Rising energy costs and increasing legislation are adding pressure to UK organisations. A common sense approach is needed

Industry comment

Published: 24 September

Author: Alan O'Brien

Type: Industry comment

Year: 2008

Geoff Newman from Sabien Technology Ltd discusses energy efficiency and the key role it plays in meeting the demands of increasing energy costs and legislation.

The importance of reducing energy consumption and carbon emissions has been discussed through virtually all media sources. Public and Private sector organisations have all voiced their support and acknowledgement to reduce their energy consumptions and carbon emissions. However, the adoption and implementation of renewable and energy-saving products has been slow. Why? In reality many of these organisations need a proven commercial outcome to implement energy efficiency measures before embarking on large scale implementation. But is this likely to change?

Energy costs are reaching unprecedented levels. Many of Sabien’s clients are seeing price forecast increases of 160% for Q4 2009 contract renewals. All future energy forecasts show prices increasing before levelling out. However, none show decreases to previous levels. The days of low cost energy are no longer. Energy Managers, Facility Managers and Finance Directors are faced with the challenge to reduce the impact of these increases.

In addition greater legislation is coming into force. The Energy Performance Certificates are now in place and the Carbon Reduction Commitment (CRC) is only a short time away, yet already many organisations are beginning to realise the ramifications legislation will have on their organisation. At a recent conference a global organisation made the statement that the CRC will cost her organisation millions. The risk of any organisation being listed in a league table of good and bad performers in carbon reduction is too high for the Public Relation departments to risk, again placing pressure on Energy Managers and Facility Managers to reduce energy consumption.

Organisations that are successfully reducing their energy consumption have a robust energy strategy in place. Typically a broad strategic approach is applied consisting of a framework categorising activities such as behavioural solutions, technical solutions and procurement. All 3 areas play a pivotal role in reducing energy consumption and carbon emissions, yet the implementation of energy efficiency can deliver up to 50% of the organisation’s energy reduction targets, with the greatest level of payback. Sabien’s clients typically expect payback in less than 2 years and the reassurance that significant energy savings and carbon reduction will be delivered.

Energy consumed within a commercial property for heating and cooling is typically around 60% of the total energy consumption. Sabien Technology has two control systems which are retrofitted to existing heating and air conditioning systems, M2G for commercial heating, and M3G air conditioning systems. Both have delivered documented energy savings ranging from 10% to 35% with paybacks in under 18 months, providing clients with a proven commercial outcome to implement across their entire building portfolio. Sabien’s clients, who include the RBS, O2, Ford and DEFRA, have implemented Sabien’s technology. Installation is unobtrusive, with minimal downtime and both M2G and M3G integrate with existing Building Management Systems. Each project is managed and coordinated by Sabien.

Any Energy Manager, Facility Manager or Carbon Manager seen to be delivering energy savings of up to 35% from technology which delivers payback in less than 18 months will roll out across their building estate. The Finance Director can report to the board a project which has directly saved the company’s and, therefore the shareholder’s money, as well as helping the environment, there is a tangible impact, as well as kudos. It’s a common sense approach of managing carbon through energy reduction.

For further information visit www.sabien-tech.co.uk or call 0800 082 1818

Published: Estates Review July 2008