Compressed Air Systems Market Assessment In the Public Service Electric and Gas Service Territory

Public Service Electric and Gas (PSE&G) industrial customers spend about $35 million a year on compressed air. Experts in New Jersey and elsewhere estimate that 30 percent of that expenditure, $11 million, is unnecessary and can be cost-effectively eliminated. Facility managers with at least 100 horsepower (hp) of air compressors rank compressed air management only 13th on their list of priorities. This market assessment lays a foundation PSE&G to develop strategies to improve the efficiency of industrial compressed air systems in the region. The report characterizes industrial end-user market; describes the market structure and delivery systems; establishes a baseline and metrics; and suggests possible strategies for overcoming barriers, achieving energy savings, and market transformation.Prepared for Public Service Electric and Gas Company (PSE&G)Purpose: The purpose of this report is to inform PES&G of the current market conditions and to make suggestions for achieving efficiency in compressed air systems