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THE ULTIMATE GUIDE TO BECOMING THE ALPHA ENERGY …
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THE ULTIMATE GUIDE TO BECOMING THE ALPHA ENERGY MANAGER
A how-to guide to overcome the challenges affecting your role and become a modern Energy Manager
THE ULTIMATE GUIDE TO BECOMING AN ALPHA ENERGY MANAGER
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INDEXINTRODUCTION04
EVOLUTIONARY SHIFT #1: MANAGING ENERGY PRICES DRIVEN BY THE MARKET
05
EVOLUTIONARY SHIFT #2: NAVIGATING THE WAVE OF ENERGY REGULATION
10
EVOLUTIONARY SHIFT #3: MASTERING YOUR CORPORATE ENVIRONMENT
14
EVOLUTIONARY SHIFT #4: BECOMING THE LION IN THE COMPETITIVE ENERGY JUNGLE
22
EVOLUTIONARY SHIFT #5: HARNESSING THE TECHNOLOGICAL
27
BECOME THE ALPHA ENERGY MANAGER: A HOW-TO GUIDE
A s an energy manager, your role is changing on so many
levels and so quickly. Are you keeping up?
The energies we use are changing. The price of oil fell below $30
a barrel early 2016 and the chances of going back to the lofty
highs of $100+ seem remote.
Shale gas is threatening oil’s undisputed dominance. Renewable
energies are coming more to the fore. Recently, Portugal ran
on renewable energy alone for four consecutive days (yup,
the entire country) and Germany generated almost 90% of its
entire energy needs from renewables for one day. Fossil fuels
are increasingly looked upon as completely undesirable.
Sustainability has become such a crucial issue for companies.
More people will increasingly choose one company over another
because of their green credentials. And apart from all that
companies spend about one third of their costs on energy.
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E nergy markets around the world have become increasingly
deregulated, free of government controls. Many energy
providers that were once state-owned have since been privatised.
This gives energy companies many advantages, with price
control chief among them. The amount your company pays
for its energy – on average one third of costs – depends on the
decisions made by your energy provider.
This adds a great degree of uncertainty regarding energy pri-
ces for your company. After all, the executive boards of private
companies have a duty to their shareholders of maximising reve-
nues – this is arguably more so for publicly traded companies, a
category which many large energy providers fall into.
EVOLUTIONARY SHIFT #1
MANAGING ENERGY PRICES DRIVEN BY THE
FREE MARKET
In a globalised, more competitive marketplace, where prices are
coming down, every cent saved counts, and so the onus is on
you as your company’s energy gatekeeper to keep it ahead of
the pack. Are you ready to step up and upgrade to you 2.0? If so,
keep on reading.
We’ve written this white paper especially for energy managers
who are looking to level up; to get ready for what’s coming,
because like it or not, your job is changing and will continue to do
so profoundly. The most adaptable professionals who are willing
to welcome change are the ones who thrive, so let’s get stuck in.
With this paper, you will learn how to embrace the below five
evolutionary shifts to your role and your environment, and
with our help, you will be on your way to becoming the energy
manager master that you aspire to be.
You will start to become a better energy management
professional, through insider knowledge from a specialist energy
management company. And we don’t want to stop there: we will
give you actionable tips that you can start today.
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You may be paying a certain price this year, but will it be the
same next year?
Most of the most well-known national and multinational energy
firms are privately owned. These include:
So knowing that energy costs your company around a third of its
total bills and that you have to manage energy price uncertainty,
what can you do?
+ E.on (Germany – Electricity)
+ British Gas (UK – Gas, one of the UK’s “big six” private energy
suppliers that control 90% of the UK market
+ RWE (Germany – Electricity)
+ Total (France – Oil and gas, one of the globe’s six “supermajor” oil
companies)
+ Royal Dutch Shell (UK-Dutch – Oil and gas)
+ BP (UK – Oil)
+ Exxon Mobil (United States – Oil and gas, largest publicly traded oil
and gas company in the world)
+ Gazprom (Russia – Gas)
+ Petrobras (Brazil – Petroleum)
+ Endesa (Spain – Electricity and gas)
4 Implications for The Energy Manager:
1. YOU ARE RESPONSIBLE FOR ENERGY COST MANAGEMENT: As your company’s
energy manager, it is up to you to ensure that your company pays no more than ne-
cessary. You do this through the processes of benchmarking your energy providers;
analysing your company’s energy consumption and needs, and where they can be
reduced; and through keeping up to date with the fast changes that energy manage-
ment is experiencing.
