Energy Incentives

The CFO asks the Corporate Energy Manager, “The numbers for this energy efficiency project look too good to be true - $334,000 in annual energy savings requiring a $89,000 investment (after the energy rebate) with a simple ROI of just 3 months?” “How do we know the reduction in kWh useage, which the energy auditor has promised, will actually happen?” “Why don’t we just deploy this same capital into a production project where we have more experience and confidence in the expected ROI?”  

The recently hired Corporate Energy Engineer answers, “Those are the right questions to ask - we strongly believe in this opportunity for the following reasons.”

This paper presents a discussion on the topic of Electric Demand Management as it relates to electric tariff rates, new power generation, and incentives to curtail peak usage.