Europe’s current energy crisis has made voltage optimization a hot topic. A lot of talk, yet very little technological substance. But let’s ignore buzz-words and hyperbols and instead look at the technology itself - and its many benefits for the European electricity market!
Our ECOD Smart-Optimizer - with a market-leading 99.7 % efficiency - is a unique, patented and proven technology for voltage optimization. It will reduce the energy consumption and simultaneously optimize the supplied voltage. And increase the life-span of electrical equipment by years. These facts - proven by over 1,500 installations in numerous countries - offer a unique opportunity to - with a very high ROI - reduce Europe’s dependence on fossil fuels, while making the change almost immediately profitable on end-consumer level amongst commercial enterprises.
INTRODUCTION OF THE ELECTRICAL ECONOMY
A key term we would like to introduce is “Electrical Economy”. Because, ultimately, electricity is an economic parameter on both macro (Europe) and micro (End-consumer) levels. ECOD Smart-Optimizer will continuously optimize the supplied power - without compromising the performance of a given load - to the best possible electrical economy. The optimization of supplied voltage will lead to 2 main benefits: 1) a lower cost, and 2) an increased life-span on electrical equipment.
These primary factors are in themselves enough incentive to invest in the ECOD technology. But the improved Electrical Economy ECOD Smart-Optimizer delivers additional benefits to enterprises suffering due to Europe’s energy crisis: carbon credits, reduced air conditioning costs, opportunities for “peak shaving” (leveling out the peaks of electricity consumption), and general electrical protection are some of these additional benefits.
The pressure - by state regulations, by shareholders and by consumers - to reduce carbon dioxide emissions is increasing for most commercial enterprises. Carbon credits, or carbon offset markets, are quantifying the monetary value of carbon saving units. Global markets, both regulation compliance schemes and voluntary programs, are emerging with mechanisms to redeem and trade the carbon credits. This is a rapidly growing driver of sustainable change.
The EU has implemented a compulsory “cap and trade” system, wherein carbon-producing commercial enterprises can buy and trade “allowances”. The financial incentives makes ECOD Smart-Optimizer - with immediate and directly measurable electricity savings (analogue to reduced emissions) - an attractive product on the EU market.
To justify a sustainable investment in voltage optimization on the demand side; several factors must be considered. The most significant variables are the local cost of electricity, the percentage of electrical load that is voltage-dependent, and - from the sustainability perspective - the spot-value of carbon credits. Additionally, we also know - which contributes to the improved Electrical Economy - that utility power can almost always be optimized, and that both lighting and motor-driven processes are voltage-dependent.
ADDING VALUE IN THE ELECTRICAL ECONOMY
ECOD Smart-Optimizer leads to around 8 % reduction in energy consumption (lower end of proven average). However, in the real world, where the voltage variability is on the rise, due to grid-operators struggling to compensate for supply fluctuations from weather-dependent energy sources like solar and wind; our system’s voltage optimization offers an even greater value. With direct energy savings, and savings due to increased life-span of electrical equipment, as main benefits; Europe’s energy crisis - and its transition to renewables (with larger variations of electricity supply) - highlights new valuable aspects of ECOD Smart-Optimizer. Carbon credits, reduced usage of air conditioning (a side-effect of lighting and motors working at optimal levels), and “peak shaving” (reducing consumption during peak demand when the cost per kWh often is the highest) are parameters with fast-growing importance in Europe’s new Electrical Economy.
For ECOD Smart-Optimizer, an electricity price at 0.2 Euro per kWh, in combination with a supplied voltage of 105 %, will lead to a positive ROI in less than two years. However in the new renewable energy landscape of Europe in many countries - Germany, Italy, Sweden, et al - have an electricity cost above 0.3 Euro per kWh and voltage often over 110 %. This would lead to an 800 % ROI - on electricity savings alone - over a ten year period for ECOD Smart-Optimizer. The de facto ROI - factoring in prolonged life-span, carbon credits and other secondary benefits - will be substantially higher.
CONCLUSIONS
The current energy crisis - contributed by supply variations from renewable sources - has created a need for both energy savings and reduction of carbon emissions. A new Electrical Economy is emerging on the horizon.
Voltage optimization is a scalable and effective driver of change. ECOD Smart-Optimizer has a unique, patented and market-leading technology for voltage optimization. While stabilizing - on both the end-consumer level and on the macro level - the fluctuations from renewable energy sources; it delivers a fast and substantial ROI. This makes it a front-runner - an immediately profitable way to simultaneously lower energy costs and reduce carbon emissions - in Europe’s new Electrical Economy.
Andrii Charnosh
President, Feigin Electric Group
