More Related Content Similar to Energy Efficiency Risks and Opportunities for Your Business and Your Career Similar to Energy Efficiency Risks and Opportunities for Your Business and Your Career (20) Energy Efficiency Risks and Opportunities for Your Business and Your Career1. ENERGY EFFICIENCY:
Risks and Opportunities for
Your Business and Your Career
Christopher Russell,
Principal
Energy PathFINDER .com
(443) 636-7746
3. About Christopher Russell, C.E.M., C.R.M.
Independent consulting since 2006
Principal, Energy Pathfinder
Visiting Fellow, American Council for an
Energy Efficient Economy, 2012+
Energy Manager, Howard County, MD, 2010-
2012
Director of Industrial Programs, Alliance to
Save Energy, 1999-2006
Comm. & Indus. Program Manager, American
Gas Association, 1995-1999
MBA, M.A., University of MD;
B.A., McGill University
3©2013 Energy PathFINDER.com
About Christopher Russell
5. ENERGY IS ALWAYS IN MOTION.
Energy that doesn’t create wealth destroys it.
WEALTH
DESTROYED
HEAT, FRICTION, &
CHEMICAL REACTIONS
DESTROY PLANT & EQUIPMENT,
CREATE LIABILITIES
WEALTH
CREATED
TRANSFORMATION
OF INPUTS INTO
FINAL PRODUCTSHEAT,
PRESSURE,
& MOTIVE
POWER
FUGITIVE ENERGY
COMMITTED ENERGY
FUEL &
ELECTRICITY
Technical Rationale for Energy Management
5©2011 Energy PathFINDER.com
7. THE INDUSTRIAL FACILITY
IS A MICRO ECONOMY
FACILITY
(opportunity)
WEALTH
INPUTS
WEALTH
CREATED
EXPENSES,
INTEREST,
OR
INFLATION
Who will get superior returns from your facility assets?
YOUR BUSINESS or the UTILITY COMPANY?
7©2013 Energy PathFINDER.com
8. (c)2009 Energy Pathfinder Mangement
Consulting, LLC
www.energypathfinder.com
8
MONEYMONEY
FUEL &
ELECTRICITY
HEAT, PRESSURE
& MOTIVE POWER
PRODUCTS
TO SELL
BUSINESS RATIONALE FOR ENERGY MANAGEMENT
WE TRACK MONEY.
WHY NOT ENERGY?
8©2011 Energy PathFINDER.com
11. STRATEGY
UP HILL:
Use an ENERGY AUDIT
to determine a list of
projects.
DOWN HILL:
Develop BUSINESS PLAN that
provides a roadmap to business
results.
11©2013 Energy PathFINDER.com
12. STRATEGY
UP HILL:
Evaluate proposed
efforts for their
cost to do.
DOWN HILL:
Evaluate proposals…
• for impact on overall invested capital performance
• in comparison to the cost of doing nothing
12©2013 Energy PathFINDER.com
13. PURSUING ECONOMIC OPPORTUNITY
1. Benchmark current capital performance
2. Perceive opportunities for superior performance
3. Estimate investment risk/return
4. Reinvest capital
5. Continuous improvement. See Step 1.
For the ECONOMY…
For the FACILITY…
DYNAMICS ARE THE SAME
13©2013 Energy PathFINDER.com
14. ORGANIZATION UP HILL:
Delegate all energy
matters to a single
department (silo).
DOWN HILL:
Organize leadership
and skills in cross-
departmental teams.
14©2013 Energy PathFINDER.com
15. ORGANIZATION
UP HILL:
Allocate budget, skills, and
time commensurate with
energy’s proportion to
total expenses.
DOWN HILL:
Fund efficiency efforts
proportionately to the
magnitude and speed of
cash flow that it creates.
15©2013 Energy PathFINDER.com
17. ENERGY COST CONTROL
What Your Business Leaders Should Know
• PRICE MANAGEMENT & PROCUREMENT
• BEHAVIOR
– Education & awareness
– Make good choices with current assets
• O&M PROCEDURAL
– Optimize current assets
– Leak & loss repair, PM routines
• CAPITAL EXPENDITURE
– Replace & upgrade
– Invest in new technology
©2013 Energy PathFINDER.com 17
19. COMMUNICATIONS
UP HILL:
Address mechanical
performance. Explain
everything in techno-
speak. Describe results
as energy saved.
DOWN HILL:
Address capital
performance. Articulate
outcomes and rewards as
they accrue to the agendas
of other departments.
19©2013 Energy PathFINDER.com
20. Ask not how much energy
management shall take from
current resources.
20©2013 Energy PathFINDER.com
Ask how much (and at what rate) energy
management shall create new wealth.
23. COMMUNICATIONS
UP HILL:
Use simple payback.
Results describe HOW
LONG it takes for a
budget to replenish
itself.
DOWN HILL:
Use rates of return.
Describe the RATE
and MAGNITUDE of
capital:
(1) Created via your
agenda , or
(2) Destroyed through
inaction
23©2013 Energy PathFINDER.com
24. You should not have to defend
superior rates and magnitudes of
investment returns.
24©2013 Energy PathFINDER.com
Detractors need to defend the rate and
magnitude of capital destruction caused
by DOING NOTHING.
DEFENDING ENERGY
MANAGEMENT?
25. PHILOSOPHY UP HILL:
Confuse energy
efficiency with
environmentalism.
DOWN HILL:
Perceive energy
improvements as
business
opportunities.
25©2013 Energy PathFINDER.com
26. PHILOSOPHY
UP HILL:
Perceive energy
management as a cost
center. Facility assets
are a cost to be
minimized..
Success = no unusual
expenses; don’t get
noticed.
DOWN HILL:
Energy management
= profit center.
Success = creating
cash, improving
return on invested
capital, get noticed
for supporting other
departmental
agendas
26©2013 Energy PathFINDER.com
27. “Yeah, but…”
UP HILL:
Keep pushing the
same buttons… and
keep getting the same
results.
DOWN HILL:
Apply some of the ideas from
this presentation.
27©2013 Energy PathFINDER.com
30. YOU-TUBE: search “Energy Pathfinder Investment Calculator”
Energy PathFINDER .com
Christopher Russell
@ENERGYpathfndr
Feb 2008 June 2010
THANK
YOU!