WHAT IS INDUSTRIAL ENERGY?
Industrial energy is energy that is used in the industrial sector, and this accounts for 22% of the total US energy consumption. The EIA found that the largest consumers of energy in this industry are chemical companies, refineries, and mines. Combined, these three areas accounted for 58% of the total industrial energy consumption. This industrial sector primarily requires electricity for operating industrial motors, machinery, and equipment facilities that need heating, cooling, and ventilation.
ENERGY CONSUMPTION REQUIREMENTS
As you can see, commercial and industrial energy makes up the majority of the energy consumption in the US – they require a lot of power to operate and perform their essential functions.
According to the EIA, the increase in energy consumption required in commercial buildings has increased drastically in the last 30 years due to the more frequent use of electrical equipment. This equipment includes things like computers, printers, telecommunications tools, and monitoring equipment. Besides the electricity needed to make these things work, power is also required for cooling and ventilation to prevent them from overheating. Lighting is the largest use of electricity in commercial buildings, and it is one of the first areas companies target for energy cost savings.
How Do Businesses Handle Their Energy Needs?
CORPORATE ENERGY STRATEGY
How a company decides to source and consume energy has a significant effect on its cost structure. It also has environmental impacts, primarily regarding carbon emissions, as this is becoming increasingly important for consumers and investors. As expectations and new technologies change the way energy needs are met, businesses must adjust their corporate energy strategy accordingly.
When deciding on their corporate
energy strategy, a commercial entity must consider how much energy they
consume, the costs of that energy, and how that affects their bottom line.
Other considerations include their carbon footprint and how it aligns with
customer and investor expectations, as well as how do they compare to
competitors. Through answering these questions, executives can determine
opportunities for improvement and gaps that need to be addressed.
This can be translated into
strategic energy management, which is a long-term approach to achieve
continuous energy performance improvements. These improvements include reducing
energy consumption and spend, as well as increasing productivity and reducing
downtime. Even seemingly slight improvements like a 2% decrease in energy costs
can have huge implications for your business, especially when your total energy
costs are in the hundred million dollars range.
Creating an effective corporate
energy strategy can seem daunting, but the best course of action is to work
with a company like Champion Energy Services. We can provide you with the
optimum strategy that is built around your business and can give you larger
cost savings in the long-term.