Utilities pay cash incentives to data center operators that reduce electricity bills
By now, we all know that the federal government has established well-defined targets for the reduction of electrical power consumption in data centers across the United States. In addition, forward-looking facilities owners worldwide are looking for cost-effective ways to reduce operating costs in response to economic challenges to corporate bottom lines. In turn, we can’t afford to forget that energy bills represent the largest component of data center operating costs. We can meet these objectives only if we invest in our critical systems, facilities, and equipment.
Government programs like the Environmental Protection Agency’s (EPA) Energy Star for Data Centers and DOE’s Save Energy Now Audits should be available to help us in 2009.
Pacific Gas & Electric (PG&E) has established itself as a leader in a state containing many high-density, mission-critical facilities. While working closely with Lawrence Berkeley National Labs and the California Energy Commission, PG&E developed and implemented extensive programs to reward data center operators for taking prompt action to curtail the waste of energy and also established a consortium of utilities to adopt these successful data center programs in nearby service areas. Their program (
www.pge.com/hightech) should be a model for utilities nationwide.
As a result of these programs, PG&E has already paid millions of dollars in cash incentives to data center operators for new construction and retrofit projects that have resulted in energy savings with excellent returns-on-investment.
PG&E estimates that its programs reduced the load demand from high-tech facilities in its territory by 15 to 20 megawatts in 2007-08. The utility’s customer base funds the incentives, which enable the utility to save the costs of building new power plants.
PG&E’s Data Center Programs
PG&E offers several programs for its customers, including New Construction and Retrofit Programs. Cash incentives and design assistance are offered to data center operators at no cost to encourage the design and construction of high performance, energy-efficient facilities.
These offerings include:
- Technical assistance to analyze and design more energy-efficient buildings and process systems
- Cash incentives for building owners to offset energy-efficiency investments
- Cash incentives to design teams for meeting ambitious efficiency targets
- Education to facilitate the design of high-performance facilities process systems
- PG&E can pay incentives of up to 50 percent of project costs to implement energy-efficient designs in IT spaces.
Facilities solutions include airflow containment and controls, energy-efficient UPS modules, variable frequency drives and controls on CRAC fans and chiller motors, air and water-side economizers, mechanical plant improvements, turbo-core compressors, premium efficiency power conditioning and equipment, and high voltage distribution. These solutions improve the utilization of electrical power and cooling in critical spaces.
IT solutions include software virtualization, storage virtualization/consolidation, energy-efficient servers, data storage thin provisioning, and MAID systems. The software and storage solutions allow data centers to perform more work on fewer processors and to store more data on fewer disks. Less heat is generated in both cases, and HVAC cooling loads are reduced. Eligible energy-efficient servers often include more efficient power supplies and power management systems.
Network Appliance, for example, received an incentive payment of over $1M last year for the construction of a new electronic laboratory with isolated supply air, fan-speed controls, elevated supply air temperatures of 75 deg F and air-side economizers. Network Appliance also received a six figure payment for retrofit improvements to a data center in Sunnyvale, CA
Network Appliance offers tours of both its energy-efficiency projects. Contact NetApp Controls Engineer David Shroyer at shroyer@netapp.com for more information.
Nearby, Juniper Networks is in the process of implementing several IT and facilities solutions. All the details about this case study are available at
www.next100.com/2008/12/proof-you-can-stay-lean-and-gr.php.
Other Utility Programs
Mission critical facilities may be eligible for other PG&E programs, including:
- PGE’s Commercial Buildings group can retro-commission critical Results of the activity result in a list of improved operating strategies to reduce your electrical bill.
- PG&E’s Demand Response Program offers incentives for customers to reduce electric power use when the California Independent System Operator (CAISO) determines that the state’s energy supplies are low.
- The Self-Generation Incentive Program offers electricity users tremendous incentives for generating their own electrical power in parallel with the electric system grid.
- Seventeen cities, counties, and agencies have joined with PG&E in Energy Watch Partnerships to extend the reach and effectiveness of energy-efficiency, demand-response, renewable-energy, and self-generation programs
- PG&E’s trade allies can take advantage of rebates and special bonuses, be listed as a vendor of energy-efficient equipment, and help California reach its energy goals. Find out what offers and rebates are available, download applications and more.
More information is available at the PG&E website:
www.pge.com/mybusiness/energysavingsrebates/incentivesbyindustry/hightech/itfacility.shtml.
Energy-Efficiency Coalition
PG&E has also exhibited national leadership, having formed the Utility IT Energy Efficiency Coalition (
http://grovesite.com) with 40 utility members across the country) visit the web site for a full list). The coalition promotes the adoption of energy-efficiency programs and services directed towards data centers and information technology infrastructure by utilities across the United States and Canada. Coalition members share program and service designs, technical documents, and market intelligence, using a collaborative web site and through regular face-to-face meetings.
The California Public Utility Commission provides funding to PG&E to support this activity.
Utilities wishing to join the Coalition are expected to meet the following requirements and commitments:
- Have existing energy-efficiency programs or the likelihood of near-term authorization to offer programs.
- Regularly contribute to the coalition by engaging in discussions using the collaborative web site, and reporting on program and service delivery activities.
- Actively consider adoption of program and service models directed towards data centers and information technology markets.
More information about the coalition is can be obtained by contacting PG&E’s High Tech Facilities Program Manager, Mark Bramfitt. He is ready to answer any questions about these issues and can be reached at mjb9@pge.com.
The Critical Facilities Round Table presents PG&E’s solutions to Silicon Valley’s data center community during Energy Committee meetings headed up by PG&E’s High Tech Building Group. CFRT is a non-profit organization, based out of the San Francisco Bay Area, dedicated to the success of our member critical facilities owners and operators. Please visit the web site at
www.cfroundtable.org or contact us at (415) 748-0515 for more information.