•
2. YOU HAVE TO CHOOSE BETWEEN MORE ENERGY OPTIONS THAN EVER: Investing
time periodically in benchmarking procedures and rigorous analysis of ongoing com-
pany energy use is essential to ensure you pay no more than you have to and that
your energy use is streamlined for cost minimisation.
•
3. MANAGING ENERGY PRICE FLUCTUATION RISK IS BECOMING MORE DEMAN-
DING: The price of oil fell through the floor in 2014 and it hasn’t recovered. The days
of $100 a barrel oil will probably not be seen for a long time, if ever again. The reasons
are many, including the increasing appeal and technological advancements in renewa-
ble energy, shale gas and oil, climate change factors and also geopolitical reasons.
Oil’s price has created so much uncertainty that Saudi Arabia, a leading oil nation, has
begun researching alternative ways to grow their economy away from a dependency
on oil; its fallen so much that the Russian economy has completely tanked since 2014.
The spectacular fall in the price of oil shows that you cannot take anything for granted
regarding energy, as you just never know what may happen in such speculative markets.
Who is to say that what happened to oil won’t happen to electricity and other energies?
4. THE RISE AND RISE OF CLEAN ENERGY: Clean energies include biomass, so-
lar, wind and geothermal, among others. It has been discussed for a few de-
cades now, while fossil fuels have continued to dominate the energy market.
Clean energies however are really beginning to make significant inroads and their
adoption is gathering pace. The key difference now is that clean energy costs have
been massively reduced because of innovation in technology, spurring its growth
across the world. It will account for 26% of global power generation by 2020, and the
gradient of adoption is more likely to steepen further with time.
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1. Diligently investigate your energy commitments
Make the decision to spend both time and money in carrying
out holistic analyses of your energy commitments regularly; say
every 3 or 6 months. What exactly are you paying your energy
provider for? Is there room for negotiation? Is this the best value
energy source for what you are paying? Are there areas of your
company where energy use can be made more efficient?
2. Take advantage of benchmarking tools and get better
educated
Our Energy Grader tool is completely free and allows you to get
benchmarking right away. Head on over at this link and calculate
your potential savings.
On the DEXMA blog, you can read about how to compare your
company’s energy consumption to your competitors and
how to benchmark your electricity prices.
3 essential tips to mastering speculative energy markets
3. Start to adopt renewable energies
Can you use your building or office for renewable energy pur-
poses? Not only will this appeal to your company’s directors re-
garding energy consumption reduction, but from a sustainability
standpoint too. Companies are obliged to become more environ-
mentally aware simply because people are more environmenta-
lly aware and more likely to buy from a company that has some
green credentials.
Showing your sustainability chops is a boon for your sales and
marketing departments, and could lead to increased sales.
In many countries there are even government initiatives to help
companies become more sustainability-minded. Doing some re-
search to see if this is an option for your company would be a
good idea.
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M uch like a financial director must guide his
company through layers of financial regulation,
you as your company’s energy manager have to master
considerable regulatory measures in the energy sector.
Government-led regulation is normal regarding the
environment, contamination and energy efficiency.
Depending on what country you operate in, you may be
subject to more or less regulatory hurdles. If you are in
charge of a multinational company’s energy, knowing the
ins and outs of each country that you operate in regarding
energy regulation is crucial. For instance, countries such
as Spain are less restrictive, whereas others such as the
EVOLUTIONARY SHIFT #2
NAVIGATING THE WAVE OF ENERGY
REGULATION
UK and Germany are more demanding of companies.
Thousands of UK-based companies must adhere to the Climate
Change Act, which the UK signed up to in 2008. You can read
the UK government’s official guide for businesses here. In
Germany, there are scores of laws and bills to be aware of, put
in place in recent years. You can scan a comprehensive list here.
