Energy University An innovative private-sector solution to energy education by Sean O Kane Director, Hotel Strategic Alliances by Susan Hartman Manager, Global Customer Communication Programs January 2012 / White paper Make the most of your energy SM
Summary Introduction...3 The seeds of success...4 A diverse, multi-disciplined team...5 Checking into the hotel industry...6 The hotel connection grows...8 Creating an impact with energy professionals...9 Energy University continues to grow... 11 Conclusion: A model for the future...12
Introduction Energy is one of the most critical issues facing our world. The U.S. Energy Information Administration forecasts that the world s energy consumption will grow 53% by 2035, with electricity use increasing 84% in the same period. Energy prices will grow accordingly, with oil reaching $125 per barrel 1. And beyond economics, our energy use is driving potentially devastating climate change. Yet despite the importance of the issue, there has been a lack of educational resources on energy efficiency and sustainable operations available to the very people who need it the most: the general public, business owners, and even facilities managers who must cope directly with the cost and impact of energy. In the field of sustainability, there is a serious need for more and better information, according to Nancy Scanlon, Associate Professor at Florida International University s Chaplain School of Hospitality and Tourism Management. Most of the educational materials about energy are geared toward civil engineering and science-based programs. There has been very little for the general business person or homeowner who must make real decisions daily about energy use. It was to fill this gap that Schneider Electric launched an innovative education program in 2009 called Energy University, an online educational resource providing professional-level coursework on energy management and efficiency. Many involved in the project, both inside and outside of Schneider Electric, see Energy University as a model that can be applied by many companies, in many industries. The program was originally designed with Schneider Electric s customers in mind. Yet in just a few years, Energy University has reached far beyond the company. It has trained more than 70,000 people and has grown to include more than 60 courses on a wide array of energy topics. The courses are being embraced and used by various universities as a supplement to their existing curriculum, and professional and industry organizations around the world have endorsed Energy University for continuing education credits toward their own certifications. So far, the greatest interest has come from the hotel industry, where the program is praised as a unique and valuable contribution to hotel energy management. Interest is also growing in other industries as well, and many involved in the project, both inside and outside of Schneider Electric, see Energy University as a model that can be applied by many companies, in many industries. 1 U.S. Energy Information Administration, International Energy Outlook 2011, September 19, 2011 (http://www.eia.gov/forecasts/ieo/) Energy University 3
The seeds of success To understand why this program has had such an impact, we need to go back to the formation of Energy University. Susan Hartman, Manager of Global Customer Education for Schneider Electric, says the company made two critical decisions at the start that have fueled the program s widespread acceptance and success. First, the company committed to creating serious, professional-level coursework that was completely vendor-neutral. As an international company and a leader in energy management solutions, Schneider Electric is well aware of the importance of energy efficiency to its customers, who typically operate large buildings and factories and must deal directly with the cost and impact of energy. Although making the courses vendor-neutral was an unusual step--most companies focus on their own products--ms. Hartman says it was never in question. We had no interest in creating a veiled plug for our products, explains Ms. Hartman. We wanted to produce serious course material about energy issues, because so many building owners and operators need that help. We see it everyday in our business. The second factor in success was the decision to make the courses available to everyone. That meant the courses should be online, free, and available to both noncustomers and customers alike. We decided, if we re going to remove the barriers of training budget, travel time and cost, why not do it for everyone? Now there is no barrier to taking a class on energy, anywhere there is internet access. Johanne Greenwood, Energy University Curriculum Director, underlines the importance of accessibility: Any sustainability or energy-saving program has to start with awareness. Many business owners don t realize the impact that energy efficiency could have on their bottom line. Others are uncertain where to start. Some of our users are just starting out in their careers and looking for ways that they can bring new ideas to their employers. We make it easy to become familiar with your opportunities in energy efficiency. You don t have to spend training budget or take time away from the office. Schneider Electric walks the talk at its corporate headquarters. The Hive (as the main office is known) integrates the most advanced products and technologies in a single and simple architecture managed via one global software system. In the building s first year, Schneider Electric achieved a 110 kwh/sqm/year performance, cutting energy consumption by three times compared to the former headquarters. Energy University 4
