Energy Savings Opportunity Scheme

CIBSE Leadership in Building Performance Conference, 28 Oct 2014Philip Douglas, Head of Energy Efficiency & Community Energy Strategy team

“We estimate that through socially cost-effective investment in energy efficiency we could be saving 196TWh in 2020, equivalent to 22 power stations”

ESOS

CRC

EU ETS & CCAs

Key business energy efficiency policies have different primary targets

Covers all large and smaller non-SME

enterprises

Energy intensive industry – site based

Less energy intensive commercial organisations (major

energy users)

4

ESOS Consultation process

400300

150

Met with over 400 stakeholders

From over 300 organisations

Received 150 consultation responses

Dec ‘13 - Key policy decisions made

May ‘14 - Publish Govt Response & legislation

Jun ‘14 - Legislation comes in to force

Dec ‘14 – Scheme operational

5

“Cost-effective energy efficiency has the potential to deliver a triple win for businesses, the environment and the wider economy […] ESOS can support businesses in realising their energy efficiency potential” – CBI

6

Key messages from consultationKeep it simple, and understandable yet make it meaningful

• Respondents want the scheme to provide outputs that are relevant to each business

• Respondents want ESOS to add value and identify real measures that can be implemented

Avoid duplication in existing regulation and requirements

• There a range of energy efficiency policies operating in the UK – ESOS needs to fit

• Take advantage of alternative routes to compliance – e.g. ISO50001

Minimise costs

• Allow discretion on the number of site visits required within audits

• Using internal team members for their knowledge and skills

• Only having lead auditor requiring accreditation under the scheme – but need for whole audit team to be of sufficient quality to ensure that output is meaningful

7

Am I part of a group undertaking?

Do I employ 250 or more people?

Is my turnover more than €50m

Does the group undertaking include in

the UK one or more ‘large enterprises’?

Is my annual balance sheet more than €43m

AND

I am a ‘large enterprise’

I am a ‘large enterprise’

I am part of a large group enterprise

Organisations

subject to the public contracts regulations 2006 are exempt from the scheme

8

Conducting an ESOS assessment

1. Measure energy use

3. Evaluate opportunities

4. Store data and notify scheme

administrator

5. Implement savings, and

further disclosure

(e.g. in annual report)

2. Identify energy

efficiency and energy

management opportunities

Mandatory

Voluntary

9

Key requirements

• Audit 90% of energy activity (energy use or energy spend)

• Determine you are in on 31 December 2014

• Use a ‘lead assessor’ to review assessment

• Get Director sign-off (2 Directors if in-house assessor used)

• Comply & Notify scheme administrator by 5 Dec 2015 (and every 4 years thereafter)

• Store records of assessment

Reporting and complianceKey disclosure questions

1. Does your organisation have a quantitative energy efficiency target and/or benchmarks?

2. Has the Board of Directors of your organisation discussed the results of your ESOS assessment?

3. Have you published any information relating to your ESOS audit report? (e.g. key findings, or key actions taken in light of the ESOS Assessment)

10

11

Use a qualified lead assessor

Professional body

Lead Assessor

Belongsto a…

Which isapproved by…

Scheme administrator

• PAS51215 – sets standard of competence for lead assessors (professional bodies will ensure members meet this standard)

Any questions?

esos@environment-agency.gov.uk

https://www.gov.uk/energy-savings-opportunity-scheme-esos