Why is what is c&i energy Better?

A1 Energy guides C&I building decision makers in the Mid-Atlantic Area on developing this comprehensive approach to their facility&#;s energy optimization, to become better, more effective energy managers. The team takes their extensive energy finance knowledge and develops a strategic and customized energy management approach, tailored to each facility&#;s needs. 

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Since every facility has a unique set of circumstances, there is no template for energy optimization. What can be understood are the three significant areas every C&I building energy manager must carefully analyze in accordance to their facility&#;s unique set of circumstances. 

Our President, Lori Porreca, recently addressed this three-pronged approach to energy optimization in a white paper. The white paper which walks building managers through the areas necessary to understand within an educational framework, which once understood, can be applied to any C&I building energy optimization scenario. Here is a brief introduction to the three-pronged approach that every energy manager should consider. 

1. Energy Efficiency is one of the first areas building owners must analyze to understand how and where building energy improvements may lie. Getting a handle on audits, benchmarking, current energy profiles, and creating plans for efficient LED lighting retrofits, can help leverage those immediate energy opportunities. This is where many federal, state, and municipal programs, such as rebates for commercial and industrial buildings will be found. 

2.Strategic Energy Purchasing is vital in the process of energy optimization. Professional energy procurement services help C&I management teams identify their best strategies, lock down the best energy contracts with the most appropriate energy suppliers for their needs. Energy procurement requires a complete understanding of a facility&#;s energy demand through energy market monitoring, analyzing where energy peak load can be reduced, overseeing suppliers, contracts and knowing the best contracts to negotiate for the best results. Reducing energy bills via expert procurement can help shift funds toward future projects like Solar PV, the final step toward energy stabilization and optimization. 

3. On-site Energy Generation requires in-depth analysis and feasibility studies for on-site energy generation solutions that help with cost control and energy independence. Relying solely on external energy supplies is increasingly risky. Zero Capital and Power Purchase Agreement (PPA) models have now opened the floodgates for energy options such as Solar PV and Combined Heat & Power Systems (CHP) implementation without upfront capital costs for infrastructure installation. 

Recent headlines in the world of energy management illustrate an evolving landscape of vendors seeking to appeal to commercial and industrial (C&I) customers. Well-known names in the utility space and global conglomerates are betting on enhanced capabilities: Edison launched an energy services business, GE launched Current, Engie took a majority stake in Green Charge Networks, and Centrica bought Ener-G Cogen.

In a new report, The New C&I Energy Management Landscape: Integrating Procurement, Efficiency, Generation and Storage, GTM Research outlines changes unfolding in the energy management space, as well as discussing the reasons behind this shift and the strengths of different vendors.

The market is influenced by the declining costs of distributed energy resources, as well as changes in corporate strategy and objectives. Streamlined energy spending, reliability of service, and sustainability are all at the forefront of decision-makers&#; minds. Responding to these needs, vendors are bundling energy services and technologies to deliver strategic outcomes to their clients, referred to as &#;energy as a service."

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FIGURE: The Vendor Landscape for Integrated C&I Management

Source: The New C&I Energy Management Landscape: Integrating Procurement, Efficiency, Generation and Storage

In analyzing the merits of each major market player, GTM Research notes that while utility affiliates may have longstanding relationships in the sector, technology conglomerates have the benefit of being able to execute on agreements with geographic dispersion. Location can be a factor in the U.S. market, where different services can be more or less attractive from state to state. While solar PV and energy storage are financially attractive in a minority of states, energy-efficiency solutions of different makeups can be implemented cost-effectively in every state nationwide. Still, key states stand out as more conducive to the integrated model than others; these include New York, California, Texas and Maryland.

FIGURE: Viability of Individual Energy Management Solutions Varies State by State

Source: The New C&I Energy Management Landscape

It is clear that vendors are betting on the potential of bundling services. An analysis of market size for each bundled service reveals their relative value. &#;Off-site solar&#;s ability to serve a significant portion of a customer&#;s energy needs makes it a large potential market. But the energy-efficiency market is worth more today due to its maturity and to the wide scope of technologies and services it covers, from lighting retrofits to control system upgrades to boiler replacements,&#; explained Andrew Mulherkar, grid research analyst and author of the report.

FIGURE: Approximate Contract Value for Illustrative Combination of C&I Energy Management Services

Source: The New C&I Energy Management Landscape

As an emerging market, a fully integrated solution for C&I energy management still has challenges to overcome, particularly in domains such as technology, financing and corporate norms. However, as vendors continue to move toward an advisory-based approach, customers will be able to better assess the suitability of various technologies and techniques against their energy management needs.

Learn more about the report here.

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