Buildings emissions account for almost 40% of carbon dioxide (CO2 or carbon) emissions in the U.S. per year.1 Recent legislative efforts...

The post Preparing for Carbon Reduction Legislation appeared first on Constellation's Energy4Business Blog.

Buildings emissions account for almost 40% of carbon dioxide (CO2 or carbon) emissions in the U.S. per year.¹ Recent legislative efforts around the nation look to address carbon emissions produced from large buildings’ significant energy usage by assessing and optimizing facilities’ energy performance.

In this blog, we will explain the different types of legislative initiatives, dive into a few specific city and state mandates, and cover solutions that can help your business meet these legislative demands.

Types of Initiatives

Recent legislative actions involve comprehensive policies and programs affecting an entire state, city, town or community, often with multiple areas of sustainability focus including energy, transportation, waste and overall resilience.

Some states and cities have implemented specific programs focused narrowly on improving energy performance and reducing emissions within specific sectors or institutions. These programs involve the implementation of targeted measures with clear compliance requirements and penalties. The mandates apply to most commercial and some residential buildings over a certain square footage, based on each city’s requirements. The requirements include reporting, mostly through ENERGY STAR® Portfolio Manager®, of energy consumption, water usage, and in some cases, greenhouse gas (GHG) emissions. Most of these mandates are set on a sliding scale starting in the calendar year 2024/2025 to achieve their goals by 2050.

City Specific Mandates

These mandates make significant strides in addressing climate change, enhancing public health and fostering economic resilience. Some cities, among a long list of growing cities, that have begun to implement sustainability measures include:

• Boston, MA: The Climate Action Plan aims for climate neutrality by 2050. Strategies focus on energy efficiency, renewable energy, sustainable transportation and climate resilience initiatives. As part of these strategies, large buildings over 35,000 square feet are required to report their energy and water usage.
• Cambridge, MA: The Net Zero Action Plan targets carbon-neutral buildings by 2050 through stringent energy performance standards, renewable energy adoption and innovative waste reduction programs. While focusing on non-residential and large residential buildings, the plan also contributes to the city’s overall goal of urban sustainability.
• Washington DC: The Sustainable DC Plan targets a 50% reduction in greenhouse gas emissions by 2032, emphasizing green building standards, extensive public transit improvements and comprehensive recycling programs.
• New York City: OneNYC aims for 100% clean electricity by 2040 and carbon neutrality by 2050, focusing on retrofitting buildings for energy efficiency, expanding renewable energy and enhancing sustainable transportation.
• Chicago, IL – The Chicago Climate Action Plan aims for reducing the City’s carbon emissions by 62% by 2040. Strategies focus on increasing community based renewables, improving energy efficiency  and climate infrastructure projects, retrofit residential and industrial buildings, updated building codes for new buildings, sustainable transportation and innovative waste reduction programs. As part of these strategies, large buildings over 50,000 square feet are required to report their energy usage.
• Detroit, MI: The Detroit Sustainability Action Agenda enhances environmental quality and resilience through renewable energy adoption, urban farming and waste reduction initiatives.

State Specific Mandates

The California legislature passed SB 253, also known as the Climate Corporate Data Accountability Act (CCDAA), which will require large public and private companies doing business in the state to disclose their scope 1, 2 and 3 greenhouse gas emissions. Scope 1 covers direct emissions from owned or controlled sources, scope 2 refers to indirect emissions from the generation of purchased electricity, and scope 3 includes all other indirect emissions that occur in a company’s value chain.

Under SB 253, companies with annual revenue exceeding $1 billion will be compelled to disclose Scope 1 and 2 emissions starting in 2026 (for 2025 data) and subsequent disclosure of Scope 3 emissions.

Steps You Can Take

If your business is required to report on your energy usage or has corporate sustainability goals, creating a sustainability roadmap is important. A sustainability roadmap is a strategic plan that outlines a company’s sustainability goals, actions to achieve them, timelines and analytics for tracking progress. It typically involves a comprehensive assessment of a company’s current operational and sustainability practices, identification of key sustainability issues and opportunities, and development of a plan to address those issues and opportunities.

Constellation Navigator, a division of Constellation, delivers customized paths and sustainable solutions to help customers set and meet their environmental and operational goals. Driven by the advanced analytics from our technology platforms and advisors with decades of industry expertise, it provides strategies to help organizations reduce their carbon footprints. Constellation Navigator helps businesses solve challenges across the energy lifecycle, including carbon accounting, sustainability advisory, utility bill management and rebate administration.

Additionally, implementing energy conservation measures can improve a business’s bottom line through reduced energy use and cost savings, while also mitigating emissions. Energy efficiency upgrades that can help optimize your roadmap include:

• LED or other high-efficiency lighting that uses less energy and has a longer lifespan, leading to lower utility bills and maintenance costs.
• Water conservation measures, which are highly effective in reducing emissions due to the significant amount of energy required to produce potable water.
• State-of-the-art building automation systems that enhance energy conservation across facilities.
• High-efficiency heating systems, which reduce energy consumption and costs in colder climates.
• Onsite solar that decreases reliance on non-renewable energy and contributes to lower energy bills.

Learn more about our energy efficiency and emissions reduction solutions that can help you reduce energy usage and costs and manage your carbon footprint.

Contact Us Today

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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Selling the value of investing in energy efficiency across an organization, especially in competition for precious capital, can be a...

The post Financial Considerations for Energy Efficiency Upgrades appeared first on Constellation's Energy4Business Blog.

Selling the value of investing in energy efficiency across an organization, especially in competition for precious capital, can be a real challenge. Demonstrating the potential return on the investment (ROI) through long-term cost reduction — combined with quantifying the ancillary benefits associated with infrastructure renewal, such as reduced maintenance expenditures and the financial and operational impact associated with equipment downtime time — plus a life cycle assessment of current infrastructure is paramount when valuing the overall return of an efficiency initiative. In addition to the potential ROI, companies should also explore available funding options – even if the limited available capital is allocated elsewhere, energy efficiency projects can still be executed without it.

Here are a few tips when considering energy efficiency upgrades from a financial perspective:

Focus on Cost Savings, Not Energy Savings

To clarify benefits of an energy efficiency initiative, focus on the financial metrics. Financial analysts may not consider how many kilowatt-hours a given project may save or the intangible benefits of having a more sustainable business. They will, however, consider how much money they can save per month, what long-term expenses they can avoid and how this investment stacks up to others in terms of long-term ROI. There are indirect benefits as well – replacing the heating system may be expensive. Still existing equipment requires maintenance and upkeep costs, and in the case of a breakdown or emergency, those situations can be much more costly than a planned upgrade.

Communicate the Business Benefits

Energy management offers a variety of other far-reaching benefits that will ultimately cut costs. For example, the tools that allow for automation and control also help organizations collect data on energy consumption and pinpoint areas for further savings. Ultimately, better visibility of energy use (and waste) is critical for continuity in a market where more companies prioritize efficiency.

Highlight the Competitive Advantage

Speaking of continuity, energy management is becoming critical for staying on top of competitors. When considering using energy intelligence software, key highlights include productivity increases, waste reduction, and growth in asset values. Learn the metrics most important to the company’s overall goals and tie the specifics with clear financial metrics and visuals.

The Costs of Inaction

Inaction can be just as costly as action – if not more so. The status quo often “feels” less expensive than change, but in an environment of rising energy prices and sustainability-minded competitors, a lack of energy management could be far more costly than an investment in new infrastructure. Without in-depth insights into your company’s energy use, you won’t be able to analyze historical performance, predict demands or accurately estimate future costs. The explosion of Big Data and enterprise-level energy management software, such as Utility Bill Management platforms, is shifting most industries towards three-, five- and even ten-year plans, and those plans are only possible with accurate cost predictions.

Alternatives for Funding Energy Efficiency Projects

Funding is still one of the most critical aspects of energy efficiency projects, and not every company can bring money upfront to finance a project. The energy savings you discuss should eventually balance out your costs, but there are also ways to minimize or even eliminate the need for upfront investment. Constellation offers a number of solutions to fund sustainability initiatives and energy efficiency upgrades, including:

• Performance Contracting: – Performance contracting allows customers to fund building improvements with no upfront capital costs. Instead, the projects are supported entirely by the guaranteed energy savings over time.  A budget neutral financial structure provides customers an avenue for payment and an immediate justification of their investment.
• Capacity Load Response: At times of an electrical grid imbalance, grid operators may need to call for additional capacity to supply the increase in customer demand. By participating in capacity programs, business customers earn financial incentives to reduce their energy usage during high-demand events. Sign up in advance to curtail electricity usage to earn revenue on a monthly or quarterly basis.
• Bidding Program: Based on real-time or day-ahead market costs for electricity, businesses can bid in their proposed energy reductions, committing to curtail usage when hourly prices are high. They benefit by avoiding the cost of usage during peak hours, and they receive additional financial incentives from operators. Your company will ultimately receive payments based on the wholesale electricity price.
• Alternative Financing Vehicles: Many regions offer alternative financing opportunities through local, state, or federal grants and loans to reduce or eliminate upfront costs to the consumer at standard to below average interest rates. These provide a budget neutral financing approach to upgrade their facilities. A great example of a program like this is C-Pace where the financing is added to their annual property tax.

Implementing new energy efficiency initiatives—even on a small scale—can initially sound overwhelming from a cost perspective; however, such an investment can translate into reductions in energy consumption and maintenance expenditures, enhanced system operations and a lower carbon footprint.

To learn more about how our innovative solutions can help you cut costs, mitigate risks and use energy more efficiently, contact us today.

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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Reducing greenhouse gas emissions and efficiently managing energy costs are critical concerns for businesses today. Constellation, with its proven experience,...

The post Constellation’s Efficiency Made Easy® Solution helps Core Pipe Products Operate Sustainably appeared first on Constellation's Energy4Business Blog.

Reducing greenhouse gas emissions and efficiently managing energy costs are critical concerns for businesses today. Constellation, with its proven experience, helps businesses navigate cost management, ensuring they make decisions that are both cost-effective and environmentally sustainable. This expertise and support enable businesses to address common challenges, leading to significant results while making a positive impact on the environment and reducing energy costs.

Constellation’s Efficiency Made Easy® (EME) solutions help customers to identify, implement and fulfill efficiency improvements that can help reduce energy costs, modernize facilities and meet sustainability goals.