A diverse, multi-disciplined team To create the high quality courses that were needed, a wide range of people in various disciplines were sought out as subject matter experts (SMEs). Ms. Greenwood cultivated the contacts needed across Schneider Electric s organization combined with best-in-class partners to support the segments of knowledge being created. In addition, the program uses a team of Instructional Designers with Master s level qualifications in adult education to work with the SMEs in developing course material that relies on proven learning practices, and innovative techniques for course presentation. To date, more than 70 individuals world-wide have been involved in developing the curriculum and course content. Schneider Electric has assembled a unique family of competencies for energy management, says Ms. Greenwood. Nobody else can reach from the boardroom s strategic issues of energy procurement and carbon reporting, to the facility manager directly monitoring energy performance. Energy University allows us to share that wealth of knowledge. The mission of Energy University is to give people information and tools for understanding energy consumption and efficiencies. Each course is geared to a particular level of knowledge and responsibility. The most popular courses include: Energy Efficiency Fundamentals Alternative Power Generation Technologies Lighting Measuring and Benchmarking Energy Performance Going Green with Leadership in Energy and Environmental Design There is also a special curriculum for data centers, which represent a major sector of energy users. (The full curriculum can be viewed online at www. MyEnergyUniversity.com.) In June 2009, Energy University went online with its first 11 courses. While the courses are vendor-neutral, they do convey Schneider Electric s philosophy for creating an immediate impact through energy efficiency. Thus, every class contains practical, fast-acting solutions to save energy or improve efficiency actions that often pay for themselves in one to three years, according to industry experts. In addition, the courses emphasize the need for a total approach to energy efficiency through ongoing monitoring and maintenance, sustaining savings which are otherwise lost over the long term. Energy University 5
Checking into the hotel industry Sean O Kane, Schneider Electric s Director of Hotel Strategic Alliances, was quick to see the potential of Energy University for his marketplace. With a 24-year career as a hotelier himself, he was well aware of the importance of energy education in the hospitality industry. Energy costs can represent between 3-8% of a hotel s total revenue, depending on the type, services offered, and location of the hotel, according to Mr. O Kane s experience. Compounding the challenge, he says, many hotel owners and operators don t have access to information about energy efficiency. Meanwhile, facilities management staff are busy coping with ongoing maintenance, and rarely have time to think about strategic improvements. Energy is one of the least well managed expense lines in a hotel s operating performance. In addition to limited access to information, Mr. O Kane cites the fear among some hotel operators that energy reduction might have a negative impact on guest comfort. That is far from the truth, he says. The number of seamless occupancy sensing and automated controls available today can actually enhance the guest experience and generate a very strong ROI. Hotels and Energy: Numbers tell the story. Energy costs can represent between 3-8% of a hotel s total revenue, depending on the type, services offered, and location of the hotel. The bottom line, states Mr. O Kane, is that with the tight controls on payrolls, Food & Beverage, and supply costs in the hotel industry, there is no greater way to dramatically impact a hotel s gross operating profit than through energy consumption, reduction, and management. As one senior hotel executive said to me, It is time to stop worrying about saving money and time to start thinking about how to stop losing it. Mr. O Kane reached out to his colleagues and contacts in the hotel industry, and the response was both positive and fast. In June of 2010, a team from Schneider Electric presented the concept of Energy University to the largest hotel advocacy organization in the United States, the American Hotel and Lodging Association (AH&LA) and its Educational Institute. Through this institute, the AH&LA provides educational certification to hotel operators on a global level, on a range of topics including hospitality, general management, housekeeping, food and beverage management, and sales and marketing. Hundreds of US hoteliers look to the AH&LA for advice and direction. Schneider Electric felt that energy education was a natural fit for the organization, and the association agreed. Said one member of the committee, This clearly puts Schneider Electric at the top of vendors who are supporting the hotel industry. Energy University 6
