An Organizational Approach to Drive Commercial Energy SavingsNovember 12, 2014
Presenters: Diane Levin, Senior Director, C&I Utility Solutions and Ross Lancaster, Senior Utility Solutions Manager, both with Ecova.
Key Issues to Explore
What is the gap?
New challenges for utilities
Ecova Blueprint approach
How do utilities incorporate into their portfolio?
Opportunity in Current Commercial Program Performance
Source: eSource utility database
Not meeting savings goals and under-spending
Not meeting savings goal and overspending
Exceeding savings goals and overspending
Exceeding savings goal and under-spending
New Challenges for Utilities
Unlocking deeper savings
Creating a reliable pipeline of projects
Getting to the real decision makers
Making behavioral savings reliable
Comprehensive, Systematic Approach to Energy Management
Engage the full organization
Embrace all energy management aspects, including behavioral, demand response, load shifting, and renewables
Long term partnership with organizations
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
Value to Commercial/Industrial Customers
Driver Commercial/Industrial Businesses
Energy and Cost Management
Energy costs are among top controllable expenses
Investor Expectations Increased need to manage carbon emissions
Regulatory Expectations More energy reporting requirements and attention to green house gas emissions
Green Brand Management Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
Minimize risk associated with power disruptions
The Basic Approach
Get organizational commitment
Understand energy use
Set a goal
Plan to meet the goal
Track progress to goal
Adjust as necessary
Integrating energymanagement aspart of standard
business practices
Strategic energy management?
Continuous energy improvement?
Ecova Blueprint Approach
Case Study: Quick Serve Restaurant
Clear, data-driven, actionable roadmap
Over $1,000,000 energy savings from behavioral savings
Identify over $5 million in potential savings from capital expenditures
Shifted capital plan from replace-as-needed to proactive management with IRR of ~100%
Synergist Value to Utilities
Driver Utilities Businesses
Energy and Cost Management
EE goals; sustained engagement with customers
Energy costs are among top controllable expenses
Investor Expectations
Not as much Increased need to manage carbon emissions
RegulatoryExpectations
EE, renewable and integrated DSM goals
More energy reporting requirements and attention to green house gas emissions
Green Brand Management
Desire to show innovative ideas tocustomers, management and regulators
Increasing demand for products/services from ‘green’ companies encouraging supply chain sustainability disclosure
Resource Scarcity / Physical Risks
DSM reduces need for new power plants
Minimize risk associated with power disruptions
Utility Approaches
One-on-one engagement
Group engagement
Combination
One-on-One Engagement
Focused coaching
– Large organizations
– Find the right players
Considerations
– Big opportunities Big savings
– Varied support
– Organizational momentum
– Copy what works
Group Engagement Approach
Group of businesses or organizations
Workshops focused on foundational knowledge
Peer network
Make-up of group is important
Hybrids for Consideration
Separate out key elements of 1:1 and Group Engagement approaches
– Foundational knowledge
– Process coaching
– Peer learning
Tailor offering to serve target group
– Competitive vertical
– Collaborative vertical
– Allied verticals
– Common organizational maturity
“Everyone’s a snowflake” – Coach Organizations,
Teach Groups
Case Study: Commercial Group Engagement
Year long program
Focus on electric and gas savings
Seven diverse organizations
Utility account executive integral
Group Engagement Model
Recruiting
Executive Commitment
Organizational & Technical
AssessmentsWorkshops
Work Sessions with
Advisor&
Online Tool
Individual Assignments
& Tasks
Group Engagement Overview
UniversityMedical Office Bldg
Full Service Hospitality
Office / Data Center
Grocery Store
Mid-Service Hotel
Champion Energy Manager
Asst. Dir.Facilities
Director of Engineering
Site Mgr & ChiefEngineer
MaintenanceManager
Regional Engineer
Focus Two buildings
One building (off campus)
One hotel One building
One store One hotel
Organization Scale
77 buildings
~40buildings
Two hotels >30 sites >30 stores >30hotels
Best Practices
Leverage peer learning
Balance training & coaching time
Take advantage of existing programs
Do the savings homework
Visibility and Accountability are Critical
Benchmarking
Tracking projects and tasks
Help with information navigation
Engage throughout the organization
Engagement Platform
Strengthening the Utility-Customer Bond
Framework for effective customer relationship management tool
Builds long-term DSM pipeline for account management teams
Consultative approach creates ongoing opportunities and drives persistent savings
Utility Program Considerations
Every organization is different
M&V approach
Short-term vs. long-term cost effectiveness
Focus on regional senior management rather than national management (but focus on national management)
Find the right fit by tailoring the offering to the participants
“KEEP IT SIMPLE” PRINCIPLES
− Understand energy use
− Set a goal
− Plan to meet the goal
− Track progress to the goal
− Adjust as necessary
Key Takeaways
There are short term and long term retrofit savings
An organizational approach can create reliable behavioral savings
Strategic energy management is the ultimate energy savings program … for businesses and for utilities
Upcoming Ecova Webinars
INSIDE ENERGY & SUSTAINABILITY
Energy Pricing & Market Intelligence Q4: December 4th at 11am Pacific / 2pm Eastern
SMART ENERGY EFFICIENCY
Emerging Technology: DC Power in Commercial Buildings: December 9th at 11am Pacific / 2pm Eastern
Questions, comments, suggestions? [email protected]
Q & A
Thank you!