cost of energy

26 03, 2019

To generate or not to generate – a multi-million dollar question

By |2020-07-08T10:00:30-04:00March 26th, 2019|Categories: Energy Efficiency Tips, Energy management|Tags: , , , , , |0 Comments

In the view of growing electricity prices and time-sensitive tariffs numerous vendors around offer on-site electricity generation and storage. Should your company do it? Are you in business of electricity generation? Prior to going into technical and financial details of different power generation solutions, I suggest you ask yourself a strategic question: Are you [...]

8 02, 2018

What is kWh worth at your plant?

By |2018-02-09T12:50:43-04:00February 8th, 2018|Categories: Energy Efficiency Tips, Energy management, Energy management education, Profitability|Tags: , , , , , |0 Comments

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 [...]

22 02, 2016

How big is this steam leak?

By |2017-08-17T03:55:31-04:00February 22nd, 2016|Categories: Energy management, Energy management education, Profitability|Tags: , , , |0 Comments

Steam is one of the most expensive forms of energy at most manufacturing plants. Powerful boilers produce lots and lots of it. Surely a couple of small leaks cost next to nothing, right? Here is a simple way to assess what damage a leak makes to the bottom line. Idea of this post came from [...]

20 08, 2014

Energy cost forecast may cause CFO to resign

By |2020-06-03T10:33:22-04:00August 20th, 2014|Categories: Energy management|Tags: , , |1 Comment

The Chief Financial Officer (CFO) of a friendly manufacturing company had to resign. He did not mess up his taxes. He did not miss a profitability goal. He was not hated by other executives for extravagant behaviors. Year after year, he just could not deliver a reliable cost forecast. His projections were not even consistently [...]

8 07, 2014

What is the payback period for this energy efficiency project?

By |2020-06-03T10:33:22-04:00July 8th, 2014|Categories: Energy Efficiency Tips, Energy management|Tags: , , , , , |1 Comment

Another email (call, booklet) offers you an energy efficiency measure with a 12 months payback period. Can this be true? Assessing actual savings delivered by an energy efficiency measure only seems to be a straightforward job. To avoid disappointment after implementation manager must understand utility bill structure and tariff options. Use of [...]

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