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Strategic energy management: a cost reduction guide for SMEs

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Image provided by Energia
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Image provided by Energia

Tricia Murray

Energy Services Manager, Energia

Transform your energy management approach with detailed insights on measurement,
monitoring and cost reduction. Follow these steps to optimise energy usage, engage staff and implement systems that deliver consistent savings while enhancing operational efficiency.


According to Tricia Murray, Energy Services Manager at Energia, for long-term success, your energy management programme should become an integral part of your business operations. “Regular reviews of targets and achievements, updates to action plans based on results and ongoing staff engagement are essential,” Murray advises. “Integration with other business
systems and consistent reporting on progress and savings will help maintain focus and demonstrate value.”

Consistent energy management boosts savings

Murray adds: “Success depends on consistent application, regular review and strong
commitment from all levels of the organisation. Remember that energy management is an
ongoing process that requires continuous attention and adjustment to achieve optimal results.”

A 10% reduction in energy usage can significantly impact your profit margins. Consider this: every €1 saved on energy costs is equivalent to €10 in sales revenue for the same profit
impact. According to guidance from the Sustainable Energy Authority of Ireland, if you’re
wasting €1,000 annually on energy due to poor management, you would need €10,000 in
additional sales to generate the same profit.1

Understanding bills and tariffs

Regular review of energy bills are necessary to understand usage patterns and trends. Pay
particular attention to night unit consumption, unusual spikes or anomalies, any penalties or additional charges and verify Maximum Import Capacity (MIC) accuracy.

Regular tariff reviews are essential, as significant savings can be achieved by ensuring you’re on the most appropriate rate structure. Your tariff selection should consider usage patterns, timing and volume considerations.

Action planning

Your energy action plan should include clear objectives and targets, budget allocation,
responsible personnel assignments, implementation timelines and progress tracking
mechanisms. Each element should be clearly defined and measurable.

When prioritising initiatives, consider available resources, potential energy savings,
implementation complexity and opportunities for quick wins. Projects that offer high visibility and encourage staff engagement should be given special consideration.

Maintaining momentum requires regular
review of targets and achievements.

Implementation steps

Establish regular maintenance programmes and optimise existing systems and processes. Staff training in energy-efficient practices should be ongoing, with regular monitoring and
adjustment of operations as needed.

Energy efficiency should be a key factor when purchasing new equipment; calculate lifetime
energy costs for major purchases. Review energy supplier options regularly. Consider green
energy alternatives as part of your procurement strategy.

Financing and funding opportunities for sustainable business

Energia’s Business Energy Efficiency Grant provides financial support for businesses making energy-efficient upgrades, offering money back on the savings achieved. It can be claimed alongside the SEAI Community Grant and the Exeed Grant. The grant amount varies depending on the project and savings made (visit energia.ie/business-grants for further details).

Monitoring and review

Implement a system of bi-monthly bill comparisons and continuous consumption pattern
tracking. Anomalies should be identified quickly and addressed promptly to maintain efficiency. Submit and track monthly meter reads.

Maintaining momentum requires regular review of targets and achievements. Action plans should be updated based on results, and staff engagement and training should be ongoing. Integration with other business systems, as well as regular reporting on progress and savings, helps ensure sustained success.

Measuring success

Success in energy management can be measured through various comparative metrics. Consider energy use per employee, energy use per revenue energy use per unit area and energy use per unit of production (kWh/output). Time-based consumption patterns should also be
analysed to track improvements.

To learn more about how Energia can help your business, visit energia.ie/business

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