Energy efficiency and supply management investments range from equipment installations to building operation adjustments to changes in supply management strategies.
The best way to benchmark and verify the results of your investment will depend on what kind of investment you are trying to make: are you focused on reducing your peak demand, your monthly demand, your overall kWh usage, your supply or delivery costs?
In any of these circumstances, the bench-marking process is straight forward– it is not complex arithmetic or elaborate analysis, but it needs to be consistent and transparent.
The bench-marking process
- Determine what you need to measure ($, unit costs, kW, kWh, etc).
- Measure the key metrics for at least 12 months prior to implementing a new cost management strategy or investment.
- Once you’ve implemented the new strategy or technology, track how your usage and costs change compared to that baseline.
- Insist on transparency and clarity on how your usage and cost is measured. Check on these measures monthly, quarterly and annually.
Bottom line for energy buyers and finance managers: While you’re evaluating a proposed energy investment or supply strategy, be sure to focus on the underlying process, data and analytics so that you can verify that the project or strategy that you’re employing is effective and delivers promised returns.