Back in the 1950’s when I was born, the global population was 2.75 billion and it had taken roughly 2 million years to reach this figure. During my lifetime, the world’s population has nearly tripled to 7.5 billion.
This population explosion has helped to ruin pristine wilderness areas from the Amazon rain forest to Africa and Asia and triggered growing competition for resources, including water, to sustain our ever-growing numbers!
Human beings and the animals we eat now dominate the planet’s landscape to an unprecedented degree.
NZ may only have five million people, but we are not immune to environmental degradation. Our environment has also suffered from air and water pollution, not to mention the introduction of invasive species since our country was first settled.
As with the rest of the world, we have been hard hit by the Covid-19 pandemic.
So far, our Government has done a good job in my view in handling the health aspects of the crisis.
The economy though has already been bashed in 2020 and whoever wins the forthcoming General Election is going to be faced by the worst economic pandemic since the Great Depression of the early 1930’s.
This will pose a massive challenge to us all.
In the long haul, climate change is the more important issue.
In the shorter term though, common-sense dictates that all Governments internationally need to focus on avoiding any repetition of the massive long-term unemployment of the 1930’s which triggered the ‘beggar my neighbour’ economic policies followed by many Governments and hence helped pave the way for the Second World War.
So, what does this mean for sustainability issues?
Should they be put on the back burner for the next few years while we focus on the economy or should we continue to press ahead and take action?
When all is said and done, sustainability should be about protecting the environment both nationally and globally.
Ultimately, we will sink or swim together on this planet of ours. As such, the environment includes the air we breathe and the water we drink. That includes the rivers, lakes, seas, oceans and forests that we take for granted.
Like most of you, I have enjoyed watching David Attenborough’s wildlife documentaries. In my case since the early 1960’s. His documentaries have done more to publicise the growing plight of wildlife and the natural environment as a whole, than anyone else.
https://www.youtube.com/watch?v=T5bAeqX9PCI
Sadly, they tell an increasingly gloomy tale of habitat destruction, pollution and species extinctions.
So, what does this mean for NZ? What should our Government do to reverse the tide of environmental degradation. Available options include:
Manufactured goods – where humanly possible they should be made from 100% renewable materials.
Packaging – suppliers (not customers) should be made 100% responsible for disposing of packaging material, including polystyrene!
Glass bottles – reintroduce refundable bottle deposits on all glass bottles nationally and replace plastic bottles with glass bottles.
Plastics – waste recyclers to have uniform standards nationally regarding what plastics are recycled and what go to landfill. If some types of plastic can’t be recycled in NZ, their use should either be banned outright or a new national facility should be set up to process them. There are currently big regional differences regarding what plastics can and can’t be recycled.
Coal vs natural gas – given that the rate of carbon emissions associated with coal is nearly twice as high as they are for natural gas, recognition should be given (as it is internationally) of the important role that natural gas/LPG will play for the next 20 years as a transition energy source on the road to 100% renewability and carbon zero.
Transportation – the idealogues on the ‘left’ and the ‘right’ of politics are both right and wrong when it comes to transport policy. The left is correct in believing that we need much better integrated public transport networks (road/light rail/car parking) in the main centres. The right is correct that whether we like it or not, Kiwis like the freedom that comes from having your own vehicle. Hence, we need to sort out and future proof the road network in the major centres and also upgrade the roads in long neglected areas like the Far North. Clearly it makes good sense to transition to electric vehicles, especially given that the carbon emissions from petrol and diesel vehicles are far higher that carbon emissions from electricity generation.
Local manufacture vs imports – again within reasonable bounds, I am a strong believer inbuying NZ manufactured goods versus importing from the usual source. By doing this, we are using suppliers who are likely to have a greater environmental conscience. Also, the carbon footprint associated with shipping the goods to NZ is avoided. We also provide work for our fellow citizens and keep their income circulating in our local economy. Similar arguments apply to our choice of holiday destination, even when Covid-19 international travel restrictions are finally lifted!
Housing – make it mandatory for all new houses nationally to have both solar power units and water tanks installed from day one. Also, the All of Government (AOG) procurement process could be utilised to encourage local manufacture in both areas and financing options for both.
We are facing unprecedented challenges on a number of fronts and our Government needs to act accordingly in a politically bi-partisan way!
The deployment of grid‐connected photovoltaic (solar PV) systems continues to grow at an impressive rate. In 2018, there was a 30% increase in systems implemented and it continues to move forward.
Most of this growth involves residential systems, which have an 80% share of the connected capacity in NZ.
Where’s the growth in commercial solar pv systems? Why are the industrial and commercial sectors lagging behind?
The following article was written by Perry Hutchinson, who holds a Master of Engineering Studies in Renewable Energy Systems and has 30+ years of experience designing and implementing industrial electrical systems.