You will see that there is a lot of regulation to comply with in
certain countries. If your company doesn’t, it will have to pay
fines. This is arguably more so for publicly traded companies, a
category which many large energy providers fall into.
3 Implications for The Energy Manager:1. CONVINCING YOUR COMPANY TO INVEST IN ENERGY EFFICIENCY: It’s human na-
ture to think in the short term, which is why most companies balk at the upfront costs
that are often necessary to becoming an energy efficient enterprise. But the benefits
will be felt immediately.
•
2. COMPLETING THE NECESSARY ENERGY MANAGEMENT CERTIFICATES: Internatio-
nal standard protocols in energy management are now commonplace and neces-
sary. These include ISO 50001 and BREEAM. Completing compliance standards is a
part of the initial cost of becoming energy efficient, though it is ultimately designed
for the attainment and maintenance of a high standard, which your company will be-
nefit from.
•
3. KEEPING UP TO DATE WITH CONSTANT REGULATION CHANGES: As the
world slowly moves to greater integration of renewable energies and com-
pliance with national, international and global carbon footprint initiati-
ves, companies need to be aware of what is happening in the energy regula-
tion space. This is down to you as the energy manager. Keeping ahead of the
curve will stop your company from falling behind and from paying avoidable fines.
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3 essential tips to mastering energy regulation
1. Communicate effectively with management
Your company executive doesn’t speak “kWh”. We advise that
you prepare specific, customised reports that management
will understand.
Put it in simple business terms, highlighting the benefits for the
company by looking at real numbers like costs savings as well
as additional plus points (creating a reputation as an energy-
conscious company, for instance).
2. Demonstrate the value that your work brings to your
company
You can do this through what we call measurement and
verification in energy efficiency.
This process allows you to validate and verify the savings that
you achieve through an Energy Efficiency Improvement (EEI)
programme. Showing management hard facts and numbers is
key.
3. Keep up to date with the most urgent industry
regulation resources
Don’t miss any changes in regulation that may impact your
company. It wouldn’t look good if your company found out about
new regulation legislation before you do. Don’t let that happen
by checking in once or twice a week with relevant information
sources. Subscribe to the DEXMA blog, where you will receive
daily or weekly reports (as you prefer) on industry news and hot
topics.
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EVOLUTIONARY SHIFT #3
MASTERING YOUR CORPORATE
ENVIRONMENT
N ot so long ago, energy efficiency mainly involved
just a few employees within an organisation,
such as the facility manager or purchasing department.
For some companies the idea of “going green” was
considered a desirable but non-essential afterthought
at best. And for many, it was seen as unimportant eco-
friendly gobbledegook. How things have changed.
Sustainability has become an essential area of focus.
Simply, if a company garners a reputation for being
environmentally negligent, it could spell disaster for their future.
Take Volkswagen as an example. The CO2 emissions
scandal, which engulfed the company in 2015, saw its
share price plummet 50% from its March 2015 high.
In comparison, companies that show themselves to be
environmentally conscious tend to profit from an improved brand
image (not to mention what can be substantial energy savings).
Even though energy efficiency and sustainability have
moved more mainstream as a corporate focus in the
last few years, resulting in new corporate roles, the
acknowledgement of its importance is still comparatively low.
We conducted an energy professional survey, in which 32%
of respondents said that they didn’t feel that their role or
effectiveness were given due visibility in the company.
"32% of energy professionals feel that their work doesn't have enough visibility within their companies"
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" Ongoing training is essential for anyone who wants to reach the top of their profession. This is even more applicable to the energy professional, as the role and industry is undergoing constant change."
JOAN PINYOL
DEXMA founder and CEO
Pressure to produce results for your company is often accentuated by working
in a corporate environment that doesn’t fully appreciate your efforts. It tends to
equate to lesser budget within which to work and in hiring the right people to
form an efficient department.
But for the savvy energy professional, there is ample opportunity to turn such
a situation to your and your company’s advantage. Your company’s financial
director (FD, or chief financial officer [CFO]) is tasked with trimming costs wherever
possible and now in the modern corporate environment the finance department
has a more holistic role across the whole organisation.
