Subscribe

Business case for energy efficiency

By Suzanne Franco, Surveys Editorial Project Manager at ITWeb.
Johannesburg, 05 Jun 2013
Energy efficiency must be applied in organisations to improve user productivity and operational efficiency, says Dimension Data's Dewald Booysen.
Energy efficiency must be applied in organisations to improve user productivity and operational efficiency, says Dimension Data's Dewald Booysen.

Can green ideals form part of the way business is done?

This is what the recent ITWeb/Dimension Data Energy Management survey set out to determine.

"Two of the main drivers around sustainability are energy efficiency (as it relates directly to reducing operating costs) and legislation (including carbon taxes). One other very important reason for addressing sustainability is around productivity. Energy efficiency must be applied in organisations to improve user productivity and operational efficiency," says Dewald Booysen, Dimension Data's technology and solutions manager, commenting on the results of the survey, which ran online for 14 days in March and attracted 78 respondents.

According to the survey, 33.82% of respondents said their organisations are serious about addressing sustainability; 20.59% stated that it is critical, while 23.53% said it is under consideration. Only 10.29% said it is not important.

The survey revealed that 45.59% of respondents believe energy management is key to their organisations becoming more energy efficient.

Booysen says: "For companies to become more energy efficient, it's important to understand their current energy utilisation. This is achieved by either performing a once-off (limited impact) survey of energy usage, or installing metering and monitoring solutions to be able to gain real-time information around energy use within the organisation. Another focus should be around behaviour; by addressing how people save energy (as simple as 'switch the lights off') could have an immediate impact on energy utilisation."

Failure implications

Some 39.71% of organisations have considered the implications of not adopting a more energy-efficient and sustainable IT infrastructure within their organisations. Only 13.24% of respondents said it has not been a consideration for their organisations.

"There are immediate and long-term implications. The immediate implications are increased costs around energy usage. Also, by not implementing energy-efficient equipment when building green fields or when refreshing technology, it has a negative impact on total cost of ownership (TCO) and on energy utilisation.

"When legislation finally comes into play around carbon footprints and the reduction thereof, one of the main areas where carbon footprints can be reduced is around energy use. This is simply because the majority of our electricity is still produced from coal. The typical benefits are reduced energy costs, social responsibility around conserving natural resources, and corporate image around sustainability," Booysen adds.

It also emerged from the survey that 14.71% of respondents remain unsure about adopting more energy-efficient practices.

"When auditing IT supporting infrastructure, it is key to understand where the energy is being consumed as a starting point. From this, remedial actions can be put into place," says Booysen.

After the initial audit, it is recommended that the exercise be repeated at least once a year or whenever there have been significant changes. By installing real-time building and energy management, proactive management can be applied to optimise energy efficiency.

From the survey results, cost reduction (57.35%) emerged as the main factor motivating organisations to adopt energy-efficient IT infrastructures. Carbon credits and improved public image tied at 11.76%

"There are two carbon credit markets, namely mandatory and voluntary. South Africa qualifies for the voluntary market. When 2014 South African carbon tax takes effect, the demand for carbon credits through the voluntary market will transform the carbon trading landscape of South Africa into a lucrative space.

"For increased tax-free thresholds, companies will be encouraged to reduce their carbon footprints (which is directly related to CO2 emissions). To help companies reduce their CO2 emissions to reduce tax liabilities, they will more than likely be able to buy carbon credits from registered projects to offset against their carbon obligation. This will be enabled via a regional trading scheme to offset a portion of their carbon obligations.

"There is also an increase in consumers wanting to deal with companies that are actively supporting sustainability and green initiatives - those who 'walk the talk', so to speak. By prioritising energy efficiency, it supports these initiatives," concludes Booysen.

Share