One benefit drives decisions about solar PV for industrial/commercial use…
Commercial Solar Power System Cost
The New Zealand Smart Grid Forum identified that although residential consumers consider a range of potential benefits ‐ such as energy independence, environmental impact and a desire to participate in the technology ‐ sound economics is what drives industrial and commercial consumers.
So the challenge in photovoltaic design is to present solar as a viable business investment in New Zealand, even though we lack the government subsidies and generous feed‐in tariffs enjoyed in many other countries.
What is a feed‐in tariff?
Feed‐in tariffs (FIT) offer you a defined payment for the energy you feed into the grid from your solar PV system. In New Zealand, this can be as low as $0.04/kWh.
When generous feed‐in tariffs are available, the key constraint to system size is essentially the available space for the PV array; for viable projects, the bigger you build it, the greater the return.
However, having low feed‐in tariffs changes the whole approach to system design. There is a tipping point where increased size (and increased investment) actually results in diminishing returns.
Forget feed‐in tariffs. Focus on offsetting electricity costs
The viability of a PV system (photovoltaic system) with low feed‐in tariffs depends on offsetting electricity cost. And offsetting electricity cost depends on discovering the optimal level of self‐consumption.
There is a tipping point for self‐consumption with on‐grid PV systems. This is the maximum size of the system where we still achieve 100% self‐consumption. Building the system larger than this results in some of the PV generation being fed back to the grid and therefore, self‐consumption starts to fall.
Generation Profile for commercial solar power systems
But with the generation profile changing ‐ not only seasonally, but also daily and hourly ‐ what is this optimal level of self‐consumption? A system size maximised for 100% self‐ consumption in summer will fall short of that in winter. Conversely, a system size maximised for winter will over‐generate in the summer (and lower self‐consumption as surplus is fed back to the grid).
Load Profile for commercial solar power systems
In addition to this, load profile must also be considered. What if the load is biased towards the morning or biased towards the afternoon? This could impact the optimal direction you orient the array (the azimuth). For example, a more westerly orientation may be better for load profiles with an afternoon bias.
Tariff Structures for commercial solar power systems
Tariff structures could have a similar effect. We have worked with clients with quite complex tariff structures that could influence array configuration. For example, high morning tariffs could mean a more easterly orientation is better.
Obviously, each situation is unique and requires something more than an “out of the box” solution due to the complex interplay between these constantly changing variables – the solar resource, load profile and tariff structure.
Our approach to getting Solar Power right
Traditionally, a project’s net present value (NPV) is used to evaluate and prioritise projects. NPV takes into account the time value of net cashflows over the life of a project by applying a discount rate.
But rather than treating this as an “endpoint” calculation, at Pacific Energy we use NPV to optimise the PV design.
We model a system on an hourly basis over a year using NIWA weather data, the tariff structure and load profile from the time‐of‐use meter as the key inputs. The model then finds the optimal combination of size, tilt and azimuth that maximises the NPV of the project over its 25‐year life.
The maximised NPV reflects the optimal level of self‐consumption for the system which in our experience can be anywhere between 85 – 95% on an annual basis. This provides the starting point for more detailed design to be undertaken.
For solar projects, Total Utilities partners with Pacific Energy whose focus is on bringing sustainable energy projects to life.
By combining sharp economic analysis with a deep understanding of industrial power systems, they design and specify viable and pragmatic solutions that optimise energy use and reduce carbon footprint. They are experts in system analysis and provide unbiased, independent advice for investment decisions.
This post follows on from Are you OK? which you might like to read as well.
Covid-19 Confessions
What has occurred to me is just how anxious so many of us have become during Covid-19 lockdown. Simple things like supermarket shopping and big things like keeping business and personal finances on track have all become causes for concern.
A friend admitted to reading his young son’s online homework recently. It was a short essay on life in a bubble. “Dad is getting cross a lot” and “Mum’s acting weird sometimes” leapt off the page. He is a good, kind man and has a loving family. Trouble is, he is no more immune to the stress of this lockdown than any of us.
My beloved and I shared some tears on Saturday. We haven’t seen our adult kids or grandchildren in the flesh for a month! We are a touchy-feely family and the lack of their warm embraces has left us feeling empty.
My experience with anxiety last year does not give me any great right to speak into your lives. I can but share my insights and hope that you gain something from them.
Living in a bubble and yet finding joy
Using tools helps
The “cure” for my high levels of anxiety last year was a combination of admitting to myself and those close to me that I was struggling and acquiring some practical coping skills.
Learning some mindfulness skills and breathing exercises gave me something to fall back on when I found myself chewing on issues or repeatedly waking up in the night and unable to get back to sleep.
www.headspace.com is just one of several applications available that offer training and reminders on how and when to relax and be present in the moment.
