Controlling rising energy costs: An operator's guide

Controlling rising energy costs

An operator’s guide

Controlling rising energy costs An operator’s guide

In an era of ever-increasing concerns about environmental sustainability and financial stability, hospitality industries face a significant challenge: rising energy costs. This guide provides a comprehensive roadmap for operators to manage and control their energy costs effectively, highlighting the benefits of energy efficiency and exploring renewable energy solutions.

Understanding the energy cost challenge

According to the U.S. Federal Energy Management Program, businesses without proactive energy management programs are spending 10 to 45 percent more on energy per year than they need.

The surge in energy costs poses a tangible threat to businesses' financial health and sustainability. The hospitality industry, with its energy-intensive operations, is particularly vulnerable. Ignoring the impact of rising energy costs can lead to reduced profits and hindered growth. Recognizing that addressing energy consumption is paramount to longterm success.

As natural gas and electricity costs grow, businesses grapple with a significant operational burden. The financial strain caused by these escalating costs can hinder growth and impede profitability; add in the War in Ukraine and the increased natural disasters worldwide due to climate change, and the light at the end of the tunnel seems endlessly far away.

With 24-hour 365-day operations, hotels are one of the highest energy and water consumers per square foot. According to the Department of Energy, across America’s 47,000 hotels, it is estimated that the average guest room incurs nearly $2,200 in energy costs annually. By investing in and prioritizing energy efficiency, hoteliers can improve guest comfort and realize cost savings. Through the implementation of energy and water savings measures, these partners have amassed savings of $290 million since 2011.

Industry data underscores the urgency of this situation, revealing substantial increases in energy expenses over recent years. Addressing energy consumption isn't just a short-term fix; it's a vital step toward ensuring long-term success and sustainability for businesses in today’s world.

The impact on commodity prices

According to the Energy Information Administration, the global crude oil market exhibits significant volatility, with crude oil prices often fluctuating by more than $25 per barrel annually. These fluctuations in energy costs exert a profound influence on commodity markets and play a substantial role in shaping the health of the U.S. economy.

strategies for effective energy management

Pursuing efficient energy management isn't just a matter of minimizing utility bills. It's about embracing sustainability, maximizing operational effectiveness and positively impacting the environment

The following list of 12 select strategies illustrates the path toward achieving comprehensive energy efficiency. From harnessing cutting-edge technology to fostering a culture of mindful energy consumption, these strategies offer a roadmap for organizations to navigate the complex terrain of energy management and secure a brighter, more efficient future.

1. Energy audits

Analyzing energy usage through a comprehensive audit forms the bedrock for informed decision-making By establishing a baseline and pinpointing inefficiencies, businesses can set clear energy consumption and energy-saving objectives. These audits yield actionable insights, empowering businesses to prioritize and implement precise enhancements, ensuring optimal energy efficiency efforts.

2. Lighting upgrades

Switching to energy-efficient lighting solutions, such as LED bulbs and fixtures, curbs energy consumption and slashes maintenance costs. Additionally, these upgrades often result in improved lighting quality, creating a more comfortable and productive environment for employees and customers while reducing the environmental impact.

3. HVAC optimization

Ensuring energy efficiency starts with regular maintenance and upgrading HVAC systems, which not only reduces operational costs but also enhances the reliability and longevity of your HVAC equipment Prioritizing energy-efficient practices enables you to create a more sustainable and resilient environment, ensuring your business remains competitive and environmentally responsible.

The impact of Entegra’s energy management services

Entegra’s success stories speak volumes about the impact of our energy procurement services. We showcase real-world examples, which lead to remarkable reductions in energy costs. These case studies highlight the strategies deployed and the outcomes achieved, illustrating the value of collaboration with Entegra.

Saving a senior living community $700,000 annually in energy utilities

Supporting a sustainable environment and introducing a Utility Expense Management program to an enterprise food company.

Reducing energy usage and emissions for a university and initiating a $73,000 refund for excess electrical charges.

4. Building automation

Leveraging smart building automation systems enables realtime optimization of energy usage based on occupancy and environmental conditions. Implementing cutting-edge automation solutions empowers you to attain greater operational efficiency, curbing energy wastage while ensuring the comfort and safety of your occupants.

5. Energy management software

Harnessing real-time energy management software empowers businesses to monitor, analyze and optimize energy consumption. By leveraging data-driven insights, you can identify trends, establish energy-saving objectives and make informed decisions that not only trim operational costs but also reduce your environmental footprint.

6. Renewable energy integration

Incorporating renewable energy sources like solar panels offers a sustainable path forward. By harnessing clean and renewable energy, your business can reduce its reliance on conventional power sources, decrease greenhouse gas emissions and demonstrate a strong commitment to environmental stewardship.

RISING ENERGY COSTS

7. RCx

Retro-commissioning: Testing equipment and systems to ensure proper installation, calibration and performance; identifying issues to be corrected to optimize energy use. Implementing retro-commissioning not only enhances energy efficiency but also prolongs equipment lifespan, ultimately yielding cost savings and sustainability benefits.

8. Energy-efficient appliances

Opting for Energy Star-rated appliances and equipment delivers high performance while significantly lowering energy consumption. These choices not only save you money on utility bills but also align your business with eco-conscious values, showcasing your dedication to sustainability to both customers and stakeholders.

9. Behavior change programs

Engaging employees in energy-saving behaviors, such as turning off lights and equipment, can produce meaningful energy reductions. Fostering a culture of energy consciousness among your staff not only leads to cost savings but also demonstrates your organization's commitment to corporate social responsibility, enhancing your reputation as an environmentally responsible business.

10. Demand response programs

Proposing incentives to adjust or reduce electricity consumption during peak times aids grid balance. This not only stabilizes the energy grid but can also yield financial benefits, reducing electricity expenses and serving as a prudent, cost-effective approach to managing energy consumption while bolstering grid reliability and sustainability initiatives.

11. Energy monitoring and benchmarking

Benchmarking and energy monitoring are crucial for tracking progress and identifying cost-saving opportunities. By evaluating your energy performance against industry standards, you can make data-driven decisions to continually enhance energy efficiency and sustainability, all while averting additional cost increases when issues arise.

12. Energy procurement services

The opportunity to secure energy supply contracts at competitive rates, translates into substantial overall energy cost reductions Energy procurement services like Entegra work with you to not only optimize your energy expenses but also support your commitment to sustainability and responsible resource management.

Entegra's expertise in energy procurement

At Entegra, we have extensive experience in energy procurement and management. Our dedicated team of experts is well-versed in:

Navigating energy markets and identifying opportunities. Implementing strategies that optimize energy usage. Reducing overall energy consumption.

Entegra stands ready to be your trusted partner on this journey, offering tailored solutions and expertise that pave the way to a brighter, more sustainable future.

Taking action: Your company’s path to lower energy costs

By embracing the strategies detailed in this guide, businesses can unlock many benefits ranging from enhanced financial stability to a reduced environmental footprint.

As your business navigates the landscape of rising energy costs, your operations will mitigate financial strain and contribute to a more sustainable future. Embrace the challenge and seize the opportunity to optimize energy usage, foster efficiency and bolster your bottom line.

Customized energy solutions

Tailoring energy solutions to meet the unique needs of businesses has become an essential practice in today's dynamic market. These strategies align precisely with operational requirements by leveraging personalized assessments and consultations, translating into tangible cost reductions and improved efficiency.

Resources and other information

In our commitment to empowering businesses, Entegra provides additional resources to support your energy-saving efforts.