Your Energy Journey Starts with Total Energy Management
CommercialJan 13, 2022
Every organization, regardless of size or function, is significantly impacted by how they source and use energy for their operations. From optimizing energy procurement strategies and controlling costs, to meeting ever-growing stakeholder demands for efficiency and sustainability, implementing the best solution to meet your unique needs and goals presents a variety of complex challenges.
First and foremost is determining where and how to get started, especially for organizations with vast portfolios. With so many considerations, such as the diversity and complexity of rate structures, varying facility characteristics and energy policies and incentives to name a few, this can be a daunting task. Organizations can get overwhelmed by this and decide to address their energy needs one at a time. Unfortunately, with this myopic approach, companies don’t consider all of their options and savings potential and often fall into a trap of looking for the best vendor presented solution, rather than strategically thinking about their overall energy opportunity.
Total Energy Management – An Integrated, Holistic Approach
Rather than examining each element individually, Total Energy Management is an integrated approach that synthesizes opportunities from all energy domains into programmatic solutions. This approach is founded on the consistent, end-to-end process of:
Surveyingthe landscape for all available opportunities;
Assessingopportunities for your specific organizational needs;
Developingstrategies for long-term success;
Executing programs timely and efficiently; and
Managing programs for ensuring a culture of continuous improvement
This allows for the discovery of more opportunities for improvement and facilitates the delivery of optimized results that are more than a sum of individual parts. Most importantly, the Landscape and OpportunityAssessment phases are designed to meet the previously noted challenge of where and how to begin. Let’s take a deep dive into each.
Getting Started – Surveying the Landscape
By first understanding the landscape of opportunities, organizations are better suited to effectively prioritize their initiatives and implement an optimized approach that considers all energy needs. The Landscape Assessment phase is tailored specifically to an organization’s business needs and goals across the portfolio, rather than focusing on individual sites, and effectively uncovers opportunities across all energy domains. By conducting this stage up front, organizations are left with a thorough survey of all potential options for each site or region in their portfolio, which can then be further analyzed to identify the most feasible solutions.
For example, an organization may have a need for energy procurement assistance at a few select sites within their footprint and may also have energy efficiency and decarbonization goals that cover their entire portfolio, such as achieving 100% renewable energy generation by a target year. By first surveying the landscape, the organization will obtain a basic understanding of relevant energy markets and products, and also uncover any and all opportunities to meet stakeholder demands for sustainability. Furthermore, they may identify incentives that promote energy efficiency initiatives and demand reduction programs as incremental revenue opportunities. Ultimately, the outcome of the Landscape Assessment is a detailed valuation of potential solutions for each energy domain by region and serves as the inputs for the subsequent Opportunity Assessment.
You Know Your Options…What’s Next? – Assessing Opportunities
After the stage is set through the Landscape Assessment phase, the Opportunity Assessment phase begins, which is perhaps the most vital step in ensuring the success of an organization’s energy journey. The Opportunity Assessment is focused on thoroughly evaluating each of the identified opportunities from the Landscape Assessment phase through advanced analytics and insights in order to unlock value and realize objectives. In each of the surveyed energy domains, the Opportunity Assessment should take a deep dive to identify and prioritize the most feasible options into a holistic solution. The outcome of the Opportunity Assessment phase is an established framework for developing and implementing the most optimal execution strategy, with opportunities prioritized into a synthesized and holistic solution.
For example, if the main priority for an organization is decarbonization by a certain percent, it would be advantageous for the company to assess all energy sustainability options across an organization’s portfolio including Renewable Energy Credits (RECs), energy efficiency projects, offsite renewable energy agreements and behind-the-meter solar generation, rather than developing a preconceived strategy related only to RECs or solar. In doing so, an organization will understand the cost, benefits and risks of each tailored specifically to their needs and goals. During this exercise, energy market trends will be evaluated, load profiles studied, financial pro-forma developed, and supply product options modeled while considering all sustainability objectives and options, in order to effectively prioritize potentials from each domain into the most suitable solution. This strategy is far more effective than taking a separate approach to each energy objective or domain, as any decisions made, or tactics implemented will always directly impact all other facets of an organization’s energy success.
Strategize, Execute, Manage
Once the most feasible opportunities have been analyzed, the outcome will lead to the development of a strategy as well as establish an execution program management framework for continuous improvement and success. This thorough and consistent process will ensure that all opportunities have been evaluated and nothing has been overlooked. Also, by looking at the organization’s energy needs holistically, you have established the foundation for success in all energy related areas rather than one immediate need.
From prioritizing and selecting the right opportunities, to developing an implementation strategy and ensuring flawless execution and management, AEP Energy is uniquely qualified to be a trusted advisor at every step of the Total Energy Management journey. As an energy company, we are not merely observers, advisors, or administrators, but active participants across all energy domains, with a deep understanding of how customers use energy and vast experience with energy markets and utility rates. Regardless of where you are on your energy journey, AEP Energy is the perfect partner for you, with a proven track record of over 100 years.
Interested in Learning More?
AEP Energy is excited to get your business on a new path to an integrated, holistic approach. To learn more about Total Energy Management, contact Mike Hamrock, Senior Customer Program Management Specialist at firstname.lastname@example.org. If you are already working with an AEP Energy sales representative, they will happily provide more information about this approach.
AEP Energy does not guarantee the accuracy, timeliness, suitability, completeness, freedom from error, or value of any information herein. The information presented is provided “as is”, “as available”, and for informational purposes only, speaks only to events or circumstances on or before the date it is presented, and should not be construed as advice, a recommendation, or a guarantee of future results. AEP Energy disclaims any and all liabilities and warranties related hereto, including any obligation to update or correct the information herein. Summaries and website links included herein (collectively, “Links”) are not under AEP Energy’s control and are provided for reference only and not for commercial purposes. AEP Energy does not endorse or approve of the Links or related information and does not provide any warranty of any kind or nature related thereto.
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