Over obsession with “Savings” starts to cost organisations dearly, anything that does not straight away give X% savings isn’t looked at with interest, potentially ignoring the fundamental value addition it brings in sustaining #EnergyEfficiency or #EnergyProductivity improvement.
Without doubt Savings either in the form energy consumption or cost reduction or a combination, is something that drives decision making process when it comes #EnergyEffciency investments.
To be frank we cannot blame industries entirely for it, i mean that is the way most of products, solutions around #EnergyEfficiency have been sold to them. People have spoken about #ROI, #Payback etc, seldom people talk about aspects like Performance Management, Automated M&V, Automated Reporting & Scientific Budgeting, aspects that have greater impact on organisational and cultural change when it comes to #EnergyEfficiency #EnergyProductivity management.
Some of the forward looking organisations have realized that having a myopic view on ways to improve #EnergyEfficiency #EnergyProductivity will cost them dearly in the longer run. They are looking at driving changes that have a long term vision and an integrated strategy, they are not looking at executing things in isolation. That is going to be the differentiator.
Energy markets are transitioning fast; Energy Efficiency/Productivity is set to play much bigger role in the transitioning process. Energy Efficiency policies must reflect the new market sentiments and provide long term direction, which in most cases is found missing.
Different think tanks, development agencies and governments have sponsored/funded numerous studies and reports barriers to scaling Energy Efficiency and potential ways to overcome those barriers. The kind of data that has been collected over the areas has not been utilized adequately and is not digitally available.
Establishing central repositories and digitizing such data assets can help create better economic and social value out of data assets, information and insights that can be generated collectively could foster business model innovation, develop tools/applications to simplify energy efficiency, rationalize the cost of energy audits, encourage new age Entrepreneurs to leverage technology and #BigData to solve complex problems.
We have seen the impact of Shared economy in sectors like transportation, hospitality and media. It’s time that Energy Efficiency markets take a clue; open-up to create more value for every stakeholder.
Over last two months we have been engaged by two big companies from Textile and Automobile sector to dig deep into their data assets (Energy, Production, Process) and conduct a detailed data discovery process. Background being that both the organisations wanted to find out ways in which data could support their decision of improving #EnergyProductivity.
Though they were not completely aware about the sort of insights/ benefits the data discovery process could bring to them but they still wanted to do it with an open mind and without any possible constraints.
Because of the way in which #DataAnalytics has been sold to companies, their ability to look at the use cases is getting restricted to what’s being sold to them. Forward looking organisations are wanting to do more, develop their share of process driven IPs that could give them competitive advantage and be able to innovate on use cases. It is this approach that is letting some of these companies get the right strategy in place, implement solutions that fit their requirements and more importantly generate much more economic value out of their data assets than they would have been able to do otherwise.
I am afraid that we do not have enough businesses/companies investing in the #Data discovery process. Last year i had release series of Podcasts on use of Data Analytics in driving Energy Productivity improvement and better Energy Management practices in Industries. One of the important areas i touched upon was the link between Change Management and adoption of data driven processes in assessing, reporting and managing energy performance!
Once businesses are able to overcome legacy issues, challenge their conventional approach they would be in a position to embrace #Data and make the best of use of emerging technologies/techniques.
What is your take on it? Would love to hear on your experience.
As per the rule 8(3) the Companies (Accounts) Rules 2014 the Board report shall contain Disclosure of Energy conservation activities that happens in the financial year. Disclosure should include steps taken to conserve energy, utilization of alternative sources and capital investment on energy conservation projects.
In last week I went through many annual reports to understand kind of projects or initiatives leading conglomerates are taking in the Energy Efficiency landscape. Reviewed annual reports from over 10 large and around 15 midsize companies from diverse industrial sectors, to understand and analyze their thought process on Energy Efficiency or Energy Productivity in general.
Surprisingly most of the Energy Efficiency initiatives listed in the annual reports were to common projects like Installation of VFDs, replacement of CFL with LED lights, Power factor correction, and low-cost retrofit projects. They certainly meet the objective of complying with the regulatory requirements and reporting the bare minimum information as is required by the system.
With forward looking organizations taking scientific targets on Energy Productivity improvement, investors and stakeholders want to know more about how your company is poised to respond to challenges of tomorrow.
Some of things that companies can cover are:-
- Efforts being taken to utilize data assets?
- How is company planning to innovate on operational practices?
- What is the plan to use emerging technologies such as #IIoT, #BigData and #Cloud?
I genuinely think that annual report is a very effective way of communicating with stakeholders, reaffirming the company’s approach towards increased Energy Productivity and overall sustainability, otherwise it’s pretty much a lost opportunity.
Energy Efficiency markets have seen some renewed sense of urgency over the last couple of years. But there is one shift that has had the highest amount of impact and that is the transition or the intent of economies to double Energy Productivity over the next 10-15 years.
Looking at Energy Productivity widens the role that emerging technologies like #IIoT, #BigData and #Analytics would play and that is where preparedness or the lack of it would also come in to play, especially when it comes to Industries/conventional businesses.
For conventional businesses/industries to take up the task of doubling energy productivity would mean attempting to slowly kill the way they operate/do business now, it is like trying to unlearn/ undo most of things you have done in the past, question everything and find answers/solutions that would take them to the goal of doubling energy productivity!
It is difficult but not impossible. We will see organisations that make the most out of their data assets, develop IPs around their businesses are going to be more likely to leapfrog in this transition process. Ones that do not catch up will not just be left behind, but eventually have to kill their business/operational model anyways. Decision to kill it now; thereby giving you a chance to survive/lead is purely yours.
Trust me i never ever doubted that #EnergyEfficiency would be so critical for businesses/economies. Your thoughts?
We are seeing some amazing momentum in the Energy Analytics markets in India. Quite a lot of companies have been focusing on technology and building platforms, whereas we’ve taken a conscious approach to focus on developing IPs/Algorithms that can work on existing solutions and provide value addition to clients!
As we move to explore sectors like Commercial Buildings and add 2-3 industrial sectors in our list, we believe we are in the right place at the right time and perhaps doing the right things, would you agree?
Click on the LINK to listen to the final podcast, where I share my thoughts on future of energy analytics markets and our approach going forward.
Would be glad to have your feedback/comments/suggestions.
Last week #TERI hosted #WSDS. It’s twitter timeline was full of amazing thoughts/ideas on what next when it comes to tackling climate change, specifically in Indian context!
Considering that we’ve been actively involved in the Industrial sector, we wanted to sum up some of our thoughts on how Paris Agreement changes Industries thought process on Energy Management and how will Energy Analytics companies react to it?
Check out this video to know about the trends and changes that the markets would see in times to come.
What are your thoughts?
Episode 3 of the podcast series is out and this one is special.
Here we talk about challenges/risks that CXOs need to watch out for before designing and investing in a consolidated energy data strategy.
#EnergyManagement #EnergyProductivity #Innovation #FacelessReporting #Accountability #Innovation
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