MOST Analysis

Mission Statement

The first workshop in the “Actualizing Netzero” program leads to establishing the goals and key performance indicators that align with the imperatives of the organization. These objectives typically fall into three categories

1. Cost Reduction
2. Emissions Reduction
3. Energy Security

Participants are exposed to the fundamentals of an “Investment Grade Energy and Carbon Strategy“ (IGS) which will include the objectives, processes and organizational process changes as well as a deep analysis of all potential energy systems which clearly identifies the optimal technologies that align with the organizations goals.

---

Objectives

The key objective for this workshop is to define “what success looks like”. This will define the key performance indicators (KPI’s) that will be used to measure the success of the program. Objectives include

1. Define What is motivating your development of an energy and carbon strategy
2. Define the KPI’s that will measure success
3. Understand the data required to support the KPI’s
4. Understand the size of the problem (cost, emissions, energy security)
5. Understand the solution landscape
6. Understand the constraints for solutions
7. Review the process by which we will determine the best solution option
8. Review the structure of the overall Actualizing Net Zero program
9. Review the factors affecting cost reduction
10. Review the factors affecting emissions reduction
11. Explore the value and challenges for a micro-grid to address energy security
12. Understand the scope of financing models

---

Strategies

1. Identify objectives and key performance indicators
2. Identify and assign key roles and expectations
3. Understand the value of trustable data
4. Understand the scope and approach of the overall program
5. Review case studies for different industries to learn from the successes of others
6. Review a variety of financing models that have led to successful implementation for others
7. Learn about the Investment Grade Energy and Carbon Strategy and how it differs from an energy audit
8. Learn about the Investment Grade Energy Canvas and how this tool will help develop a bespoke plan
9. Simulate a wide-range of technologies to provide decision-makers with confidence in financing solutions
10. Establishing a trustable data management solution to improve confidence in the results
11. Understand how a suite of technologies can create synergies in a micro-grid to address the goals
12. Develop an understanding of the importance of an ecosystem of partners to ensure success

---

Tasks

1. Identify the objectives, constraints and KPI’s that will measure success
2. Understand what is motivating the organization and ensure the KPI’s align
3. Establish a data management system for the trusted data
4. Establish a baseline from which we can measure progress
5. Understand you existing energy contracts and the impact on costs
6. Develop a database of energy systems, their condition and energy requirements
7. Develop a database to manage the energy consumption data
8. Develop an outline for your bespoke energy and sustainability plans
9. Identify and document the constraints for an energy solution
10. Identify and document the members of an ecosystem required for the implementation
11. Ensure that all internal and external stakeholders are aligned with the objectives and the KPI’s
12. Review the financing models with the CFO to ensure they models align with corporate processes

---

Introduction

The Actualizing NetZero program develops the processes, governance and tools required to develop a strategy for energy and carbon emissions.

This program will develop an investment grade energy strategy (IGS) which provides comprehensive analyses that leads to actionable investment decisions. In every case, the IGS has led to the implementation of successful energy projects.

The IGS is not just another energy audit which are technical and often do not lead to implementation. Rather, the IGS translates the “techy-speak” into “CFO-speak” providing the analyses and metrics that financial decision-makers require to have confidence to make investment decisions.

An investment grade energy strategy is a comprehensive assessment of a facility’s energy usage and potential areas for improvement. This type of strategy serves as a foundation for making informed decisions regarding energy efficiency measures and on-site energy generation initiatives.

Approach

This first workshop is broken down into five major sections

1. A review of your objectives in developing an energy strategy
2. An overview of the Investment Grade Energy and Sustainability Strategy (IGS)
3. An overview of the process to build an IGS
4. A review of the constraints that will limit the strategy
5. A design of the key performance indicators that will measure success

Each of these modules will feed content into the “Investment Grade Energy and Carbon Strategy” (IGS).

---

---

Energy and Sustainability Objectives

Participants need to have an understanding of why the organization decided to engage in this program. What is the organization seeking to achieve and why? What is motivating the organization to develop an Investment Grade Energy Strategy? What results are expected?