An agreement was quickly reached to develop a learning path of courses for the Educational Institute, and to make these courses applicable for education credits for those who have been certified under the AH&LA. The organization has created links on its own site to Energy University, and recommends specific learning paths and courses for its members on topics as diverse as Fundamentals of Energy Efficiency, Codes and Standards of North America, Measuring and Benchmarking Energy Performance, and more than two dozen other courses. Hospitality professionals who hold the professional designations of Certified Hotel Administrator (CHA), Certified Lodging Manager (CLM), Certified Engineering Operations Executive (CEOE), and Certified Maintenance Manager from the AH&LA Educational Institute, can earn education credits toward their re-certification, mandated every five years, by completing Energy University courses outlined in learning paths on the program s website. This clearly puts Schneider Electric at the top of vendors who are supporting the hotel industry. Energy management is essential to the profitability and sustainability of today s lodging operations, said Robert L. Steele III, CHA, President and COO, AH&LA Educational Institute. Schneider Electric, as a member of American Hotel & Lodging Association s energy and environment committee, is the ideal resource to provide certified hospitality professionals with the energy management knowledge they need to keep their operations profitable and sustainable. Energy University 7
The hotel connection grows With the endorsement of the hotel association, word spread quickly throughout the industry. Faith Taylor is Vice President of Sustainability and Innovation at Wyndham Hotels, as well as chair of the AH&LA Environment and Engineering Committee. Her company lists energy efficiency as one of its top 5 corporate strategic goals and has an active program already in place for educating its staff throughout the world. She sees the Schneider Electric offering as a valuable educational tool for the industry: Energy is a primary operational expense to run a business, especially a hotel. The more efficient you are, you can actually save money and see results on the bottom line. Educational tools like Energy University can be one of many tools that can help hotels accomplish this. Energy University is also capturing the attention of university professors. Nancy Scanlon is Associate Professor of Operations and Facilities Management at Florida International University s Chaplain School of Hospitality, one of the foremost hospitality schools in the United States. After hearing about Energy University through the AH&LA, she decided to integrate it into the classes she teaches on hotel management. She frequently assigns material from Energy University for out-of-class studies, and often uses slides from the courses to supplement her own classroom instruction. Most of my students are not scientists, she explains. The materials need to be presented in a way that is comprehensive, not heavy on terminology, yet with the language and vocabulary of energy conservation that these students will need going forward in their careers. I find Energy University to be a valuable resource for that kind of education. Marriott International is working with the Energy University program team to develop a customized set of learning paths for their global personnel. Paul Hildreth, Marriott s Global Director of Engineering and Facilities Management, says that Energy University is an excellent opportunity to take advantage of in-depth training from a leader in the industry. The curriculum is rich in depth and variety; and being able to access it online while gaining CEUs from other industry-recognized organizations (e.g. Institute of Electrical & Electronics Engineers) is another plus. I don t anticipate any downside to this offering with content that is relevant and timely Energy University 8
Creating an impact with energy professionals In the 2+ years since its inception, Energy University has grown well beyond the hotel industry. Several professional associations and organizations have reviewed the courses and approved them for their membership to gain continuing education credit beyond degree programs. The following groups have either assigned credits or approved of the program to fulfill continuing their organization s education credits requirements: The Italian Federation for the Rational use of Energy (FIRE), is a non-profit association that promotes energy efficiency, supporting energy managers, ESCOs and other companies dealing with energy. The Renewable Energy and Energy Efficiency Partnership (REEEP), is a global non-profit, specialist change agent aiming to catalyze the market for renewable energy and energy efficiency, with a primary focus on emerging markets and developing countries. The U.S. Green Building Council (USGBC), is a Washington, D.C.