Australian energy prices are rising at a staggering rate.
Since the beginning of 2017, I have met with dozens of executives responsible for energy in their organisations. The message I hear from them is consistent: rising electricity and gas prices are now materially impacting the bottom line for their organisations, and energy-saving initiatives now have the attention of the C-suite.
What can commercial organisations do to get on the offensive and tackle rising energy prices?
The fundamental approach to managing energy hasn’t changed – The Fifth Estate Energy Management eBook, co-created by Envizi and some of our partners, continues to provide a relevant, extensive toolkit for businesses to strategically manage energy. I encourage you to download a copy and review it if you have not already done so. Download the eBook here.
That said, the solutions available to businesses are rapidly evolving, powered by technology advances that in turn are delivering more cost-effective solutions to businesses.
In light of the shifting market, you may be asking: what actions should my organisation take first to quickly mitigate energy price rises?
We suggest focusing on 3 key areas:
- Solar PV systems are now mainstream technology, and significant reductions in component prices over the past 2-3 years are driving faster time to value with onsite generation than ever before. Flexible financing options such as purchase power agreements (PPA) are making solar more affordable – you can now effectively lock in low rate electricity tariffs for a long-term fixed period, without capital expenditure. In some cases, we have seen solar rates up to 30% lower than grid prices.
- Lighting remains a compelling energy savings opportunity. New, innovative financing models including “lumens as a service” can eliminate technology risk and avoid the need for lengthy capital approval processes. We are consistently seeing lighting projects yield paybacks in the 2-3 year range.
- Elimination of Energy Waste still offers the most compelling approach to reducing energy consumption, lower metering and data acquisition costs mean these savings opportunities are even easier to identify. In particular, Internet of Things (IOT) based metering solutions, and software based metering can be installed at a fraction of the cost of traditional metering systems. This allows energy visibility right down to the equipment level to detect common faults and inefficiencies, including after-hours use, equipment short cycling and unusual changes in base and operating loads. Such issues can easily be identified with analytics software, and usually remedied via changes in system control settings without any capital expenditure, yielding reductions in energy consumption of 10-15%.
At Envizi, we have co-created an integrated suite of solutions to address these key areas, in collaboration with our 130+ clients and network of partners. If your organisation is looking for a path forward to combat rising energy costs, Envizi can help.