Recently, Core Pipe Products, Inc. in Carol Stream, IL utilized the Efficiency Made Easy® (EME) program to make significant sustainability investments.

Core Pipe Products Energy Efficiency Challenge

Core Pipe Products, a manufacturer of stainless weld fittings and flanges for industrial piping systems, faced several critical challenges in energy efficiency and management. Its 85,000 sq. ft. manufacturing facility consumes approximately 1,147,000 kWh of power annually, prompting the company to seek a more comprehensive energy management strategy. The operations team, lacking extensive knowledge of energy efficiency solutions, was burdened with economic, operational and scheduling limitations while trying to meet the company’s daily needs and energy goals.

Core Pipe Products also had issues with the complexities of energy solutions, such as on-site solar options. The confusion regarding rebates, warranties and other incentives made the process extremely frustrating.

The Solution: Constellation’s Efficiency Made Easy® Program

Using the Efficiency Made Easy® (EME) program, Constellation and alliance partner General Energy Corporation (GEC) worked together to identify, implement and secure the upfront capital for a rooftop solar system for Core Pipe Products. Comprised of over 1,600 solar panels and nine inverters, the system carries an impressive 802 kW DC capacity and is expected to yield an estimated annual solar production of 1,018,000 kWh.

Working with Constellation and GEC, Core Pipe Products secured and optimized various tax credits and incentives, enhancing the financial viability of its renewable energy initiative. These financial benefits include a 40% Federal Investment Tax Credit that provides the company with a substantial financial incentive for its investment; Federal Accelerated Depreciation which allows for a quicker cost recovery of the solar investment; and the Illinois IPA SREC Incentive which provides cash incentives over the first seven years after project completion, helping Core Pipe Products to financially execute its renewable energy initiative and manage its budget.

“Our entire team here at Core Pipe is thrilled at how well the effort was managed by Constellation and GEC. We highly recommend any manufacturer or power consumer to reach out and see how they also could benefit from their offerings. They are honest and exceeded our expectations in every way on this project.”

Steve J. Romanelli, Chairman and CEO, Core Pipe Products

Future Benefit and Priorities

The solar project that started in September 2023 matches about 90% of Core Pipe Products’ annual electricity usage and has also led to a significant reduction in the company’s greenhouse gas emissions, by approximately 722 metric tons of CO₂ per year. Additionally, Core Pipe Products is expected to realize over $76,000 in annual electricity, utility and maintenance cost savings.

Let’s Talk

Let one of our experts walk you through how Constellation’s Efficiency Made Easy® Program can help your organization realize cost savings through a reduction in consumption and an improved load profile, which will positively impact future energy costs and your environmental goals.

Contact Us Today

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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During the July Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the...

The post Webinar Analysts: How the Summer of 2024 is Shaping the Energy Landscape appeared first on Constellation's Energy4Business Blog.

During the July Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the summer hurricane season, natural gas consumption for cooling demand, and capacity markets.

Weather Report

During the webinar, the team discussed how the summer of 2024 was on track to be the hottest on record, with above-normal temperatures across most of the U.S. This has led to strong power demand from air conditioning, which is expected to continue throughout the remainder of the high-temperature months, especially in the East and South. Additionally, the forecasted extreme heat is expected to lead to a market-anticipated shift in the gas balance.

The tropical storm outlook was covered, and the experts expect the season to be very active due to warm water temperatures and favorable atmospheric conditions. The webinar covered the varying impacts hurricanes can have on the energy industry, depending on the path, intensity and duration of the storm, as well as the effects on infrastructure, personnel and the power grid. Hurricane Beryl was used as an example to illustrate how a storm can disrupt LNG production and demand in the Gulf Coast.

All Things Economic

The energy transition and economic factors that drive the shift towards non-carbon resources were also topics of discussion. The challenges and opportunities associated with replacing reliable generation sources with more variable alternatives, such as wind, solar and batteries, were highlighted. Additionally, the webinar covered the role of metals and minerals in the energy transition and how they affect the cost and supply of energy. Interest rate projections and potential Fed rate cuts to support the economy were also explored.

Natural Gas Fundamentals

Constellation’s energy market experts analyzed the factors influencing natural gas prices and balances for the summer of 2024. They highlighted that prices peaked in June due to tight gas balances but later declined as a result of increased production, reduced LNG exports and the impacts from Hurricane Beryl. In terms of natural gas storage, levels were reported to be above the five-year average and the previous year’s levels, indicating a sufficient supply. However, storage surplus levels are expected to decline as the summer progresses. The team forecasts that storage will end the injection season at around 3,900 Bcf, which is considered adequate to meet the upcoming winter demands.

Power Burns

The discussion on the natural gas market during the summer highlighted the impact of power burns, or natural gas used for power generation, due to heat, with an average of 47 Bcf per day in the week ending July 10. This figure not only surpassed the previous week’s numbers but also the rates from the same period last year. Expectations are set for these power burns to remain strong throughout the summer, supported by the weather outlook that predicts continued hot conditions and high demand for air conditioning. Projections estimate that power burns could average around 47 to 48 Bcf per day in July and August, potentially exceeding levels seen in previous summers.

Capacity Markets

The discussion then moved to capacity markets in PJM and New England, designed to ensure the long-term power system reliability by procuring sufficient resources to meet peak demand. PJM and New England have different capacity market designs, including variations in the forward periods, auction schedules, resource accreditation and pricing rules.

For the PJM capacity market, updates were provided on the current base residual auction for the 2025-2026 delivery year. This auction is notable because it is the first to implement the effective load carrying capability (ELCC) method, which values resources based on their availability and performance during peak periods. Challenges facing the PJM capacity market were also addressed, including FERC’s rejection of the offer cap and capacity performance reforms, the court’s reversal of the DPL South price reduction, and the potential for volatility and uncertainty in auction results.

Regarding New England’s capacity market, the team discussed significant changes planned for the 2028-2029 delivery year. These changes include transitioning from a three-year forward and annual auction to a seasonal and prompt year auction, as well as revising the resource accreditation process based on fuel security and deliverability. The goal is to improve efficiency, reliability, transparency and cost savings for customers. However, potential implications for market participants were noted, such as uncertainty regarding future capacity prices, the risk of stranded assets, and the need for more flexible and responsive resources.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, September 11 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: How the Summer of 2024 is Shaping the Energy Landscape appeared first on Constellation's Energy4Business Blog.

Now that your organization has successfully set a greenhouse gas (GHG) baseline and begun to analyze an accurate view of your facilities’...

The post Efficiency Upgrades: Implementing Energy Savings Projects appeared first on Constellation's Energy4Business Blog.

Now that your organization has successfully set a greenhouse gas (GHG) baseline and begun to analyze an accurate view of your facilities’ energy usage and patterns using utility bill management platforms, it is time to consider what energy efficiency opportunities your organization can take to advance your sustainability goals. The U.S. Department of Energy (DOE) identifies energy efficiency as one of the easiest and most cost-effective ways to combat the climate crisis, reduce consumer energy costs, and improve U.S. businesses’ competitiveness.¹

Energy efficiency projects are accessible, affordable and can directly lower GHG emissions through the reduction in utility consumption and associated utility expense. These upgrades can come in the form of simple infrastructure improvements, such as LED lighting and HVAC upgrades, or can take a more holistic, integrated approach in the form of a deep energy retrofit. If your organization is considering ways to reduce energy consumption here are some tips to start defining and prioritizing your facility improvements.

Start With a List

Before any upgrades can be considered, engage with key decision makers across your organization to draft an energy efficiency project list that includes potential upgrades that have become apparent after reviewing energy usage data. This list is instrumental when reviewing capital budgets, operations timelines, and requirements of systems in need of replacement. Creating the list should help identify what initiatives need to be prioritized so that you can create an actionable plan for implementation. The list also helps demonstrate the return on investment (ROI) of energy efficiency projects through long-term cost reduction and the life cycle assessment of current infrastructure, plus, it helps identify any available rebate or incentive programs.

Consider Funding Options Specific to Energy Efficiency Projects

Funding is still one of the most critical aspects of energy efficiency projects and not every company can finance a project upfront. Nearly 80% of energy buyers, when asked as part of the Smart Energy Decisions Sustainability Survey, mentioned budget concerns, with more than 30% of respondents saying they required a mechanism to finance their projects.²

There are several funding options that your organization can consider to make your energy efficiency projects become a reality.

• Performance Contracting: Working with your Energy Services Company (ESCO) can help you avoid paying upfront capital for energy efficiency projects, as they are funded through guaranteed cost savings over the life of your contract. This is a budget neutral financial structure providing customers with an avenue for payment and an immediate justification of their investment.
• Design/Build Programs: Funds for energy efficiency projects become available once capital requirements are met by the business.
• On-bill Funding Programs: Energy efficiency projects are recouped through monthly charges included in an electricity or natural gas supply bill. Constellation’s Efficiency Made Easy® (EME) program is an on-bill funding program that helps customers identify, implement and fund efficiency improvements that can help reduce energy costs, modernize facilities, and meet sustainability goals. You can realize cost savings through a reduction in consumption and an improved load profile, which will positively impact future energy costs and your environmental goals. This unique award-winning solution has helped to fund over $350 million in energy efficiency projects for more than 1,100 customers.
• Alternative Financing Vehicles: Many regions offer alternative financing opportunities through local, state, or federal grants and loans to reduce or eliminate up-front costs to the consumer at standard to below average interest rates. These provide a budget neutral financing approach to upgrade their facilities. A great example of a program like this is C–Pace where the financing is added to their annual property tax.

Monitor and Report on Your Energy Efficiency Programs

Once energy efficiency projects are implemented, utilizing your utility expense management system should make it easy to see tangible changes across your facilities’ footprint. Additionally, some organizations have documented some of the non-financial or operational benefits, such as positive employee and customer feedback.

Take Action Today

Implementing new energy efficiency initiatives—even on a small scale—can initially sound overwhelming. However, investments in energy efficiency will translate into reductions in energy consumption and maintenance expenditures, enhanced system operations, and a reduced carbon footprint. Working with a trusted energy expert like Constellation can help your organization identify, implement, and fund your energy efficiency projects.

1. https://www.energy.gov/energysaver/led-lighting
2. https://blogs.constellation.com/sustainability/survey-results-top-5-takeaways-from-proactive-energy-leaders-in-managing-their-sustainable-energy-plans

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Efficiency Upgrades: Implementing Energy Savings Projects appeared first on Constellation's Energy4Business Blog.

