Posts Tagged ‘energy management roi’
Investment In Building Energy Management Systems to Reach $6B by 2020
In a newly released report by Pike Research, the firm expects revenues from building energy management systems to increase 14% year over year through 2020, reaching $6 Billion in global revenue.
Building energy management systems or BEMS offers organizations an opportunity to easily manage their energy consumption through computer software and hardware that can be integrated with other building systems like; heating, lighting, and other systems that require energy to operate.
Why The Increase In BEMS Revenue?
More organizations are beginning to realize that energy management can be extremely profitable for a business. At PeopleCube, we’ve seen customers cut their energy costs by 30% or more simply by monitoring and controlling how – and when – their energy is consumed. Energy management provides an incredible opportunity to create ROI not only through reducing costs, but governments around the world are now offering incentives in the form of rebates and tax credits to those businesses investing in energy management initiatives
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Measure, Manage, and Save Energy and Money
PeopleCube’s Intelligent Buildings Business Unit’s General Manager, Peter Tarca, had an article published in the August issue of Sustainable Facility on reducing energy consumption and eliminating energy costs through energy management solutions . It’s a great read, here is a small excerpt from the article.
According to the U.S. Environmental Protection Agency, up to 30 percent of energy consumed in commercial buildings is wasted. Real-estate experts claim that 30-40 percent of commercial real estate typically goes unused at any particular time. The economic impact of this combined inefficient utilization of energy and real estate points to the importance of implementing an advanced energy management solution.
Peter will also be speaking at the Energy Efficiency Expo on September 20. Learn more about Peter’s upcoming presentation on Energy Management ROI.
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Carbon Management Software Market to Reach $5.7 Billion
A new report by Pike Research shows the growth in the Carbon Management Software market. From 2009 to 2010 the carbon management software market grew from $385 million to $705 million. By 2017 the research firm expects the market to reach $5.7 billion.
So, what is causing the extreme growth when it comes to carbon management software? Organizations are increasingly becoming more concerned with energy management based on the economic and environmental benefits associated with reduced energy consumption and carbon management is directly related to energy management.
The ROI Behind Carbon & Energy Management
By employing systems to monitor and manage energy consumption and carbon emissions organizations have been able to cut energy costs by up to 30%. That’s amazing in itself but it doesn’t stop there. With more and more governments becoming conscious of carbon footprints and energy efficiency, organizations who invest in energy and carbon management software can benefit from incentives in the form of rebates and tax credits. These incentives can vary based on where you are located but they often result in significant savings.
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The ROI Behind Energy Management
Energy Management – Low Risk Big Reward
With Earth Day approaching more organizations might find themselves thinking about energy management than usual. Quite often organizations look at energy management as part of a public relations strategy to be perceived as a “green company“. This can have a significant impact on the way an organization is viewed, but if an organization truly implements an energy management strategy it can have a significant impact on the organization’s bottom line as well.
An article on IndustryWeek.com defines energy management as “The process of monitoring, controlling, and conserving energy to maximize profits and minimize risk.” Organizations looking to become proficient in energy management would be wise to invest an energy management solution that integrates a number of different systems to efficiently monitor and control their energy consumption.
Energy Management ROI
Implementing an energy management program at your organization carries a relatively low risk and can produce a significant return, but organizations still seem to be reluctant to make an investment in energy management. Industryweek.com credits this reluctance to the lack of excitement behind controlling expenses compared to growth projects that grow more sales.
Energy management projects carry little risk and can be profitable in both boom times and in a slower economy. By lowering energy usage and reducing energy costs, your organization can become more profitable during slow times and during good times it takes a successful project and adds more value based on lower operational costs and expenses.
Just like anything an energy management program can carry some risk, but if an organization takes the right steps and implements the appropriate energy management solutions this risk can be eliminated.You can eliminate the risk behind an energy management program with:
- Real Estate Business Intelligence Data- Real Estate Business Intelligence Software allows your organization to monitor a number of different systems and energy usage inside your building. With accurate and up to date data, easily available- your organization can make decisions and adjustments that will reduce your energy consumption. Learn more about Real Estate Business Intelligence Software.
- Scheduling Software- When implementing and energy management program it is important to have buy-in from the whole organization top to bottom. That’s why it’s important to make it as simple as possible for your employees to have a positive impact. Efficiently scheduling rooms and resources can have a major impact on reducing your energy consumption. Scheduling software can be integrated with energy management systems to automatically power rooms and resources only when they are scheduled to be used. Learn more about Scheduling Software.
- Occupancy Detection- As noted above, a successful energy management program requires buy-in from the entire organization. Sometimes this may be difficult with employees scheduling rooms and resources and not using them or not using them for the full time they had scheduled them for. This can cause rooms and resources to continue to be powered when they aren’t in use. Occupancy detection tools like a people counter can be integrated with real estate business intelligence software to track actual versus planned utilization. Occupancy detection tools can also be integrated with energy management systems to only power rooms when someone is actually present. Learn more about Occupancy Detection.
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Energy Management Program at AT&T Saves $44 Million in Annual Energy Costs
In previous blogs we have spoken about the adoption of energy management inside organizations, how the adoption of energy management would flesh out, and some of the benefits of energy management. One aspect of the adoption of energy management we had discussed was organizations beginning to hire energy management executives and directors to really begin ramping up the process. The common thought about the organizations that took this route in adopting an energy management system or program, was that these organizations would be much more cautious and a little later to the energy management party.
AT&T had hired an energy management director and wasn’t as cautious about implementing an energy management program, and their aggressive approach is paying off. While other organizations are showing more caution and taking a wait and see approach to investing in energy management AT&T made a decision to aggressively implement an energy management system.
In 2009 John Schinter was hired by AT&T and tasked with revamping the way AT&T manages energy consumption and developing programs to cut energy use. AT&T claims that the steps they have taken in managing their energy consumption have amounted in $44 million in annual energy savings and has motivated AT&T to take an even more aggressive approach to energy management in the future.
What types of energy management solutions were put in place?
At AT&T the organization used an online energy management tool to manage and monitor energy consumption at 500 of the company’s most energy intensive facilities. By not only monitoring but managing energy consumption through an energy management system an organization will realize where rooms and resources are being underutilized and energy is being wasted.
In addition to managing and monitoring energy usage other tools were used in their facilities as well. Lighting, heating, and cooling systems can be set to be powered as well. This can be done through scheduling software that has been integrated with an energy management system, or occupancy detection tools that notify an energy management system when someone is present in a room or area, and then powers lighting, heating, and cooling systems as needed.
Energy Management For The CEO
Implementing an energy management program like AT&T did has proven to save millions of dollars, but it’s also important to have buy-in across the whole organization. With the cost savings produced by energy management systems, energy management is now on the minds of CEO’s of larger organizations, and when buy-in comes from the top down it makes it much easier for an organization to generate cost savings through energy management programs.
Learn more about Energy Management
Employing an energy management system can be extremely profitable for an organization. In fact, we’ve seen customers cut their energy costs by 30% or more simply by monitoring and controlling how – and when – their energy is consumed. But the ROI of an energy management system doesn’t stop there.
Learn more about Energy Management
Employing PeopleCube’s energy management solutions, your organization will be eliminating unnecessary energy consumption, resulting in significant cost reductions and reduced carbon emissions.