@RISK Modeling Tips
Staying Fit, Saving Energy: @RISK and RISKOptimizer Help World’s Biggest Fitness Club Save on Electricity
Fitness First turned to Knowledge Global, an Australian company that specializes in advising clients on reducing energy use costs. Knowledge Global has been delivering verifiable and accurate financial return on investment on energy efficiency programs via their data analytics tool called NRG Insight. The product is fundamentally an independent billing engine that uses daily smart meter updates to provide automated bill validation, accruals, budgeting, forecasting, market analysis, and procurement aids.
Knowledge Global has been able to further enhance NRG Insight analyses with @RISK, which optimizes expenditure of new capital in energy efficiency programs. Inputs (such as energy cost, usage, and weather) can be modelled with appropriate distributions. The internal rate of return (i.e. NPV) on a portfolio of efficiency projects across a number of gyms is then modelled using RISKOptimizer, providing more confidence in future projects which are then validated by NRG Insight.
"Fitness First and our other clients are provided with more confidence in the expected returns of energy efficiency strategies which makes capital sign off easier," says Ross Sharman, Managing Director of Knowledge Global. He adds, "@RISK's strong statistical capability has made NRG Insight much smarter."
For 30 years, Palisade software tools have been helping decision-makers gain powerful insights in their spreadsheets; now, BigPicture adds a new, visual diagramming platform to your decision-making toolbox. Get a sneak peek at BigPicture: our experts show off some of the most useful and fun features of this brand-new software.
The purpose of this section is to propose a method for modeling daytime demand, which arises from base demand. Once this model has been established, then the organization of utilizes are discussed focusing on deregulation or liberalization where utility customers are given a choice of buying electricity from the utility itself or from independent power producers (IPPs). The section ends with a demonstration of how to use @RISK to run a simulation to see the impact on the cost of electricity from the presence of IPPs using the model for daytime demand.
An Introduction to BigPicture
Cost, Price, and Product Profitability: Using @RISK
Introduction to Risk and Decision Analysis using
Lessons from Oil and Chemical Case Studies: How to Build Accurate and Decision-Focused @RISK models
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