- based 501(c)(3) nonprofit organization committed to a prosperous and sustainable future through cost-efficient and energy-saving green buildings. Institute of Electrical & Electronics Engineers (IEEE), is the world s largest professional association dedicated to advancing technological innovation and excellence for the benefit of humanity. IEEE and its members inspire a global community through IEEE s highly cited publications, conferences, technology standards, and professional and educational activities. BOMI International, is a 501(c)(3) not-for-profit educational institute that has earned a reputation as the trusted property and facility educational resource for top corporations, government agencies, property management firms, unions, and trade associations. The Chartered Institution of Building Services Engineers (CIBSE), a global organization based in the UK, received its Royal Charter in 1976. The American Council On Renewable Energy (ACORE), a 501(c)(3) membership non-profit organization headquartered in Washington, DC, is dedicated to bringing renewable energy into the mainstream of the U.S. economy and lifestyle through research and communications programs and membership committees. The Educational Institute, one of the finest nonprofit member benefits of the American Hotel & Lodging Association, is the premier source for delivering quality hospitality education, training and professional certification that serves the needs of hospitality schools and industries worldwide. Energy University 9
Engineers Ireland, with over 24,000 members from every discipline of engineering, is the voice of the engineering profession in Ireland. The Association for Facilities Engineering (AFE), is a professional organization of 5,000 members. The CPD Certification Service, was established in the UK as an independent organization operating across all market sectors to be complementary to the CPD policies of professional and academic institutions. Perhaps the success of the program can best be measured by those who have used the site. Records of course completions show that users are not just visiting to register and then not returning they are coming back to take more and more classes. Thousands of users per month now visit the site and take courses, and the people are as diverse as college students, facility managers, and CEOs. Energy University 10
Energy University continues to grow Schneider Electric plans to continue growing Energy University as long as there is a need for more courses. We have delivered a critical mass of great foundational content on all the systems that an energy manager will commonly encounter, says Johanne Greenwood, but there is much more that we can provide to educate our users on the latest innovations so that they can continue increasing their efficiency every year. Certifications, legislation and reporting requirements are constantly evolving and we are releasing new courses every quarter to ensure we remain the most relevant, most accessible source of information on the topic. The company considers the program a success on every level. Those involved in the project point to the real impact the effort has produced. We ve reached a global audience, many of whom would not have had access to this level of learning and depth of information, says Ms. Hartman. And we ve translated much of the material to make it as accessible as possible to this audience. The growth figures for usage tell us we re succeeding in helping people to understand how they can make a difference for the environment, to become more energy efficient, and to know how to look at and identify ways to create levels of sustainability that can impact people s lives today and in the future. Figure 1: Energy University has become global in reach, with users coming from homes, businesses and large corporations. A significant percentage of registrations come from top executives, with managers, staff, consultants, and others also strongly represented. Energy University 11
Conclusion: A model for the future Schneider Electric is now looking at creating collaborative efforts in other industries, such as residential housing, manufacturing, and commercial offices. Sean O Kane, who spearheaded the program s collaboration with the hotel industry, believes Energy University is a model that can be duplicated elsewhere: Any facility owner or operator in any industry should be able to derive the same benefits from Energy University as the hotel industry has seen. Susan Hartman agrees. Hotels aren t the only sector where a company who wants to be a thought leader can make a difference, she says. There s no reason why a company in any vital market say healthcare or manufacturing can t collaborate with us to fill a need for information. There s a hunger for knowledge in every industry. Ms. Hartman reiterates what she considers the important keys to Energy University s success: high-quality content that is vendor-neutral, and free availability to anyone who wants it. She also adds a third ingredient: collaboration. We worked across Schneider Electric and across industries to create something that has impact. By bringing these different entities together, we created something greater than we could have done by ourselves. In the process, we have become a knowledge base and partner for people who must make serious decisions about energy use everyday. That is a win for everyone. About Schneider Electric As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in Utilities & Infrastructures, Industries & Machine manufacturers, Non-residential buildings, Data centers & Networks, and in Residential. Focused on making energy safe, reliable, efficient, productive and green, the Group s 110,000 plus employees achieved sales of 19.6 billion euros in 2010, through an active commitment to help individuals and organizations make the most of their energy. Schneider Electric One High Street, North Andover, MA 01845 USA Telephone: +1 978 975 9600 Fax: +1 978 975 9674 www.schneider-electric.com/buildings WP-EnergyU-A4.BU.N.EN.1.2012.0.00.CC January 2012 2012 Schneider Electric. All rights reserved.