Energy audit requires metered data. At least if client expects results that can be presented in the boardroom, not just general considerations. On the other hand, installation of meters takes time and money. On the third hand, if I had one, incentives on installation of meters are only available within M&T framework, which can logically [...]
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 [...]
A trivial question, which does not have a simple answer without the context. Consider a plant that in the last month used 1,000,000 kWh to produce 10,000 units and paid $15,000 for electricity. Does kWh cost $0.15? Is energy cost per unit $1.5? Yes, No and Maybe. Cost or value of a kWh depends on [...]
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 [...]
As an energy manager you work hard to keep energy cost in check. But do you get due recognition of results? A typical energy manger has to master lots of skills: come up with energy efficiency ideas, evaluate dozens of offers on energy saving tools, products and services, manage contractors, oversee implementation of energy conservation [...]
What can be farther apart than ancient Chinese wisdom and modern energy management? Since wisdom is universal, let's find out. Ancient Chinese proverb says that road of a thousand miles starts with the first step. We all heard this one. What did Chinese mean by this? A common Western interpretation of this proverb is that [...]
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 [...]
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 [...]
If you are a plant manager I bet that scores of energy efficiency vendors call and email you daily. All of them want to sell their hardware and most promise extreme profitability. Will you choose a project based on salesman promise alone? If you want to quickly navigate the sea of energy efficiency offers without [...]
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 [...]