During the June Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the...

The post Webinar Analysts: A Record Hot Summer, Data Center Demand and Natural Gas Fundamentals appeared first on Constellation's Energy4Business Blog.

During the June Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the potential hottest summer on record, natural gas fundamentals, summer readiness assessments from NERC, and a deep dive into data centers and their impact in shaping the energy landscape.

Weather Update

The team began the webinar by covering the latest outlooks for the summer, including predictions of potentially record-breaking heat as the U.S. is hit with the first heat wave of the year. The pattern of heat is expected to continue throughout July and August, especially in the Midwest and to the East. The team also discussed the tropical storm outlook as the first named tropical storm, Alberto, is expected to bring rain to South Texas. The tropical storm season is expected to be active, with predictions of around 20 named storms. Other topics included recent volcanic eruption impact on weather patterns, U.S. drought updates and the transition from El Niño to La Niña weather patterns, which will enhance storm activity.

Natural Gas Fundamentals

The panel of energy fundamentals experts discussed the natural gas storage and production picture, which continues to trend bullish. Production has seen slight increases, narrowing the storage surplus, but the potential for a record-high summer temperatures has increased power burns across the U.S. LNG exports are running close to full capacity at 13 Bcf/day Additionally, the Mountain Valley Pipeline (2 Bcf/d), which has faced legal challenges and delays in its construction, was approved by FERC to begin commercial operation on June 11.  Volumes on MVP should begin to ramp up to 2 Bcf/d in the coming month.

Data Centers

Steve Chambers from Constellation’s Commercialization & Development team joined this month’s webinar to discuss data centers, one of today’s hottest trends in the energy industry. The number of energy-intensive data centers has exploded over the past few years, largely to meet the growing interest and adoption of artificial intelligence (AI) software. Steve and the team discussed impacts on electricity demand, which is expected to drive overall U.S. electricity load growth higher for the first time in over a decade. They also addressed the challenges data centers and large corporations face in decarbonization while maintaining reliability. Infrastructure development issues such as permitting, grid connection backlogs, and supply chain bottlenecks for renewables and transmission components are also part of the overall challenge that data centers and new electric power generation face.

Summer Reliability Assessments

The team covered the recent Summer Reliability Assessment from the North American Electric Reliability Corporation (NERC). This assessment ensures that power systems are prepared for the high-demand summer season. It evaluates the readiness of power plants, transmission systems and other critical infrastructure to handle peak summer loads and potential challenges such as heat waves or storms. Overall, all regions are generally prepared with resource adequacy to meet normal peak demand this summer.

However, there are seven areas facing ‘elevated risk’ of shortfalls due to rising demand, generator retirements, unplanned outages, drought, and the potential for low wind performance. The grid is increasingly having to deal with the challenge of “net load” during sunset hours. Net load is overall grid demand minus intermittent generation, primarily from solar and wind sources. From the hours of 7 to 9 pm, as solar activity declines, the overall grid load remains elevated. This means that the load served by thermal generation, or batteries can increase rapidly. Additionally, the variability of wind generation keeps grid operators on their toes on some summer evenings.

View Webinar Recording

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, July 17th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: A Record Hot Summer, Data Center Demand and Natural Gas Fundamentals appeared first on Constellation's Energy4Business Blog.

After you understand the different types of organizational emissions, and you have begun to set your sustainability goals, it is time...

The post Data + Analytics: Connecting Energy Usage to Your Business Goals appeared first on Constellation's Energy4Business Blog.

After you understand the different types of organizational emissions, and you have begun to set your sustainability goals, it is time to develop an actionable strategy to achieve those goals. However, you can only proactively manage utility costs, understand trends, and develop strategies to optimize spend once you take control of your most significant asset: your energy consumption data.

Analyzing data can be time-consuming, costly and challenging–and very few companies are equipped to handle this in-house. Utility bill management platforms have become increasingly important tools for understanding energy expenses, finding areas of efficiency, and streamlining and reducing operating costs.

Utility bill management platforms provide detailed insights into energy usage. This allows companies to identify areas of high energy usage and to take steps to streamline and reduce operating costs in those areas. At a high level, these platforms allow companies to aggregate, simplify and ultimately optimize their energy usage and identify trends including:

• Aggregate and verify utility bills: Manually reviewing utility bills across multiple providers creates room for errors. These platforms can compile all line items on energy bills to create a standardized review and analysis of usage, as well as verify each line item for accuracy. These platforms should compare and verify the utility tariffs for a company’s facility.
• Simplify user experience. The best utility bill management platforms provide an intuitive user experience. Standardizing energy bills across multiple utilities provides a simpler review and analysis of energy usage and expenses. Further, the platforms can create a comprehensive expense profile with custom reporting on data based on tailored goals.
• Generate detailed reports and analytics.  Beyond simplifying the user experience, utility bill management platforms provide that baseline and insights into areas for improvement or energy efficiency opportunities, especially for a franchise, university or other organization with large-footprint and widespread energy consumption. Data insights can compare various facilities to identify trends, changes or anomalies in energy usage, then inform strategies for optimization.

Among these increasingly popular utility management platforms is Constellation Navigator’s Utility Bill Management Platform (UBM), which is a fully automated solution, proactively managing utility costs, understanding trends, and developing strategies to optimize spend. For example, a company could leverage Constellation Navigator’s UBM platform to identify areas where lighting is left on unnecessarily and implement a policy of turning off lights when they are not needed.

Constellation Navigator’s UBM platform can help companies benchmark their energy usage against those of similar-sized companies in their industry. Companies can identify areas where they are using more energy than their peers and take steps to reduce their usage.

Utility bill management platforms provide a range of benefits for companies looking to manage their energy usage. These platforms give companies power to take control and turn your utility data into one of your most valuable assets, proactively manage utility costs, understand trends, and develop strategies to optimize spend across the entire billing and payment lifecycle.

To start proactively taking control of your energy data with Constellation Navigator’s UBM platform, contact us today.

Take Action Today

Ready to work with energy experts who have the tools to easily connect your energy usage to your sustainability goals? Constellation can help your organization set a pathway to a more sustainable future.

Contact Us Today

Learn more about building your sustainability roadmap with our new white paper

The post Data + Analytics: Connecting Energy Usage to Your Business Goals appeared first on Constellation's Energy4Business Blog.

Today, energy managers are challenged with maintaining the reliability and affordability of their businesses’ energy while also making efforts to...

The post How to Effectively Manage Your Natural Gas Strategy appeared first on Constellation's Energy4Business Blog.

Today, energy managers are challenged with maintaining the reliability and affordability of their businesses’ energy while also making efforts to reduce carbon emissions. Natural gas continues to help meet demand as the nation addresses the challenges of the energy transition to a carbon-free future. The use of innovative technologies in low carbon intensity solutions enables us to have reliable access to energy sources while simultaneously reducing emissions associated with natural gas usage. This approach helps bridge the gap in achieving rapid carbon emission reduction goals without compromising on reliability or affordability.

Navigating the Energy Landscape

At Constellation, we are committed to advancing clean energy initiatives to accelerate the transition to a carbon-free future. While sustainability is a top priority, ensuring reliability for the customers we serve is also important. There can be challenges when it comes to producing renewable energy from solar farms and wind turbines, as weather conditions can affect power availability. By offering a nuanced approach with a diverse portfolio that includes both renewable and reliable options, Constellation ensures that customers can power their operations 24/7 while serving the current energy landscape.

Natural gas is still an affordable, versatile and reliable energy source that complements renewables in our transition to a low-carbon future. With a large customer base of gas consumers, supported by our gas-fired power plants, Constellation can provide flexible baseload power that fills in the gaps when renewable energy fluctuates in reliability.

Energy managers can use various strategies to ensure the reliability and affordability of their natural gas supply while also making strides to decarbonize their supply and work towards a more sustainable future.

A Managed Approach to Natural Gas Purchasing

Many businesses and organizations have shifted their focus from more than just price. Strategic risk management of both NYMEX and basis costs helps support long-term budget certainty and protects against price volatility. Constellation’s Managed Portfolio Service (MPS) is a targeted approach that helps customers manage their basis price risk through modified-cost averaging and pooling. Basis can vary widely based on location due to local supply and demand factors. The program can cover all or just some of the total usage volumes at a facility. This type of purchasing strategy is ideal for organizations looking for innovative ways to manage and diversify their purchasing risk. Options include:

• Management of Total Usage: Allows the program to take care of any changes in usage, even when usage exceeds monthly nominations.
• Management of Specific Nominations: Allows the customer flexibility to decide what volume will be run through the program and what volume they will manage on their own.
• Management of Incrementals: Allows customers to lock in basis costs; MPS can help manage incremental costs.

Natural Gas Sustainability

For businesses looking to decarbonize their current natural gas supply, Constellation can help you achieve long-term sustainability goals by seamlessly integrating carbon offsets or Renewable Natural Gas (RNG) into your natural gas procurement strategies.

Carbon offsets are a low-cost option for businesses looking to start their sustainability journey that may lack the capital to implement full-scale carbon-reduction projects. Carbon offsets represent a verified reduction in emissions of carbon dioxide, or other greenhouse gas emissions, made elsewhere through forestry, energy efficiency, industrial process improvements and carbon capture and sequestration projects.

On the other hand, Renewable Natural Gas (RNG) is physical pipeline-quality natural gas derived from the decomposition of organic matter plus associated environmental attributes. It begins as raw biogas which is then purified to meet applicable pressure, quality and heat content requirements before being injected into a pipeline, like regular natural gas.

The environmental attributes associated with RNG, which include reduced carbon emissions as compared to fossil-derived natural gas, can be paired with end-users’ natural gas consumption to allow end-users to make renewable energy claims associated with natural gas use. Specific sustainability claims and emission reduction levels will depend upon the specific end-use of the natural gas and the chosen GHG emission reporting standards. A business’s purchase of RNG attributes may also reduce Scope 1 carbon emissions replaced by biogenic sources, without the need to modify existing infrastructure.

Shaping the Future of Energy

Constellation continues to provide low-carbon intensity solutions that bridge the gap to the future as we address net-zero emissions goals. Governments are putting in place more legislation supporting low carbon fuel standards (LCFS) and accelerating both innovation and affordability.

