Handbook Of Financing Energy Projects (Repost)

Description

Most facility managers agree that energy management projects (EMPs) are good investments. Generally, EMPs reduce operational costs, have a low risk/reward ratio, usually improve productivity and even have been shown to improve a firm’s stock price.1 Despite these benefits, many cost-effective EMPs are not implemented due to financial constraints. A study of manufacturing facilities revealed that first-cost and capital constraints represented over 35% of the reasons cost-effective EMPs were not implemented.2 Often, the facility manager does not have enough cash to allocate funding, or can not get budget approval to cover initial costs. Financial arrangements can mitigate a facility’s funding constraints,3 allowing additional energy savings to be reaped.








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