Big Business Sees the Light
Big Business Sees the Light
Green Lights is an innovative programme sponsored by the US Environmental Protection Agency (EPA) that encourages major US corporations to install energy-efficient lighting technologies.
By early February 1992, more than 220 million square meters of building floor area had been committed to energy-efficient lighting by participants in the programme. Almost 200 partners have joined Green Lights, of which 85 belong to the "Fortune 1000" group of companies (the 1000 biggest US corporations). Eight US states have also joined the programme, and membership is growing.
Lighting accounts for 20-25% of the electricity used in the United States. Lighting for industry, stores, offices, and ware-houses represents 80-90% of total lighting electricity use.
If energy-efficient lighting were used everywhere it was profitable, the electricity required for lighting would be cut by approximately 50%, and aggregate US electricity demand would be reduced by 10%, according to EPA. This reduction would free $18,6 billion per year in ratepayers' bills for useful investment and reduce annual CO_2 emissions by 232 million tonnes (4% of the US total), the equivalent of that from 42 million cars. Other forms of pollution also would be reduced.
THE GREEN LIGHTS PROCESS
When a corporation joins the Green Lights programme, it signs a Memorandum of Understanding with EPA. This agreement commits the corporation to survey all of its facilities and install energy-efficient lighting systems that maximize energy savings to the extent that they are profitable and do not compromise lighting quality. An internal rate-of-return method is used to determine whether or not an investment is profitable.
The US prime rate +6% is used as the brake-even point, which means a discount rate of appr. 13%. Companies who consider joining the Green Lights programme often raise concerns about finding the necessary financial resources, says programme administrator Sol Salinas. "But as a rule, once they have joined they will find that capital scarcity is not a problem."
Smaller firms are also welcome to join, Sol Salinas says "We don't close our door to anyone, but we have to concentrate our resources to reach the major corporations".
Each corporation agrees to complete these retrofits within five years and to document the improvements it makes. After the company joins the programme, it commits to building new facilities using the latest building energy guidelines. There are no technology prescriptions.
Typically, a corporation will implement the Green Lights process through four phases.
- Survey: Green Lights corporations will survey their facilities
to determine where lighting efficiency can be improved.
- Option Analyses: The corporation will identify the most favorable
retrofits for each area covered by the lighting survey.
- Trial Installation: Green Lights recommends a trial installation
of the new technology and an assessment of feedback from employees.
- The Retrofit is made and the Green Lights corporations will begin to realize savings on electricity bills, significant pollution prevention and, hopefully, public recognition.
EPA undertakes to help Green Lights participants with technical support projects that benefit Green Lights partners, help strengthen the infrastructure of the energy-efficient lighting industry and lower the barriers to energy-efficient lighting.
A computerized decision-support system developed by EPA allows Green Lights corporations to rapidly survey the lighting systems in their facilities, assess their retrofit options and select the best energy-efficient lighting retrofits. The decision-support software produces reports suitable for use by facility managers, corporate financial staff and senior management.
EPA has also established a national lighting product information programme in conjunction with utilities and other organizations. (See also A Useful Guide, IAEEL 1/92). This programme will provide brand name information so that purchasers will be able to choose products with confidence. In addition, it will allow innovative products to be qualified rapidly, removing a significant barrier for new technologies.
As part of the support programme, EPA has developed a project to identify financing resources for energy-efficient lighting. Green Lights Partners receive a computerized directory of financing and incentive programmes offered by electric utilites, lighting management companies, banks and financing companies. The database is updated and distributed on a regular basis.
MAKE SUPPLY MEET DEMAND
EPA has established a project to ensure that demand for energy-efficient lighting products will not outpace supply. Promoters of energy-efficient lighting and product manufacturers will be brought together to ensure that the transition to energy-efficient lighting is as smooth as possible. A Green Lights Ally programme has also been developed for lighting manufacturers, service providers, and utilities to promote the environmental, economic, and quality benefits of energy-efficient lighting. Allies commit to undertake the same retrofits as do Green Lights Partners and will assist EPA in developing the technical support program. EPA does not promote or endorse any ally or its products or services. So far, more than 200 allies have joined.
The EPA is collecting case studies of economically successful investments, which will be available to Green Lights corporations and other corporate decision-makers. The EPA also will publicize successful projects in newsletters and printed material.
Green Lights update IAEEL Newsletter 3/93
For more information contact:
Green Lights
EPA, Global Change Division
401 Mt St., SW (ANR-455)
Washington, D.C. 20460 USA
Tel +1 202 775 6650
Fax +1 202 775 6680