KEY POINTS:
Energy efficiency makes good business sense, says Murray Bell, manager, business for the Energy Efficiency and Conservation Authority (EECA). Not only does it improve your bottom line, it also makes sense from a risk management perspective, especially in light of the current debates on climate change and food miles and the impact these are having on customers perceptions.
Energy efficiency is good for the environment and will make your customers happy. Being able to tell customers that you have sustainable practices in your business demonstrates a forward thinking business, says Bell.
One of the first steps in developing an energy management plan is to conduct an energy audit. EECA has a team dedicated to helping businesses save energy.
What exactly is an energy audit and what does it involve for a business?
An energy audit shows how efficiently energy is being used and highlights opportunities to save on energy costs. It can also show ways to improve productivity. Energy audits take a thorough look at facilities, processes and technologies. The main goal of an energy audit is to improve profitability. Sometimes an audit may be done in response to energy shortages or environmental issues. An audit shows energy use as a cost, and recommends cost-effective energy options. A report coming from the audit lists ways to save energy and will help you to develop an action plan. An audit provides benchmarks to compare options, allowing you to weigh the cost of improvements against future energy cost reductions.
How much would it cost my business to get an energy audit done?
The cost of an energy audit from a qualified energy auditor varies depending on the size and complexity of the business. A council paid $3400 for an audit that revealed annual savings of $45,000. A hotel paid $5000 for an audit that showed savings of $28,000. One bakery paid $5000 for an audit that revealed savings of $23,500 of year. EECA will pay half the cost of an audit, to a maximum of $50,000.
Is everyone eligible to get an energy audit done, or are there criteria?
To be eligible for an energy audit from EECA you need to be a reasonably high energy user, spending $100,000 or more on energy each year.
Are energy audits more relevant to big corporates and industrial businesses?
No. Businesses, irrespective of their size, can conduct energy audits. Of course, the bigger your energy costs are, the more inclined you will be to conduct an audit to find out how you can make cost savings.
What sort of advice will the energy auditors give me as a result?
The audit report gives you a very good understanding of where your energy is used and how this relates to your production. The report lists two levels of action you may choose to take. The first recommendations are for those actions which require no capital investment and are simple to remedy. The second level of recommendations require investment to make energy savings.
Will taking the energy saving advice cost me a lot of money?
The audit report will show energy use as a cost, and will recommend cost-effective energy options for you to implement. The audit report will also give you benchmarks to compare options, allowing you to weigh the cost of improvements against future energy cost savings.
How much money could I potentially save on the cost of energy?
Typically, audits identify savings of 10-20 per cent, although savings can be as high as 40 per cent.
Where are the biggest energy-use savings usually found during audits?
This is quite specific to the business but some common themes are lighting, heating and ventilation, staff awareness and electric motors.
Is it compulsory to make the changes that are recommended?
No, it is not compulsory to carry out the audit's recommendations. However, completing them will help your business in the longer term. Implemented recommendations will reap benefits year on year.
These auditors don't really know about my industry - why should I listen to them?
To be eligible for EECA funding, energy auditors must be accredited by the Energy Management Association of New Zealand (EMANZ). This means they are qualified energy experts. They have experience across a wide range of industries and sectors but some do focus on a narrow range to match their expertise and preferences.
How else can the energy association help my organisation?
For organisations that meet certain criteria, EECA can fund capital grants to implement the savings recommended in the audits.
For more information about energy audits and grants, contact your Emprove account manager on 0800 EMPROVE (0800 367 768) or email here.
