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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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Page 1: THE ULTIMATE GUIDE TO BECOMING THE ALPHA ENERGY …

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

[email protected]

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

FREE Trial of DEXCell Energy Manager

+ Identify where you are consuming energy and which areas you can improve upon

+ Monitor your changes in real time

+ Control your efficiency plan and make good decisions

FREE DEMO

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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

[email protected]