EBaR®, the First Energy Management Software to Apply Value-at-Risk (VaR) and Expected Shortfall Financial Risk Analysis, Identifies Overlooked, Profitable Efficiency and DR Investments
Orlando, FL – March 31, 2015 – (RealEstateRama) — Energy efficiency investments are risky – weather, technology performance, future prices and other factors typically result in conservative investment decisions – most investments must provide 2 or 3 year paybacks to be approved. However, this approach leaves literally billions of dollars in profitable energy savings on the table.
Energy Budgets at Risk (EBaR) software, an extension of widely-used Wall Street financial value- at-risk and expected shortfall analysis, is applied to building energy efficiency and demand response investments. EBaR was developed by Dr. Jerry Jackson, then a professor at Texas A&M University and described in the book “Energy Budgets at Risk (EBaR): A Risk Management Approach to Energy Efficiency and Purchase Choice” published by John Wiley and Sons. The complex quantitative analyses described in the book are now available in intuitive, easy-to-use EBaR software that translates engineering and other information into financial risk management analysis to guide efficiency investments based on investment returns and risks.
EBaR analysis considers all important sources of energy efficiency and demand response investment uncertainty providing returns and risks associated with each investment option in charts, tables and a 3-page summary management investment proposal.
Additional detail including a series of short introductory videos is available at www.energybudgetsatrisk.com .
EBaR is designed to assist building engineers, owners, financial institutions, REITs, ESCOS, MEPs and other organizations with risk-based analysis that frees decision-makers from the shortcomings of payback and other rule-of-thumb analyses that overlook profitable investments.
“Traditional energy efficiency and demand response evaluations use “best-estimate” input values and then hedge against risk by accepting only “sure-fire” options,” said Jackson, President of Jackson Associates, the energy consulting firm that provides the EBaR software. “By evaluating investment outcomes along with investment risks, financial decision makers can select profitable investment options consistent with their risk tolerance and can save as much as 30 percent of energy costs even after paying amortized investment costs.“
EBaR software is designed for both non-technical and technical users. An “Executive Session” option requires only ZIP code, floor space and an estimate of the previous year’s energy spend to provide executive analysis and project proposals for a variety of pre-specified investment and demand response options. Additional information on monthly and/or hourly energy use, detailed efficiency program impacts and other more technical inputs can be provided to refine and customize the investment analysis.
EBaR software is an intuitive, user-friendly tool providing:
· Energy spend benchmarking,
· Monthly budget risk analysis,
· Financial investment and risk analysis of detailed individual energy efficiency options, and
· Management proposals for presentation to financial decision-makers.
EBaR software is available for single building, multiple buildings and enterprise applications. The one-year license fee for a single building application is $495.
EBaR software analysis is supported with data from Jackson Associates’ widely-used 5+million MAISY Utility Customer Energy Use and Hourly Loads Database, MAISY Utility Rate Structures Database and 30+ years of ZIP-level daily weather data.
ABOUT JACKSON ASSOCIATES
Jackson Associates (JA) has been providing energy efficiency and demand response modeling and financial analysis, utility customer databases and analysis, energy forecasting models, new technology analysis and modeling and other energy industry applications since 1982. JA clients reflect a who’s-who in the energy industry. Clients range from startups to some of the biggest names in energy-related industries including United Technologies, Sharp Laboratories, Ingersoll Rand, Aisin, Bloom Energy, Ice Energy, Toyota, Tanger Outlets and others (client list at www.energybudgetsatrisk.com\clients.htm ).
Dr. Jerry Jackson
President, Jackson Associates
37 N Orange Ave, Suite 500
Orlando, FL 32801
Source: Jackson Associates