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How SMEs can save money through energy efficiency
This document provides tips on saving money through energy efficiency. It discusses understanding energy bills and setting targets to reduce energy consumption through a structured approach. Small changes like awareness programs and good housekeeping can reduce energy 5% annually. Moderately investing in items like lighting and insulation upgrades can achieve 5-10% reductions. Larger investments over 20% usually require significant funds. The document outlines analyzing bills, procuring energy efficiently, setting up an energy team, and identifying opportunities for upgrades. Overall it promotes developing an energy management plan and culture to continually improve performance and lower energy costs.
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How SMEs can save money through energy efficiency
- 1. Save Money through Energy Efficiency EnergyShow 2019 Small Firms Association
- 2. • Introduction &Context • Understanding your Bills - Tips to save MONEY !! • The basics of Structured Energy Management - Tips to save Energy! (and even more money !) Contents
- 3. Context of EnergyEfficiency • What % of your Revenue is spent on Energy ? • Energy Cost Savings go straight to the ‘bottom line’ • How much extra ‘production’ or ‘service’ would you have to deliver to make profits the equivalent of 10 % of your energy cost ? • This is the BUSINESS CASE for Energy Efficiency improvement !
- 4. Energy Supply EnergyUsage Pay less per unit of energy (Bills analysis / Tracking) Reduce energy consumed (Awareness/good housekeeping and Investment) AIM To achieve business objectives at minimum energy cost by constantly improving energy performance The business approach
- 5. Set a Targetfor Energy Reduction • 5 % in the first year should be EASY ! • 5 to 10 % will require a STRUCTURED Approach • 10 to 20 % will require a structured approach PLUS modest investment • > 20 % usually requires significant investment • Start with the COST of Energy and then work on the AMOUNT of Energy used.
- 6. Understanding your EnergyBills • Each Electricity Supplier has their own bill format ! • 3 Main Categories of Charges – Energy Costs – Use of System Costs – Other Charges • Energy Cost - this is the areas where suppliers COMPETE ! – Day – Night – Peak (depending on the Tariff)
- 7. Day & Night •DAY units are measured from 0800 to 2300 GMT – 15 hours of DAY • NIGHT units are measured from 2300 to 0800 GMT – 9 hours of NIGHT • Remember the times are GMT (Greenwich Mean Time) • Night Energy is typically half the cost of Day Energy. • Transfer as much as you can to NIGHT Energy – Examples: Ice Making, Battery Charging, Water Heating…… • FIND OUT WHAT IS GOING ON AT NIGHT ON YOUR SITE !
- 8. Eliminate Penalties onBills • Power Factor / Excess Wattless Energy Penalties – Easy to identify – Easy to fix – Come talk with us afterwards ! • Incorrect Maximum Import Capacity – Easy to identify if MIC is too low ! – Not too easy to identify if MIC is too big ! – A once off payment to resolve the issue – Usually pays back quickly !
- 9. Energy Procurement • Reviewyour Energy Contracts EVERY YEAR ! • Tender your energy requirements annually or at least every 2 years • The tendering process is a RISK balancing process – How much price change risk are you willing to take ? • Electricity tendering is generally simpler than Gas contracting
- 10. Structured Energy Management •Technical - – Understanding your bills – Determining your Significant Energy Users • Organisational – Setting Up a small Energy Team / Task Force – Doing the simple things right • Switch off when not required esp. Significant Energy Users • Use a checklist to make sure this is done consistently • People – Getting the staff engaged – Run an Energy Awareness Programme – Keep it simple !
- 11. Get the balanceright Organisational management commitment People a culture of energy efficiency Technical understanding energy usage and how to control it Balance all 3 for a successful programme
- 12. 5 Pillars ofEnergy Management Commit Take Action Identify Review Continual improvement Plan Get the Staff Engaged Understand your Bills Make a simple Energy Action Plan Do the simple stuff first , then invest !! Review your bills every month & compare yourself to others if you can !
