Energy Savings Opportunity
Scheme
Martin Adams, ESOS Team Leader
September 2014
“Cost-effective energy efficiency has
the potential to deliver a triple win – for
business, the environment and the
wider economy …
ESOS can support business in
realising their energy efficiency
potential”
–
2
Energy Savings Opportunity Scheme
CBI
The basics
What is ESOS?
• A mandatory energy audit scheme for the UK
–
Measure energy use
–
Identify opportunities
–
Notify scheme administrator (every four years)
Who must comply?
• Large enterprises
–
Enterprise =
business or non-profit org undertaking an economic activity
–
Large =
250+ employees (or)
€50m+ turnover and
€43m+ balance sheet
Why ESOS?
• EU Energy Efficiency Directive – obligation on all EU countries
• Huge EE potential in the economy – 196TWh by 2020 in UK alone!!!
3
Energy Savings Opportunity Scheme
Key messages from consultation
Keep it simple, and understandable yet make it meaningful
•
Straight-forward to comply
•
Broad regulations to accommodate diverse biz
•
Audits should identify real EE opps
Avoid duplication in existing regulation and requirements
•
Align with other EE policies
•
Incorporate other energy assessment schemes e.g. ISO50001
Minimise costs
4
•
Flexibility on nr of site visits for audit
•
Allow use of in-house team for their knowledge and skills
•
Lead auditor certified + team members qualified = effective audits
Energy Savings Opportunity Scheme
ESOS is estimated to have a £1.6bn net benefit to the UK.
This will primarily be felt by business through lower bills
Estimated energy bill savings (£m) for ESOS participants, split by sector
400
350
300
250
200
150
100
50
1real
5
2014 prices
Other
Energy Savings Opportunity Scheme
Transport
Industrial
Commercial
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
0
Policy Overview
Who is in scope of ESOS?
Does the group
undertaking include in
the UK one or more
‘large enterprises’?
Am I part of a group
undertaking?

I am a large
enterprise

I am a large
enterprise
Do I employ 250 or
more people?
Is my turnover more
than €50m
AND
Is my annual balance
sheet more than €43m
7
Energy Savings Opportunity Scheme


I am part of
a large
group
enterprise
Organisations
subject to the public
contracts regulations
2006 are exempt from
the scheme
ESOS assessment
Mandatory
2. Identify
energy
efficiency
and energy
management
opportunities
1. Measure
energy use
Voluntary
4. Store data
and notify
scheme
administrator
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Energy Savings Opportunity Scheme
3. Evaluate
opportunities
5. Implement
savings, and
further
disclosure
(e.g. in annual
report)
Routes to compliance
ISO 50001
DECs / Green
Deal
Assessments
Previous
activity that
meets ESOS
standards
ESOS compliant
organisation
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Energy Savings Opportunity Scheme
• ISO50001
• Display Energy Certificates
• Previous audits to ESOS
standards
And…
• ESOS compliant energy
audits (either conducted inhouse or by external
assessor)
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
• Comply & Notify scheme administrator by 5 Dec 2015 (and every 4 years
thereafter)
• Store records of assessment
10
Energy Savings Opportunity Scheme
Flexibility to comply
• Comply via one-off, multiple, or rolling audits
• Count historical energy assessment activity (up to four years before
compliance date)
• Discretion as to the number of site visits
• Use 12-months data – but comply or explain principle
• Groups
– Highest UK-parent responsible but disaggregation allowed
– Franchises: Can ‘opt in’ to group reporting
11
Energy Savings Opportunity Scheme
Compatibility with existing schemes
Data gathered and
activity undertaken
under existing
schemes can be used
to support ESOS
compliance.
12
Energy Savings Opportunity Scheme
Any questions?
esos@environment-agency.gov.uk
https://www.gov.uk/energy-savings-opportunity-scheme-esos