A walk each day is an easy answer and yet hard to do when the funk descends. The good news for me is that the dog won’t say no until she gets her daily exercise.
Replace empty chat with real conversations
I have found out so much about my beloved in these last days and she about me. I won’t share the detail but fair to say that she is even more exciting and amazing and wonderful than I already knew.
Zoom can’t replace a hug
My colleague Richard is old school. I, on the other hand, come from the hippy school of peace and love. With that comes uncomfortable (for Richard) embraces when I call into the office and insist on a hug.
We meet every morning for half an hour using Teams and it is great to hear from him, but I do miss making him hug me. Hug the ones you love. It might be just what they need that day.
Meet friends and colleagues regularly
We have an online meal with friends or family several times a week now. It is breakfast with our daughter in Berlin or coffee after Church with a couple who share our spiritual journey. It is a candlelit dinner over a Cote du Rhone with our travel buddies. Tomorrow Euan from work is hosting an online quiz using a cool tool called Kahoot! All these give us connection, a laugh or two and with luck a chance to relax a little.
Forgive and Forget
Can you trust yourself to be completely perfect in every way while locked in a cage not of your own making?
If it’s you who has been a of bit of a plonker then find a way to apologise. If you been offered an apology, then accept it. Love and relationships are a two-way street.
Try Something New
Every day on lock down is time you can innovate, refresh, or learn new things. In professional services we often think about “billable hours” and when they slow down a certain panic sets in. Using “free hours” when there is time available is the source of efficiency, innovation and great product development. Use the time in lockdown wisely – you won’t get it back.
Are You Okay?
I wrote this blog so you can know that you can not only get through this time but can be better and stronger for the experience.
Look around yourself and see the blessings. Take that breath of unpolluted air, listen to the birds and enjoy the company you have.
Above all though ask yourself and those you love “Are you okay?” It may be the most important question you ever ask. The answer may well bless you for the rest of your life.
Improve manufacturing operations and cut costs by setting operational efficiency KPIs.
In the last 3 months the global economy has been turned on it’s head due to the Covid-19 pandemic. In light of this, manufacturers are faced with the pressures of producing more high-quality goods, with less money, time and resources. Regulations are becoming more stringent and competition is growing in a smaller market.
To achieve the goals of lean operation, industrial manufacturers need to constantly monitor, benchmark and improve.
KPIs can prove a valuable gauge of progress, helping manufacturers to set and achieve their business goals and maintain critical business resiliency.
1. Optimise maintenance schedules
Many manufacturers still operate preventative maintenance schedules. Preventative maintenance is costly because only 15% to 20% of all components fail after a predictable time. Reducing operational costs means approaching maintenance in a new way.
A predictive maintenance program – servicing machines based on need-based early stage notifications – is much more efficient than a Fixed Time Maintenance (FTM) Preventative Program.
This allows manufacturers to be proactive, rather than reactive when it comes to equipment repairs and operational downtime. They can make informed decisions, based on transparency and a pattern that is most suitable to their business.
Reduced costs and eliminated outages should be demonstrable when manufacturers transition to a predictive maintenance mode and track overall downtime.
2. Improve true downtime cost (TDC) and downtime percentage
Consider the true cost of unplanned downtime. Do you know what the cost of downtime is to your business? Decreasing downtime and improving operational efficiencies can save manufacturers millions of dollars.
By calculating your True Downtime Cost and showing measured improvements in this realm, you can illustrate saved time and money, as well as reduced waste and create a data-driven, quantifiable resiliency plan.
Understanding true costs can also help you to make cost justification within day-to-day management decisions.
3. Improve Rolled Throughput Yield (RTY)
RTY is the probability that a single unit can pass through a series of process steps free of defects. Acceptable Rolled Throughput Yield is dependent upon a very high individual first time yield for each process. It is the sum of the parts measurement that is most critical to overall operational efficiency.
RTY is a great operational efficiency KPI to track as it alerts manufacturers to the health of their entire operation, rolling all processes into a single measurement.
4. Maximizing capacity utilisation
Diminish the cost of owning and maintaining equipment by using equipment to its full capacity.
By measuring the output that is actually produced and comparing it to its potential maximum output, manufacturers can understand the efficiency of their operation. Increasing capacity utilisation increases overall efficiency.
An OEE score presents “an accurate picture of how effectively your manufacturing process is running. And, it makes it easy to track improvements in that process over time.”
Conclusion
These Operational Efficiency KPIs will give you an indication of the overall efficiency of your operation and a real sense of your resiliency needs.
Any downward trends in performance will require deeper analysis. Manufacturers should also look at processes, systems, and the performance of equipment.
