Strategic energy planning considers aggregate costs, often into the millions of dollars, having the effect of amplifying both mistakes and opportunities. Strategic Energy Group assists our clients in avoiding the former and maximizing the latter.
Strategic Energy Group was created to minimize risk and exposure to energy costs over the long term. To this end, we offer Strategic Energy Planning and Risk Management.
Unlike most private real estate investors who must coordinate the goals of multiple investor partners, housing authorities, government entities, universities, and other single-owner groups can develop a strategy to leverage the savings from high yielding energy savings measures to fund subsequent conservation efforts or capital needs. The resulting ‘revolving loan fund’ or cash flow waterfall effect can be used as a financing source over and over again.
All strategies for energy management need to grounded in reality and hard data. Because of this, we begin our process with the “Discovery Phase”, which consists of investment grade energy auditing and utility bill analysis. We establish a baseline energy use for each building within a portfolio, and then consider the opportunities presented by the portfolio as a whole, and available sources of financing including low interest loans, and state, Federal, and other rebates and incentives.
Based on the analysis of the Discovery Phase, we develop the Five Year Strategic Plan. Most projects implement the highest yielding measures in Year One, using the resulting cash flow to fund subsequent improvements or to address non-energy related capital needs.
Because the decision making infrastructure is developed in Year One, the owner has access to these tools throughout the lifecycle of the project. In later years, these tools can guide decisions around capital planning and continued management of energy pricing volatility, and can accommodate changes in financing terms, energy pricing, capital costs, and other variables.