It is not uncommon to see finance involved in decisions to do with any company
department. Indeed, the financial director is now seen as the second most
important person in an organisation, after the managing director (MD, or chief
executive officer [CEO]).
As the FD is charged with cutting company costs, they are your natural ally.
If you can show them how much money will be ultimately saved through
investing in energy efficiency more and sustainability’s role in boosting revenue,
you and your company stand to benefit.
And it doesn’t stop at your finance department. Sales, communications and
marketing teams are always looking for something to give them an edge and
selling a “green” brand is exactly that. Even Human Resources will benefit, as
the company will be more appealing as an energy conscious organisation, making
their job easier, and the company in line to attract talent quicker.
What does this shift change for the enegy manager?
ENERGY MANAGER
FD / CFO
Human Resources
Marketing & Communication
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3 essential tips to mastering your corporate environment
1. Get smarter with MOOCs
In recent years, MOOCs (Massive Open Online Course) have
become increasingly popular among professionals. They are
offered by universities, including leading institutions around
the globe, and can see thousands or hundreds of thousands of
students enrol.
Many are free and those that aren’t usually come with a very
modest fee of between $20 and $100 (mainly to receive a
certificate of accomplishment as opposed to completing a course
for free and not receiving such a certificate).
They are an excellent way to brush up your skills or to complement
your existing education and work history with other courses.
Head over to our blog to find out the 5 energy MOOCs to
make your CV shine right here.
2. Adapt how you address your target groups within your
company
How you understand energy is very different to how your
managers do, or the marketing or sales teams. Have you ever had
a conversation with a computer programmer or marketer and
they use jargon specific to their job, while you don’t understand
what they’re saying?! If so, make sure you don’t do the same!
If a colleague explains something new to you, wouldn’t you want
it put into language you understand? Of course! We all would.
So, when creating reports for different teams, use their
language. Pitching your financial director? Focus on numbers,
costs, savings and financial language that make an impact in a
concise manner.
Learn what each colleague wants for their team or their specific
role, and see how being more energy efficient will help them to
attain it.
For instance, reducing energy consumption by 10% over the
next 6 months could be a company-wide goal you implement.
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Your finance department and MD will be impressed by the
savings on energy bills; your marketing team will be able to
use this company-wide effort and objective in their campaigns
to better your company’s brand image and awareness, and so
forth. Focus on the separate advantages for everyone, not
the features!
When it comes to getting more of your colleagues involved
and interested in energy efficiency, you will get there quicker
by focusing on what can help them in their own jobs. You can
also consider keeping your colleagues updated with company
progress, perhaps on a monthly basis.
3. Interact with your colleagues!
3 actionable and practical ideas to get everyone on the Energy
Efficiency boat:
a. Conduct an internal survey
Focus on understanding how employees use energy and what
they really need. Are they aware of how much battery power
they may be consuming unnecessarily and how much money
this costs the company? Survey Monkey is a great online survey
tool for instance.
b. Give a talk on how energy efficiency is advantageous
for both the company and each individual employee
A lot of employees will not give something attention unless
there is a direct benefit in it for them. Showing a direct benefit
for them personally will be much more effective. Giving talks
to individual teams may well be more effective than to the
company as a whole.
Take inspiration from the Polytechnic University of Catalonia.
They hold an annual meeting on energy efficiency in the university.
They gather consultants, providers, facility managers, other
energy professionals and even students together to discuss the
progress of energy projects and how to improve moving forward.
c. Make progress visible for all to see
Install a screen in a conspicuous part of the company office
for everyone to see. Show regular updates on progress, goals
and energy consumption data. This reinforcement through
ongoing awareness is extremely powerful and will go a long
way to helping your company achieve its energy goals.
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EVOLUTIONARY SHIFT #4
BECOMING THE LION IN THE COMPETITIVE
ENERGY JUNGLE
A s energy management has grown in importance,
it has inevitably attracted greater numbers of
new companies to the sector. More companies are
entering the sector as energy providers, energy efficiency
management firms, energy auditors, regulators, and so forth.
This growth has created more opportunity but it
has also created greater levels of competition.
Another crucial area that is constantly impacting the energy
sector is innovation in technology. Tech is evolving fast, and with
its evolution, the energy sector evolves too.
