Energy Managers often identify opportunities for energy reduction, however, the work does not stop once an opportunity is identified. The second, and often more important step, is to create a business case that explains to the management team the reasons that the project is beneficial so they can make the necessary funds available. This session provides practical steps for developing successful business cases but will also expand on how to assess new innovative technologies.

1. By Maria Spyrou

2. Marks & Spencer Cheshire Oaks
Overview
• Who am I?
• The BBK team
• Why do you need a robust business case
• Where to begin
• Testing & Trial verification
• Calculating costs and benefits
• Additional benefits
• Investment appraisal tools
• Prioritisation
• Preparation for the presentation
• Summary/conclusion

3. The BBK team
The Key Accounts Team is part of Balfour
Beatty. It is made up of a group of customer
focused, driven and resourceful people. We
have a small business mentality but form part
of and have the backing of a global multi-billion
pound business
We operate in a number of sectors, specialising
in fast track work and working within clients’
live premises. We offer our clients a varied MEP
service, and take pride in our ability to react
quickly to our clients’ needs
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4. Marks & Spencer Cheshire Oaks
Why do you need a robust business case
• Need to convince upper management to
make the funds available
• Usually competing against other business
priorities or even core business functions
• Energy bill might not be a high business cost
• Some innovation products sound too good
to be true
• Management might have invested in the
past and not seen the benefits

5. Where to begin – Identify & group opportunities
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• Focus on one type or one building at a time
• This could be a ‘pain’ area for your business
or building.
• For example bad lighting in an area, or bad
temperature control.

6. Innovation – Testing and Trial verification
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• Assess the potential benefits of any product/
technology/ innovation before writing a
business case.
• Agree what the trial will include
• How you will measure it (what data points
for example)
• For how long
• What method you will use for the analysis

7. Calculate savings per initiative/group
• Use all the information available to calculate
savings per initiative/group
• The International Performance
Measurement and Verification Protocol
(IPMVP) provides different methods for
measuring savings depending on the type of
project.
• In its simplest form, it should include
Consumption Before
- Consumption After
= Savings

8. • Costs per initiative/group should then be
calculated
• Depending on the initiative this could be
based on a new design, or a 1for1
replacement
• Your supply chain should be able to support
you in getting high level pricing for your
projects
• Your procurement team might also want to
run a tender at this or a later stage
Calculate costs per initiative/group

9. Additional benefits
• Government incentives
Enhanced Capital Allowance Scheme
FiTs
EV charging points
• Customer perception
• Better climate control

10. Flexibility projects
• It’s not all about how much energy we are
using, but also WHEN we are using it
• There are various projects and programmes
that allow you to take benefit of cheaper
tariffs at different times of the day
• Consider how this can affect operations, and
include the benefits/drawbacks in any
business case

11. Investment appraisal tools:
• Payback
• Return on Investment
• Net Present Value
Are the main three numbers your finance
team are going to ask for
Payback Return on
Investment
(ROI)
Net Present
Value (NPV)
= Total cost/
Total Savings
= £2500/
£809per year
=3.1 Years
= Total
Savings/ Total
Cost
=£809/ £2500
=0.32, or 32%
Check with
your finance
team,
organisations
usually have
different
values for
discount rates

12. Prioritise opportunities
• At this stage you can use the Investment
appraisal tools to prioritise the opportunities
you are considering
• This is the perfect stage to decide whether
less is more
• Or even better, to combine lower payback
projects with higher payback projects

13. Preparation is key for the presentation
• Summarise what the ‘issue’ is
• Show how this will be resolved with clear
measures to realise the benefits
• Keep it simple
• Give yourself realistic timescales
(mobilisation time)
• Include ‘additional benefits’ that might not
have a direct financial implication
• Try to pre-empt the questions that may be
posed

14. Preparation is key for the presentation

15. Under-promise and over-deliver

16. Summary
Calculate Costs & Benefits
Preparation is key
Identify and prioritise opportunities based on your business needs
Add all additional benefits, both direct and indirect
Under-promise and Over-deliver

17. Dr Maria Spyrou
Energy Efficiency Manager
Balfour Beatty Kilpatrick | Key Accounts
maria.spyrou@balfourbeatty.com
@DrSpyrou
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