profitability of energy project

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In Energy Management Action without Information is a Waste of Resources

A conventional wisdom suggests that only action creates results. I tend to agree, except that is must be a correct action. How do you what energy project is the right one? How to choose between projects when each vendor claims attractive savings? I do not have a crystal ball either, but I [...]

Simple payback can cost you profits and what is the better way ratio

Simple payback period is routinely used as an ultimate ratio when it comes to selecting between energy projects. This practice may cost your company money in missed opportunities. Simple payback period (SPP) is the simplest way to assess profitability of an investment project. Simply divide first year cost by first year savings and you get [...]

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. [...]