Energy Analytics Approach
The common approach to energy cost reduction focuses on basic energy efficiency, basically, to use less energy. This can be a good place to start. However, complex energy environments, constrained by complicated tariff rate structures require a more sophisticated and analytical approach.
Many energy cost reduction efforts fail because they neglect to take into account 2 crucial factors:
- Energy use and generation must support the business and scale as business conditions change; and,
- Energy cost reduction is not necessarily directly related to energy usage reduction.
Depending upon the tariff, reducing load may not save money, and simply shifting load to the wrong time can be expensive. Although business operating conditions may not offer a lot of flexibility, real energy analytics can help chart a path to success.