Fitness First has over 1.2 million members, making it is the largest gym, health and fitness club group in the world—it also has a hefty electricity bill that needs managing.
They 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 this product by using it with @RISK, which optimizes expenditure of new capital in energy efficiency programs. Inputs (such as energy cost, usage, and weather) can be modeled with appropriate distributions. The internal rate of return (i.e. NPV) on a portfolio of efficiency projects across a number of gyms is then modeled 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.”
Read the full case study here.