Implications for The Energy Manager:
To keep ahead of the pack, as with any industry, you need to do something that your
competitors are not. How can you differentiate yourself?
Again, like we mentioned in evolution 3, “sell” yourself by playing up to what companies
want to hear. Focus on your record with savings, accomplished energy goals and impro-
vements you have made in previous roles.
Be specific. Use numbers, percentages, and facts and figures to back up your claims,
and to portray yourself in a way that shines and makes your profile rise to the top.
Use more tools to discover new opportunities. Tools focused on your role and your
challenge, like:
•
1. THE ENERGY GRADER: If you’re working for an energy services company (ESCO)
you can use our Energy Grader, which has numerous features to make your job
easier and your results more accurate and timely. You can use the Energy Grader
to give a first accurate calculation of potential energy savings to your prospects.
The Energy Grader simplifies previously complex tasks by using Big Data al-
gorithms, so you just need to ask your prospect a few questions regar-
ding their energy consumption, or even easier, ask them for their electri-
city bill. The Energy Grader will automate the calculation and our savings
experts will review your results before sending you a customised report.
2. ENERGY ALERTS: Energy alerts notify you when your energy consumption goes over
a threshold that you decide. You can also set up various levels to be notified at so
you can keep track. It’s all automated so it saves you time and hassle. If you’re using
a software platform like DEXCell you will be able to create your customised alerts in
2 steps or less.
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3 essential tips to defeat your competitors
1. Be a leader in how you portray yourself
This means to start thinking outside the box. Most people
fall under the “herd mentality” bracket, and do something just
because everyone else is doing it. By the same logic, they don’t
do something because most other people aren’t doing it.
If you join the herd, you will get treated like one of the herd by
companies, by your colleagues and by your bosses.
Downloading this guide is one such step that sets you apart from
most. You have already demonstrated an unsolicited willingness
to better yourself, which is more than most of your competitors
will do.
It is the professional who isn’t afraid to try different approaches
who gets ahead. Here are just a few tactics that you can adopt to
form a cohesive strategy:
Harness the many opportunities of LinkedIn:
(a) Join relevant groups: start with this one.
(b) Participate in discussions with fellow energy professionals;
(c) Connect with and talk to prospects, clients and colleagues;
(d) And post relevant, discussion-provoking content (your own blog
posts, videos, vlogs and so forth).
Use video
We started our free webinar program a year ago and now we have over
100 registrants for each session. Aiming for consistency and providing
solutions to common sector-specific problems through these video
themes:
1. Tips & tricks
2. Interviews with experts
3. Webinars
4. Live event streaming
5. Product demos
6. Walk through guides
We then repackage the sessions as videos and upload them to Youtube
after – an easy, quick win. Bite the bullet and get making videos. They’re
an incredible way to connect with and engage your audience.
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+ Cheaper
+ Much easier and accessible
+ More powerful for specialist users and enterprises
2. Tools & Changes to skyrocket your productivity
Use productivity boosters such as Evernote, Kanban Flow and
get your DEXCell Energy Manager demo account one month
entirely FREE.
Make sure your email account is fully organised and
optimised. If you use Gmail for instance, take advantage of their
“labels” system, which is enormously helpful and aids in avoiding
the dreaded “decision paralysis” over receiving too much at the
same time, and complement it with Sanebox, which will clean up
your entire email inbox for you in an automated way.
And, finally, make your agenda shine. Maybe you haven’t noticed,
but in many calendar tools you can have multiple calendars in
use, which help you to be better organised. It’s easy to do: just
create one calendar for your meetings and a different one for
tasks and voila!
Productivity Tools for Energy Analysis
Schedule, prioritize and divide tasks
Take notes and create lists of ideas
EVOLUTIONARY SHIFT #5
HARNESSING TECHNOLOGICAL
CHANGE
T o use the buzzword of 2015, tech has indeed “disrupted”
so many industries. Energy however is one of the sectors
that it has had a particularly rapid, far-reaching impact on, in
such a short period of time.
SCADA and other tools were prohibitively expensive.
