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How to help CFO approve your energy project and keep healthy margins?

Corporations routinely require energy projects to meet a 2 year simple payback threshold, which is another way of requesting a 50% return. Same corporations rarely enjoy returns in excess of 10% in their core business. Are CFOs mean to energy projects, plain stupid, or what? - Unlikely. Slow thinkers do not make it to corner offices. [...]

What is the value of saved kWh at your plant?

What is the value of saved kWh at our plant? This post continues the discussion about the $value of kWh, started in What is kWh worth at your plant. In that post we talked about effect of operational changes on cost of energy. Today we will talk about how value of energy efficiency projects shows [...]

Energy use monitoring is key to buying, selling and implementing energy efficiency projects profitably

Energy accounting is key to success of energy projects Selling, buying and implementing energy projects costs too much effort at both sides of the client-vendor divide, despite the best effort of professionals involved in the process. It does not have to. Why so many projects are either not sold, or not approved, or [...]

How can an energy manager travel in time and space to impress CFO?

Which energy manager does CFO know by first name? Hands-on? Watchful? Strategic? A Hands-On energy manager walks the floor daily to personally check consumption of every machine. He is in one place at a time. A Watchful energy manager installs meters to check real-time energy performance. He monitors several machines at the same time. A [...]

Energy efficiency is not about cutting cost of energy anymore, it is serious now

Energy efficiency is becoming less and less about direct energy cost reduction and more about meeting demands of customers and governments. A recently published article Who Invests in Energy Efficiency? by American Council for an energy efficient economy sums up a range of studies about driving of energy efficiency investment in business. It comes out energy cost [...]

By | 2020-06-03T10:33:20-04:00 September 20th, 2017|Categories: Business value, Energy management|Tags: , , |0 Comments

7 plus 2 barriers to success of industrial energy efficiency and how to overcome them

Even many C-levels today agree agrees that energy efficiency is important, still too often too little is done. How can this situation be changed? This 2003 article - Overcoming Barriers to Effective Energy Management in Industrial Settings - names several barriers which I list below with my comments: Lack of Organizational Commitment to energy efficiency [...]

Massive automation is upon us, how will it affect your plant?

Last week I had a pleasure of attending an intense Summer Conference set up by Association of Energy Services Professionals - AESP . One and a half days of presentations and panels were kicked off by a thought-provoking speech delivered by Patrick Schwerdtfeger about exponential nature of changes in our life, particularly massive automation [...]

By | 2021-12-28T15:27:06-04:00 September 8th, 2017|Categories: Business value, Interesting Reads|0 Comments

More energy data may not benefit business – and what does

More energy data is better, right? Data shows what's happening, so we should have lots of it to manager machines, right? Not necessarily. Although various meters are becoming cheaper by day, too many of them may hurt your business instead of helping to manage it. When driving, do you really need to know the exact [...]

Why investment with zero return is a top priority at many plants?

Would your company hire 2nd plant manager with a 12-month annual vacation contract? Simple, eh? What about - Will your company invest into energy project with zero return? When company decides to delay an energy cost reduction project ... Wait, nobody makes such decisions. Sophisticated managers of 21st century decide that "energy cost reduction project [...]

Rope trick with lighting: more light, less bills and no new bulbs

Lighting retrofit that delivers 20% more lighting for 20% less dollars and requires no new electrical parts, such as bulbs, controls or ballasts. Not even new fixtures. It's like a rope trick, except there is no trick, just ropes. Lighting intensity decreases in reverse proportion to the distance from the source [...]