Wednesday, July 22, 2009

World Energy Solutions Inc. (XWES.OB) Makes Solid Headway by Providing Energy Cost Savings through Consortium Buying

How the people of the world buy and use energy has been a real hot button issue in recent years. All involved understand the need for more efficient use and care of the systems that make the world move but often come to different conclusions as to how it is best to be handled. In the end, there are a variety of ways to combine disparate energy sources to arrive at an efficient use of energy. If an investor can find a company that efficiently manages combined buying and use of energy products, they may have found an investment that will grow nicely.

World Energy Solutions Inc., an energy consortium of public and private entities, works to offer consulting and energy auction strategies that provide consortium members with optimum buying power. The company offers a wide range of energy buying options designed to provide the lowest cost energy possible for individual member needs. Among these strategies are reverse auctions, forward auctions and post and respond.

Perhaps the strongest advantage that the company has to offer is its strength in numbers. Its power sourcing involves over 400 power providers across a range of power categories (natural gas, electricity, oil and carbon credit.) Its customer base appears to be most apparent in the northeast, for the moment, and crosses both private and public organizations. Library systems to county governments and corporate to small business organizations are included in the company’s customer structure.

There have been many instruments created over recent years to supposedly enable environmental efficiency. Some are naive while others showed surprising efficiency. Currently, the market for these types of programs are in a state of flux as governments come to terms with what may or may not work to an efficient and profitable end. Having organizations that appear to have certain knowledge, as to what does seem to work well for differing organizations, is a solid profit opportunity. The overriding principle in this regard is the ability to be able to assess a given customer/organization, with regard to its particular energy needs through a given time period, and then purchasing energy to support that need.

The trick, in this instance, is to find when and how an organization uses its energy and buy the correct type of energy to meet that particular demand. Gas, electric, oil, wind or hydro power can all be purchased in varying forms and quantities. When and how a particular energy form is purchased is the key. Add in the overall group buying power and a plan can be developed if the right group acts as a centre. World Energy Solutions appears to have found that place and is doing well at implementing this type of strategy.

Recent buying patterns have shown just how efficient this type of system can be. A group in the MA and CT region has recently saved over $400,000 in energy costs with a particular buying structure, while the State of Massachusetts has saved over $10 million. From a general perspective, organizations, from government to private companies, are saving capital with World Energy benefiting along the way. It seems apparent that this type of program will spread quickly and offer investors the ability to be environmentally responsible while making a nice profit.

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