For the uninitiated, energy terms can get confusing quickly. When your goal is to get a handle on your company’s energy use that can make it tricky to get started.
Two terms that are easily confused are energy strategy and energy management. Which one do you need and how do you know? Which one will set you on the right path, maximizing your competitive advantage and your investment?
Following we’ll outline a few key differences between an energy strategy and energy management solutions.
When reading, keep in mind that this is the Correlate expert interpretation of how these terms are used and will not necessarily be the same definitions that other energy players have.
What is Energy Strategy?
Energy strategy is a long-term plan for how a business will address changes in energy use, cost, and regulation. As with many business strategies, an energy strategy relies on predictions of those factors that the company itself cannot predict with 100% certainty. For instance, in the current political climate an energy strategy that looks to the future will not necessarily know how energy regulation will shake out in the coming years, but can outline some potential courses of action depending on how things develop.
A company may also choose to align other strategies under the umbrella of “energy strategy” (or vice versa) such as a climate strategy, a sustainability strategy, or a growth strategy.
Of course, an energy strategy can include energy management solutions. Managing current energy use, moving towards more sustainable energy sources, investing in an energy manager -- these can all be pieces of an energy strategy.
What is Energy Management?
Energy management is the process of making considered changes to the way a business uses, measures, and conserves energy. Energy management is one part of a comprehensive energy strategy.
At Correlate, we know and work to share the benefits of strategic energy management, which means that the long-term implication of each energy decision is carefully weighed. Energy can be a significant operating expense. That means when you make a change to manage your energy use and find the most efficient sources of that energy, your company can start saving a significant amount on energy bills. Simply, managing energy means managing costs. When you are able to save on operating costs, you have additional capital to invest back into your business and grow strategically.
For more on the basics of energy management, download our eBook:
Which Do You Need?
The short answer to this should be obvious: ideally, you need both an energy strategy and solid energy management solutions to optimize your company’s energy use for maximum advantage.
Before you get overwhelmed, the good news is that strategic energy management solutions fold strategy into your energy management plan, meaning you do not have to look at these two pieces of the puzzle separately. With the right guidance, you can develop a plan that both manages your current energy use, optimizes your expenses, and looks to the future for long-term sustainability and growth.