Metro Denver EDC releases Energy Efficiency Study
Metro Denver businesses can boost profits with energy-saving upgrades
The Metro Denver Economic Development Corporation (Metro Denver EDC) revealed a report in June 2006 that suggests investments and low-cost efforts that Metro Denver businesses can make to conserve energy and boost their bottom lines.
Prepared for Metro Denver EDC by the Colorado Energy Science Center, Energy Efficiency: Bottom Line Opportunities for Metro Denver Companies offers concrete evidence of cost-saving efficiency upgrades and return-on-investment figures. The report was released as part of the panel discussion, “Can the World End Its Addiction to Oil?” The breakfast event was hosted by The Economist magazine, the International Business Club of Colorado, and the Metro Denver EDC.
“Instead of imposing regulatory solutions to our energy challenges, this report shows solid, market-based evidence that Metro Denver businesses can save money and add predictability by investing in energy-efficient upgrades,” said Tom Clark, executive vice president of Metro Denver EDC. “This study is a crucial aspect of our ongoing strategy to market Metro Denver as the “Balanced Energy Capital of the West.”
The report focuses mainly on the commercial business sector, which is where Metro Denver EDC found that its analysis and eventual results could have the greatest impact on the overall area economy. In the analysis, evidence shows how office and retail-based businesses can invest in energy-saving strategies for tangible payback. For example, replacing lighting fixtures with high-efficiency ballasts and bulbs can drop costs from 20 to 45 percent, according to the analysis.
The report also outlines federal tax credits and rebates from Xcel Energy that businesses and building owners can use to their advantage. Finally, the analysis also suggests a voluntary efficiency initiative that aims to drive demand for efficient buildings and energy savings in the future.
One case study outlined upgrades at Denver Place North and South Towers, which implemented a $1.35 million energy retrofit in 1996. Upgrades included gas-fired boilers, switching to electronic – rather than magnetic – fluorescent bulbs, adjusting cooling system and more. Currently, the building saves $300,000 annually on energy costs, representing a 20 percent return on investment, enabling the energy savings to pay for the investment in about three years.
In addition to some of the more capital-intensive upgrades, the report outlines ways any business can reduce energy costs with little or no investment:
- Turn off office lights and equipment at night
- Reduce after hours heating and cooling use
- Precool or preheat building at night during off-peak, low-cost times
- Use fresh air to warm or cool building, if possible
- Install utility management software
- Review monthly energy bills to manage peak demand and use details
Further helping businesses recoup investments in energy-efficient buildings or retrofits are tax credits outlined in the Energy Policy Act of 2005. Deductions of up to $1.80 per square foot are available for certain energy-saving upgrades, according to the report.
The report recommends that Metro Denver implement an initiative to promote the consideration of energy efficient properties as companies renovate an existing building or construct a new facility. Setting efficiency goals and promoting resources for businesses to access how-to guides, information and tax credit details also are part of the report’s suggestions. Several metro area companies have expressed interest in the voluntary program.
"This analysis supports the idea that conservation, fossil fuels, and renewable energy resources represent each leg of ‘three legged stool’ of energy components, and each element is equally important,” said Peter Dea, chair of the Metro Denver EDC’s Energy Committee and Western Gas Resources president & CEO. “Applying the pieces of this initiative is more than a smart investment; it’s a sustainable and responsible choice that can help Metro Denver’s economy grow and profit.”