Blog Topic A: E-Financial Management, General
Development and implementation of energy-efficient processes, technologies, and services:
saves organizations money,
drives innovation and productivity, and
supports a cleaner environment
Buildings – including offices, homes, and stores – use 40% of our energy and 70% of our electricity.
Most buildings waste about 24% of their energy because when it was a monopoly we couldn’t do much about it – just pay the bill.
Now, buildings are reservoirs of cash.
Seeing is believing!
Seeing the dollars of energy streaming through your buildings will get you believing costs can come down.
If you had the big picture of energy use –in terms of dollars as well as kWhs and BTUs – you could see the times of peak usage.
What is Energy Cloud Computing & Tracking
If you had the detailed picture of where that expenditure went – what department, what air conditioners, what public lighting – you could narrow down on the root causes.
The key point is to get a specific look – a granular look – at how many dollars stream through each major panel and circuit.
With that information – compare, for example, actual air conditioner usage with the spec sheet for those units, and measure the difference to see how much inefficiency crept into that circuit. Do it for main circuits.
Change energy procurement strategies – compare new rates to old rates and calculate the differences.
Implement solutions – You have a choice. Select solutions to fit ROI objectives for your buildings and campus.
Verify the “Before” usage with the “After” efficiencies – save 13% – 27% of your energy bill.
Managing energy is analogous to managing money. Know how much you have, how it’s used and how to save more of it.
Quantifying your energy in dollars and modeling changes to show savings in dollars lets Controllers find needed cash and lets management estimate increased equity value.
Good for Small Business
When the data is in your Dashboard, you and analysts can evaluate it from anywhere.
Several employees from management, controllers office, and facilities management can collaborate on tracking the swings, cost comparisons and anomalies of energy usage, then translate them into cost reduction projects.
Topic A – E-Financial Management, Specific – Financial Justification
Lower costs by increasing efficiency. It takes finding the problems and then proposing projects that require expenditures.
Financial justifications are necessary.
But with the current climate of incentives, which will not last, the wise are taking advantage.
Topic A – E-Financial Management, Specific – Efficiency Markets. Elisa Wood
“Building efficiency is a critical and important growth sector because the outcomes, including reduced operating costs, reduced energy costs, greater reliability and resilience, are in high demand.” Kevin Self, vice president strategy and corporate development, Johnson Controls
When outcomes are excellent, organizations take leadership roles in their industries.
Prepared by Navigant Research, a recent report pegs global revenue for advanced energy at nearly $1.3 trillion, up 12 percent over last year.
Financial energy management, based on realizing efficiencies equal savings, savings equal fatter bottom line and that equals competitive advantage, is getting big.
Advanced Energy Economy (AEE) estimates range up to $199.5 billion in annual revenue which is bigger than the airline industry,
Clean and sophisticated management of power, fuels and transportation — grew 14 percent last year.
With emphasis on buildings, saving energy grew to $60.1 billion in revenue or 43 percent over four years in the U.S.
Building efficiency contributed $60
EV charging station revenue grew 31 percent in the U.S., to $201.5 million
Industrial energy management system (IEMS) represent a $4 billion US market