measure with improve

How to Measure and Improve Your Energy for Business

Improve business’s energy performance through benchmarking

business icon  Introduction: The Importance of Energy Benchmarking for Businesses

Energy costs are one of the highest operational expenses for businesses. To maintain profitability and ensure environmental sustainability, companies need to track, analyze, and optimize their energy use. This is where energy benchmarking comes into play. By comparing your business’s energy performance against industry standards, you can identify areas for improvement, reduce energy consumption, and lower operational costs. This article provides a detailed guide on how to measure and improve your business’s energy performance through benchmarking.

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business icon  What is Energy Benchmarking?

Energy benchmarking is the process of comparing your business’s energy consumption to similar organizations or predefined industry standards. It allows companies to assess whether they are overusing or underusing energy relative to their size, industry, or location.

  1. Identify Inefficiencies: It helps uncover areas where your business is using more energy than necessary.

  2. Track Progress: Benchmarking allows businesses to set measurable energy reduction goals and track their progress over time.

  3. Compliance with Regulations: In some regions, energy benchmarking is mandatory for certain businesses and industries as part of government initiatives to reduce carbon emissions.

Many professional auditors or energy service companies offer specialized services to help large businesses complete this assessment and develop a plan for energy efficiency.

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business icon  How to Conduct an Energy Benchmark

Conducting an energy benchmark involves gathering data about your energy consumption and comparing it with relevant metrics. Here are the basic steps to follow:

  1. Collect Energy Data

    Gather data from utility bills, meter readings, and energy management systems. This should include electricity, gas, and water usage.

  2. Establish a Baseline

    Calculate your business’s energy consumption over a specific period (e.g., annually or monthly) to establish a baseline for comparison.

  3. Use Benchmarks for Comparison

    Compare your energy consumption against industry standards or other similar businesses in your sector. You can use Energy Star Portfolio Manager or similar benchmarking tools to find industry-specific data.

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business icon  Key Metrics in Energy Benchmarking

Several key metrics are used to assess energy performance during benchmarking:

  1. Energy Use Intensity (EUI): EUI is a measure of a building’s energy use per square foot per year. It’s one of the most commonly used metrics for comparing energy performance.

  2. Power Usage Effectiveness (PUE): Primarily used in data centers, PUE measures the efficiency of power usage in a facility. A lower PUE score indicates better efficiency.

  3. Carbon Emissions: Some benchmarks track carbon emissions associated with energy consumption, helping businesses meet sustainability goals.

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business icon  Tools and Software for Energy Benchmarking

There are several tools and software platforms available to simplify energy benchmarking:

  1. Energy Star Portfolio Manager: A widely-used tool that helps businesses track energy and water consumption and compare their performance against similar properties.

  2. EPA’s Target Finder: Allows businesses to set energy reduction targets and measure progress toward those goals.

  3. Utility Management Software: These systems automatically collect and analyze energy data, offering insights into how energy is consumed and identifying inefficiencies.

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business icon  Improving Energy Efficiency Based on Benchmarking Results

Once you have conducted an energy benchmark and identified areas for improvement, the next step is to implement energy efficiency measures:

  1. Upgrade to Energy-Efficient Equipment: Replacing old or inefficient equipment with Energy Star-rated devices can significantly reduce energy consumption.

  2. Optimize HVAC Systems: Improving the efficiency of your heating, ventilation, and air conditioning systems can lead to substantial energy savings.

  3. Lighting Solutions: Installing energy-efficient lighting such as LED bulbs, along with sensors, can reduce unnecessary energy use.

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business icon  Industry Standards for Energy Performance

Industry-specific benchmarks vary depending on the type of business or building. For example, office buildings, retail spaces, hospitals, and manufacturing facilities will each have their own set of standards based on their unique energy needs.

  1. BREEAM and LEED certifications are commonly used for assessing and improving the energy performance of buildings.

  2. ISO 50001 provides a framework for businesses to develop and implement energy management systems, helping them improve energy efficiency.

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business icon  The Role of Energy Audits in Benchmarking

An energy audit provides a detailed analysis of your business’s energy use and offers actionable recommendations for reducing energy consumption. Energy audits can be used in conjunction with benchmarking to identify specific improvements that can lead to significant cost savings.

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business icon  Conclusion: Continuous Improvement Through Energy Benchmarking

Energy benchmarking is an essential tool for businesses looking to reduce costs, improve efficiency, and meet sustainability goals. By tracking energy consumption, setting benchmarks, and implementing energy-saving initiatives, businesses can make informed decisions that lead to long-term energy savings and operational improvements.

Insight from UtilityKing

At UtilityKing, we help businesses navigate energy benchmarking processes to improve efficiency and reduce costs. Our expert team assists with data collection, analysis, and identifying energy-saving opportunities to help you stay ahead in a competitive market.