Understanding the Energy Savings Opportunity Scheme (ESOS)
The UK Government has set targets for the economy to achieve net zero by 2050. To facilitate that goal, regulations and schemes help drive large private and public sector organisations to behave more energy efficiently, and in turn, more environmentally consciously.
One such scheme is the Energy Savings Opportunity Scheme (ESOS). ESOS is a mandatory energy assessment for organisations in the UK. The scheme is designed to help organisations save energy and achieve cost and carbon savings in their buildings, processes, and transport fleets.
Who must comply with the ESOS scheme?
ESOS applies to large UK undertakings and corporate groups. In relation to ESOS, a large undertaking is any organisation that either:
- Employs 250 or more people, or
- Has an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million.
Organisations that satisfy these criteria must complete ESOS audits every 4 years. After an audit, organisations will receive a series of recommendations to implement across their business to drive savings through energy conservation measures.
What is required for an ESOS assessment?
For an ESOS assessment, organisations must satisfy several requirements:
1. Calculate their total energy consumption
Organisations must calculate the total energy used by assets or through activities carried out by the organisation or group.
2. Identify areas of significant consumption
Identify which areas of the organisation account for at least 95% of your total energy consumption. You must identify the largest area of consumption to target for reduction.
3. Calculate energy intensity ratios
Energy intensity ratios are measurements that relate an organisation’s energy consumption to an appropriate activity indicator. Typically, organisations will look at kWh consumed against revenue or square footage.
4. Decide the route to compliance or appoint ESOS Assessors
If your organisation holds an ISO 50001 certification, and 100% of your energy supplies are covered by ISO 50001, you can use that certification as an alternative means to compliance. Read more guidance on routes to compliance here.
If your energy is not covered, all participants must appoint an ESOS Lead Assessor at this stage.
You can find registered lists of approved assessors on the UK Government website.
5. Carry out ESOS energy audits
An ESOS-compliant energy audit must meet several requirements. It must:
- Be based on 12 months of verifiable data
- Analyse the participant’s energy consumption and energy efficiency
- Identify energy-saving opportunities
- Include site visits
6. Complete the ESOS Report and share it with the group
After the audit, a report must be produced detailing the assessments and any proposed energy-saving opportunities to be introduced. Organisations are then expected to implement measures over time, actively monitor energy consumption, and work to reduce it ahead of the next assessment period.
7. Notify the Environment Agency
After the ESOS audit is completed, organisations must inform the Environment Agency of the outcome, including:
- Details about your organisation
- How you complied
- Energy consumption information
- Energy-saving opportunities that have been identified
8. Implement Energy Savings Opportunities
Between assessment periods, organisations should continuously monitor and report on energy consumption across their buildings, assets, and processes. Moreover, you will want to implement savings opportunities and track the progress of those initiatives.
At LoweConex, we provide organisations with a Centralised Data Platform that ingests asset data, monitors performance, and enables two-way control to reduce consumption over time.
Using our measurement and verification (M&V) tool, which is fully aligned with IPMVP standards, organisations can track the impact of our software on saving energy or the impact of other measures they implement. This provides both a means for energy reduction and accurate visualisation of efforts.
If you’re getting started with ESOS and need support on conserving energy and achieving savings opportunities, get in touch with our team for a quick chat to see how we can help!