How to Market Energy Efficiency Solutions to Decision Makers July 31 - 3:30 pm

1. 2002 State Energy Program/Rebuild America National Conference How to Market Energy Efficiency Solutions to Decision MakersJuly 31 - 3:30 pm Program Development

2. Energy Management that Meets Missions and Motives • Presented by: • Joe Whitefield, PE, CEM • Director, Center for Energy Efficiency • Middle Tennessee State University • jwhitefi@mtsu.edu (e-mail) • mtsu.edu/~cee (web-site) Program Development

3. Outline • Developing Energy Efficiency Programs that: • Relate to the Core Mission of the Organization • Establish the Expectation by Identifying Organizational Motives • Deliver Benefits that Support the Core Mission and Meet Expectations Program Development

4. Mission Understanding • Most owners (institutions, businesses, organizations, etc) do not have a direct reference to energy in their mission statement. • Some have an indirect reference to the effective or efficient delivery of services for their core business. • Energy management is typically part-time responsibility of Physical Plant Director Program Development

5. Mission Understanding cont’d • For most non-industrial owners the utilities budget is 2% - 5% of their operating budget • Owner Energy Summary • Not Core Business • Not Organized/Staffed to Address • Not Overly Concerned with Utilities Portion of Budget Program Development

6. Mission Understanding cont’d • Key Point #1 - Mission • Effective energy programs are often “sold” to owners on the basis that they: • Provide benefits directly related to the core mission • Can be integrated into the current physical plant structure and culture • Broaden the financial perspective beyond the top-line budget evaluations Program Development

7. Establishing Expectations • Satisfaction = Performance/Expectation • Assessing Motives • What are the reasons for an Energy Program? • Motivated by Needs? • Motivated by Opportunities? • Are Motives Shared? • Take the Test Program Development

8. Establishing Expectations - cont’d • Rate the Following Motivations • (0 - not important at all; 5 - very important) • Reduce Energy Consumption (0 1 2 3 4 5) • Environmental, Pollution, Natural Resources, Political • Reduce Energy/Energy-Related Costs (0 1 2 3 4 5) • Financial - Capital, Operational, etc. • Reduce Peak Demand Energy (0 1 2 3 4 5) • Utility Infrastructure, Capacity, Reliability Program Development

9. Establishing Expectations - cont’d • Reduce Deferred Maintenance/Augment Capital Maintenance (0 1 2 3 4 5) • Facility systems upgrades • Demonstration Projects (0 1 2 3 4 5) • Demonstrate new Technologies or Processes • Other (0 1 2 3 4 5) • Other motivations not articulated in motivation statements • Reference Additional Handout Program Development

10. Establishing Expectations - cont’d • Middle Tennessee State University • Test Results • Reduce Energy Consumption (0 1 2 3 4 5) • Reduce Energy/Energy-Related Costs (0 1 2 3 4 5) • Reduce Peak Demand Energy (0 1 2 3 4 5) • Reduce Deferred Maintenance/Augment Capital Maintenance (0 1 2 3 4 5) • Demonstration Projects (0 1 2 3 4 5) Program Development

11. Establishing Expectations - cont’d • Key Point #2 - Expectations • Identifying the clear motivations of an organization is the important first step in developing an energy plan that appeals to the expressed needs of the organization producing results that can be measured Program Development

12. Designing an Energy Program that Delivers • Now that we have established what is important to the owner we can consider the projects and initiatives that can deliver on those priorities. • Hint #1- In each area look for quick successes and achieve them. • Hint #2 - Don’t forget about the owners motives. Program Development

13. EE Retrofit Projects Capital ESPC/Utility Contracts Other EE New Construction Commissioning Retro-Commissioning Modified Operations & Maintenance Practices Utility Rate Negotiations Green Power Purchase Distributed Generation Recycling Metering/Sub-Metering Demonstration Projects Partnerships Other Designing an Energy Program that Delivers cont’dList of Energy Management Initiatives Program Development

14. Designing an Energy Program that Delivers cont’d • Key Point #3 - The Energy Program • An effective energy program consists of projects and initiatives that are developed and implemented to deliver benefits that specifically address the motivations of the owner in support of the core mission. Program Development