ENERGY MANAGEMENT STRATEGY
Savant Energy identifies opportunities and eliminates the barriers for medium to large scale energy users to reduce energy costs. In this case, the following were identified:
1. OVERCHARGING: At one site, significant building work had been undertaken approximately three years before. At the time, the engineers had over-estimated the amount of pay-out that would be required, resulting in charges being levied for electricity that was not actually being used. By rectifying this, a saving of $10,000 per year was secured.
2. MANAGEMENT: For the other sites, there was a general misalignment of the usage patterns, the contractual relationships with energy suppliers, and the metering arrangements. Bringing these into alignment resulted in a saving of over $34,000 per year.
3. NEGOTIATION: The client had been under the impression that the broker was addressing complicated tariff negotiations and allocations, however this was found not to be the case. The determination of network tariffs presents the greatest opportunity for cost savings for high energy users, and could be achieved through Savant Energy’s expertise in the area.
4. ENERGY STRATEGY: Savant Energy is focused on delivering real and implementable energy options for its clients. We assessed all viable energy options and provided the client with a lifecycle assessment of costs (procure, install, maintain) for each credible option. These options were assessed against cost, benefit and ease of implementation. These options were then presented to the client in ranked order in a strategy document that allows for a long term, prioritised and costed energy cost reduction process.
Engaged to review the energy profile of a large motor vehicle dealership, Savant Energy (formerly Energy DNA) explored energy cost reduction alternatives to arrive at a savings model of $214,000 over 5 years.
LARGE MULTI-SITE ENERGY USER
A 300 employee strong company offering multiple motor vehicle brands across 7 individual locations in both metropolitan Adelaide & rural South Australia, this 30 year old company offers new and used vehicles, as well as servicing. Staff are spread across metropolitan and rural locations offering sales, service and parts.
TO REVIEW & REDUCE ENERGY SPEND
The client had previously been approached by a number of organisations selling energy efficient products and had utilised the services of an energy broker in order to minimise the company’s energy spend. After discussions, it was determined that the broker had not been thorough in their review and that there remained significant opportunities for cost reduction through network tariff restructuring.
WEIGHING UP THE BENEFITS OF CAPITAL EXPENDITURE
Making capital expenditure with little understanding of the order in which this should proceed for maximum benefit from the investment presents a danger to clients who are not fully versed in the protocols of the national energy industry. The most effective hierarchy of expenditure was explored. The conclusion was reached that significant savings could be achieved without any capital expenditure.
BIG ENERGY SAVINGS
Review of energy costs resulted in savings of $35,471 per annum, representing approximately 10% of the group’s overall energy spend of $363,250. With anticipated energy price increases of 8% per year through 2020, this would resolve in the saving of $214,000 over the next five years.
It should be pointed out that these cost savings were achieved without the need for any capital expenditure.
In addition an energy strategy was developed that involved numerous cost reduction actions, all of which have a payback period of less than 3 years and further energy cost savings of almost 40% of current costs.