ESOS Update Presentation

Part of APC Technology Group plc

minimisegroup.com

Making ESOS Easy for Business

A Guide to the Energy Savings Opportunity Scheme

Prepared for Sales Teams Briefings

By Holly Francis

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What is ESOS?

KEY FACTS:

You may have heard about ESOS and are wondering what it’s all about and how it will affect our customers.

The first things to know are:• ESOS stands for ‘Energy Savings Opportunity Scheme’.• As the name suggests, it’s a new form of energy assessment and the

scheme is designed to identify meaningful energy savings.• For large undertakings and their corporate groups, throughout the UK,

it is mandatory.• You’re probably hearing more and more about ESOS since the

qualification date for Phase One, 31st Dec 2014, has now passed. • The submission date for evidence of compliance is 5th December

2015. • Future phases are scheduled and each will cover 4 years.• Minimise Solutions is able to help customers meet their ESOS

obligations – We can guide them through process & ensure benefit from verified savings through most cost-effective ECMs.

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Who Is Affected?

• The legislation is the UK Government’s adaptation of Article 8 of the EU Energy Efficiency Directive, which requires energy management systems be put in place for larger organisations. As with any scheme the first thing to decide is if an organisation meets the criteria for eligibility…

• Can the organisation be considered as an ‘undertaking’?

• This is defined as a ‘body corporate or partnership, or an unincorporated association carrying on a trade or business, with or without a view to profit’. Only undertakings are required to participate in ESOS.

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Who Is Affected?

Once their status of an undertaking is established, consider if they would answer yes to either of the following:

• Are they an undertaking with 250 or more employees?

OR

• Are they an undertaking with less than 250 employees, but have:

– Annual turnover exceeding 50 million euros – AND– Balance sheet exceeding 43 million euros?

Turnover & Balance Sheet equivalents in pound sterling, as at 31st December 2014:

£38,937,777 and £33,486,489 respectively

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Who Is Affected?

• If criteria 1) or 2) are met = ‘large undertaking’ and will be required to comply with ESOS scheme.

• NB: Corporate Groups qualify if at least one UK group member meets the ESOS definition of a large undertaking.

• Therefore even if they are a small undertaking, you may still need to participate in ESOS as part of the Corporate Group.

• Not required to participate? … (e.g. Public Body that adheres to the UK Public Contracting Regulations or SME)

– Having a professional ESOS assessment will nevertheless greatly help increase overall profit through the identification of savings.

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What Next?

• So the client realises they need to get on board with ESOS

…. and quickly, since evidence of compliance must be submitted by 5th

December 2015.

• But what does this actually involve?

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ESOS Step 1 – Measure Total Energy Usage

1) Measure Total Energy Consumption

• Energy Use is measured across buildings, transport and industrial activities that take place within the UK.

• Energy use can be measured either in units of consumption (e.g. kWh) or financial expenditure (£).

• All forms of energy usage captured under the scheme, incl:– Electricity– Combustible fuels– Heat – Renewable energy

• Exception = measurable ‘unconsumed energy’ (i.e. provided to a third party - landlord provision to tenant).

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ESOS Step 1 – Measure Total Energy Usage

• The measurement of energy use must cover a full 12 month period including the qualification date of 31st December 2014.

• If a business already measures consumption for compliance with other schemes, e.g. CRC Energy Efficiency Scheme, they will not need to duplicate the work already carried out.

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ESOS Step 2 – Conduct Energy Audits

2) Conduct energy audits to identify energy efficiency recommendations

During each phase of the scheme at least 90% of energy consumption is subject to one of

the following:

– An ESOS compliant energy report

– A Display Energy Certificate

– A Green Deal Assessment

– A Certified ISO 50001 energy management system

• The 10% de minimis exclusion is intended to prevent organisations incurring high

expenditure through auditing areas of low energy consumption, thereby avoiding

wasted time and money.

• Company can decide what to allocate to the de minimis

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ESOS Step 2 – Conduct Energy Audits

• Good news! If already undertaken (high grade) energy auditing work since Dec 2011 (e.g. the Carbon Trust Standard) - can be used to support ESOS compliance during phase 1

• ESOS identifies ways to save 1) energy and 2) money – Although it is not mandatory to implement the recommended energy-saving

measures, the exercise will be most beneficial if the costs of auditing are offset by identified savings.

• Any energy conservation measure can be considered, including: – Behavioural change initiatives (e.g. change BMS controls)– Improvements to equipment maintenance – Equipment upgrades– Installation of new technology (e.g. LEDs / Solar PV / efficient boiler)

• ESOS assessments must be conducted or reviewed by an accredited Lead Assessor.

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ESOS Step 3 – Report Compliance to EA

3) Report Compliance to the Environment Agency

• The last part of the ESOS process is to give notification to the scheme administrator - the Environment Agency – that compliance has been achieved. (Often the Lead Assessor will do this)

• This should be completed by the ‘Compliance Date’, which is the last day of each 4-year compliance phase.

• Before Submission, must be reviewed and signed-off by a Board-level Director

Dates involved in first 3 phases of ESOS scheme….

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How Can Minimise Solutions Help?

• Minimise can take client through their ESOS journey from start to finish, under the guidance of our accredited Lead Assessor.

• We have a wealth of experience in building consumption

profiles for organisations, breaking down overall consumption data to illustrate what is being used; when, where and by whom.

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Why Choose Minimise Solutions? – Added extras!

• Minimise Solutions is ideally placed to not only help clients achieve ESOS compliance but to go a step further.

• If they choose to go beyond simple compliance we can help staff to engage with an energy reduction programme through behaviour change initiatives, equipment maintenance improvements and installation of new innovative technology to achieve real and significant savings.

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• Using our remote energy management system, Realtime Online, we are able to accurately measure and analyse energy usage at a granular level, as well as many other variables, including ambient temperature and lux levels.

• The analysis of this data can highlight unusual patterns of

usage and identify clear areas for simple and cost-effective energy efficiency measures.

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• Data captured in Realtime Online is viewable instantly via an online platform, meaning that staff benefit from being able to visually appreciate the effects of the implemented conservation measures.

• Particularly beneficial when measures affect staff directly; for example if a building’s heating patterns are altered, an employee can see the saving this makes in a clear and tangible way, making them far more likely to engage with the programme of changes.

• This will result in a more successful behavioural change and energy reduction campaign.

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• In addition Minimise Solutions has the ability to offer IPMVP (the most commonly used energy measurement and verification standard) to verify the energy savings arising from any measure you choose to implement.

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Any Questions?


minimisegroup.com

Jason PlentManaging Director

Minimise SolutionsThe Gridiron, One Pancras Square, Kings Cross, London N1C 9AG

Mobile: +44 (0) 7825 585898

DDI : +44 (0)203 714 4966

Main : +44 (0) 330 313 3220

[email protected]

www.minimisegroup.com


minimisegroup.com

Holly FrancisJunior Sustainability Consultant

Minimise SolutionsThe Gridiron, One Pancras Square, Kings Cross, London N1C 9AG

Mobile: +44 (0) 7595 780690

DDI : +44 (0)330 313 3248

Main : +44 (0) 330 313 3220

[email protected]

www.minimisegroup.com

ESOS Update Presentation

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