If you have even casually looked into energy management
services for your organization, have you noticed the wide range of options? The
differences are more significant than simply branding. It is a more difficult
(and meaningful) choice than asking “Do I want a Coke? Or Pepsi?”
Have you ever asked yourself why?
Some of it is related to the lack of a common consensus of
what certain terms are, what constitutes a “best practice” in energy management,
or companies who exploit customer confusion as to what energy management is.
But under the hood and behind the jargon, there are several very different
approaches to a class of products and services that are loosely grouped under
the energy management umbrella. I find there are four main drivers that support
energy management services – each with its own motivations, risk tolerance and
financial needs.
The four areas are a.) Cost Containment, b.) Public
Perception, c.) True Green Believers, and d.) Risk Management.
As we cover each, I encourage you to consider your
motivations and interests. The more you can share with your energy partner, the
better job they can do in helping you achieve your goals.
Cost Containment
The number one driver for energy management today is to
contain or reduce costs in the production of goods or in the delivery of a
service. Consider the following: heating and forming metal in a foundry to
produce automobiles, or the cost of running heat generating equipment that must
be kept cool in data centers, providing the right kind of lighting, temperature
and humidity to keep shoppers comfortable in a retail setting: all of these are
very different and yet intensive users of energy.
Energy costs are rising quickly – more quickly than the
general public is likely aware of. However, in a stagflation-like economic
climate that is combined with increasing competition from overseas – these
costs are not easily passed on the consumers. With economic turmoil having
lasted over 6 years now, everything that was easy has been done. You may have
noticed fewer pieces per package, or that a half gallon of ice cream is no
longer a half gallon. Today I even noticed my stick of Trident gum is
noticeably smaller than it was a few years ago. These types of cost cutting
methods without raising prices are common in the grocery industry. As companies
look for new ways to cut costs, energy is getting its share of the limelight.
Public Perception
Public perception is a driving motivator for companies that
rely on the general public to buy their products, but are generally seen as
harmful to the environment. Automotive companies, chemical companies, paper
mills and others look for ways to “offset” byproducts of the manufacturing
process (or that are produced by their own product) by investing in clean
technology and energy conservation. For them, cost containment is a side
benefit. As they implement projects, they publicize their “achievements” so
that consumers will consider them as caring about the world that we all share.
True Green Believers
The believers are those who are passionate (or want to be
seen as passionate) about sustainability and conservation and put their company
money and resources where their heart is. Their motivation is not about money
saved or their customers knowing what they do – but in knowing that they are
doing the right thing and possibly setting an example for others to follow.
These companies usually form the vanguard of the “bleeding leading edge” of
innovative energy-related conservation and sustainability efforts.
Risk Management
Companies whose products are impacted by rapidly swinging
commodity prices, or those who have mandates or extremely profitable services
require guaranteed up time are concerned with energy management today to help
manage their risk exposure. An example of this would be phone companies that
are investing in solar energy at remote cell sites (for lower maintenance), or
those close to population centers (to replace noisy diesel generators). The
Department of Defense is perhaps the best example of looking at their energy
portfolio as an extension of managing the risk to service members, allies and
American citizens.
Looking at energy from a risk management point of view
reduces pricing sensitivity and in many cases, they don’t want the publicity
either. They are concerned solely about reliability, experience, case studies
and understanding how you can help them reach their goals.
Regardless of the catalyst for energy management, any
company can benefit from looking at ways to manage energy as an asset. When we
pay professionals to manage our money, they put it to work for us and increase
the value of our portfolio. Saving energy, much like putting money into a
savings account, will not extract the maximum value from your assets,
investments and initiatives.
If you are interested in developing the best energy plan for
your business, we would suggest the following:
- Create a methodical, enterprise-wide energy
strategy aligned with company goals and needs.
- Inventory existing assets, investments and
initiatives. Establish an energy baseline.
- Be more concerned with best-in-breed solutions
than brand names.
- Drive your data and allow the results to drive
your organization: Plan, Do, Check, Act.
- Last but not least, call Telamon Energy
Solutions for a complementary overview of your energy strategy and environment.
As complicated as energy can be, Telamon makes it…..simple.
-
Mark Brown
Channel & Business Development
Telamon Energy Solutions
