Capitalise on project support

While research shows that businesses are embracing energy efficiency to achieve cost savings, longer payback periods due to lower market prices can make it difficult to get the support of the board.However,Dave Lewis at npower says that investing in the right areas is essential if maximum cost and carbon savings are to be achieved

ACBI report in November predicted the recession will change business practices for the better. It suggested businesses will be more cautious about their investments and take more considered action in terms of financial management. It made for interesting reading, but given the speed and ferocity at which the credit crunch took hold and led to recession, it perhaps comes as little surprise that businesses are looking ahead with a fresh, but more cautious perspective.

We have seen a change in business behaviour in our own research, the npower Business Energy Index (nBEI6) - our annual report into business opinion on energy use and carbon emissions. In the Index, 80% of businesses said they had increased energy efficiency initiatives and the importance attached to energy efficiency was at its highest since 2005. Action was taken with very much a cost focus in mind - 97% said they were more concerned with the cost benefits of energy efficiency than reduced CO2 emissions.

Maintaining momentum Energy efficiency is an excellent means to save costs and it is encouraging that so many businesses have turned to this as an important tactic during the recession. The important thing now is maintaining momentum and making sure efficiency measures are not relegated as confidence returns to the economy. This will be important for ongoing cost savings, crucial to any recovery plans, and also to reduce emissions in line with legislative changes. The Carbon Reduction Commitment Energy Efficiency Scheme, for example, will place new requirements on businesses to reduce their carbon emissions, alongside the general move toward more sustainable operations.

The challenge for many businesses will be identifying where to make improvements.

The actions taken during the recession tended to focus on the quick wins - staff education, switching off unused equipment and so on - which provide an immediate impact to the bottom line.We predict businesses will now need to look at long term measures.With companies now more risk adverse in their investment choices, these actions will need to be planned carefully based on cost, and the contribution they will make to cost and emission reductions.

Collaboration CBI director general, Richard Lambert, believes the new post-recessional business world should be more focused on collaboration and long-term relationships with stakeholders.We are working more closely with our customers to provide advice on energy efficiency alongside energy supply and partnering on plans to reduce consumption. One of the most common questions we are asked is 'where shall we invest and how much will it cost'.

Journey Our m3 service (measure, monitor, minimise) has been developed to guide businesses through a series of planned efficiency measures, each step a contribution to improving energy management and reducing consumption. This starts with capturing data through smart meters, ultimately arriving at a destination where all parts of the business are focused on energy efficiency - an energy management journey if you like.

One of the most important steps along this journey is capitalise, a stage dedicated to the implementation of improvement to equipment and systems to achieve long term efficiencies. Capitalise comes in once a business has data on its energy use and is faced with using this to make informed decisions. The Capitalise product converts high-level concepts or opportunities and supports customers through to successful project completion.

It focuses on implementation of effective energy management. npower works with organisations to identify opportunities and manages projects through to completion.We work with companies to help them drive lower energy consumption in the same way an in-house energy team would do. Projects include refrigeration, lighting and HVAC.

Projects can be tracked using encompass, npower's monitoring and targeting tool, which shows the carbon and consumption savings made, proving the return on investment.

A key component of Capitalise is that it provides the expertise to bring best practice technology which is linked to robust verification procedures and npower's encompass tool, to ensure the success of the programme.

npower can also provide support with sourcing equipment; project implementation including the decommissioning; installation; and testing and re-commissioning of energy equipment and systems across multiple sites - a level of interaction echoed by the CBI's comments on collaboration.

The expertise and focus placed on implementation of projects means that we are able to operate on the basis of performance for these services. We would only seek payment from the customer on the basis of real value delivered from project implementation.

If efficiency measures are to be truly effective and if businesses are going to make the most of their money, a clear process for the management and implementation of the most valuable projects should be established.