The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy savings identification program established by the UK government. It aims to help large organizations improve their energy efficiency and reduce energy consumption. By conducting regular energy audits, businesses can identify cost-effective measures to enhance their energy performance.
Since its inception, ESOS has demonstrated significant results, with estimated annual energy savings of 1.65 TWh from buildings and 1.51 TWh from industrial processes. These savings not only contribute to reducing the carbon footprint but also translate into substantial financial benefits for participating organisations.
This article focuses on the ESOS scheme and particularly on the ESOS Action Plan to be submitted as part of the compliance process. And invites you to our webinar to learn all about it.
Understanding ESOS and Its Importance
The Energy Savings Opportunity Scheme (ESOS) is a cornerstone of the UK’s strategy to enhance energy efficiency across large organizations. It was first established in 2014 and is now in its third compliance period until 2027 The goal of ESOS is that businesses systematically identify and implement energy-saving measures.
ESOS’s impact is evident through its impressive results, with annual energy savings of 1.65 TWh from buildings and 1.51 TWh from industrial processes. These figures highlight the scheme’s effectiveness in driving substantial energy efficiency improvements. Moreover, the financial benefits derived from reduced energy bills provide a compelling incentive for organizations to comply with ESOS requirements.
Qualification Criteria for ESOS
To determine if you need to comply with the Energy Savings Opportunity Scheme (ESOS), you must meet specific criteria. An organisation qualifies as a large undertaking if it employs 250 or more people, has an annual turnover exceeding £44 million, and an annual balance sheet total surpassing £38 million. Additionally, overseas companies with a UK registered establishment that employs 250 or more UK-based employees, who pay income tax in the UK, also fall under the ESOS mandate.
Steps to ESOS Compliance
Measuring Your Total Energy Consumption
Accurately measuring your total energy consumption is a critical step in the ESOS action plan. This process involves collecting comprehensive data on energy use across all areas of your organisation, including buildings, industrial processes, and transport. Using advanced tools like the Spacewell Energy EMS can significantly streamline this task, offering precise data collection and analysis capabilities.
Custom dashboards and automatic baseline calculators are invaluable for visualising and comparing your consumption against established baselines. These tools enable you to identify patterns, track deviations, and set realistic energy-saving targets. Additionally, setting up alerts for unexpected spikes in consumption ensures timely interventions, preventing unnecessary energy waste.
By leveraging these advanced analytics and reporting features, organizations can gain a holistic view of their energy usage, making it easier to pinpoint inefficiencies and implement effective energy-saving measures. This not only aids in ESOS compliance but also drives substantial cost savings and enhances overall sustainability.
Conducting Energy Audits
Conducting energy audits is a cornerstone of the ESOS action plan, enabling organisations to identify and implement energy-saving measures effectively. An energy audit involves a thorough examination of energy use across all areas of a business, including buildings, industrial processes, and transport. This comprehensive analysis helps pinpoint inefficiencies and areas for improvement.
Moreover, the ability to handle large portfolios of buildings or installations with just a few clicks makes Spacewell Energy an invaluable asset for energy managers. The platform’s detailed reports provide actionable insights, helping businesses prioritize and implement the most effective energy efficiency recommendations. This streamlined process not only aids in ESOS compliance but also drives significant energy and cost savings.
Reporting Compliance
Ensuring compliance with the Energy Savings Opportunity Scheme (ESOS) involves meticulous reporting. Organisations must compile a detailed report that includes all findings from their energy audits. This report should outline the identified energy-saving opportunities and provide recommendations for improvements. It is essential that a board-level director reviews and signs off on this report before submission to the Environment Agency.
The Spacewell Energy Platform simplifies this process by offering automated and transparent custom reports. These reports integrate data from various sources, ensuring comprehensive and accurate documentation. By using advanced tools for measurement and verification, businesses can generate precise reports that meet ESOS requirements with ease. This not only ensures compliance but also aids in tracking the effectiveness of implemented energy-saving measures over time.
The ESOS Action Plan: A Roadmap to Compliance
The 3rd iteration of the Savings Scheme added an extra layer of complexity for compliance. To comply with the Energy Savings Opportunity Scheme (ESOS), you need to define a structured Action Plan with goals and achievements for the following 4 years.
What should you include in this Action Plan? In summary, you should include clear goals of what you’re trying to achieve in relation to energy management, and what energy savings measures you’re going to adopt.
Action plans for the current compliance period are to be submitted by March 5th 2025 (extended from the initial deadline which was December 5th 2024), so you still have time to work on your energy efficiency goals.
Besides that, you’ll need to report annually on the progress against targets via an annual progress update. Does this sound like too much work? It’s understandable. But the idea is that clear and attainable objectives are set, pushing organisations towards energy savings.
Let’s dive into the different compliance routes for ESOS.
Compliance Routes Explained
ESOS Compliant Energy Audits
ESOS compliant energy audits are designed to identify practical and cost-effective measures that enable businesses to save energy and reduce carbon emissions. These audits need to cover at least 95% of the energy consumption (it was 90% in the previous iterations of ESOS).
These are a cornerstone of the ESOS framework, providing a structured approach to assessing energy use across buildings, industrial processes, and transport. Moreover, the potential impact of these audits is substantial. If each participating enterprise achieves an average energy saving of 0.7%, the UK could see a net benefit of £1.9 billion in Net Present Value between 2015 and 2030. This highlights the critical role of ESOS compliant energy audits in driving both economic and environmental benefits.
ISO 50001 Certification
ISO 50001 certification is an alternative compliance route to ESOS compliance. If an organisation has an ISO 50001 certified system covering all its energy supplies, it can bypass the standard ESOS assessment.
Implementing ISO 50001 not only simplifies compliance but also drives continuous improvement in energy performance. By systematically analysing consumption, cross-checking with key performance indicators (KPIs), and comparing against baselines, organizations can identify and act on energy-saving opportunities more effectively.
Display Energy Certificates (DECs) and Green Deal Assessments
Display Energy Certificates (DECs) are essential tools for promoting transparency in energy consumption within public buildings. These certificates provide a clear visual representation of a building’s energy performance, enabling occupants and visitors to understand its efficiency at a glance. By displaying this information prominently, DECs encourage better energy management practices and foster a culture of accountability.
Green Deal Assessments complement DECs by offering a comprehensive evaluation of a building’s energy efficiency. These assessments identify potential improvements and provide tailored recommendations to enhance energy performance. By integrating DECs and Green Deal Assessments into their ESOS action plans, organizations can gain valuable insights into their energy usage and implement effective measures to reduce consumption and costs.
Spacewell Energy can support you through this process to define your ESOS Action Plan. Our advanced energy management system provide the tools necessary for accurate data collection, analysis, and reporting, ensuring that you can achieve energy savings, helping you measure your energy consumption, define targets and report on them to ensure compliance. Get in touch with us if you require assistance. Either us or one of our experienced partners will be able to help you in the process.
To discuss this and the practical information regarding the ESOS requirements and compliance, we’re joining forces with our partner Energy TS in a webinar about the ESOS Action Plan, that will take place on October 24th at 11h BST.
