Strategies in Selling Energy Efficiency Projects to Non-Energy Professionals - Lessons from Canada
Despite having significant energy efficiency potential, there are several key barriers that hinder the ability to achieve energy savings at industrial facilities. These include:
- End-users often lack the capital budget to self-finance energy efficiency investments.
- Efficiency projects at industrial facilities face the challenge of having to navigate an investment decision-making framework that places a heavy emphasis on optimizing manufacturing processes and ensuring continuous operation of plant assets.
- Corporate capital budgeting processes place energy efficiency in direct competition with other core priorities, such as investments that expand production, increase throughput, and/or maintain overall plant reliability.
- Industrial firms have a short-term horizon for investments and typically require projects to have rapid payback periods.
The Energy Champion would need to address some of the above barriers and sell his projects to the senior management. For successful selling it is important to enlist and quantify all types of benefit from the project and optimize on the project cost. Since most production process are made of several systems, it is important to take a systems approach and understand impacts of the energy project on other system components in terms of reliability, productivity, operating cost etc. There are lots of new technologies in the market, it might be useful to consider some of new technologies in solving energy efficiency problems.
This paper presents case studies on successful selling based on project implemented in Ontario, Canada. These include using the correct financial matrix, maximizing utility incentives, capturing utility and non-utility financial benefits, Bundling projects together to maximize on energy savings, Using capital upgrade opportunities to push energy reduction projects – example replacing old compressors. Use of pilot projects to address some of project concerns and the important of measurement and verification for project commissioning and demonstrating results to all stake holders is highlighted. More examples are presented in his AEE Book published by Fairmont press on Industrial Energy Management Strategies – Creating a culture of Continuous improvement.
Presented ByKaushik Bhattacharjee, C.E.M., B.E.P., C.E.A., C.M.V.P.
Kaushik is a President of Reipower Inc,that provides Energy Management Services to Commercial and Industrial Clients.
CEM (Certified Energy Manager), BEP (Business Energy Professional), CEA (Certified Energy Auditor), CMVP (Certified Measurement and Verification Professional). He hold a Masters in Energy Management from NYIT (New York Institute of Technology, US)
He has over 15 years of International experience in Energy Management. He has carried out Energy audits, guided implementation including M&V for several types of projects in Data centres and Commercial Buildings and maximized savings. He has also worked with large Canadian Utilities such as Toronto Hydro and Enersource Corporation in Conservation and Demand side Management Programs .
Kaushik received honorable mention in a most recently completed term for “Most Savings by a Roving Energy Manager” and “Most In-service Savings by a Roving Energy Manager” at the Energy Managers of Ontario Excellence Awards held at the Energy Manager forum in Toronto (2015). He was also named the “Energy Engineer of the Year” for Canada region (2015) by Association of Energy Engineers Georgia, Atlanta USA.
He has published an AEE Book – Industrial Energy Management Strategies – Creating a Culture of Continuous Energy Improvement published by Fairmont press . He has also co-authored two other books on Energy Management, contributed articles to number of journals and made presentation in several IEEE International Conferences and World Energy Engineering Congress on Energy Management.