Going beyond compliance: Innovation in your ESOS action plan
Billy Friar, Energy Consultant at Commercial, evaluates innovative options to help businesses meet ESOS requirements and formulate an action plan
Billy Friar
Energy Consultant
Commercial
In our newest Insight article, Billy Friar, Energy Consultant at Commercial, evaluates the available options to help businesses address the Energy Savings Opportunity Scheme (ESOS) legislation and formulate their annual action plan.
Large companies are by now no doubt aware of the requirement that they must comply with ESOS. In addition to reporting on energy consumption every four years, the introduction of an action plan which must be produced annually means that these organisations must now be on the lookout for new and innovative opportunities to improve energy efficiency. In this article, we will showcase some solutions that not only slash energy usage and provide rapid return on investment, but also go well beyond what might be suggested in a standard ESOS report. At Commercial we are lead ESOS assessors and can offer expert advice to guide organisations through both audit and compliance.
What does the legislation mandate?
So, what are the requirements for ESOS phase four and beyond? This extension to phase three of the legislation dictates that organisations must audit and record both their total energy consumption and their significant energy consumption. The latter of these figures will be the areas where there is huge room for both improvement and innovation. This report must also be approved by a lead ESOS assessor and approved by your directors before it can be signed off.
In addition to this, following the submission of the compliance notification, companies must produce an action plan. This must set out steps to reduce energy consumption, timelines for implementation and recommendations from the ESOS assessment. This is in addition to expected energy savings over the course of four years as well as methods to estimate these savings. Annual reporting is required in the years leading up to the 2027 phase four assessment deadline. This will ensure that energy assessments lead to tangible improvements in energy performance. The action plan must be finalised by 5 March 2025.
Our energy expertise
Commercial have supported several large organisations in becoming ESOS compliant. We have extensive experience in delivering on large-scale green technology projects. These range from complex solar arrays and large-scale electric vehicle charging options to voltage optimisation and AI plug sockets, again for numerous well-known clients.
We combine experience in Environmental, Social and Governance (ESG) consultancy and ESOS reporting and legal compliance. Our wealth of expertise allows clients to identify and implement innovative ways to meet both energy and carbon reduction targets.
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Innovative investments
ESOS recommendations often focus on high-ticket items such as heat pumps, solar or LED lighting. While these solutions are great and useful to implement for many businesses, they aren’t necessarily the most innovative, exciting or likely to deliver the best return on investment. When it comes to solutions that organisations might be less familiar with, there are a wide range of options that are both effective, efficient and provide a relatively swift and significant return on investment.
With the ESOS action plan being an annual requirement, there is a need for businesses to have a knowledge of a much greater range of solutions. This will allow for continual opportunities for improvement. The issue with many regular ESOS evaluations is that organisations are not being made truly aware of the most innovative options that are out there.
Most of the time, the following solutions offer return on investments in under two years. This is far quicker than some of the higher-ticket items that would be recommended as part of an ESOS assessment. These options can augment energy reduction strategies, helping to make priority investments for carbon and cost reduction. They also provide the capacity to report on significant energy reductions as a result.
Voltage optimisation
Voltage is simply electrical pressure, and at higher voltages, certain electrical equipment will consume more power. In the UK, the grid voltage averages 245v, which is much higher than the 220-230v nominal voltage most equipment is designed for.
This disparity presents an opportunity for significant savings by optimising the supply voltage. Reducing voltage levels not only delivers substantial energy savings but also extends the lifetime of your electrical equipment. With payback periods for voltage optimisation often under 18 months, it’s a highly cost-effective investment for businesses.
Battery storage
Falling battery prices and low export payments make battery storage an increasingly practical investment alongside renewables. Batteries can maximise self-consumption, reduce energy bills and even become a new revenue stream through grid balancing.
Stored energy can be sold back to the grid at peak times when prices are higher, offering additional financial benefits. Battery storage also provides back-up power during outages and enables flexible energy management through peak shaving and load shifting, giving you more control over your energy usage.
AI-powered sockets
AI-powered plug sockets are a smart solution for reducing energy waste. These advanced sockets identify and eliminate small but constant power losses from your devices.
By intelligently managing energy flow, they can cut waste power by up to 40%, significantly reducing energy bills and helping to achieve Net Zero goals. An intuitive online dashboard complements the system, allowing you to track your energy savings in real-time. Detailed reports on energy usage and CO2 emissions ensure you stay informed about your environmental impact.
Make the leap today and see results tomorrow
Of course, your options for making significant progress in both cost and carbon reduction aren’t strictly limited to the above solutions. There are many more innovative and effective options that can be implemented to help your business make year-on-year improvements. These range from intelligent temperature sensors for air conditioning and large-scale refrigeration to power factor correction, infrared heating and even bottle fridge managers. Your business needs to consider all possible avenues, get the right partner and expertise in order to ensure ESOS compliance and put together an extensive and impactful annual action plan.
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