Commercial power supplies charge for both the power used and a surcharge is applied for the power lost through inefficiency of electrical units. Therefore the more efficient the unit is, the more money saved.

Electric motor energy losses occur as a result of a poor power factor under loading conditions. Most induction motor applications operate intermittently and do not constantly run a under full load. The motor starts and stops frequently and is usually only partially loaded, but full power is used up and results in heat and electrical losses.

Electric motors are simply devices that convert electrical energy into mechanical energy. Like all electromechanical equipment, motors consume extra energy in order to make the conversion. Therefore the efficiency is a measure of how much total energy a motor uses in relation to the rated power delivered to the shaft.

A majority of equipment run from electrical motors do not run high efficiency due to various types of power loss; through heat, friction, magnetic and stray load losses. This presents higher wear on all the components within the powered device.

Eneruel© RPU / EPMS - Energy Conservation Measures through Energy Performance Agreements

Eneruel is developmenting various components with the use of unique technologies to dramatically improve the efficiency of energy efficiency and use, in order to reduce energy requirement. The Eneruel Power Management Systems can be retrofitted to existing processes across industry and may form part of an overall building management system.

The reduction in utility costs may be substantial, especially for high consumers and can be incorporated into Energy Performance Contracts (EPC). The target range of energy saving from a EPMS will be 15% - 20%+ net to the customer. The end-user can decide to employ the RPMS through a lease option or an EPC. If installation costs are provided under the EPC, then the client receives immediate savings with no capital outlay.

EPMS projects are classed as an Energy Conservation Measure (ECM) under the International Performance Measurement and Verification Protocol (IPMVP). After the initial equipment and cost audit, the team at Eneruel would look to structure a Measurement & Verification Plan (M&V) with the client and included within the Energy Performance Contract (EPC). The M&V as defined under the International Performance Measurement and Verification Protocol (IPMVP) is generally preferred and accepted within the international technical community.

Any proposed saving is based upon a detailed Energy Conservation Measure (ECM) describing the baseline (as-is) and post implementation consumption in kilowatts-hour (kWh) with the difference being the resulting energy savings. The M&V Plan can be reviewed and accepted by the customer prior to project implementation and becomes part of the EPC terms, defining measurement and computation to determine payments or demonstrate compliance with level of performance.

The EPMS presented as an Energy Conservation Measure and installed as part of an Energy Performance Contract (EPC), provides all the benefits of accessing unique technologies with minimum risk. The EPC can be provided under several guises and for RPMS purposes, the following are outlined:

• Guaranteed Savings - the client finances the energy efficiency project and the EPC provider guarantees the returns. Results are measured and verified during the contract and any performance deficit matched by the EPC provider.

• Shared Savings Contract - EPC provider finances the project and recovers capital from the energy savings, meaning the client has no up-front costs, which translates into all positive attributes to the balance sheet.

The image below illustrates the fundamentals of providing an EPMS through EPCs:

EPC Funding.