Welcome to our blog: How Energy Management Affects Your Business and Profit

Dear visitors, we welcome you to our blog. We write for owners, business and financial managers, energy engineers, who want to find ways to benefit their Business, Clients and Environment through energy management. From our experience we can assure you: energy management will help you can gain much more than just reduce energy costs. [...]

By | 2020-06-03T10:33:22-04:00 July 24th, 2014|Categories: Uncategorized|Tags: |0 Comments

Small deviations from predicted energy consumption may hide big issues

When a baseline built over a certain period has R2=95%, it means that baseline formula accurately predicts actual consumption in 95% of cases within this period. This does NOT mean that there were no changes during this period. The wrongly predicted 5% of data points may be measurement noise or data collection error or [...]

Saving energy is like playing golf, somewhat

Calculating energy savings results is keeping like golf score.  If you ever been on the green, understanding the meaning of CUSUM is trivial. Baseline - how machine is supposed to work or worked before retrofit - is a par. CUSUM - a cumulative sum of deviations from baseline - is score. If CUSUM is above [...]

Energy Efficiency without tears – an energy efficiency encyclopedia – free pdf from the author

I admire professionals who put public good ahead of personal gain. Niall Enright shares his vast practical experience and practical recommendations on finding and implementing a wide range of energy efficiency projects in his book. Free for all. No strings attached. Here is Niall's email with link to download. Dear Anatoli Naoumov, The central [...]

Use of average energy intensity can hide savings or show fake savings

A common way to determine energy intensity in manufacturing is to divide energy cost by production volume, resulting in kWh per car or m3 per pound of bread. This simplistic approach may hit energy manager where it hurts the most - at evaluation of completed projects. A good well-implemented project may show dismal savings [...]

Baseline formula must reflect process, not the data collected

When determining energy consumption baseline through regression analysis, as recommended by best practices, sensible energy managers pick a formula that relies of physics of the process, not a formula that produces high correlation (R2) between predicted and measured data. In vast majority of cases relation between energy consumed and it's driver is linear. Here [...]

Use of average cost per kWh hides savings from CFO

Use of average electricity cost can be misleading when assessing financial impact of energy efficiency measures. What counts is the cost of the last kWh comprised of Global Adjustment (Ontario), demand charges and energy cost. If average cost per kWh is used during project approval, it may become a challenge to show savings to [...]

In energy management time is of the essence

If your plant underproduced today, you may be able to catch up with schedule by working overtime tomorrow. If you wasted energy today, it is gone forever. No effort tomorrow will help to recover it. Timely action is the key to stop waste before it became to big. Do you know how much energy [...]

Electrical bills come too late to act

Monthly electrical bill is as good for energy management as a summary of monthly bank statement is for financial management: too little of data to understand what happened and too late to act. Summary of bank statement shows balance of account: sum of deposits and sum of payments. If you have spent too much or received [...]

5 simple steps to decide if it’s time to recommission

Performance of every piece of machinery degraded with time. This may cost your plant thousands of dollars in lost production, rejects, and energy. Recommissioning can solve this problem, but it costs time and money. When is recommissioning worth the effort? Energy costs of performance degradation Degradation may be caused by a wide range of [...]

Energy submetering by itself is useless and how to make it work

Automatic data collection, purposeful analysis and alert on deviations to appropriate people is a key to sustained energy cost savings.

By | 2020-06-09T09:42:43-04:00 June 22nd, 2020|Categories: Business value, Energy management|Tags: , , |0 Comments