Kaushik Bhattacharjee, C.E.M., B.E.P., C.E.A., C.M.V.P.
Track N | Energy Management Around the World
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 type of benefit from the project and optimize on the project cost. 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.