- 13. The Easy Wins!! •Increased Energy Awareness – typically 2.5% to 5 % • Understand the consumption when the business is closed: – Typically 10 % can be saved by shutting down unnecessary loads at night and especially over weekends and holiday periods – Do a walkaround after work and at the weekend ! – Sign up for Suppliers On Line Billing System – Look at consumption on Christmas Day as a guide to what is left ON !! – Start with Nights – Then look at Weekends – Then look at long holiday periods – Do this by developing structured Shutdown Checklists
- 14. Some Investment Opportunities •Lighting upgrades: LED lighting typically has a 4 to 5 year payback • Don’t forget the outside lights ! • Improved Building Fabric – Improved attic insulation is cheap to do and has a quick payback (typically <2 yrs.) – Wall insulation is more challenging but can pay back in 5/7 years – Window replacement is usually a longer payback but is warranted if the windows are reaching end of life • Sub Metering : – No direct payback but provides more information to find savings
- 15. Some Investment Opportunities •Heating System Controls – Check to see if the existing controls are working !! – If not get them brought back to their new condition – Then start to monitor usage – Typically improved controls pay back in 2/4 years sometimes quicker • Look for Opportunities when – Doing Major Repairs / Renewals to include energy upgrades – Building New Facilities – Installing new plant and equipment
- 16. How will youpay for these ? • Low / No cost opportunities can usually be funded by savings within the current year • Use the Accelerated Capital Allowances (ACA) to gain some tax advantage • Obligated Parties (energy suppliers) are required to provide evidence that they have assisted clients to make energy savings - ESOS (Energy Efficiency Obligation Scheme) • SEAI - Better Energy Communities Grant Scheme / EXEED Grants • ESCO - Energy Service Company who may fund the investment and recoup their investment and some profit ( or profit share) from the savings generated • Direct Investment by the company – usually much better than ‘money on deposit ‘ !
- 17. Energy Agreements –ISO50001 Energy Assessments for SMEs Energy MAP (Management Action Programme) Training Get started Get basic training Get certified Awards Grantsandacceleratedcapitalallowances EnergyMAPWebsite Small Business Training (Energy Efficiency) Get a programme Large Industry Energy Network Get networking Further support available from www.seai.ie
- 18. Your Next Steps! Commence the Process of Energy Tendering Continue to review your bills Determine your Significant Energy Users Review the Potential Opportunities Continue Energy Awareness for Staff Log onto https://www.seai.ie/ Follow the Energy in Business track !
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- 21. Introduction Monasterboice Inn, DroghedaCo. Louth Originally a coach house, Monasterboice Inn has been servicing the road between Dublin and Belfast for over 200 years! Cater for business functions and family occasions Design and construction of a new 150 seat function room and the design/upgrade of the existing restaurant building
- 22. Overall Aim To designand construct a new function room and upgrade the existing building to deliver a new restaurant with superior energy efficiency whilst delivering the required energy service to enhance the customer comfort without compromising customer experience
- 23. Why did wedo this? • We want to do business responsibly using less fossil fuels and to lower costs • We realised that the stream running through our site would need to be re- piped • Our heating company Eurotech had the expertise to harness this energy • They recommended using a design-led approach to improving energy performance alongside an EXEED consultant
- 24. How did wedo this? How it all began? EXEED Project Team
- 25. Energy Source –Our Stream
- 26. Aqua Thermal EnergyPreparations
- 27. Aqua Thermal Energy– Today!
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- 29. What else didwe do? • Smart controls were installed to manage the various sources of heat and cooling. • Hot air is extracted from the extractor fans and used to heat water. • Smart lighting used in conference and car park which is lux level and sensor controlled • The old gas boilers were replaced with heat pumps. • High grade superior insulation throughout the building • Triple-A glazed windows
- 30. Results • Extended premisesby 41% • Increased turnover by 9% • Energy costs reduced by 1.3% • Approximate payback of 3.5 years
- 31. What’s next? • Plansto build rooms in the same eco-friendly fashion • Our refrigeration units in the kitchen and the bar will be cooled from the stream • Promote the positive environmental impact of our work with customers
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