cost of energy

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What is kWh worth at your plant?

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 [...]

How big is this steam leak?

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 [...]

Energy cost forecast may cause CFO to resign

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 [...]

By | 2016-11-10T00:28:30-05:00 August 20th, 2014|Categories: Energy management|Tags: , , |1 Comment

What is the payback period for this energy efficiency project?

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 [...]

Renewable energy is cheaper, when all costs are accounted for

Traditional energy sources are perceived as being low only because their true costs are pushed out of energy generation accounting. Things like air and water pollution, corrupted eco-systems are considered as externalities. But they are not free to the society. WE pay for them anyway, though not on the energy bill. It's a known fact [...]

By | 2011-06-06T18:45:52-05:00 June 6th, 2011|Categories: Interesting Reads|Tags: |0 Comments