Energy Management Services

A Perspective

Energy Efficiency as a Resource

Energy efficiency (EE) is as real a resource as purchased energy or raw materials. But being hidden within the facility, it has to be uncovered by energy professionals whose job is akin to that of detectives. Their insights, skills and handy measuring equipment constitute their core competence. Keeping abreast with the latest technologies in the field of  their domain enriches their competence in that particular domain.  Needless to say that competent energy professionals are the most important links in the entire value network of energy efficiency resource acquisition.

Since this resource exists within the facility, it is  the first fuel and not the fifth fuel. Some ill-informed enthusiasts consider coal, petroleum, nuclear & alternative energy as the first four fuels.  It is time they realize and correct their erroneous stand.

The payback concept, commonly used in resource optimization decisions, is another error of obsolescence since  payback only indicates how fast is the capital recovered.  For example, a project costing Rs60Lakh with 10 years life cycle and annual saving potential of Rs15Lakh has a long payback of 4 years. The decision makers are likely to reject this project without realizing that it yields 25% return on investment.  The payback-blinded eyes cannot see Rs90Lakh (Rs150-60) as cost of doing nothing.

The international standard ISO-50001, which provides the proven path to improve energy performance, can also act as driver to EE resource acquisition, if some kind of Government incentive to subsidize costs for ISO-50001 certification is given. It can be similar to the one being given by the Min of MSME for ISO-9001 or incentives being given in USA or Germany for such certifications. It can be a game changer since  the  energy efficiency improvements can happen without needing any Govt monitoring. With one stroke of pen, Govt can set this revolution in motion that can significantly slash India's energy intensity and GHG emissions.  This would also create immense job opportunities for energy professionals who are in struggling stage at present. This would also add business opportunities for EE technology vendors. The virtuous cycle created by this revolution would need new job skills as well as skill development  opportunities providing vibrancy to overall economic growth. 

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