The UK Government has for many years used a carrot and stick approach to promote energy efficiency in companies and other organisations by introducing legislation and offering tax breaks or other incentives. Here Jeremy Shinton, Product Manager – Business Solutions at Mitsubishi Electric, looks at some of the current initiatives.
Before the end of this year all “large enterprises” will need to be in compliance with the Energy Saving Opportunities Scheme (ESOS). A business qualifies as a “large enterprise” essentially if it employs more than 250 people or has a turnover of more than 50 million euros. Further, smaller organisations are also encouraged to follow the ESOS programme on a voluntary basis.
Put simply, ESOS requires that you undertake an energy usage audit to account for 90% of the total energy use or spend. There are large fines for non-compliance so it is essential that qualifying companies act quickly before the 5th December 2015 audit deadline. Officially it is not mandatory to follow up and implement energy saving measures; the assumption is that the audit will highlight energy wastage and this will encourage managers to act of their own accord to address the issues.
The theory is that by keeping obligations to a minimum, organisations will be free to develop an energy saving plan that best suits them. Reducing energy bills means businesses become more profitable and competitive; the ESOS assessment is one step in the process.
Responsibility for the ESOS programmes lies with the Environment Agency, which will work with other relevant government agencies and departments as necessary. Larger organisations may execute their audit using internal resources and personnel; however others may prefer to bring in outside experts to help.
The ESOS audit must be overseen by an approved Lead Assessor and calculate the total energy consumption, use per production process (industrial, commercial, etc), use per employee, the use in each separate building and the energy cost of transport.
Energy data collected under other schemes, such as the Green Deal Assessments, that is less than four years old can be used as part of the ESOS audit. Further, organisations that are fully covered by ISO 50001 (Energy management systems – Requirements with guidance for use, 2011) are exempt from the assessment but do need to notify the Environment Agency that they are compliant with ESOS.
However, after 2015 a new audit will have to be completed at least every four years. It is estimated that the scheme will reduce the overall national energy bill by £1.5 billion to £2 billion pounds per year. This will make a significant contribution to the reduction of greenhouse gases such as carbon dioxide and also improve the country’s competitiveness in international markets.
Ecodesign equipment
Since 2009, some products and equipment that consume energy have had to meet the requirements of the Ecodesign of Energy Related Products Directive. This is a framework which primarily sets minimum requirements for certain products, including those that have a market demand of more than 200,000 units per year across Europe.
The objective of the Directive is to reduce greenhouse gas emissions and other adverse environmental impacts across the life-cycle of a product. This places the emphasis on the design and development stages of a product so that it is energy efficient. However, it is notable that there may also be energy costs associated with transportation, installation and maintenance.
Opportunities
Naturally every energy audit will be unique but there are several common themes that will arise in many of them. So let us look at these and draw some general guidance principles:
Energy efficiency is now a prime consideration for machinery designers, plant engineers and finance directors. Fortunately there are many technologies that will help organisations reduce their carbon footprint; the apparently-constant stream of new legislation is designed to encourage their take up.
Mitsubishi Electric offer ESOS approved audits and energy saving technologies across their range of automation solutions
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