This presentation discusses how desktop analyses of energy reduction programs may overestimate savings and return on investment. It uses a case study of an energy management project with Jardine Motors Group to illustrate this. Monitoring of the site found actual energy usage and potential savings were lower than projected. As a result, the realized return on investment and payback period were longer than the desktop analysis suggested. The presentation emphasizes the importance of considering operational realities and not just energy data in projecting savings.

1. engineering solutions to manage your
energy
LCenergy

2. LCSenergy
JAMESMARTIN
Business Development Director
LCS Energy Ltd
Is the ROI of Multi-Technology as
Good as Desktop Analysis Suggests?

3. In this
presentation, we
look at the
operational
impact a business
has with energy
reduction and
provide example
of why the
desktop ROI
analysis alone
may not provide
the answers you
are looking for.
LCSenergy

4. With our energy managementprogram
MAPIT, our in-house specialists can show
you when and where you are using your
energy.
This is a case study of one of our key
clients, Jardine Motors Group,
Mercedes-Benz
LCSenergy

5. Energy spend at site
12 months prior to
MAPIT = £33,516
c.£16.75 per m2
LCSenergy

6. STEP //1
Following discussion of
your needs and business
objectives, the first stage
of the process is to install
monitoring equipment to
discover your energy
loads, behaviour and
consumption.
Monitor
The proposal stage is
where we take energy
services and technologies
and engineer a solution to
reduce your energy
waste.
STEP //3
Propose
STEP //2
Once we have enough
energy data across your
business, our team will
analyse and highlight the
areas where we can reduce
your energy.
Analys
e
The final stage is ensuring
we continue to reduce as
much energy waste as we
can from your business.
Tracking and trending your
data helps identify
continued saving
opportunities.
STEP//5
Track
The installation team will
then arrange a time to
minimise any disruption to
your business operating
schedule to implement the
energy saving solutions.
STEP //4
Instal
l
The MAPIT
PROCESS

7. Monitor ProposeAnalys
e
TrackInstal
l
The MB MAPIT
PROCESS

8. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS
Previous data
used to
analysis….

9. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS

10. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS
 Data showsthatcirca 75% of consumptionisfromLighting - 10% iscompressor!
 31% of all powerisconsumedoutof workinghours.
 Thiscouldmean£11K of wastage perannumfromthissite alone.

11. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS
Following analysis of the energy usage, a
desktop analysis of suitable technology and
change programs were proposed to reduce
consumption on sites including ROI
calculations.

12. Monitor ProposeAnalys
e
TrackInstall
The MAPIT
PROCESS
Following analysis of the energy usage, a
desktop analysis of suitable technology and
change programs were proposed to reduce
consumption on sites including ROI
calculations.
Desktop
Analysis
Projected Annual
Consumption kWh's
340,821
Saving 33%
Minimum Annual kWh Saving 112,606
Annual £ Saving € £13,140
Equipment Cost £29,120
Return On Investment (%) 45%
Pay Back Period (years) 2.22

13. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS

14. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS
Additional benefits:
 Single solution integrator, not multiple
 Single point of contactfor maintenance
 Your Virtual Energy Management (VEM)
 Global reporting of fault analysis and improvements

15. Monitor ProposeAnalys
e
TrackInstal
l
The MAPIT
PROCESS
Projected Annual Consumption 117,600 kWh
LED ENERGY SAVING 26%
Minimum Annual kWh Saving 50,609 kWh
Annual £ Saving £ 5,330
Equipment Cost £ 25,399
Return On Investment 21 %
Pay Back Period 57 months

16. Energy spend at site
period same 04/16 –
10/16 = £18,640
6 months c.£9.30 per m2
LCSenergyRE-CAP

17. Energy spend at site
6 months after
MAPIT = £14,694
6 months c.£7.35 per m2
21% saving
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18. Now that
was a case study…
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19. …but
in real life
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20. And therefore the impact on ROI:
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Desktop Analysis Actual Result
Projected Annual Consumption kWh's 340,821 318,231
Saving 33% 27%
Minimum Annual kWh Saving 112,606 85,286
Annual Saving £13,140 £11,832
Equipment Cost £29,120 £29,120
Return On Investment (%) 45% 41%
Pay Back Period (years) 2.22 2.46
Changes in projected consumptionbased on actual events
**
**
** Assumed savings based on pro-rata of 1st 6 months performance
***
*** Including maintenance savings
Resulting in a customer specific ROI multiplier:
0.75 of our desktop calculations

21. Desktop Analysis did not consider the following:
LCSenergy
 Management objectives & KPI’s
 Core Objective is to sell Cars, Parts and Labour
 Change to business operations and timings
 Technology Changes – EV Market increasing
 Impact on operational commercials
 Security lighting for assets
 Insurances on stock
 Technical intervention
 How long was the compressor actually leaking for
 Loading of control gear

22. Desktop Analysis did not consider the following:
LCSenergy
 Mechanical failure
 Lighting Control failures pre / post
 Human behavior
 Low energy consumption
 Some areas PIR’s others not
 Not my problem = don’t have to turn off
 Desktop Calculations!!
 Incorrect operational input – who is responsible?

23. The Success Story
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Following the success of the first site, the project has now been extend
UK wide leading to an additional investment of circa £0.5M+ of Energy
Management Technologies across the Jardine Motors Portfolio.
Current performance suggest we are on target savings = £160K + per
annum including the 0.75 multiplier from desktop analysis.

24. CARBON
TRUST
Fund accredited
LCS is Carbon Trust Accredited.
This means we are able to offer
clients up to £5,000 in funding from
the Green Business Fund againstthe
total capex of eligible projects.
LCS technology solutions also qualify
for Enhanced Capital Allowances.
LCSenergy

25. Our
CREDENTIALS

26. We will now take questions from
the floor with Stephen Pettyfer, the
Jardine Group Property Director.
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27. James Martin
Stand F65
07470 508139
James.martin@lcsenergy.co.uk
www.lcsenergy.co.uk
LCSenergy
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