Albert Einstein

improving the triple
bottom line

 

the goal

Properly structured, energy efficiency programs pay for themselves by using energy savings to pay for the capital improvements needed to generate the targeted savings.

 

an inescapable irony

If a company is not energy-efficient, whether or not it adopts an energy-efficiency program, it is anyway paying for it.

 

an inescapable truth

If a company is not energy-efficient, the cost of doing nothing can be significant. And when directors and/or shareholders realize the cost of doing nothing, managers beware...

 

 

Services: see also

 

energy efficiency projects

 

  • Overview
  • Energy Projects
  • Aligning incentives
  • Financing

 

overview

I provide advice relating to the structuring, financing, commissioning, implementation and monitoring of energy performance projects.

These are viewed as different to other investments in the sense that they provide an immediate positive cash flow that results from lower energy bills. The rate of return on energy-efficiency investments is often quite attractive and higher and more secure than returns available on the stock market. Capturing the best rate of return is complex, however.

They are also viewed as delivering the triple bottom line of improved financial performance, environmental performance and social impact.

 

 

 

energy performance projects

These projects are viewed as different to other investments in the sense that they provide an immediate positive cash flow that results from lower energy bills.

The rate of return on energy-efficiency investments is often quite attractive and higher and more secure than returns available on the stock market. Capturing the best rate of return is complex, however.

 

 

Aligning incentives

While energy performance contracts are financially attractive, they are also quite complicated—particularly with respect to establishing defined baselines and monitoring performance.

Because often fees are earned from energy savings, what is important is aligning the goals and incentives of the parties so that everyone has a financial incentive to maximize energy savings.

 

 

Project financing

Although up-front capital for energy efficiency projects is often hard to find, there is a growing industry that offers different options to finance these projects.

In addition, there are federal and state initiatives designed to increase and encourage investments in energy efficiency.

The preferred method of financing are those financing instruments that are off-balance-sheet transactions.