Committed Energy Efficiency Strategies Work

AMERICAN facility managers with committed energy efficiency programs save more energy and hence money for their businesses. This is the conclusion of a survey by risk management company DNV GL.

The comprehensive survey of nearly 500 commercial facility managers across the United States looked to analyze the current patterns of energy management and efficiency investments in large and mid-sized commercial facilities.

The potential for cost-effective savings for commercial customers is a 20-30% reduction of current use levels, but utility energy efficiency programs are finding it difficult to achieve their stated energy savings goals.

DNV GL undertook the Commercial Facility Pulse Survey to characterise the attitudes of commercial facility managers toward energy efficiency and to use these insights to identify strategies to increase program participation in that segment.

The survey probed the facility owners’ and managers’ attitudes about energy efficiency and the activities they participate in to increase energy efficiency in their facility and characterised three areas of business operations related to energy use: policies and resources, practices and investment, and the perception of the benefits of energy efficiency. DNV GL’s findings on customer practices highlight the importance of three strategies to motivate commercial customers to implement energy efficient technologies and behaviors:

1 An activated trade ally network that works closely with utility energy efficiency programs.
2 Targeted outreach to commercial facilities that promotes the general business benefits of energy efficiency.

3 Individual facilities can capture more energy savings through improved operations and maintenance practices and investments in lighting and HVAC technologies.

The Commercial Pulse survey was conducted in last quarter of 2015 and conducted with the facility managers of 497 commercial and industrial (C&I) facilities across the whole USA. The sample for this online survey was restricted to facilities with 50 or more employees, which represents 60% of all C&I employment. The results were weighted to reflect the population of C&I facilities by size, region, building type, and participation in utility energy efficiency programs.

DNV GL found that 53% of managers and business leaders in mid-to large-sized commercial facilities view energy efficiency as a proven operating and investment strategy. Also the survey reveals that 84% of the respondents who reported having taken steps to save energy reported at least one positive business benefit, such as lower operating costs or higher worker productivity.

One respondent, who is a supervisor in the facility management department of an office in Florida, said “We have faced a series of budget cuts over the past few years, and reducing our energy costs has been one important and strategic component of staying within our budget guidelines.”

The survey also revealed that executive leadership is a key driver to both setting policy and achieving energy management goals within commercial facilities. This was true independent of facility type and size; energy management practices and efficient technologies were more likely to be adopted in facilities where the decision to adopt these practices were made at the executive level.

DNV GL found that 65% of mid-sized and large C&I facilities set energy management goals, and 50% assign personnel to achieve them. However, larger facilities were more likely to have set energy management goals than small or mid-sized facilities. That said, even management at smaller facilities are committed to reducing energy use; an assistant manager in a retail facility in Massachusetts reported that “We strongly believe that energy is just going to become a bigger and bigger expense, and finding new ways to cut costs in that area are key to future success.”

Another finding of the study was directly related to the impact of strong energy efficiency programs. In those states where utilities are required to run energy efficiency programs, facilities were 12% more likely to install LED lighting and 21% more likely to install high-efficiency HVAC.

The study found that strong energy efficiency programs are helping to accelerate the adoption of energy efficiency practices and technologies by guiding customers to emerging technologies, supporting vendors in developing products and sales efforts, and reducing the risks of large investments by providing incentives.

The survey also indicated that 52% of commercial facility managers relied heavily on equipment and service vendors for advice on energy efficiency projects. They also looked for assistance from publicly funded programs, including federal, local, or state government programs as well as utility energy efficiency programs.

Check out the survey here.

Tuesday 24th January 2017

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