Looking ahead, we envision renewables and natural gas continuing to work together sustainably. Our strategy involves expanding renewable energy capacity while investing in gas infrastructure upgrades and emissions reduction technologies. This balanced approach navigates the energy transition while upholding environmental stewardship.

Comprehensive Energy Solutions with Constellation

Constellation is committed to offering a mix of solutions to help customers meet their energy goals. Constellation provides a range of offerings, from supplying power and natural gas to a suite of sustainability projects and reporting solutions.

With Constellation, you gain more than just an energy provider. You have an integrator who can manage all aspects of your energy needs, empowering you to focus on your core business while we help you navigate the complexities of sustainable energy solutions. Explore our comprehensive product mix to address these challenges and help your business achieve its goals.

Contact Us Today

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post How to Effectively Manage Your Natural Gas Strategy appeared first on Constellation's Energy4Business Blog.

As businesses target climate action and sustainability as part of their overall energy goals, it can be challenging to understand...

The post Using Carbon Accounting to Drive Actionable Sustainability Strategies appeared first on Constellation's Energy4Business Blog.

As businesses target climate action and sustainability as part of their overall energy goals, it can be challenging to understand and calculate your company’s carbon footprint due to the evolving complexity of the process and lack of the right tools and resources. To achieve meaningful sustainability progress, it is essential to have accurate and comprehensive carbon accounting systems in place.

Carbon accounting, also known as greenhouse gas (GHG) accounting, is the process of measuring, reporting, and verifying the amount of GHGs emitted or removed from the atmosphere by a business’s activity. Greenhouse gases are emitted from a range of sources, including transportation, electricity generation, agriculture, and industrial processes.

Why Use Carbon Accounting?

Carbon accounting is necessary for several reasons. Firstly, it helps to identify the main sources of GHG emissions, allowing businesses to target their mitigation efforts effectively. Secondly, it provides a basis for tracking progress towards emission reduction targets. Finally, it allows businesses to report their emissions, either voluntarily or as required by federal or state reporting laws in New York City, Chicago, Philadelphia, and Washington D.C., among others.

How does Carbon Accounting Work?

The greenhouse gas accounting process typically involves the following steps:

Identifying the sources of GHG emissions: This involves identifying the activities that generate GHG emissions, such as the use of fossil fuels for transportation or the use of electricity in buildings.

Collecting data on the activity: This involves collecting data on the physical activity that generates emissions, such as the amount of fuel consumed by a vehicle, or the amount of electricity consumed by a building.

Calculating the emissions: This involves using emission factors or other calculation methods to estimate the amount of GHG emissions generated by the activity.

Verifying the emissions: This involves verifying the reported emissions through independent auditing or other verification methods to ensure their accuracy and completeness.

Reporting the emissions: This involves reporting the calculated emissions to relevant stakeholders, such as governments, businesses, or international bodies.

The Constellation Navigator Solution

The major challenge of greenhouse gas accounting is the availability of quality data. Collecting accurate data on activities that generate GHG emissions can be difficult, particularly for smaller businesses or businesses with multiple facilities across various geographies. Additionally, the accuracy of emission factors and other calculation methods can be affected by a range of factors, including the age and condition of equipment, the quality of fuel used, and the weather conditions at the time of measurement.

Constellation Navigator’s carbon accounting platform allows companies to seamlessly develop a baseline of their carbon emissions, report it across multiple frameworks, and identify and prioritize carbon reduction or mitigation strategies for implementation. Our solution will help you track your climate targets, projects, and budgets in one place to clearly communicate with stakeholders.

Carbon accounting is a helpful tool for addressing the climate crisis. Accurate and comprehensive carbon accounting systems provide a basis for effective climate policies and strategic sustainability efforts and can help to drive the transition to a low-carbon economy. As such, it is important for businesses to invest in the development and implementation of robust carbon accounting.

Contact Us Today

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

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Energy sustainability is no longer a lofty buzzword, but is in fact, an increasingly important factor in achieving long-term success....

The post Establishing your GHG Emissions Baseline appeared first on Constellation's Energy4Business Blog.

Energy sustainability is no longer a lofty buzzword, but is in fact, an increasingly important factor in achieving long-term success. Even if your organization has set goals, designing and executing a robust sustainability plan can be complicated. Building an effective plan requires consideration for evolving technology and clean energy supply options. It requires balancing investment in the future while keeping tight to the budget now. These challenges make it clear: reducing emissions requires more than the right mindset. It requires a sustainability roadmap that clearly and transparently lays out how to properly execute and meet your objectives. In this blog series, Constellation will help guide you through the various steps to developing effective sustainability strategies.

As organizations strive to embrace a more sustainable future, establishing a greenhouse gas (GHG) emissions baseline is a crucial starting point. Greenhouse gases are emitted by many sources and are classified as either Scope 1, 2, or 3 emissions. Scope 1 emissions are the direct emissions from an entity’s operations while Scope 2 emissions are the indirect emissions from an entity’s purchased utilities. Multiple solutions exist to help reduce Scope 1 and 2 emissions. Scope 3 emissions occur in the value chain of an entity, such as upstream emissions from suppliers, downstream emissions from customers using their products, or emissions associated with the business travel or commuting of an entity’s employees. Scope 3 is quickly gaining more attention as many companies look for even more leadership opportunities in the climate space by setting targets on their value chain emissions. A GHG emissions baseline serves as a foundation for understanding an organization’s current emissions profile that can lead to enabling informed decision-making, target setting, and effective implementation of emissions reduction strategies.

According to a 2022 ESG Global Study, companies that demonstrate progress toward environmental sustainability, like clearly reporting their GHG emissions, have found more success than they might have if they had not seen progress: some 87% of consumers want to spend more with them and 83% of potential investors want to back them financially. Transparent reporting attracts and retains workforce talent, too. 83% of employees surveyed shared that they want to work for employers and brands that take environmental and social issues seriously.¹

To begin, a business or organization can depend on several areas of guidance and methodologies to help them define appropriate GHG reduction targets.

Self-Defined GHG Emissions Targets

Many organizations have set self-defined GHG emissions targets, such as Constellation’s own climate commitments. These goals typically focus on reducing emissions by a certain percentage from their baseline emissions by a specific deadline. For example, a company might set an absolute target to reduce 50% of their 2020 emissions by 2050. Without first gathering the data and calculating the 2020 emissions baseline, it is impossible to quantify progress or measure success.  It is also common for organizations to set multiple goals, milestones, or intensity targets where they might track emissions against a different benchmark such as headcount or production (for example, metric tons emitted per widget produced).

Self-defined GHG targets may be established for various reasons, such as corporate social responsibility, environmental sustainability goals, or to demonstrate leadership in addressing climate change.  These targets are completely voluntary and allow organizations to demonstrate their commitment to a sustainable future.

Federal, State or Local Requirements

While an increasing number of organizations have voluntarily been working towards self-defined GHG targets, certain federal, state and local laws are being introduced that require organizations to report  GHG emissions or achieve certain reductions. The United States Federal Government requires entities with sources that emit at least 25,000 metric tons of carbon dioxide equivalent to report resulting GHG emissions for those facilities to the Environmental Protection Agency (EPA) annually.²

Additionally, 24 states plus the District of Columbia have adopted specific GHG reduction targets to address climate change³. Even specific cities such as New York City, Washington D.C., Chicago and Philadelphia, require businesses to track their energy consumption and some also require yearly reports. To learn about your state’s requirements, visit: https://www.c2es.org/content/state-climate-policy/

Science Based Targets

The science-based target approach provides a framework for setting GHG reduction goals and avoiding the most severe impacts of climate change. Reduction efforts follow the latest climate science and the objective of limiting global warming to well below 1.5degrees Celsius above pre-industrial levels, as outlined in the Paris Agreement⁵. These targets are typically developed using scientific models and scenarios that project the level of emissions reductions necessary to achieve specific temperature goals.

To learn more about sector-specific goals or how your organization can begin to set science-based emissions reduction targets, visit: https://sciencebasedtargets.org.

Take Action Today

Working with a trusted energy expert like Constellation can help your organization establish actionable and attainable GHG benchmarks for meaningful sustainability initiatives and positions you as a responsible and forward-thinking leader in addressing the pressing challenges of the climate.

Contact Us Today

Learn more about building your sustainability roadmap with our new white paper

Download White Paper

1: https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf

2: https://www.epa.gov/sites/default/files/2014-09/documents/ghgrp-overview-factsheet.pdf

3: https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf

4: https://www.govinfo.gov/content/pkg/FR-2022-04-11/pdf/2022-06342.pdf

5: https://sciencebasedtargets.org/news/sbti-raises-the-bar-to-1-5-c

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]]> 4 min read

Buildings emissions account for almost 40% of carbon dioxide (CO2 or carbon) emissions in the U.S. per year.¹ Recent legislative efforts around the nation look to address carbon emissions produced from large buildings’ significant energy usage by assessing and optimizing facilities’ energy performance.

In this blog, we will explain the different types of legislative initiatives, dive into a few specific city and state mandates, and cover solutions that can help your business meet these legislative demands.

Types of Initiatives

Recent legislative actions involve comprehensive policies and programs affecting an entire state, city, town or community, often with multiple areas of sustainability focus including energy, transportation, waste and overall resilience.

Some states and cities have implemented specific programs focused narrowly on improving energy performance and reducing emissions within specific sectors or institutions. These programs involve the implementation of targeted measures with clear compliance requirements and penalties. The mandates apply to most commercial and some residential buildings over a certain square footage, based on each city’s requirements. The requirements include reporting, mostly through ENERGY STAR® Portfolio Manager®, of energy consumption, water usage, and in some cases, greenhouse gas (GHG) emissions. Most of these mandates are set on a sliding scale starting in the calendar year 2024/2025 to achieve their goals by 2050.

