Friday, September 12, 2008

Energy Consumption - An Open Purchase Order?

Point #3 Create a Comprehensive Energy Management Policy

Yes, energy when unmanaged is the equivalent of creating an open purchase order every month with the value determined by the laws of chaos. In spite of the rising costs of energy, it still goes unmanaged or poorly managed in many corporations. There are many great technologies & strategies available to monitor and control consumption at critical points.The ROI and payback on many of these installations is often less than two years (as with many lighting upgrade projects) with reductions in KW or gas consumption usage accumulating year in and year out, net positive on the balance sheet.
Corporations very often are caught up in what they perceive to be bigger problems or higher priorities, perhaps being driven by quarterly projections without balancing it with long & mid-term strategy, even when ROI's present themselves in very attractive terms.
The above scenario is a sign of a corporation that is not fully managed as a well oiled machine where costs are minimized and profits maximized. A comprehensive "Energy Management Plan" where consumption is minimized and results from clean renewable sources when possible, is simply good for business. Let's not forget that paying for the associated carbon signature either through a direct tax or cap & trade is most likely just around the corner.

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