How To Build the Business Case for Investing in Renewables
The cornerstone of any successful project is the business case that its built upon. And a decision to invest in renewables is no different.
That’s why Fēnix Energy dedicates significant time and energy when working with clients to test and present a business case for Thermal Energy Assets. Telling municipalities and developers that we can guarantee them increased asset value and perpetual revenue streams by upgrading the HVAC systems in their buildings to utility-grade infrastructure, is one thing. But being able to demonstrate how we can do it, what it will cost and what they will actually get by being able to harvest, store and trade energy from these buildings, is what turns “nice to have” conversations, into “must have” conversations for clients. Here’s how we do it:
- We analyze the projected energy consumption of the buildings in a development;
- Weigh-up the costs for the design, build, own and operate phases of Thermal Energy Asset management;
- Quantify the return on investment of selling or owning the assets; and then
- Prove the business case for turning buildings into Thermal Energy Assets that harvest, store and trade energy.
The feasibility process is all done before you invest a dime. Both the financial and non-financial benefits of every project get weighed against total costs. If the figures show the right returns, we outline those revenue possibilities and the renewables systems that will yield those returns. If the figures aren’t stacking up, we tell it like it is and recommend alternatives.
It’s become such a powerful way of consulting on Design, Build, Own, Operate projects that the feasibility phase has become a cornerstone of all of our initiatives. The team even call it a ‘don’t move until we prove’ approach,” comments Hart Starr Crawford, P.Eng., LEED®, Project Manager at Fēnix Energy. “It is time well spent. Our feasibility testing depends on a number of factors including the engineering, the energy requirements, the utility options in the area and the renewables’ systems possibilities. The more complex the project, the more time we dedicate to gather the data . Spending this time upfront simplifies the decision making process for clients because we assess everything; from the Internal Rate of Return (IRR), utility data, site drawings, and operations manuals to digital control systems, mechanical rooms and even ventilation spaces. Clients tell us this rigor ensures they have confidence before proceeding that they’re investing in renewables for the right reason, one that generates returns for the environment, community and their bottom line.
The team can assess projects from a construction or retrofit perspective. Making the possibilities for going green a reality for all types of large portfolio land owners. Ensuring the sustainability of cities is also possible on a grand scale.