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 [...]
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 [...]
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 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 [...]
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 [...]
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 [...]
Canadian Manufacturers and Exporters Association (CME) established Smart Green Program the to help manufacturers implement energy projects leading to CO2 reduction. In a nutshell: Grant consists of two parts – Assessment grant (up to $30K) and Implementation grant (up to $500K) Manufacturers are generally eligible Only future projects are eligible for the grant Project has [...]
Proper analysis brings energy heroes front and center. Can this be you? The graph shows results of statistical analysis of electricity consumption at a frozen food warehouse performed in accordance with recommendation of International Performance Measurement and Verification Protocol (IPMVP). Blue dotted line represents a cumulative sum of differences between actual and predicted consumption. Difference [...]
Procurement department can buy materials, machines and office supplies, but cannot buy electricity, natural gas and water. Just can't. Does not have sufficient decision-making authority. Neither does CFO. Nor even President. Utilities are bought by a person who flips the switch or turns the valve, not by procurement or CFO or President. Procurement contract [...]
