According to the U.S. Department of Energy (DOE), energy consumption in the USA is expected to increase at a rate of 1.4 percent annually over the next 18 years. The DOE says approximately 25 percent of all electricity consumed in the U.S. is expended running motor systems, resulting in the use of 0.9 trillion kWh per year. Therefore, programs designed to promote the use of premium-efficiency motors and motor planning play an important role in moderating the growth of the energy resources needed to meet the increasing energy demand.
Background
The nation's energy crisis is not news. Since the 1970s, industries and consumers alike have been encouraged to look for ways to cut back on their energy expenditures. However, the implementation of the Energy Policy Act of 1992, which became effective in 1999, caused the motor industry, in particular, to take a closer look at its practices. Since then, a surge of programs such as the Motor Decisions MatterSM campaign and NEMA PremiumTM, an effort of the National Electrical Manufacturers Association, along with a host of state and regional incentive programs have been established. Many of these programs represent a rare consensus - among government agencies, the energy efficiency community and the motor industry - that the use of premium-efficiency motors is a significant step toward reducing overall energy demand.
Ted Jones, industrial program manager at the Consortium for Energy Efficiency (CEE), a nonprofit organization that promotes the use of energy-efficient products, explains part of the motivation behind this rare consensus. "An understanding evolved among all the stakeholders that there was an opportunity to move forward in the area of premium efficiency and that they needed to work together. It was a real opportunity for the motor industry and the energy efficiency community to take a leadership role."
Setting the Standard
Before a large scale promotion of premium-efficiency motors could be undertaken, the definition of precisely what made a motor premium-efficient needed to be established. In the summer of 2001, CEE and NEMA worked together to devise specific guidelines to establish just that. Similar to the Energy Star® program designed for consumers shopping for energy-efficient appliances, NEMA PremiumTM allows the buyer of a motor to easily choose the most efficient model for his use.
Depending on motor size and type, premium-efficiency specifications are generally 1-2 percent higher than federal minimum requirements. Since motors typically consume 10-25 times their purchase price in electricity each year, even small increases in efficiency can add up to large energy savings. According to Jones, "NEMA Premium was a negotiated level between CEE and NEMA. The result was a common, efficiency specification that accommodated motor manufacturers' and energy-efficiency concerns. We support it, the manufacturers support it, and consumers support it. It is a win-win-win proposition," he said. "The nice thing about NEMA Premium is that the person who actually has to go out and buy the motor doesn't have to figure out what the efficiency of a 5-hp motor should be to be premium efficient, he just needs to say two words - NEMA Premium." (Download new NEMA Premium efficiency levels [PDF])
According to Dr. John Cowie, Copper Development Association vice president for strip, sheet and plate and program manager of the Copper Motor Rotor project, a new set of standards may eventually need to be established due to the efficiency levels being achieved in tests on motors with a copper rotor. He said recent tests reveal higher efficiency levels than any premium-efficiency motor available. "By switching from an aluminum to a copper rotor, it is possible to create a 'super-premium' efficiency motor, surpassing any set of specifications that currently exist," he said. "However, until the copper motor rotor reaches full commercialization, these existing standards and other efforts to promote premium-efficiency motors, establish a foundation for future motor-efficiency technology to be built upon."
Incentive Programs
While creating standards makes it easier to purchase premium-efficiency motors, there are also many programs that promote the use of these products through technical assistance and/or financial incentives. Programs may be local, regional, or statewide. The target of the programs can also differ. Some focus on motor vendors, while others speak directly to the end-user.
The New York Energy $mart SM Premium-Efficiency Motor Program offers a combination of incentives. This program is run through the New York State Energy Research and Development Authority (NYSERDA). It offers both financial incentives and technical assistance. The program is aimed at trying to change the way the motor industry sells and purchases premium-efficiency motors. It encourages vendors to promote premium-efficiency motors while working with end users to encourage them to purchase and demand premium-efficiency motors. "It's really a two-pronged approach," explained Laurie Kokkinides, associate project manager at NYSERDA. "We're working with the vendor community to encourage them to promote and sell premium-efficiency motors, and, at the same time, we're working the end-user community to encourage them to realize the benefits of premium-efficiency motors, both on the energy side and on the reduced-maintenance and reliability side. Therefore, hitting both sides of the market."
Programs throughout the nation are varied. Ilene Mason, industrial program associate at CEE, explained other types of programs available. "Technical assistance programs may perform energy audits, help with project design or assist with implementation. These programs often include follow up to see if the energy savings are realized," she said.
Some programs are more project-based and can be initiated by the customer or the utility. "These programs look at a particular project to be implemented. It can be as simple as retrofitting a number of motors or optimizing the whole motor system," she said. "Project-based programs can take on many different scopes. Generally, the incentives for these types of programs are based on actual energy savings."
"Prescriptive programs are those where you receive a defined payment for a specific piece of equipment. These incentives can be offered to the vendor, through the vendor, or directly to the end user," explained Mason.
Benefits for the Future
Mason and Jones see more programs offering technical assistance and custom incentives in addition to their prescriptive programs. Mason explained, "There are a number of non-energy benefits as well. Motors tend to be more reliable because they run cooler. We're hearing that companies that use NEMA Premium motors have less downtime, less maintenance and fewer repair costs."
Mr. Jones added, "In a way, the bread-and-butter rebate programs for motors are evolving and progressing to address greater energy savings potential related to motors. For example, the Motor Up program in the Northeast is promoting motor management through the Motor Decisions Matter campaign." Some programs have rejected rebates altogether and are simply providing assistance. "You can see this evolution throughout the programs. Program administrators are asking the question, 'what else can we do?'"
"Sometimes, financial incentives are a good way to get started, and then you can ease out of them as the market becomes positioned. But any way you look at it, these financial incentives should be temporary. The goal here is to have a market that is valuing the performance of these products, aside from the financial incentive. The incentive should, more or less, be used only to gain attention. Once people are aware of the product, you should be able to take the rebates away, and they'll still buy them," Jones explained.
More info can be found on CEE website.