City Specific Mandates

These mandates make significant strides in addressing climate change, enhancing public health and fostering economic resilience. Some cities, among a long list of growing cities, that have begun to implement sustainability measures include:

• Boston, MA: The Climate Action Plan aims for climate neutrality by 2050. Strategies focus on energy efficiency, renewable energy, sustainable transportation and climate resilience initiatives. As part of these strategies, large buildings over 35,000 square feet are required to report their energy and water usage.
• Cambridge, MA: The Net Zero Action Plan targets carbon-neutral buildings by 2050 through stringent energy performance standards, renewable energy adoption and innovative waste reduction programs. While focusing on non-residential and large residential buildings, the plan also contributes to the city’s overall goal of urban sustainability.
• Washington DC: The Sustainable DC Plan targets a 50% reduction in greenhouse gas emissions by 2032, emphasizing green building standards, extensive public transit improvements and comprehensive recycling programs.
• New York City: OneNYC aims for 100% clean electricity by 2040 and carbon neutrality by 2050, focusing on retrofitting buildings for energy efficiency, expanding renewable energy and enhancing sustainable transportation.
• Chicago, IL – The Chicago Climate Action Plan aims for reducing the City’s carbon emissions by 62% by 2040. Strategies focus on increasing community based renewables, improving energy efficiency  and climate infrastructure projects, retrofit residential and industrial buildings, updated building codes for new buildings, sustainable transportation and innovative waste reduction programs. As part of these strategies, large buildings over 50,000 square feet are required to report their energy usage.
• Detroit, MI: The Detroit Sustainability Action Agenda enhances environmental quality and resilience through renewable energy adoption, urban farming and waste reduction initiatives.

State Specific Mandates

The California legislature passed SB 253, also known as the Climate Corporate Data Accountability Act (CCDAA), which will require large public and private companies doing business in the state to disclose their scope 1, 2 and 3 greenhouse gas emissions. Scope 1 covers direct emissions from owned or controlled sources, scope 2 refers to indirect emissions from the generation of purchased electricity, and scope 3 includes all other indirect emissions that occur in a company’s value chain.

Under SB 253, companies with annual revenue exceeding $1 billion will be compelled to disclose Scope 1 and 2 emissions starting in 2026 (for 2025 data) and subsequent disclosure of Scope 3 emissions.

Steps You Can Take

If your business is required to report on your energy usage or has corporate sustainability goals, creating a sustainability roadmap is important. A sustainability roadmap is a strategic plan that outlines a company’s sustainability goals, actions to achieve them, timelines and analytics for tracking progress. It typically involves a comprehensive assessment of a company’s current operational and sustainability practices, identification of key sustainability issues and opportunities, and development of a plan to address those issues and opportunities.

Constellation Navigator, a division of Constellation, delivers customized paths and sustainable solutions to help customers set and meet their environmental and operational goals. Driven by the advanced analytics from our technology platforms and advisors with decades of industry expertise, it provides strategies to help organizations reduce their carbon footprints. Constellation Navigator helps businesses solve challenges across the energy lifecycle, including carbon accounting, sustainability advisory, utility bill management and rebate administration.

Additionally, implementing energy conservation measures can improve a business’s bottom line through reduced energy use and cost savings, while also mitigating emissions. Energy efficiency upgrades that can help optimize your roadmap include:

• LED or other high-efficiency lighting that uses less energy and has a longer lifespan, leading to lower utility bills and maintenance costs.
• Water conservation measures, which are highly effective in reducing emissions due to the significant amount of energy required to produce potable water.
• State-of-the-art building automation systems that enhance energy conservation across facilities.
• High-efficiency heating systems, which reduce energy consumption and costs in colder climates.
• Onsite solar that decreases reliance on non-renewable energy and contributes to lower energy bills.

Learn more about our energy efficiency and emissions reduction solutions that can help you reduce energy usage and costs and manage your carbon footprint.

Contact Us Today

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Preparing for Carbon Reduction Legislation appeared first on Constellation's Energy4Business Blog.

]]> Alex Aguiar https://blogs.constellation.com/sustainability/financial-considerations-for-energy-efficiency-upgrades/ Tue, 13 Aug 2024 13:45:10 +0000 https://blogs.constellation.com/energy-policy/webcast-a-look-at-the-year-ahead-copy/ Selling the value of investing in energy efficiency across an organization, especially in competition for precious capital, can be a...

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]]> 3 min read

Selling the value of investing in energy efficiency across an organization, especially in competition for precious capital, can be a real challenge. Demonstrating the potential return on the investment (ROI) through long-term cost reduction — combined with quantifying the ancillary benefits associated with infrastructure renewal, such as reduced maintenance expenditures and the financial and operational impact associated with equipment downtime time — plus a life cycle assessment of current infrastructure is paramount when valuing the overall return of an efficiency initiative. In addition to the potential ROI, companies should also explore available funding options – even if the limited available capital is allocated elsewhere, energy efficiency projects can still be executed without it.

Here are a few tips when considering energy efficiency upgrades from a financial perspective:

Focus on Cost Savings, Not Energy Savings

To clarify benefits of an energy efficiency initiative, focus on the financial metrics. Financial analysts may not consider how many kilowatt-hours a given project may save or the intangible benefits of having a more sustainable business. They will, however, consider how much money they can save per month, what long-term expenses they can avoid and how this investment stacks up to others in terms of long-term ROI. There are indirect benefits as well – replacing the heating system may be expensive. Still existing equipment requires maintenance and upkeep costs, and in the case of a breakdown or emergency, those situations can be much more costly than a planned upgrade.

Communicate the Business Benefits

Energy management offers a variety of other far-reaching benefits that will ultimately cut costs. For example, the tools that allow for automation and control also help organizations collect data on energy consumption and pinpoint areas for further savings. Ultimately, better visibility of energy use (and waste) is critical for continuity in a market where more companies prioritize efficiency.

Highlight the Competitive Advantage

Speaking of continuity, energy management is becoming critical for staying on top of competitors. When considering using energy intelligence software, key highlights include productivity increases, waste reduction, and growth in asset values. Learn the metrics most important to the company’s overall goals and tie the specifics with clear financial metrics and visuals.

The Costs of Inaction

Inaction can be just as costly as action – if not more so. The status quo often “feels” less expensive than change, but in an environment of rising energy prices and sustainability-minded competitors, a lack of energy management could be far more costly than an investment in new infrastructure. Without in-depth insights into your company’s energy use, you won’t be able to analyze historical performance, predict demands or accurately estimate future costs. The explosion of Big Data and enterprise-level energy management software, such as Utility Bill Management platforms, is shifting most industries towards three-, five- and even ten-year plans, and those plans are only possible with accurate cost predictions.

Alternatives for Funding Energy Efficiency Projects

Funding is still one of the most critical aspects of energy efficiency projects, and not every company can bring money upfront to finance a project. The energy savings you discuss should eventually balance out your costs, but there are also ways to minimize or even eliminate the need for upfront investment. Constellation offers a number of solutions to fund sustainability initiatives and energy efficiency upgrades, including:

• Performance Contracting: – Performance contracting allows customers to fund building improvements with no upfront capital costs. Instead, the projects are supported entirely by the guaranteed energy savings over time.  A budget neutral financial structure provides customers an avenue for payment and an immediate justification of their investment.
• Capacity Load Response: At times of an electrical grid imbalance, grid operators may need to call for additional capacity to supply the increase in customer demand. By participating in capacity programs, business customers earn financial incentives to reduce their energy usage during high-demand events. Sign up in advance to curtail electricity usage to earn revenue on a monthly or quarterly basis.
• Bidding Program: Based on real-time or day-ahead market costs for electricity, businesses can bid in their proposed energy reductions, committing to curtail usage when hourly prices are high. They benefit by avoiding the cost of usage during peak hours, and they receive additional financial incentives from operators. Your company will ultimately receive payments based on the wholesale electricity price.
• Alternative Financing Vehicles: Many regions offer alternative financing opportunities through local, state, or federal grants and loans to reduce or eliminate upfront costs to the consumer at standard to below average interest rates. These provide a budget neutral financing approach to upgrade their facilities. A great example of a program like this is C-Pace where the financing is added to their annual property tax.

Implementing new energy efficiency initiatives—even on a small scale—can initially sound overwhelming from a cost perspective; however, such an investment can translate into reductions in energy consumption and maintenance expenditures, enhanced system operations and a lower carbon footprint.

To learn more about how our innovative solutions can help you cut costs, mitigate risks and use energy more efficiently, contact us today.

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Financial Considerations for Energy Efficiency Upgrades appeared first on Constellation's Energy4Business Blog.

]]> Amanda Donohue https://blogs.constellation.com/roadmap-to-sustainability/constellations-efficiency-made-easy-solution-helps-core-pipe-products-operate-sustainably/ Mon, 05 Aug 2024 13:26:30 +0000 https://blogs.constellation.com/sustainability/efficiency-upgrades-implementing-energy-savings-projects-copy/ Reducing greenhouse gas emissions and efficiently managing energy costs are critical concerns for businesses today. Constellation, with its proven experience,...

The post Constellation’s Efficiency Made Easy® Solution helps Core Pipe Products Operate Sustainably appeared first on Constellation's Energy4Business Blog.

]]> 3 min read

Reducing greenhouse gas emissions and efficiently managing energy costs are critical concerns for businesses today. Constellation, with its proven experience, helps businesses navigate cost management, ensuring they make decisions that are both cost-effective and environmentally sustainable. This expertise and support enable businesses to address common challenges, leading to significant results while making a positive impact on the environment and reducing energy costs.

Constellation’s Efficiency Made Easy® (EME) solutions help customers to identify, implement and fulfill efficiency improvements that can help reduce energy costs, modernize facilities and meet sustainability goals.

Recently, Core Pipe Products, Inc. in Carol Stream, IL utilized the Efficiency Made Easy® (EME) program to make significant sustainability investments.

Core Pipe Products Energy Efficiency Challenge

Core Pipe Products, a manufacturer of stainless weld fittings and flanges for industrial piping systems, faced several critical challenges in energy efficiency and management. Its 85,000 sq. ft. manufacturing facility consumes approximately 1,147,000 kWh of power annually, prompting the company to seek a more comprehensive energy management strategy. The operations team, lacking extensive knowledge of energy efficiency solutions, was burdened with economic, operational and scheduling limitations while trying to meet the company’s daily needs and energy goals.

Core Pipe Products also had issues with the complexities of energy solutions, such as on-site solar options. The confusion regarding rebates, warranties and other incentives made the process extremely frustrating.

The Solution: Constellation’s Efficiency Made Easy® Program

Using the Efficiency Made Easy® (EME) program, Constellation and alliance partner General Energy Corporation (GEC) worked together to identify, implement and secure the upfront capital for a rooftop solar system for Core Pipe Products. Comprised of over 1,600 solar panels and nine inverters, the system carries an impressive 802 kW DC capacity and is expected to yield an estimated annual solar production of 1,018,000 kWh.

