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Moving Businesses from Compliance to Real Energy Savings – What are the Best Steps?

Moving Businesses from Compliance to Real Energy Savings – What are the Best Steps?. 2 nd April 2013 David Legge – b:ssec. Contents. Energy Efficiency – what’s the problem? Legislative landscape What are organisations currently doing? Energy Management Forthcoming Legislation.

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Moving Businesses from Compliance to Real Energy Savings – What are the Best Steps?

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  1. Moving Businesses from Compliance to Real Energy Savings – What are the Best Steps? 2nd April 2013 David Legge – b:ssec

  2. Contents • Energy Efficiency – what’s the problem? • Legislative landscape • What are organisations currently doing? • Energy Management • Forthcoming Legislation

  3. Is there an opportunity? • Over 90% of businesses identify energy efficiency as a high priority • Over 88% of businesses identify security of supply as a high priority • Businesses are collectively overspending £1.6bn on energy • 15% could be saved on energy bills by large firms with better energy management • Total NPV of ESOS opportunity for UK estimated at £1.9bn • ISO50001 could influence 60% of global energy use References - CBI Shining a Light report, 2013 / ISO Win the Energy Challenge report, 2011 / ESOS Impact Assessment 2013 / MEUC Powercut Britain report, 2013

  4. What’s the problem? • Many businesses have started along the ‘sustainable’ road, whilst others are still lagging • Awareness • Understanding and prioritising • A messy marketplace • Joined up working • Skills shortage • Understanding and accessing finance • Is there a need for legislation to move energy efficiency up the agenda? • One third of businesses are not aware of ESOS requirements (MEUC Report, October 2013)

  5. Legislative Landscape

  6. Policy effectiveness • Most businesses (95%) take a dim view of the effectiveness of Government policy to encourage energy efficiency • CRC is seen as a burden by large business • 75% of businesses failed to maximise opportunities from CRC • Need to separate the data and intelligence • Outsource the bureaucracy and utilise the high value data • CCA’s have raised awareness in energy intensive industries but are these having the desired effect? • Client driven by energy cost savings • “I spend too much time filling out forms to actually manage energy”. University Energy Manager References - CBI Shining a Light report, 2013

  7. Forthcoming Legislation • Is ESOS just more green tape? • Make use of CRC data and maximise value • Large organisations targeted (again) • Can ESOS add value to your business? • Average costs are estimated at £10,000 to £17,000 (every 4 years) • Will Minimum Energy Performance Standards (MEPS) drive the most appropriate changes?

  8. Key Drivers • Public & staff opinion. • Media. • ‘Greenpeace Avoidance’. • Brand image. • Market distinction. • Peer pressure. • Rising energy prices. • Increasing carbon costs (CCL/CRC). • Fuel security. Energy Costs & Security CSR Sustainable Approach • Carbon Reduction Commitment. • EPCs / DECs. • Climate Change Act. • ESOS. • Part L / Zero Carbon 2019. • Reduced maintenance. • Increased profit margin. • Improved productivity. Legislation Efficiency

  9. ISO 50001 – Energy Management • UK business has not taken up in large numbers • 55 organisations have certified fewer than 200 sites • 80% of organisations have certified 1-2 sites • Organisations report typical 20-30% savings • Are these inefficient businesses? • Best practice way of managing energy • Also likely to demonstrate compliance to ESOS • Is it necessary for businesses with mature energy management? • 50001 asks for a comprehensive energy review • Plan > Do > Check > Act cycle is robust

  10. Understanding your energy • Is there an accurate asset register? • Is there an understanding of how buildings use energy? • Clients are still trying to understand what they have in their buildings • Dismissing the factoids regarding energy use • Who is reviewing data in detail? • Analyse HH data for the subtleties not just baseload profiles • “I never have a chance to look at the data” Energy Manager • What are clients aiming to achieve? • Are BREEAM and Building Regs pushing for more metering than is necessary? • Are meters commissioned, labelled, accurate?

  11. How to maximise the benefit • ESOS • Embrace the philosophy “the useful stuff” and use this intelligence to move forwards • Outsource the data gathering “the not so useful stuff” • Add value - tick box vs intelligent approach • Learn about your estate • All organisations still have a lot to learn about their estates • Many organisations still struggle to keep up with legislative changes and awareness of energy efficiency • The barriers to energy efficiency are not knowing what to do and not being able to present the business case

  12. b:ssec donates 10% of its profits to charity. Our continuing charitable donations are helping those in poorer global communities to reduce their carbon emissions and lead a better life.

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