With improved visibility and intelligent use of smart technologies throughout the plant, manufacturers can take a leap forward when boosting operational efficiency throughout the business. Using real-time data allows you to plan, in a quantifiable way, the need for a backup plan.
Talk to us to learn more about how energy insights can drive your energy and resilience strategy.
If you don’t know precisely how, when and where energy is being used across your business, how can you understand where your energy costs really lie, or the best opportunities to improve energy and operational performance?
Working together with Centrica Business Solutions, Total Utilities is the exclusive partner delivering the Energy Insight product solution to the New Zealand market. Using Centrica’s wireless sensor technology, you can monitor energy usage in real-time – right down to device and equipment level. When this information is relayed to our PowerRadarTM analysis platform, you can access the intelligence you need to develop a data-driven energy strategy.
The Power of IoT
Our Internet of Things (IoT) technology is providing the deep energy insights that uncover flexibility and value in your operations and generation assets. This is a ‘game changer’ in raising energy performance across all types of organisations – from manufacturing and leisure – to healthcare and education.
Energy Insight technology provides full visibility of energy usage across your site, or multiple sites – right down to individual device level. We attach self-powered, wireless sensors to equipment and processes, such as conveyor belts, lighting circuits, chillers, or any other energy consuming assets.
This instantly transmits real-time data to our cloud-based PowerRadar analytics and reporting platform. You can then access this intelligence to inform your decision making and improve efficiencies.
Deep energy insights
Hundreds of sensors, which can measure both heat and power consumption, can be installed within a few hours and won’t cause disruption to operations. Data provided by our IoT technology enables organisations to quickly identify and resolve energy waste. It can also pinpoint opportunities to reduce high peak-time energy costs by moderating consumption in these periods.
The biggest gains of IoT energy insights are often seen in improved operational efficiency and business resilience. By ensuring that critical equipment is operating optimally and preventing costly disruption, or even breakdown, large operational cost savings can be achieved. Continuity of operations is also assured, which is particularly beneficial in manufacturing environments.
The results of IoT energy optimisation
We’re seeing the positive results of our IoT enabled energy optimisation across all business sectors, including Progressive Enterprises New Zealand.
Only half of new New Zealand businesses survive longer than ten years and even then, only 5 per cent of those ever reach a turnover of $1 million. That is bad news.
The good news is that of the 5 per cent of businesses that reach $1 million turnover, one in four grow to $10 million turnover.
As a start-up, finding the right strategies, tactics and culture to grow profitably and sustainably will put you into an elite group of businesses – the long term winners. Below is some advice to help you get started and survive.
A bird in hand is worth two in the bush
How many times have you heard stories about companies offering special pricing and better products to win new customers, yet they continue to overcharge loyal customers for older products and services? It costs five times as much to win a new client as it does to keep an existing one.
Value your staff
Keeping good people is about respect and values. A friend recently recounted a tale of a boss who took him for granted. One day this boss asked, on a whim, for him to change then redo a job that he had spent weeks working on. This is what the worker had to say: “That was the day I mentally left that company. It was a year before I found the right job to go to, but the decision had been taken twelve months before. They offered me better money and benefits to stay but it was way too late for that.”
Avoid profitless prosperity
Just because a deal is big it doesn’t make it worth doing. It’s okay to walk away from any bad business. Handing these kinds of duds over to your competitor can be good for your business. It frees you up to provide awesome, profitable products and services to clients who value them.
Don’t be a bank
A quarter of all debts that go past ninety days overdue are never paid. This rises to over half at 120 days overdue. Look at this another way. an unpaid debt of $1 means you will need to generate $10 in new revenues just to make up for it if your net profit is 10%.
If you have tried all reasonable ways to collect debts to no avail, then send a final warning in writing. If this fails, then using a reputable debt collection agency is a perfectly valid option. If this seems drastic, then remember it is your money and your company. Only you get to choose who keeps both.
Get good advice
Developing the skills and contacts to ensure you can reach out to the right expert at the right time is an essential craft in helping your business succeed. Getting good advice may seem expensive on occasions but can save you a world of pain in the long run. EMA offers fantastic advice to members in several key areas, at very reasonable or even no charges.
Plan for the Future
Many great businesses end up on the market having reached the stage where age or ill health have forced the owner to sell. Having a mix of ages, skills and personalities within the leadership of your company is a must. The energy, enthusiasm and contemporary relevance of youth is a potent partnership when combined with the hard-won experience of age.
My business partner Richard and I look forward to when we get to sit in the balcony seats of Total Utilities, cantankerously muttering and critiquing our new generation of leaders just as Statler and Waldorf do on the Muppet Show. The trouble is, of course, that no one will be listening.
All the best for 2020. May you live long and prosper.
