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Building Operating Management

Facility Energy Management Produces Real Financial Benefits





Energy management can produce real financial results. The Energy Star program has numerous examples of long-term energy management successes. Companies of all types are recognized for producing significant energy savings (cash savings) through the careful application of energy management improvements. Some companies are repeat Energy Star Partners of the Year because they consistently generate year-over-year energy consumption savings and thereby contribute to profitability and long term financial health.

Ultimately, energy management projects are about the conservation of cash or company resources. Energy management can be part of a company's strategic plans by affecting the operating costs of its buildings while generating other benefits, such as better lighting, better comfort, and less downtime. Downtime avoidance could be worth more to the company than the energy savings for facilities like data centers, hospitals, and manufacturers.

Some local governments are requiring commercial office buildings to reveal their relative energy efficiency performance in terms of MMBTUs per square foot of space. The idea is to drive energy efficiency by showing tenants that they can save money if they choose a building with energy costs of only $1.50 per square foot versus a building costing $5 per square foot.

Business is becoming more competitive and smarter. Facility managers can use energy management projects to help their companies and their buildings be more successful by developing and investing for long term success. Buildings with higher net operating income (NOI) are literally worth more since buildings and business values are determined by a multiple of their NOI.

Richard G. Lubinski, CEM, CEA, CDSM, is president of Think Energy Management LLC, an energy consulting firm. He can be reached at rick@think-energy.net.

Candidates for Energy-Efficient Replacements graphic


posted on 12/23/2013

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