Mark Moore Efficiency Consulting L3

The government has a responsibility to promote policy which drives the economy towards energy efficiency. Corporations have no intention of investing in research and development to create more efficient products unless forced to do so. Business as usual will occur until policy changes this business mindset or enough people demand more energy efficient products. I believe the government needs to strongly promote two basic policy types. First, a policy which can provide a benchmark for energy efficiency measures for energy generation, transmission, and end-use. Second, a financial policy which includes tax incentives, rebates, grants, and subsidies to attract investment by corporations. These policies together would create an even playing field and incentivize corporations to invest in energy efficient technology.

The three different levels of government, federal, state, and local all need to be considered when developing policy. Is a comprehensive one size fits all policy wise? I believe that the state and local levels should be allowed to tweak policy to conform with their distinct areas. As stated in the National Renewable Energy Laboratory report, ‘There is a consonance among policy goals at all three levels, with each jurisdiction focusing its operations on its own unique geographical scope. Understanding how the policies interact and can contribute to a comprehensive efficiency policy is critical to developing a plan to reduce energy consumption (Cochran, Doris, & Vorum, 2009, p. 10). Policy at the federal level should be broad with ordered guidelines providing authority over policy matters. The state and local levels need to be customized to fit into state and local laws and regulations. Each level of government can mold the most effective policy within its jurisdiction. I believe policy along these lines would be most effective in promoting energy efficiency.

 

The market for consulting firms, I believe, will grow in the near future as the need for knowledge on energy efficiency rises. The McKinsey report describes the value of such consulting to achieve maximum savings through energy efficiency, ‘energy managers can directly play a decisive role in capturing 1730 trillion BTUs of end-use energy consumption, but only 2% of facilities used on-site energy managers’ (McKinsey & Co., 2009, p. 83). Clearly there is a market for consulting services to large and small businesses alike. Some advantages of energy efficiency measures include, energy auditing and lifecycle cost analysis, which  could save companies vast amounts of money, while reducing carbon emissions in the process. I would like to start a consulting firm and be part of the solution to promote energy efficiency.

Cochran, J., Doris, E., & Vorum, M. (December 2009). Energy Efficiency Policy in the United  

    States: Overview of Trends at Different Levels of Government. Retrieved Sept. 11, 2014,

from http://www.nrel.gov/docs/fy10osti/46532.pdf.

 

McKinsey & Co. (2009). Unlocking Energy Efficiency in the US Economy. Retrieved Sept. 11,

2014, from ww.mckinsey.com/client_service/electric_power_and_natural_gas/latest_thinking/unlocking_energy_efficiency_in_the_us_economy.

2 thoughts on “Mark Moore Efficiency Consulting L3

  1. It is proof of how important efficiency consulting will be that nearly every post this week deals with it in some sort of manner. Similar to management consulting, these firms will need to really need to offer a value added proposition to their customers. If you can really position yourself as a subject matter expert and show this value to potential clients it almost sells itself.

    You can view my post at:
    http://engr312.dutton.psu.edu/2014/09/15/lesson-3-pittman/

  2. Hello Mark,
    Knowledge and reduction of energy use will both be key pieces in the future of energy efficiency. “The kilowat not used is the best of all” should be the running motto of every corporation or consumer trying to save their money and their planet. Yet how many people in either group think in such a manner? Even as we become more energy efficient we are still using more energy than ever before. Hopefully through a combination of both knowledge, likely through consultation services, and reducing the amount of energy we use we will turn the state of our environment around.
    Laura
    Here’s the link to my post!
    http://engr312.dutton.psu.edu/2014/09/14/building-energy-efficiency-for-the-consumer-hammonds/

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