Guest Commentator: Samir Das, Director, Marketing and Analytics, WGL Energy, @wglenergy
What are some smart energy choices that we can make right now that’ll help to save money and the environment?
Energy management and creating an energy strategy can be daunting for many companies. The energy industry is fragmented, and many buyers are confused. Depending on the industry, energy can be from 5% to 20% of operating costs, however, companies often develop a “plan” by backing into what they can afford and shopping for the lowest price.
Choosing a proactive management approach based on a few key questions can prove to pay off over time and turn your energy spend into an “asset.”
First, you need to understand three things:
Energy needs – how much energy does your company need to continue operations? Are your hours of operations flexible? Can you live with an outage and for how long?
Sustainability goals – do you want to minimize your carbon footprint and desire to utilize renewable energy products?
Appetite for budget risk – what budget uncertainty can you live with? 0%, 3%, 10%?
Second, think about time, what is your business outlook over the next year or two? Also, consider what impact the weather has on your business and energy prices.
Energy commodity products and simple energy efficiency projects like upgrading lighting can give you the price certainty and usage management that you want for the short term with minimal investment.
Renewable Energy Certificates (REC’s) and Carbon Offsets can be purchased to provide quick sustainability solutions. Beyond helping the environment, these products can be used to market your company and differentiate you, potentially growing revenue.
Third, think about your views on the economy and any pending regulations over the next 3-5 years?
This is when to begin thinking about major energy efficiency projects such as HVAC replacements and behind the meter onsite generation such as solar, as these solutions require Engineering, Procurement, and Construction work and moderate to major capital investment.
Lastly, think about the next decade and beyond and what the world will look like in terms of greenhouse gas limits.
This is when major investments like Combined Heat & Power Plants or battery storage could be considered, along with long-term Power Purchase Agreements for offsite renewables.
Companies are going to spend money on energy because they must. Applying these questions as you look over time will help you navigate the fragmented energy industry and develop a proactive plan that optimizes your energy spend, turning energy into an “asset” rather than just a spend. To start making an energy management plan, meet with an energy adviser, who can help you devise a realistic plan you can implement over time.
The Chamber supports an advanced, affordable, diversified, low-carbon energy economy. Our Greater Philadelphia Energy Action Team brings together 150+ industry leaders committed to delivering affordable energy solutions that will benefit the current families and businesses living and operating in Greater Philadelphia while attracting new development and growth opportunities.
