As we approach the closure of ESOS Phase 3, it’s essential to reflect on the scheme’s status and compare the UK’s energy efficiency policies with those of Italy, where Watts-ON Consultants also have a strong presence.
The Current State of ESOS
The Energy Savings Opportunity Scheme (ESOS) in the UK has gradually evolved into what appears to be a compliance exercise rather than a proactive energy-saving initiative. Several issues have contributed to this shift:
- Eligibility Criteria: The criteria for ESOS participation do not adequately consider the nature of businesses and their premises. For example, companies renting spaces with energy included in the rent have limited influence over energy consumption, yet they are still required to participate.
- Exemptions Based on Phases 1 and 2 Results: Large enterprises that demonstrated minimal potential for cost-effective energy improvements should be exempt. However, many of these companies continue to participate, leading to inefficient use of resources.
- Quality of Reports: There is a notable lack of focus on analysing the results from previous phases. Poor-quality reports have been common, failing to identify meaningful energy efficiency measures.
- Implementation of Opportunities: The implementation of identified opportunities has often been limited to obvious, low-hanging fruit. These projects, while beneficial, haven’t undergone robust impact evaluations, leading to skepticism about the scheme’s effectiveness.
- Phase 3 Challenges: The inclusion of “energy awareness campaigns” and generic recommendations like hiring an energy manager has diluted the scheme’s impact. The requirement to report progress on identified opportunities is a positive step but remains to be effectively enforced.
- Sampling Approach: The vague rules regarding the sampling approach have led to inconsistencies and reduced the scheme’s credibility. This approach was necessary for large organisations but has been misused to minimise the scope of work.
The delay in the ESOS Phase 3 deadline from December 2023 to August 2024 underscores the scheme’s current challenges. It highlights a need for a more robust and impactful approach to energy efficiency.
Italy’s Transition 5.0: A More Resolute Approach
In contrast, Italy’s government has introduced the Transition 5.0 scheme, funded by the EU recovery fund to combat the effects of the COVID-19 pandemic and boost economic recovery. Transition 5.0 focuses on:
- Financial Incentives: The scheme offers financial incentives for energy efficiency projects that provide sustained, calculable and verifiable savings.
- Robust Verification: A metering system is used to calculate current energy consumption and quantify the impact of energy efficiency measures. This rigorous approach ensures transparency and accountability.
- Tiered Funding: Projects are eligible for three tiers of funding based on actual savings achieved and sustained over five years. This structure encourages thorough planning and execution.
- Deadline and Execution: Projects must be completed by December 31, 2025. An expert in energy management must carry out a certified analysis, followed by the implementation of an energy efficiency plan, monitoring platform, and M&V protocol.
Surprisingly, Italy’s Transition 5.0 demonstrates a more resolute approach to energy efficiency compared to the UK, which historically had a more practical and business-oriented policy framework. The primary drawback is the limited time to allocate funds for the extensive scope of work required.
The UK’s Energy Intensive Industries Scheme (EIIs)
The UK has also introduced the Energy Intensive Industries scheme (EIIs), aiming to support high-energy users by exempting them from certain electricity costs. This policy seeks to mitigate competitive disadvantages in international markets.
Watts-ON Consultants: Your Partner in Energy Management
At Watts-ON Consultants, we have experts in energy management (Esperti in gestione dell’energia, EGE) ready to support clients in Italy with identifying, measuring and implementing viable energy efficiency projects.
Our market leading online platform, Watts-ON collects energy and machine operation data to monitor investment performance and uses AI to maintain and identify additional energy efficiency measures.
By leveraging our expertise and innovative tools, we help businesses navigate complex energy policies and achieve their sustainability goals.
Stay tuned for more insights and updates on energy efficiency policies and best practices.
Together, we can make a significant impact on energy consumption and sustainability.
Watts-ON Consultants: Empowering Sustainable Energy Solutions