Goal 2 = A Competitive Position
To better understand customer needs, while strengthening industry capacity and developing the research and technical support essential to meet those needs in a price-competitive manner.
A. Improve Customer Orientation
With relatively few exceptions, District Energy is not usually an option considered in most new markets.
In addition, many existing systems have not been consistently maintained, modernized, or expanded to achieve their full performance potential.
Actions to increase new market demand and to maintain/expand the current District Energy market base require a strong understanding of customer needs, and customer confidence that District Energy offers the best value to meet them.
Since customers range from government agencies to individual private end users, an effective approach must recognize the substantially different values and service needs of each customer group.
- 1. Understand Customer Needs
- Classic customer groups; define what each group wants and values for energy-related services.
- 2. Define Competitive Advantages
- Document the performance advantages and customer value from District Energy versus competing in-building systems.
- 3. Modify Marketing Approach
- Revise marketing messages and strategies to communicate effectively the value that District Energy offers in meeting the needs of each customer group.
B. Strengthen Industry Capacity
During the past decade, the District Energy community has begun to take a more aggressive posture toward system expansion and privatization.
Yet the number of private firms with the resources to build, buy, own, and operate such systems remains relatively small.
There is no strong domestic rivalry for new business, nor is District Energy commonly perceived as a prestigious industry that attracts new top level professionals.
Developing the industry's capacity must address these constraints through continued efforts that increase its allies, governmental anchors, specialized pock of knowledge, and the number of competitive firms with sustained commitments to District Energy.
- 1. Establish Strategic Alliances
- Form partnerships with interest groups around objectives that are mutual benefit, with particular emphasis on advocates for energy efficiency and the environment.
- 2. Enhance Government Partnerships
- Increase participation of key government agencies as active partners and potential anchor customers for District Energy.
- 3. Expand Professional Resources and Training
- Define District Energy as a profession supported by college curricula; increase availability of entry-level and training positions within the industry.
- 4. Encourage Intra-industry Competition
- Increase the number of U.S. firms that have strong commitments to District Energy as their primary business.
C. Pursue Innovation and Quality Service
Focused research and sound technical support are essential needs for innovation and continuing competitiveness in any industry.
For the District Energy industry, however, research and technical support lag well behind that available to its primary competition, in-building systems.
To address this problem, research objectives must be clearly defined and aligned well with the industry's priorities.
Research, development, and demonstration projects must be consistently co-funded by industry and government.
Closely related efforts must define and codify standards for essential equipment, and make technical assistance easily available to system developers and managers.
- 1. Identify Technology Needs and Opportunities
- Define technology needs and opportunities to significantly improve District Energy performance and competitive advantage.
- 2. Focus Research and Development
- Establish on-going programs and financial support for research, development and demonstrations that meet the defined needs of the industry.
- 2. Define Technical Standards
- Develop and codify standards for essential components used by the District Energy industry; emphasize distribution and metering equipment as a first priority.
- 4. Provide Technical Support
- Provide technical support to District Energy developers through resource center services, technical advisory teams, textbooks, financing models, and successful case histories.