Moreover, they needed to be installed in-house, which required
paying consultant fees. Any maintenance or service issues could
also be a time-consuming, onerous process.
Now, like many other industries, innovation in energy
technology has made it:
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More advanced, robust hardware brings:
Big Data advantages:
+ Stronger resistance
+ Greater precision, with capabilities of capturing and trans-
ferring sophisticated data
+ Faster connections, speed of processes
+ More effective, accurate reports and energy data interpretation
+ Vast improvements in benchmarking (our own DEXMA Energy
Grader is an example)
+ There are more hardware devices available than ever
before to implement energy saving protocols in buildings,
offices, homes and in other energy-consuming areas.
+ The Internet of Things impacts you as an energy professional
because it has an effect on your level of control in a
massive way. Once you get to grips with an energy efficiency
system, you can analyse energy consumption among other
points of particular interest. You can control how certain
parts of your building for instance use energy through
automation in lighting, heating and cooling systems.
+ The advent of “smart” cities: the more innovation-minded
cities of the world aspire to be known as a smart city. To
reach this aim, they need “smart” buildings and public
areas. To be smart, they need the appropriate devices,
such as energy efficiency technology.
The Internet of Things (IOT)
What does Big Data mean?
Big data is high volume, high velocity, and/or high variety
information assets that require new forms of processing
to enable enhanced decision making, insight discovery and
process optimization.
Definition of Big Data by Gartner
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Implications for The Energy Manager:
1. More data means more time and work to put it to good use: data analysis; benchmarking; data interpretation; compiling reports and presentations; communications with colleagues, other departments and management. 2. With the increasing sophistication of tech application and tools, and their proliferation, it is easy to get overwhelmed. 3. As energy is becoming more tech-dependent, you will be expected to possess knowledge of such technology and the ability the make good recommendations both regarding tech hardware and software. 4. It is common for companies to buy the cheapest energy technology on the market in order to begin an energy efficiency programme. What is all too common in the corporate sector is that such companies then reali-se that such technology is not good enough for the job at hand.
1. Follow the right energy technology resources
Make sure that you are up to speed and even ahead of your
peers by signing up to the most urgent newsletters or blogs;
following industry leaders and influencers on Twitter, LinkedIn
and Facebook; and official government updates on energy.
2. Try before you buy
Simply, try out various technological tools, updates and devices
with a trial version, before committing to pay for it. Try out the
DEXMA platform right here, absolutely FREE of charge and with
no obligation at all to purchase at any time.
3. ABL – Always. Be. Learning.
If you commit to continuously learning and extending your
energy technology knowledge, you will already be on your way to
mastering and harnessing technological change in your sector.
Whether it is through signing up to different energy courses
(part-time degree, MOOCs), learning from a mentor or colleague,
personal reading and study etc., cultivating your knowledge and
honing your skillsets is essential to your professional growth.
3 essential tips to mastering your corporate environment
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María is an Advertising and Public
Relations Graduate and has more than
eight years’ experience working in
technology companies as a marketing
specialist.
cococontent.com
Tim is a professional writer, expert on
finance, economics and sustainability. He
founded his own company, Cococontent
to share his knowdlege about this and
many other topics.
MARÍA FERNÁNDEZ
Marketing
TIMOTHY WOODS
Senior Writer
ABOUT THE AUTHORS OF THE GUIDEThe Tool to Become the Total Energy Manager
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© 2016 DEXMA
DEXMA provides an energy analysis platform to companies who
need to measure, analyze, understand and reduce their energy
consumption. The platform DEXCell Energy Manager is a powerful
set of tools in the cloud with which companies can take informed
decisions to reduce their energy consumption without affecting
their productivity or business.
DEXMA was founded in 2007 in Barcelona and already works
with more than 1,000 clients in 33 countries, having consolidated
its expansion thanks to a comprehensive network of partners.
After over nine years of working in the energy sector, DEXMA
is leading its own initiative for the sharing of knowledge about
energy efficiency, to promote the best practices and to train
professionals in energy usage.
Consult our free learning resources here.
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ABOUT DEXMA
CREDITS
Carrer de Nàpols, 189, Bajos-D08013 Barcelona
T. +34 93 181 01 95