|
The Executives for Energy Efficiency project, initiated in January 2003 and culminating its first phase in July 2003, is a New York state-based study of corporate receptiveness to energy efficiency implementation. The mission of this project is to develop a strategy that will “motivate New York business leaders to improve business performance through energy efficiency.” This project is coordinated by the New York State Energy Research & Development Authority, the U.S. Department of Energy, and the Alliance to Save Energy. Read the full report in PDF format (217 KB)
This effort secured the advice and direction of a Steering Committee of business stakeholders from New York State. Through a series of meetings, discussions, and case study analyses, this project articulated a set of common hurdles to the implementation of energy efficiency initiatives. These hurdles are listed in the table (below). Each hurdle is defined by a business issue, presented here with a suggested strategy for overcoming that hurdle. In this analysis, the business issues include tariff concerns, the organizational design and pursuit of efficiency initiatives, and the cost-benefit and risk perceptions associated with project evaluation.
| HURDLES TO BUSINESS ENERGY EFFICIENCY |
| Segment |
Defining Business Issue |
Critical Success Factor |
Stragegy or Approach |
| 1 |
Lacks organizational stability |
Needs management stability, vision, champion |
Ensure success by screening early program participants |
| 2 |
Investment bias for core business |
Responsive only to episodic energy crises |
Step up program media/outreach during crises |
| 3 |
Fixation on energy PRICE; oblivious to EXPENSE |
Lowering of energy prices/tariffs |
“Risk buster” tariff for qualified projects |
| 4 |
Lacks technical appreciation |
Needs case studies, proven precedents |
Establish cadre of demonstration providers |
| 5 |
Defers to production/business climate risks |
Needs metering, documented hard data |
Coalitions of first-movers to pool data, risk |
| 6 |
Jaded by energy “snake oil” from the past |
Secure sponsors/providers with prestige |
State to pre-qualify energy service companies (ESCOs), architectural & engineering consultants, and similar service providers |
| 7 |
Conservative capital investment criteria |
Availability of guarantees and financing |
Apply SBC funds to debt pools, guarantees, tax credits |
| 8 |
Sensitive to fuel price/tariff risk |
Ensure tariff/price stability |
“Risk buster” tariff for qualified projects |
| 9* |
Company compelled to adopt energy efficiency |
Company edict, vision, or culture paves the way |
Recognize, award, and promote to industry peers |
SOURCE: Executives for Energy Efficiency Steering Committee & Staff
* Segment 9 does not represent a “hurdle,” but recognizes the proactive pursuit of efficiency.
|
