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Message from our CEO

Why Smart Energy Management is important to organizations now and in the future

North America is known to have the highest energy usage per capita. From our observations North Americans have been complacent and inactive as it relates to managing energy because of our abundance of supply, reliable access and affordable prices. Some energy prices however, have been moving higher in recent times. Today many organizations complain that high energy costs they are paying is up to government to control for them. They are wrong. It’s time for all organizations to start taking control and responsibility for their energy usage and costs.

I’ve been involved in the energy industry for 29 years now. One unchanging fact is that most organizations don’t even know how much they spend on energy in a year; hence, they treat energy as an uncontrollable cost. Customers will change out equipment and or lighting and think there is nothing else that can be done. Others measure their energy management performance based on how much incentive money they receive from the government for managing energy. From my experience, you would be hard pressed to find customers who spend more than a half of a percent of their annual energy budget on managing their usage and procurement of energy.

So why is energy not managed? There are several underlying factors. However, the primary reason is the lack of understanding of all the options available. Quite frankly, the sheer number of options and approaches that exist for customers to manage their energy can be overwhelming if not properly understood.

The energy industry is changing radically because of global conditions, technology and environmental concerns. There have never been more tools or big energy data available for customers to access to use to control energy usage and energy pricing. How does an organization decide what tools or approach they should use? For example:

  • How do I choose an energy supply or supplier that is reliable and makes economic sense both now and in the future?
  • What type of energy do I use? Should I make changes to types of energy the company uses? What makes sense for the company?
  • Do I hire an energy manager, or assemble a team of existing workers within the company?
  • Do I generate electricity on site? Does it make sense to do so?
  • Regulated and deregulated energy markets are providing more and more options for customers to consider implementing to reduce grid peak demand and reduce the need for future generation and transmission lines. Should we do this at our company? Does it make sense based on how we produce?

How can one person or department consider and prioritize the best options available, when they have limited time (and possibly limited buy in or authority within an organization) to explore and understand all facets of all options that are available to control energy costs for an organization?

The answer: Smart Energy Management. Taking this holistic and comprehensive approach to managing energy requires the entire organization to be proactive and aware of energy cost and usage, and how it is used or consumed on a constant basis throughout the year. A team approach ensures that energy savings are sustainable, as there is not just one key person that is responsible for managing energy. It ensures that an organization’s actions and efforts are made transparent internally, reporting how different actions by people in different departments or positions provided annual savings or cost avoidance, thereby enhancing operational reliability within the organization. Organizations that initiate and continue to pursue smart energy management activities are not driven by incentives or new regulations but because the process itself has proven to be a great business benefit to everyone associated with that organization, including the “C-suite”, employees, customers, and the entire community.

Organizations who we’ve seen implement Smart Energy Management have encouraged forward thinking within their organization. They tend to attract and retain great employees who are empowered and accountable for decisions they make. These organization and employees understand how sustainable energy management programming is a powerful risk management tool that they to need to use for long-term success.

The successful implementation of Smart Energy Management will provide your organization, community and country the ability to sustain itself and survive the transformations occurring with rising energy costs and climate change. This may sound dramatic and overstated perhaps, but there is evidence of climate change impacting business all over North America, and in fact throughout the world. The increasing frequency of devastating droughts, flooding, wildfires, ice, and snowstorms bringing cities to a halt for days, weeks and even months at a time are all evidence of our changing climate. Throughout the world, governments are beginning to take action by taxing for the carbon that we have been releasing into the atmosphere. So, regardless of one’s beliefs about climate change, its consequences are here and affecting everyone, in one way or another. The only way to help mitigate and adapt to survive the changing world conditions and climate change is to think and act differently about managing energy now and in the future.

 

David Arkell
President & CEO
360 Energy Inc.