The government’s Energy Savings Opportunity Scheme (ESOS) requires large undertakings and their corporate groups to measure and submit energy audits every 4 years. Those who missed the first round of deadlines are now at risk of 5-figure fines being imposed. Read more.
Your ESOS assessment will provide you with a comprehensive list of your energy saving opportunities. We recommend businesses use the audits to inform and improve their energy strategy.
You can download the full Department of Energy & Climate Change (DECC) guide here, but we have also summarised it below:
“The next steps businesses can take to maximise the impact and return on investment of ESOS assessment…”
1. Analyse the report:
◊ A robust financial appraisal of the opportunities, presented in a framework readily understood within your business
◊ The project’s ease of implementation
◊ Align it with business objectives and policies
◊ Assessment of the project’s risks, considering strategies in place to mitigate them
◊ An comprehensive analysis of the benefits the project will deliver. This will vary depending on your required investment and complexity of the opportunities presented in the audit.
“On average, a business can reduce its annual energy costs by 20% through improving energy efficiency and energy management” – The Carbon Trust.
2. Create a business case
Consider factors such as:
◊ Overall savings and rate of return
◊ Cost of implementation
◊ Investigate potential sources for finance
◊ Depending on the complexity of the project, you may want to decide on specifications
◊ Coherence with other planned organisational changes
◊ Understand the implications of changes, E.g. lighting (health and safety), heating (comfort of staff)
◊ Align the project with your business cycle, for example obtaining sign-off before the budget is finalised for the next financial year
◊ Find related case studies for businesses implementing
◊ Mitigating risks
“Relating your business case to strategic considerations will help define the business need and underline the value of the investment to your organisation”
3. Develop a detailed project implementation plan
◊ Identify suppliers
◊ Choose appropriate equipment
◊ Find installers (if necessary)
◊ Secure finance
◊ Undertake the installation process
◊ Adapt processes and conduct training for appropriate operation of the equipment
◊ Implementation schedule, monitoring and scheduling
“Successful companies have identified allocating the right resource and allowing sufficient time to complete the business case as key success criteria”
4. Monitor and verify the performance of your project
Allowing you to identify, report and fix problems early on, track overall performance against objectives and provide evidence for future investment opportunities.
THE BUSINESS OPPORTUNITY BEHIND ENERGY EFFICIENCY
It is also not unusual to save 5-10% with minimal capital expenditure. Even when more substantial investment is required, energy saving opportunities regularly outperform most other investment opportunities that a business has.
“Cutting your energy costs is one of the most straightforward ways for your business to improve its bottom line”
Compelling financial return:
♦ Cost reduction: Save money and manage risks by reducing your operating costs and exposure to future energy price increases
♦ Enhance productivity, competitive advantage and market position
♦ Demonstrates innovation/ being at the cutting edge of technology
♦ Exploit new and growing market opportunities
♦ Improved environmental performance
♦ Reduced emissions and carbon footprint
♦ Enhanced reputation and public relations advantage
COST OF INACTION
The cost of inaction can be presented in avoidable losses generated by delaying/ avoiding implementation of the energy efficiency opportunities.
HOW WE CAN HELP
Not only can we complete the audits for businesses (if you’ve missed the deadlines, you still have to act), we can fully implement and integrate the recommended solutions.
Our engineers will work with you to achieve the most cost-effective solutions.