Energy Efficiency

Energy efficiency is an important consideration for almost all organisations. Improving energy efficiency is a highly effective way to cut your environmental impact and manage exposure to energy price risk.  It is one of the areas in which real ‘no regret’ options are available.

Net Balance assist clients by identifying and costing options and using a range of tools designed to cope with uncertain energy futures, rather than traditional approaches like payback periods and IRR.

We have assisted ASX100 companies, State and Local governments and SMEs in the following sectors improve their energy efficiency:

• the built environment, including building owners, investment trusts and emerging energy services contracting companies
• heavy industry, mining and manufacturing where energy inputs are often a substantial input cost
• water industry where energy efficiency has become crucial because many climate adaptation strategies also increase energy use.

Net Balance can provide specialist skills in Energy Budgets at Risk analysis. This takes Value at Risk (VaR) tools and applies them to energy investments. It was developed by US energy economist Jerry Jackson from Texas A&M University.

Uncertainty in key variables in the investment analysis like technology performance, capital costs, operations and maintenance costs, future fuel prices, future electricity prices, energy use and peak loads, and weather is modelled using Monte Carlo analysis. This method of incorporating uncertainty gives a probability distribution of investment outcomes.