Working with Constellation and GEC, Core Pipe Products secured and optimized various tax credits and incentives, enhancing the financial viability of its renewable energy initiative. These financial benefits include a 40% Federal Investment Tax Credit that provides the company with a substantial financial incentive for its investment; Federal Accelerated Depreciation which allows for a quicker cost recovery of the solar investment; and the Illinois IPA SREC Incentive which provides cash incentives over the first seven years after project completion, helping Core Pipe Products to financially execute its renewable energy initiative and manage its budget.

“Our entire team here at Core Pipe is thrilled at how well the effort was managed by Constellation and GEC. We highly recommend any manufacturer or power consumer to reach out and see how they also could benefit from their offerings. They are honest and exceeded our expectations in every way on this project.”

Steve J. Romanelli, Chairman and CEO, Core Pipe Products

Future Benefit and Priorities

The solar project that started in September 2023 matches about 90% of Core Pipe Products’ annual electricity usage and has also led to a significant reduction in the company’s greenhouse gas emissions, by approximately 722 metric tons of CO₂ per year. Additionally, Core Pipe Products is expected to realize over $76,000 in annual electricity, utility and maintenance cost savings.

Let’s Talk

Let one of our experts walk you through how Constellation’s Efficiency Made Easy® Program can help your organization realize cost savings through a reduction in consumption and an improved load profile, which will positively impact future energy costs and your environmental goals.

Contact Us Today

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Constellation’s Efficiency Made Easy® Solution helps Core Pipe Products Operate Sustainably appeared first on Constellation's Energy4Business Blog.

]]> Alex Aguiar https://blogs.constellation.com/energy-management/webinar-analysts-how-the-summer-of-2024-is-shaping-the-energy-landscape/ Wed, 24 Jul 2024 15:17:15 +0000 https://blogs.constellation.com/energy-management/webinar-analysts-a-record-hot-summer-data-center-demand-and-natural-gas-fundamentals-copy/ During the July Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the...

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]]> 4 min read

During the July Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the summer hurricane season, natural gas consumption for cooling demand, and capacity markets.

Weather Report

During the webinar, the team discussed how the summer of 2024 was on track to be the hottest on record, with above-normal temperatures across most of the U.S. This has led to strong power demand from air conditioning, which is expected to continue throughout the remainder of the high-temperature months, especially in the East and South. Additionally, the forecasted extreme heat is expected to lead to a market-anticipated shift in the gas balance.

The tropical storm outlook was covered, and the experts expect the season to be very active due to warm water temperatures and favorable atmospheric conditions. The webinar covered the varying impacts hurricanes can have on the energy industry, depending on the path, intensity and duration of the storm, as well as the effects on infrastructure, personnel and the power grid. Hurricane Beryl was used as an example to illustrate how a storm can disrupt LNG production and demand in the Gulf Coast.

All Things Economic

The energy transition and economic factors that drive the shift towards non-carbon resources were also topics of discussion. The challenges and opportunities associated with replacing reliable generation sources with more variable alternatives, such as wind, solar and batteries, were highlighted. Additionally, the webinar covered the role of metals and minerals in the energy transition and how they affect the cost and supply of energy. Interest rate projections and potential Fed rate cuts to support the economy were also explored.

Natural Gas Fundamentals

Constellation’s energy market experts analyzed the factors influencing natural gas prices and balances for the summer of 2024. They highlighted that prices peaked in June due to tight gas balances but later declined as a result of increased production, reduced LNG exports and the impacts from Hurricane Beryl. In terms of natural gas storage, levels were reported to be above the five-year average and the previous year’s levels, indicating a sufficient supply. However, storage surplus levels are expected to decline as the summer progresses. The team forecasts that storage will end the injection season at around 3,900 Bcf, which is considered adequate to meet the upcoming winter demands.

Power Burns

The discussion on the natural gas market during the summer highlighted the impact of power burns, or natural gas used for power generation, due to heat, with an average of 47 Bcf per day in the week ending July 10. This figure not only surpassed the previous week’s numbers but also the rates from the same period last year. Expectations are set for these power burns to remain strong throughout the summer, supported by the weather outlook that predicts continued hot conditions and high demand for air conditioning. Projections estimate that power burns could average around 47 to 48 Bcf per day in July and August, potentially exceeding levels seen in previous summers.

Capacity Markets

The discussion then moved to capacity markets in PJM and New England, designed to ensure the long-term power system reliability by procuring sufficient resources to meet peak demand. PJM and New England have different capacity market designs, including variations in the forward periods, auction schedules, resource accreditation and pricing rules.

For the PJM capacity market, updates were provided on the current base residual auction for the 2025-2026 delivery year. This auction is notable because it is the first to implement the effective load carrying capability (ELCC) method, which values resources based on their availability and performance during peak periods. Challenges facing the PJM capacity market were also addressed, including FERC’s rejection of the offer cap and capacity performance reforms, the court’s reversal of the DPL South price reduction, and the potential for volatility and uncertainty in auction results.

Regarding New England’s capacity market, the team discussed significant changes planned for the 2028-2029 delivery year. These changes include transitioning from a three-year forward and annual auction to a seasonal and prompt year auction, as well as revising the resource accreditation process based on fuel security and deliverability. The goal is to improve efficiency, reliability, transparency and cost savings for customers. However, potential implications for market participants were noted, such as uncertainty regarding future capacity prices, the risk of stranded assets, and the need for more flexible and responsive resources.

Market Trends and Temperature

The team concluded the webinar by looking at forward power charts, the “Market Temperature,” and other factors affecting the energy market.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, September 11 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: How the Summer of 2024 is Shaping the Energy Landscape appeared first on Constellation's Energy4Business Blog.

]]> Julie Haviland https://blogs.constellation.com/roadmap-to-sustainability/efficiency-upgrades-implementing-energy-savings-projects/ Mon, 08 Jul 2024 14:25:32 +0000 https://blogs.constellation.com/energy-management/a-business-guide-to-procuring-offsite-renewable-energy-copy/ Now that your organization has successfully set a greenhouse gas (GHG) baseline and begun to analyze an accurate view of your facilities’...

The post Efficiency Upgrades: Implementing Energy Savings Projects appeared first on Constellation's Energy4Business Blog.

]]> 3 min read

Now that your organization has successfully set a greenhouse gas (GHG) baseline and begun to analyze an accurate view of your facilities’ energy usage and patterns using utility bill management platforms, it is time to consider what energy efficiency opportunities your organization can take to advance your sustainability goals. The U.S. Department of Energy (DOE) identifies energy efficiency as one of the easiest and most cost-effective ways to combat the climate crisis, reduce consumer energy costs, and improve U.S. businesses’ competitiveness.¹

Energy efficiency projects are accessible, affordable and can directly lower GHG emissions through the reduction in utility consumption and associated utility expense. These upgrades can come in the form of simple infrastructure improvements, such as LED lighting and HVAC upgrades, or can take a more holistic, integrated approach in the form of a deep energy retrofit. If your organization is considering ways to reduce energy consumption here are some tips to start defining and prioritizing your facility improvements.

Start With a List

Before any upgrades can be considered, engage with key decision makers across your organization to draft an energy efficiency project list that includes potential upgrades that have become apparent after reviewing energy usage data. This list is instrumental when reviewing capital budgets, operations timelines, and requirements of systems in need of replacement. Creating the list should help identify what initiatives need to be prioritized so that you can create an actionable plan for implementation. The list also helps demonstrate the return on investment (ROI) of energy efficiency projects through long-term cost reduction and the life cycle assessment of current infrastructure, plus, it helps identify any available rebate or incentive programs.

Consider Funding Options Specific to Energy Efficiency Projects

Funding is still one of the most critical aspects of energy efficiency projects and not every company can finance a project upfront. Nearly 80% of energy buyers, when asked as part of the Smart Energy Decisions Sustainability Survey, mentioned budget concerns, with more than 30% of respondents saying they required a mechanism to finance their projects.²

There are several funding options that your organization can consider to make your energy efficiency projects become a reality.

• Performance Contracting: Working with your Energy Services Company (ESCO) can help you avoid paying upfront capital for energy efficiency projects, as they are funded through guaranteed cost savings over the life of your contract. This is a budget neutral financial structure providing customers with an avenue for payment and an immediate justification of their investment.
• Design/Build Programs: Funds for energy efficiency projects become available once capital requirements are met by the business.
• On-bill Funding Programs: Energy efficiency projects are recouped through monthly charges included in an electricity or natural gas supply bill. Constellation’s Efficiency Made Easy® (EME) program is an on-bill funding program that helps customers identify, implement and fund efficiency improvements that can help reduce energy costs, modernize facilities, and meet sustainability goals. You can realize cost savings through a reduction in consumption and an improved load profile, which will positively impact future energy costs and your environmental goals. This unique award-winning solution has helped to fund over $350 million in energy efficiency projects for more than 1,100 customers.
• Alternative Financing Vehicles: Many regions offer alternative financing opportunities through local, state, or federal grants and loans to reduce or eliminate up-front costs to the consumer at standard to below average interest rates. These provide a budget neutral financing approach to upgrade their facilities. A great example of a program like this is C–Pace where the financing is added to their annual property tax.

Monitor and Report on Your Energy Efficiency Programs

Once energy efficiency projects are implemented, utilizing your utility expense management system should make it easy to see tangible changes across your facilities’ footprint. Additionally, some organizations have documented some of the non-financial or operational benefits, such as positive employee and customer feedback.

Take Action Today

Implementing new energy efficiency initiatives—even on a small scale—can initially sound overwhelming. However, investments in energy efficiency will translate into reductions in energy consumption and maintenance expenditures, enhanced system operations, and a reduced carbon footprint. Working with a trusted energy expert like Constellation can help your organization identify, implement, and fund your energy efficiency projects.

 

1. https://www.energy.gov/energysaver/led-lighting
2. https://blogs.constellation.com/sustainability/survey-results-top-5-takeaways-from-proactive-energy-leaders-in-managing-their-sustainable-energy-plans

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

 

The post Efficiency Upgrades: Implementing Energy Savings Projects appeared first on Constellation's Energy4Business Blog.

