The future is outsourcing
August 1st 2007 nergy efficiency is a win/win solution both for businesses and individuals to counteract higher energy costs. Every business should employ an energy manager to review energy costs and identify savings opportunities,and the Energy Institute strongly believes that every business should have a board member responsible for energy consumption,"commented Sir John Collins FEI,President of the Energy Institute, as he addressed delegates at a recent Institute of Director's Energy conference.
While this sounds ideal in principle, not every company is equipped with the staff, revenue and skills base to appoint a dedicated energy management employee.As this area becomes more complex, not least due to the profusion of sources of information on energy saving options, the need for a skilled expert continuously to monitor, analyse and identify efficiency opportunities becomes ever more apparent – and it is often unrealistic to expect to find all of these skills in one person.
…delivering added value The current commercial climate and 'skills gap'presents an opportunity for a company to outsource some or all of its energy management planning.This is now widely recognised at boardroom level.
Senior executives increasingly recognise that an independent team of dedicated experts is often best placed to implement, manage, or even carry out energy management programmes and functions.
But what can a company expect from a dedicated energy consultant? Assessing performance, identifying solutions, quantifying savings and paybacks,presenting the financial case, managing projects, analysing results and monitoring performance are all key functions – and form part of the overall strategic energy management plan.However, not all consultancies are capable of delivering at each of these levels.
The key question to ask is: will this 'expert' add value by complementing existing in-house capability and are they capable of delivering tangible results at the bottom line? A good consultancy should encourage the customer to realise that strategic energy management planning is not a quick-fix solution; both the client and the consultancy should commit to a long term relationship – from the point of establishing an initial blueprint to monitoring and maintaining successful outcomes.
…financial benefits For many companies one of the most obvious benefits of employing an external consultant is a financial one: saving money at the bottom line. In most businesses the energy bills go through the finance department and are not analysed in any way.Often this means that companies are missing out on an opportunity to save large sums of money. This is just one of the ways energy consultancies can help clients to achieve significant energy savings: Accurate reporting of energy consumption is a vital part of a longterm energy saving programme.
Without this information, it is difficult to produce the financial justification for energy saving initiatives or to prove the benefits of those that have already been implemented.
…communicating financial benefits Communicating the benefits of a strategic energy management plan at boardroom level is a key element in the mobilisation of a successful programme.However, engineers with the responsibility for improving energy performance are often illequipped with the techniques required to present the financial case to senior executives.As a result, viable energy saving propositions fail to get approval and opportunities for improved financial performance can be missed.This is where an external energy expert is able to add additional value: By collaborating with the in-house team, the consultant is able to develop and implement an effective reporting system and establish clearly the criteria, requirements and processes required by managers when presenting a business case. Typically, an energy consultancy like Energys begins the process by implementing an accurate reporting system and identifying the least efficient sites/processes/buildings.
Preliminary assessments of energy performance are then made.
Following on from the initial assessment stage, the second phase focuses on problem areas (where energy consumption is high) and establishing targets for energy savings. A strategic energy management programme, which is usually broken down into a series of phases, is then prepared which will ensure the best return for the investment. In practical terms this means: Tackling areas that offer the biggest opportunities for savings first Prioritising measures that give the fastest payback Translating potential savings into real savings as quickly as possible.
Once this is agreed and in place, a joint working group, comprising representatives from the client and Energys, is normally established to oversee the programme, approve the programme plans and to provide high-level coordination between the various parties involved.
…the future of the industry As an industry, the energy sector seems to be heading towards strategic energy programmes provided by consultancies that are able to offer varied skills pools.This can deliver tangible and indeed significant financial benefits over a sustained period of time.A properly co-ordinated approach coupled with the right skill set presents an attractive financial case to businesses that can no longer afford to ignore the implications of their energy use. More articles from Energy Conservation Solutions Ltd: | 
