INDUSTRIALENERGY:

CounselingtheMarriageBetweenEnergyUsersandEfficiencyPrograms

ChristopherRussell,PrincipalEnergy PathFINDER .com (443)636-7746

AboutChristopherRussell,C.E.M.,C.R.M.n  Independentconsul?ngsince2006

Principal,EnergyPathfinder

n  Visi?ngFellow,AmericanCouncilforanEnergyEfficientEconomy,2012+

n  EnergyManager,HowardCounty,MD,2010-2012

n  DirectorofIndustrialPrograms,AlliancetoSaveEnergy,1999-2006

n  Comm.&Indus.ProgramManager,AmericanGasAssocia?on,1995-1999

n  MBA,M.A.,UniversityofMD;B.A.,McGillUniversity

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AboutChristopherRussell

ENERGYPROGRAMS

INDUSTRIALFACILITIES

3©2013Energy PathFINDER.com

IndustrialEEPrograms,2000-2011

•  Lotsofenergyassessments,rebates,andinvestmentincen?ves.

•  Lotsofpoten?alle\onthetable.

Thegroomhascourtedthebride….

4©2013Energy PathFINDER.com

Tradi?onalProgramContent:AReview

•  Technicalassistance•  Hardware&equipmentupgrades•  Prescrip?veandcustomincen?ves•  Implementa?onrates~20-30%Whydoesthebrideignorethegroom?

5©2013Energy PathFINDER.com

AReluctanceto,um,Consumate…

•  Shedoesn’tknowwhatshe’smissing?True,toanextent.

•  Varia?onsinwillingness,mo?va?on,pace.Thebridehasotherpriori5estoconsider.

•  Groomuses?redoldlines.One-size-fits-allprogramofferings….Doesn’tsuithermoodrightnow.

6©2013Energy PathFINDER.com

ACEEESurvey,2012

•  30stakeholders:– 20endusers(10SMEunder$10B,10large$10B+)– 10facilitators

•  Publishedreport:UnderstandingIndustrialInvestmentDecision-MakinghFp://www.aceee.org/research-report/ie124

7©2013Energy PathFINDER.com

MarketSegmenta?on:IndustrySen?mentsToward

AssistancePrograms

•  Smallsample(N=30)•  POSITIVEPROPONENTS(2of30).

Assistancepaysfortheirjob.•  MOTIVATEDOPPORTUNITISTS(10of30)

Priori?zeenergyimprovementsONLYifincen?vesavailable•  CASUALOPPORTUNISTS(8of10)

Investasnormal,pickupincen?vesifavailable•  DISMISSIVES(8of10)

Hos?letoprogramassistance:?me,effort,appearances…

8©2013Energy PathFINDER.com

LimitstoProgress

•  Lackofmutualunderstanding(Facili?esvs.Corporate)–  Confirma?onbias–  Inappropriateanalogies–  Championbias

•  Managementturnover•  Iner?areflectstradi?on,turf•  FailuretoconnectEEoutcomeswithcareerinterests

9©2013Energy PathFINDER.com

PrioriResforEnergyProgramAdministrators

•  Screenfacili?esforrecep?venessMoney,authority,need

•  Quan?fica?onofriskandreturnsForaccep5ngandrejec5ngproposalsMONETIZEENERGYIMPROVEMENTSSeePDFON(www.energypathfinder.com)

10©2013Energy PathFINDER.com

Cri?calSuccessFactors

•  Leadership-inspiredvisionacrossdepartmentboundaries•  Energymanagementprogramofinternaldesignandmaking•  Championtopersuadeandinfluenceonadailybasis•  Teamstaffing•  Proac?ve,efficiency-mindedworkculture

Thebride’sdowryincludessuppor<vebridesmaids

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HoneymoonFirst?

•  Recognize:ENERGYMGMT=CHANGEMANAGEMENT•  Sponsorenergymanagerpilotplacements*•  Speaktocorebusinessagendas

Rateandmagnitudeofwealthcreated.•  Goodforthecompany?Yeah,but...

What’sgoodforthefacilitymanager’scareer?FromcostcentertoprofitcenterFromcostssavingstoboos5ngreturnoninvestedcapitalENERGYMGMT=RISKMGMT=FUTUREPROOFING

12©2013Energy PathFINDER.com

*Publishedreport:OnsiteEnergyManagerPilotProgramshFp://aceee.org/research-report/ie132

YOU-TUBE:search“EnergyPathfinderInvestmentCalculator”TheIndustrialEnergyHarvest

NorthAmericanEnergyAuditProgramBestPrac?cesEnergy PathFINDER .com ChristopherRussell

@ENERGYpathfndr

Feb2008 June2010

THANKYOU!