]]> Alex Aguiar https://blogs.constellation.com/energy-management/webinar-analysts-a-record-hot-summer-data-center-demand-and-natural-gas-fundamentals/ Wed, 26 Jun 2024 14:08:25 +0000 https://blogs.constellation.com/energy-management/webinar-analysts-summer-outlook-gas-storage-highs-and-future-load-growth-copy/ During the June Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the...

The post Webinar Analysts: A Record Hot Summer, Data Center Demand and Natural Gas Fundamentals appeared first on Constellation's Energy4Business Blog.

]]> 3 min read

During the June Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of various significant factors affecting the energy landscape. These included insights into the potential hottest summer on record, natural gas fundamentals, summer readiness assessments from NERC, and a deep dive into data centers and their impact in shaping the energy landscape.

Weather Update

The team began the webinar by covering the latest outlooks for the summer, including predictions of potentially record-breaking heat as the U.S. is hit with the first heat wave of the year. The pattern of heat is expected to continue throughout July and August, especially in the Midwest and to the East. The team also discussed the tropical storm outlook as the first named tropical storm, Alberto, is expected to bring rain to South Texas. The tropical storm season is expected to be active, with predictions of around 20 named storms. Other topics included recent volcanic eruption impact on weather patterns, U.S. drought updates and the transition from El Niño to La Niña weather patterns, which will enhance storm activity.

Natural Gas Fundamentals

The panel of energy fundamentals experts discussed the natural gas storage and production picture, which continues to trend bullish. Production has seen slight increases, narrowing the storage surplus, but the potential for a record-high summer temperatures has increased power burns across the U.S. LNG exports are running close to full capacity at 13 Bcf/day Additionally, the Mountain Valley Pipeline (2 Bcf/d), which has faced legal challenges and delays in its construction, was approved by FERC to begin commercial operation on June 11.  Volumes on MVP should begin to ramp up to 2 Bcf/d in the coming month.

Data Centers

Steve Chambers from Constellation’s Commercialization & Development team joined this month’s webinar to discuss data centers, one of today’s hottest trends in the energy industry. The number of energy-intensive data centers has exploded over the past few years, largely to meet the growing interest and adoption of artificial intelligence (AI) software. Steve and the team discussed impacts on electricity demand, which is expected to drive overall U.S. electricity load growth higher for the first time in over a decade. They also addressed the challenges data centers and large corporations face in decarbonization while maintaining reliability. Infrastructure development issues such as permitting, grid connection backlogs, and supply chain bottlenecks for renewables and transmission components are also part of the overall challenge that data centers and new electric power generation face.

Summer Reliability Assessments

The team covered the recent Summer Reliability Assessment from the North American Electric Reliability Corporation (NERC). This assessment ensures that power systems are prepared for the high-demand summer season. It evaluates the readiness of power plants, transmission systems and other critical infrastructure to handle peak summer loads and potential challenges such as heat waves or storms. Overall, all regions are generally prepared with resource adequacy to meet normal peak demand this summer.

However, there are seven areas facing ‘elevated risk’ of shortfalls due to rising demand, generator retirements, unplanned outages, drought, and the potential for low wind performance. The grid is increasingly having to deal with the challenge of “net load” during sunset hours. Net load is overall grid demand minus intermittent generation, primarily from solar and wind sources. From the hours of 7 to 9 pm, as solar activity declines, the overall grid load remains elevated. This means that the load served by thermal generation, or batteries can increase rapidly. Additionally, the variability of wind generation keeps grid operators on their toes on some summer evenings.

View Webinar Recording

 

We invite you to join us for our next Energy Market Intel Webinar on Wednesday, July 17th at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting  www.constellation.com/marketintelwebinar.

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.  The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.

The post Webinar Analysts: A Record Hot Summer, Data Center Demand and Natural Gas Fundamentals appeared first on Constellation's Energy4Business Blog.

]]> Alex Aguiar https://blogs.constellation.com/roadmap-to-sustainability/data-analytics-connecting-energy-usage-to-your-business-goals/ Mon, 17 Jun 2024 13:20:17 +0000 https://blogs.constellation.com/?p=7596 After you understand the different types of organizational emissions, and you have begun to set your sustainability goals, it is time...

The post Data + Analytics: Connecting Energy Usage to Your Business Goals appeared first on Constellation's Energy4Business Blog.

]]> 2 min read

After you understand the different types of organizational emissions, and you have begun to set your sustainability goals, it is time to develop an actionable strategy to achieve those goals. However, you can only proactively manage utility costs, understand trends, and develop strategies to optimize spend once you take control of your most significant asset: your energy consumption data.

Analyzing data can be time-consuming, costly and challenging–and very few companies are equipped to handle this in-house. Utility bill management platforms have become increasingly important tools for understanding energy expenses, finding areas of efficiency, and streamlining and reducing operating costs.

Utility bill management platforms provide detailed insights into energy usage. This allows companies to identify areas of high energy usage and to take steps to streamline and reduce operating costs in those areas. At a high level, these platforms allow companies to aggregate, simplify and ultimately optimize their energy usage and identify trends including:

• Aggregate and verify utility bills: Manually reviewing utility bills across multiple providers creates room for errors. These platforms can compile all line items on energy bills to create a standardized review and analysis of usage, as well as verify each line item for accuracy. These platforms should compare and verify the utility tariffs for a company’s facility.
• Simplify user experience. The best utility bill management platforms provide an intuitive user experience. Standardizing energy bills across multiple utilities provides a simpler review and analysis of energy usage and expenses. Further, the platforms can create a comprehensive expense profile with custom reporting on data based on tailored goals.
• Generate detailed reports and analytics.  Beyond simplifying the user experience, utility bill management platforms provide that baseline and insights into areas for improvement or energy efficiency opportunities, especially for a franchise, university or other organization with large-footprint and widespread energy consumption. Data insights can compare various facilities to identify trends, changes or anomalies in energy usage, then inform strategies for optimization.

Among these increasingly popular utility management platforms is Constellation Navigator’s Utility Bill Management Platform (UBM), which is a fully automated solution, proactively managing utility costs, understanding trends, and developing strategies to optimize spend. For example, a company could leverage Constellation Navigator’s UBM platform to identify areas where lighting is left on unnecessarily and implement a policy of turning off lights when they are not needed.

Constellation Navigator’s UBM platform can help companies benchmark their energy usage against those of similar-sized companies in their industry. Companies can identify areas where they are using more energy than their peers and take steps to reduce their usage.

Utility bill management platforms provide a range of benefits for companies looking to manage their energy usage. These platforms give companies power to take control and turn your utility data into one of your most valuable assets, proactively manage utility costs, understand trends, and develop strategies to optimize spend across the entire billing and payment lifecycle.

To start proactively taking control of your energy data with Constellation Navigator’s UBM platform, contact us today.

Take Action Today

Ready to work with energy experts who have the tools to easily connect your energy usage to your sustainability goals? Constellation can help your organization set a pathway to a more sustainable future.

Contact Us Today

Learn more about building your sustainability roadmap with our new white paper

Download White Paper

 

The post Data + Analytics: Connecting Energy Usage to Your Business Goals appeared first on Constellation's Energy4Business Blog.

]]> Julie Haviland https://blogs.constellation.com/energy-management/how-to-effectively-manage-your-natural-gas-strategy/ Thu, 30 May 2024 15:45:09 +0000 https://blogs.constellation.com/roadmap-to-sustainability/using-carbon-accounting-to-drive-actionable-sustainability-strategies-copy/ Today, energy managers are challenged with maintaining the reliability and affordability of their businesses’ energy while also making efforts to...

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]]> 4 min read

Today, energy managers are challenged with maintaining the reliability and affordability of their businesses’ energy while also making efforts to reduce carbon emissions. Natural gas continues to help meet demand as the nation addresses the challenges of the energy transition to a carbon-free future. The use of innovative technologies in low carbon intensity solutions enables us to have reliable access to energy sources while simultaneously reducing emissions associated with natural gas usage. This approach helps bridge the gap in achieving rapid carbon emission reduction goals without compromising on reliability or affordability.

Navigating the Energy Landscape

At Constellation, we are committed to advancing clean energy initiatives to accelerate the transition to a carbon-free future. While sustainability is a top priority, ensuring reliability for the customers we serve is also important. There can be challenges when it comes to producing renewable energy from solar farms and wind turbines, as weather conditions can affect power availability. By offering a nuanced approach with a diverse portfolio that includes both renewable and reliable options, Constellation ensures that customers can power their operations 24/7 while serving the current energy landscape.

Natural gas is still an affordable, versatile and reliable energy source that complements renewables in our transition to a low-carbon future. With a large customer base of gas consumers, supported by our gas-fired power plants, Constellation can provide flexible baseload power that fills in the gaps when renewable energy fluctuates in reliability.

Energy managers can use various strategies to ensure the reliability and affordability of their natural gas supply while also making strides to decarbonize their supply and work towards a more sustainable future.

A Managed Approach to Natural Gas Purchasing

Many businesses and organizations have shifted their focus from more than just price. Strategic risk management of both NYMEX and basis costs helps support long-term budget certainty and protects against price volatility. Constellation’s Managed Portfolio Service (MPS) is a targeted approach that helps customers manage their basis price risk through modified-cost averaging and pooling. Basis can vary widely based on location due to local supply and demand factors. The program can cover all or just some of the total usage volumes at a facility. This type of purchasing strategy is ideal for organizations looking for innovative ways to manage and diversify their purchasing risk. Options include:

• Management of Total Usage: Allows the program to take care of any changes in usage, even when usage exceeds monthly nominations.
• Management of Specific Nominations: Allows the customer flexibility to decide what volume will be run through the program and what volume they will manage on their own.
• Management of Incrementals: Allows customers to lock in basis costs; MPS can help manage incremental costs.

Natural Gas Sustainability

For businesses looking to decarbonize their current natural gas supply, Constellation can help you achieve long-term sustainability goals by seamlessly integrating carbon offsets or Renewable Natural Gas (RNG) into your natural gas procurement strategies.

Carbon offsets are a low-cost option for businesses looking to start their sustainability journey that may lack the capital to implement full-scale carbon-reduction projects. Carbon offsets represent a verified reduction in emissions of carbon dioxide, or other greenhouse gas emissions, made elsewhere through forestry, energy efficiency, industrial process improvements and carbon capture and sequestration projects.

On the other hand, Renewable Natural Gas (RNG) is physical pipeline-quality natural gas derived from the decomposition of organic matter plus associated environmental attributes. It begins as raw biogas which is then purified to meet applicable pressure, quality and heat content requirements before being injected into a pipeline, like regular natural gas.