An energy strategy is essential for guaranteeing long-term, dependable, and affordable energy for the future. To develop an effective strategy, it’s important to establish specific goals, gain a comprehensive understanding of the issue at hand, explore various potential solutions, pinpoint any obstacles to implementation, and consider different financing options. This holistic approach guarantees the fulfillment of energy requirements while minimizing harm to the environment and fostering economic development.

In most cases, the objective fall into three categories
1. Cost Reduction
2. Emissions Reduction
3. Energy Security

Cost Reduction:
Almost always, facility operators are concerned with energy cost reduction and addressing the anticipated increases in electricity costs. Energy costs are anticipated to rise in the years to come as the world moves to cleaner energy generation. Energy costs have risen at a much higher rate than inflation and in many cases, the cost of energy for an organization is second only to labour. Given that energy costs is one of the most significant line items on the budget, executives are very interested in managing the risks associated with energy – given that the energy rates are not something that they control. As such, executives are becoming more interested in onsite generation so that they can control (to some extent) the costs for their energy.

Emissions Reduction
Many organizations are establishing their emissions reduction goals – primarily driven by customer demand. The question is how to reduce emissions affordably. Emissions break down into three sections

• Scope 1 (emissions generated in the manufacturing of the organizations product)
• Scope 2 (emissions associated with the energy that the organization consumes)
• Scope 3 (emissions related to the supply chain)

Organizations can only control scope 1 and 2 emissions. Just as the organization cannot control the cost of energy supplied by the utilities, the organization cannot control the emissions related to the energy they buy from utilities. As such, regions with a local grid with high emissions factors will significantly contribute to the scope 2 emissions. This is where renewable onsite generation, such as solar PV, can reduce dependence on the grid and reduce the scope 2 emissions.

Energy Security
In some facilities, energy security is critical. For example, a grocery store has millions of dollars of inventory in freezers and cannot tolerate long duration power failures. For example, a seniors care centre depends on quality power for life-safety equipment that cannot tolerate even the shortest power failure.

For hotel/resorts, guest expect a level of service which depends on the availability of electricity. There are “guest focused critical systems” such as lighting, air conditioning and plug loads (charging your phone). Hotel/Resorts are interested in ensuring that these “guest critical” systems are maintained for extended outages – often for several days. Other non-guest focused systems or amenities need not be included in this support.

Another example is grocery stores that have millions of dollars in inventory in coolers and freezers. Without power for more than a day, all this inventory must be destroyed.

For all industries, we have now reached a point in history where the search to find ways to improve energy efficiency must also include the reduction of costs and emissions for our commercial and institutional facilities. The first step, in this journey, is to clearly identify the energy objectives in your organization, the key performance indicators (KPI’s) that measure success, and the specific data needed to support investment decisions toward actualizing these goals.

In this first workshop, we identify the various objectives for an energy and carbon emissions solution and then review the spectrum of objectives selected for different markets and locations to trigger your thought leadership.

Overview of an Investment Grade Energy Strategy

An investment grade energy strategy (IGS) is a comprehensive assessment of a facility’s energy usage and potential areas for improvement. Unlike a basic energy audit, an investment grade audit goes beyond surface-level evaluations and provides in-depth analysis and actionable recommendations. This type of audit serves as a foundation for making informed decisions regarding energy efficiency measures and on-site energy generation initiatives.

The key components of and IGS are:

• Thorough Energy Consumption Analysis: An evaluation of historical energy usage data, utility bills, and operating schedules to identify patterns and trends.

• Detailed Facility Inspection: On-site visits to assess building systems, equipment, and operations, including HVAC systems, lighting, insulation, and controls.

• Energy Simulation and Benchmarking: Utilization of advanced software tools to simulate energy performance, compare with industry standards, and identify potential energy savings and energy generation opportunities.

• Financial Analysis: Assessment of potential energy efficiency projects, including cost estimates, payback periods, return on investment (ROI), and financing options.

• Risk Analysis: Assessment of the impact of external risk factors on the financial performance of the proposed solutions

• Recommendations and Implementation Plan: A comprehensive report outlining prioritized energy-saving measures, estimated energy and cost savings,