1. INDUSTRIAL ENERGY:
Counseling the Marriage Between
Energy Users and Efficiency Programs
Christopher Russell,
Principal
Energy PathFINDER .com
(443) 636-7746

2. About Christopher Russell, C.E.M., C.R.M.
n Independent consul?ng since 2006
Principal, Energy Pathfinder
n Visi?ng Fellow, American Council for an
Energy Efficient Economy, 2012+
n Energy Manager, Howard County, MD,
2010-2012
n Director of Industrial Programs, Alliance to
Save Energy, 1999-2006
n Comm. & Indus. Program Manager, American
Gas Associa?on, 1995-1999
n MBA, M.A., University of MD;
B.A., McGill University
2 ©2013 Energy PathFINDER.com
About Christopher Russell

3. ENERGY
PROGRAMS
INDUSTRIAL
FACILITIES
3 ©2013 Energy PathFINDER.com

4. Industrial EE Programs,
2000 - 2011
• Lots of energy assessments, rebates, and
investment incen?ves.
• Lots of poten?al le on the table.
The groom has courted the bride….
4 ©2013 Energy PathFINDER.com

5. Tradi?onal Program
Content: A Review
• Technical assistance
• Hardware & equipment upgrades
• Prescrip?ve and custom incen?ves
• Implementa?on rates ~20-30%
Why does the bride ignore the groom?
5 ©2013 Energy PathFINDER.com

6. A Reluctance to, um,
Consumate…
• She doesn’t know what she’s missing?
True, to an extent.
• Varia?ons in willingness, mo?va?on, pace.
The bride has other priori5es to consider.
• Groom uses ?red old lines.
One-size-fits-all program offerings….
Doesn’t suit her mood right now.
6 ©2013 Energy PathFINDER.com

7. ACEEE Survey, 2012
• 30 stakeholders:
– 20 end users (10 SME under $10B, 10 large $10B+)
– 10 facilitators
• Published report: Understanding Industrial
Investment Decision-Making
hFp://www.aceee.org/research-report/ie124
7 ©2013 Energy PathFINDER.com

8. Market Segmenta?on:
Industry Sen?ments Toward
Assistance Programs
• Small sample (N=30)
• POSITIVE PROPONENTS (2 of 30).
Assistance pays for their job.
• MOTIVATED OPPORTUNITISTS (10 of 30)
Priori?ze energy improvements ONLY if incen?ves available
• CASUAL OPPORTUNISTS (8 of 10)
Invest as normal, pick up incen?ves if available
• DISMISSIVES (8 of 10)
Hos?le to program assistance: ?me, effort, appearances…
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9. Limits to Progress
• Lack of mutual understanding
(Facili?es vs. Corporate)
– Confirma?on bias
– Inappropriate analogies
– Champion bias
• Management turnover
• Iner?a reflects tradi?on, turf
• Failure to connect EE outcomes with
career interests
9 ©2013 Energy PathFINDER.com

10. PrioriRes for Energy Program
Administrators
• Screen facili?es for recep?veness
Money, authority, need
• Quan?fica?on of risk and returns
For accep5ng and rejec5ng proposals
MONETIZE ENERGY IMPROVEMENTS
See PDF ON (www.energypathfinder.com)
10 ©2013 Energy PathFINDER.com

11. Cri?cal Success Factors
• Leadership-inspired vision across department boundaries
• Energy management program of internal design and making
• Champion to persuade and influence on a daily basis
• Team staffing
• Proac?ve, efficiency-minded work culture
The bride’s dowry includes suppor<ve bridesmaids
11 ©2013 Energy PathFINDER.com

12. Honeymoon First?
• Recognize: ENERGY MGMT = CHANGE MANAGEMENT
• Sponsor energy manager pilot placements*
• Speak to core business agendas
Rate and magnitude of wealth created.
• Good for the company? Yeah, but...
What’s good for the facility manager’s career?
From cost center to profit center
From costs savings to boos5ng return on invested capital
ENERGY MGMT = RISK MGMT = FUTUREPROOFING
12 ©2013 Energy PathFINDER.com
*Published report: Onsite Energy Manager Pilot Programs
hFp://aceee.org/research-report/ie132

13. YOU-TUBE: search “Energy Pathfinder Investment Calculator”
The Industrial Energy Harvest
North American Energy Audit Program Best Prac?ces
Energy PathFINDER .com
Christopher Russell
@ENERGYpathfndr
Feb 2008 June 2010
THANK
YOU!