The environmental attributes associated with RNG, which include reduced carbon emissions as compared to fossil-derived natural gas, can be paired with end-users’ natural gas consumption to allow end-users to make renewable energy claims associated with natural gas use. Specific sustainability claims and emission reduction levels will depend upon the specific end-use of the natural gas and the chosen GHG emission reporting standards. A business’s purchase of RNG attributes may also reduce Scope 1 carbon emissions replaced by biogenic sources, without the need to modify existing infrastructure.

Shaping the Future of Energy

Constellation continues to provide low-carbon intensity solutions that bridge the gap to the future as we address net-zero emissions goals. Governments are putting in place more legislation supporting low carbon fuel standards (LCFS) and accelerating both innovation and affordability.

Looking ahead, we envision renewables and natural gas continuing to work together sustainably. Our strategy involves expanding renewable energy capacity while investing in gas infrastructure upgrades and emissions reduction technologies. This balanced approach navigates the energy transition while upholding environmental stewardship.

Comprehensive Energy Solutions with Constellation

Constellation is committed to offering a mix of solutions to help customers meet their energy goals. Constellation provides a range of offerings, from supplying power and natural gas to a suite of sustainability projects and reporting solutions.

With Constellation, you gain more than just an energy provider. You have an integrator who can manage all aspects of your energy needs, empowering you to focus on your core business while we help you navigate the complexities of sustainable energy solutions. Explore our comprehensive product mix to address these challenges and help your business achieve its goals.

Contact Us Today

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post How to Effectively Manage Your Natural Gas Strategy appeared first on Constellation's Energy4Business Blog.

]]> Amanda Donohue https://blogs.constellation.com/roadmap-to-sustainability/using-carbon-accounting-to-drive-actionable-sustainability-strategies/ Tue, 28 May 2024 13:30:13 +0000 https://blogs.constellation.com/energy-management/the-components-of-natural-gas-price-and-effective-purchasing-strategies-copy/ As businesses target climate action and sustainability as part of their overall energy goals, it can be challenging to understand...

The post Using Carbon Accounting to Drive Actionable Sustainability Strategies appeared first on Constellation's Energy4Business Blog.

]]> 2 min read

As businesses target climate action and sustainability as part of their overall energy goals, it can be challenging to understand and calculate your company’s carbon footprint due to the evolving complexity of the process and lack of the right tools and resources. To achieve meaningful sustainability progress, it is essential to have accurate and comprehensive carbon accounting systems in place.

Carbon accounting, also known as greenhouse gas (GHG) accounting, is the process of measuring, reporting, and verifying the amount of GHGs emitted or removed from the atmosphere by a business’s activity. Greenhouse gases are emitted from a range of sources, including transportation, electricity generation, agriculture, and industrial processes.

Why Use Carbon Accounting?

Carbon accounting is necessary for several reasons. Firstly, it helps to identify the main sources of GHG emissions, allowing businesses to target their mitigation efforts effectively. Secondly, it provides a basis for tracking progress towards emission reduction targets. Finally, it allows businesses to report their emissions, either voluntarily or as required by federal or state reporting laws in New York City, Chicago, Philadelphia, and Washington D.C., among others.

How does Carbon Accounting Work?

The greenhouse gas accounting process typically involves the following steps:

Identifying the sources of GHG emissions: This involves identifying the activities that generate GHG emissions, such as the use of fossil fuels for transportation or the use of electricity in buildings.

Collecting data on the activity: This involves collecting data on the physical activity that generates emissions, such as the amount of fuel consumed by a vehicle, or the amount of electricity consumed by a building.

Calculating the emissions: This involves using emission factors or other calculation methods to estimate the amount of GHG emissions generated by the activity.

Verifying the emissions: This involves verifying the reported emissions through independent auditing or other verification methods to ensure their accuracy and completeness.

Reporting the emissions: This involves reporting the calculated emissions to relevant stakeholders, such as governments, businesses, or international bodies.

The Constellation Navigator Solution

The major challenge of greenhouse gas accounting is the availability of quality data. Collecting accurate data on activities that generate GHG emissions can be difficult, particularly for smaller businesses or businesses with multiple facilities across various geographies. Additionally, the accuracy of emission factors and other calculation methods can be affected by a range of factors, including the age and condition of equipment, the quality of fuel used, and the weather conditions at the time of measurement.

Constellation Navigator’s carbon accounting platform allows companies to seamlessly develop a baseline of their carbon emissions, report it across multiple frameworks, and identify and prioritize carbon reduction or mitigation strategies for implementation. Our solution will help you track your climate targets, projects, and budgets in one place to clearly communicate with stakeholders.

Carbon accounting is a helpful tool for addressing the climate crisis. Accurate and comprehensive carbon accounting systems provide a basis for effective climate policies and strategic sustainability efforts and can help to drive the transition to a low-carbon economy. As such, it is important for businesses to invest in the development and implementation of robust carbon accounting.

Contact Us Today

 

 

 

© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation Navigator, LLC, Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

The post Using Carbon Accounting to Drive Actionable Sustainability Strategies appeared first on Constellation's Energy4Business Blog.

]]> Alex Aguiar https://blogs.constellation.com/sustainability/establishing-your-ghg-emissions-baseline/ Wed, 22 May 2024 14:00:23 +0000 https://blogs.constellation.com/energy-management/how-to-leverage-rebates-for-energy-efficiency-projects-copy/ Energy sustainability is no longer a lofty buzzword, but is in fact, an increasingly important factor in achieving long-term success....

The post Establishing your GHG Emissions Baseline appeared first on Constellation's Energy4Business Blog.

]]> 3 min read

Energy sustainability is no longer a lofty buzzword, but is in fact, an increasingly important factor in achieving long-term success. Even if your organization has set goals, designing and executing a robust sustainability plan can be complicated. Building an effective plan requires consideration for evolving technology and clean energy supply options. It requires balancing investment in the future while keeping tight to the budget now. These challenges make it clear: reducing emissions requires more than the right mindset. It requires a sustainability roadmap that clearly and transparently lays out how to properly execute and meet your objectives. In this blog series, Constellation will help guide you through the various steps to developing effective sustainability strategies.

As organizations strive to embrace a more sustainable future, establishing a greenhouse gas (GHG) emissions baseline is a crucial starting point. Greenhouse gases are emitted by many sources and are classified as either Scope 1, 2, or 3 emissions. Scope 1 emissions are the direct emissions from an entity’s operations while Scope 2 emissions are the indirect emissions from an entity’s purchased utilities. Multiple solutions exist to help reduce Scope 1 and 2 emissions. Scope 3 emissions occur in the value chain of an entity, such as upstream emissions from suppliers, downstream emissions from customers using their products, or emissions associated with the business travel or commuting of an entity’s employees. Scope 3 is quickly gaining more attention as many companies look for even more leadership opportunities in the climate space by setting targets on their value chain emissions. A GHG emissions baseline serves as a foundation for understanding an organization’s current emissions profile that can lead to enabling informed decision-making, target setting, and effective implementation of emissions reduction strategies.

According to a 2022 ESG Global Study, companies that demonstrate progress toward environmental sustainability, like clearly reporting their GHG emissions, have found more success than they might have if they had not seen progress: some 87% of consumers want to spend more with them and 83% of potential investors want to back them financially. Transparent reporting attracts and retains workforce talent, too. 83% of employees surveyed shared that they want to work for employers and brands that take environmental and social issues seriously.¹

To begin, a business or organization can depend on several areas of guidance and methodologies to help them define appropriate GHG reduction targets.

Self-Defined GHG Emissions Targets

Many organizations have set self-defined GHG emissions targets, such as Constellation’s own climate commitments. These goals typically focus on reducing emissions by a certain percentage from their baseline emissions by a specific deadline. For example, a company might set an absolute target to reduce 50% of their 2020 emissions by 2050. Without first gathering the data and calculating the 2020 emissions baseline, it is impossible to quantify progress or measure success.  It is also common for organizations to set multiple goals, milestones, or intensity targets where they might track emissions against a different benchmark such as headcount or production (for example, metric tons emitted per widget produced).

Self-defined GHG targets may be established for various reasons, such as corporate social responsibility, environmental sustainability goals, or to demonstrate leadership in addressing climate change.  These targets are completely voluntary and allow organizations to demonstrate their commitment to a sustainable future.

Federal, State or Local Requirements

While an increasing number of organizations have voluntarily been working towards self-defined GHG targets, certain federal, state and local laws are being introduced that require organizations to report  GHG emissions or achieve certain reductions. The United States Federal Government requires entities with sources that emit at least 25,000 metric tons of carbon dioxide equivalent to report resulting GHG emissions for those facilities to the Environmental Protection Agency (EPA) annually.²

Additionally, 24 states plus the District of Columbia have adopted specific GHG reduction targets to address climate change³. Even specific cities such as New York City, Washington D.C., Chicago and Philadelphia, require businesses to track their energy consumption and some also require yearly reports. To learn about your state’s requirements, visit: https://www.c2es.org/content/state-climate-policy/

Science Based Targets

The science-based target approach provides a framework for setting GHG reduction goals and avoiding the most severe impacts of climate change. Reduction efforts follow the latest climate science and the objective of limiting global warming to well below 1.5degrees Celsius above pre-industrial levels, as outlined in the Paris Agreement⁵. These targets are typically developed using scientific models and scenarios that project the level of emissions reductions necessary to achieve specific temperature goals.

To learn more about sector-specific goals or how your organization can begin to set science-based emissions reduction targets, visit: https://sciencebasedtargets.org.

Take Action Today

Working with a trusted energy expert like Constellation can help your organization establish actionable and attainable GHG benchmarks for meaningful sustainability initiatives and positions you as a responsible and forward-thinking leader in addressing the pressing challenges of the climate.

Contact Us Today

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1: https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf

2: https://www.epa.gov/sites/default/files/2014-09/documents/ghgrp-overview-factsheet.pdf

3: https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf

4: https://www.govinfo.gov/content/pkg/FR-2022-04-11/pdf/2022-06342.pdf

5: https://sciencebasedtargets.org/news/sbti-raises-the-bar-to-1-5-c

 

The post Establishing your GHG Emissions Baseline appeared first on Constellation's Energy4Business Blog.

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