company that profits by this there will be another that suffers.

Politics aside, it ultimately falls upon the energy user to look at where savings can be made.

Thus, by taking a positive approach to the Levy and developing an energy efficiency programme, significant dividends should be achievable.

The Levy could hit hard if no preventive measures are taken, but by demonstrating a commitment to reducing energy wastage organisations could find the Climate Change Levy beneficial.

The government will soon publish energy consumption targets; involvement in the consultation period will help ensure appropriate goals.

It has already been agreed that there will be an Enhanced Capital Allowances for capital costs relating to plant and machinery that contributes to energy efficiency drives.

Various figures have been touted as to the amount of energy that is wasted in industry.

Government figures put it as high as 40%, while industry pundits retort that it is as low as 15%.

Around 60% of industrial energy goes to powering motors.

Motors are now being developed to be energy efficient; but using variable speed drives (VSDs) can make far larger contributions towards saving energy.

Putting motors under the control of VSDs can reduce energy consumption, and even the most basic drive can help.

Whilst fan and pump applications are often cited as benefiting most from VSDs, virtually every system will save energy with them too.

Of course, not all drives are equal.

A good drive should offer the user an energy optimisation system, which is easy to set and use.

For example, Omron's 3G3HV inverter needs no expert knowledge to activate the energy optimisation feature in the vast majority of applications.

You just switch it on, and the drive does the rest.

It even shows you the energy reduction.

Most purchase decisions for drives will balance the cost of the project against payback.

Omron's Sysdrive Selector software provides a ready means for making energy saving estimations, based upon usage data.

It also considers other factors, which can contribute to the energy efficiency, such as inverter, cabinet and motor sizing.

Find out more about this article. Request a brochure, download technical specifications and request samples here.
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