Energy Efficiency Accounting to Demonstrate Performance

  • Seog-Chan OhEmail author
  • Alfred J. Hildreth
Part of the Springer Series in Advanced Manufacturing book series (SSAM)


An important method to reduce Greenhouse gas and energy is through energy efficiency projects. To gain top-level support and funding, a systematic approach is best using data and benchmarking other companies. Explaining why support and funding is required is the first step toward selling the need. To compete with other internal funding needs—product programs, asset sustainment, and maintenance…, a strategic approach is required utilizing company’s standard business practices for energy savings projects. A long-term plan including energy use forecasting, business as usual, the gap to meet the company’s goals, and the spending and savings for multiple years demonstrates a strategic plan to meet the objective. Based on the available funds, prioritize projects based on return on investment, CO2e reduction, and probability of success. Tracking each project throughout the planning and implementation process demonstrates accountability. Additionally, having a list of shovel ready projects and the status of each can provide an opportunity to gain more funding if it becomes available. Reducing next year’s operating budget by the savings is a good method to sustain the funding year over year. Standardized measure and verification methods provide confirmation to customers and management that energy efficiency efforts really reduce the bottom-line cost and provide an attractive return on investment.


Energy Efficiency Energy Intensity Carbon Reduction Energy Project Hurdle Rate 
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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.TroyUSA
  2. 2.RochesterUSA

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