Overcoming Barriers to Better Energy Management

For many years, energy use in businesses has been taken for granted, and largely gone unmanaged. Despite it being such a significant overhead, organizations have been guilty of not giving enough thought to exactly how, when, or where they use energy. 

As energy costs have continued to rise, however, there has been a shift in mindset. Today, the need for better energy management is increasingly being discussed in boardrooms throughout the US. However, it is often difficult for internal advocates to justify the return on investment (ROI) of such projects due to the insufficiency or inaccuracy of the data available. It is such an issue that ROI and conflicting priorities are seen as the top two challenges faced by over 40 percent of cases.

Being seen to be green

In addition to wanting to reduce costs, the other major catalyst for better energy management is the desire for businesses to be seen as green. In fact, environmental accountability is now top of mind for more than two-thirds of business leaders, with almost eight in ten (79 percent) saying they have either already entered into a renewable energy power purchase agreement, or plan to do so within the next two years. And not before time; doing so can attract increasingly eco-conscious clients and help retain staff. 

A three-step strategy

With the increased propensity for extreme weather events, the problem of energy cost and availability is not going away. It’s no surprise that almost half (46 percent) of organizations say that the availability and cost of energy has caused moderate to significant disruption to their business activities over the past year. While three quarters admit to only having been focused thus far on short-term energy demand reduction optimisation strategies, a longer-term view is preferable. 

There should be a three-step strategy for those looking to make the change towards better energy management. Firstly, look at reducing the overall load as much as possible. Then look at what the fixed and variable load is, before finally looking at moving the load to cheaper times of day.

The need for data visibility and reliability

Whatever the catalyst to better energy management, there is no doubt that data can be the proof point required to get such a project off the ground. While the availability of digital technology is rarely seen as a major barrier, data visibility and reliability often are. Although there is more data within digital technology than ever before, the right data needs to be produced to support ROI calculations and gain boardroom buy in.

It is vital that the industry does what it can to provide accurate energy consumption data that will support businesses to deliver on their cost reduction programs and environmental management goals.

Creating goodwill

Luckily, help is at hand. Through the advent of artificial intelligence (AI) and machine learning, digital technology has greater ability to provide insight into when and where a business uses energy, and how much they could save by moving the load to a different time of day. This is a win, win. Because the cost of energy to the supplier themselves will be cheaper during off peak hours, this saving can be passed on, creating goodwill and loyalty.

We are already seeing the act of better balancing load as a big focus for the energy industry. Several energy giants are undertaking real-time trials to discover how moving energy demand out of peak times can support balancing the power grid and reducing costs. It is now a case of persuading businesses that they can play a pivotal role in reducing the costs of balancing supply and demand, so as to ultimately reduce the cost of their own bills.

Make sure you are following suit

Although energy prices have started to come down for many businesses, they remain significantly higher than they were a few years ago. These high costs are continuing to expose businesses to serious financial and operational challenges across multiple industries. 

The desire to reduce energy usage and improve sustainability goals has led to a significant shift in attitude, with the likes of battery storage becoming increasingly popular. Businesses are changing their behaviours and strategies through a diverse set of long-term investments and activities to manage energy consumption, and it is to be applauded. In fact, three-quarters say they have already started reducing their energy usage through optimization activities, and another 19 percent plan to do so within the next two years. Make sure that you are following suit.  

Any business wanting to make a change will likely face significant internal hurdles. The energy industry is aware of them, and able to help by better aligning itself with organizational priorities so businesses execute their day-to-day operations at a lower cost point, and unlock additional opportunities. 

Colin Gault is Head of Product at POWWR, which helps companies sell and manage energy more efficiently by providing advanced platforms and simple solutions for both suppliers and brokers.

POWWR | www.powwr.com