Energy Budgeting

Get a more accurate financial picture and long-term cost-benefit analysis of your energy investments.

Challenges to Energy Budgeting

Organizations are feeling the pressure to make long-term investment decisions in an uncertain and challenging economic climate, where capital and budgets are tight. Often energy is viewed under one variable – the cost of fuel. However, it’s risky to evaluate a long-term investment by only accounting for this one variable.

Assessing your short- and long-term energy needs and true costs can be complicated, which can lead to misaligned budgeting. You need to budget for the right infrastructure to meet your load requirements and efficiency goals, as well as the factors and projections that impact the health of your investment.

How Vicinity Can Help

Conducting a lifecycle cost analysis can help you accurately determine the cost-effectiveness of the investment and financing options you’re considering.

A lifecycle analysis accounts for and weighs everything from the purchase price of equipment and financing costs to operating and maintaining (0&M) the equipment over time.

A lifecycle cost analysis provides you with the most comprehensive picture of the costs and benefits of your alternatives and serves as a data-backed tool that you can use to support your decision with stakeholders and financers. From district energy to energy asset management, Vicinity can help you accurately assess your energy options so that you can budget for the optimal solution that meets your short- and long-term goals.

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Advantages to Partnering With Vicinity for Energy Budgeting

Benefit from an Energy Economy of Scale

Supplied as a finished thermal product, district energy reduces your upfront capital investment, lowers operational costs and is extremely cost-competitive. By connecting to our district energy network, facilities can eliminate both the capital and O&M expense associated with onsite boilers and chillers.

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Lock in Fuel Costs

Vicinity’s steam pricing reflects a blend of hedging and market commodity prices. To guard against unprecedented and unexpected price spikes in the market, we hedge fuel prices for a significant portion of our expected steam load for the heating season. Through these thoughtful hedging strategies, our customers experience more stable rates and greater budget certainty.

Capital Budgeting and Planning

If you’re considering developing an onsite energy infrastructure project, Vicinity can review or help develop your infrastructure budget, identify financing sources for your project, analyze payback options, and structure a financing contract that gives you the most economical return on your energy infrastructure project.

Energy Master Planning

We can put together a complete and comprehensive plan for our customers’ energy assets, budget, and energy goals to help them achieve these goals within their budget constraints.