A project to value multiple benefits in efficiency investments
Project-level investment decisions take account of many factors, rarely tackling one issue in isolation. Company decisions are based on its strategic priorities and values, an assessment of the risks involved, and anticipated benefits (e.g., increased productivity, regulatory compliance, reduced maintenance, greater reliability, improved workforce satisfaction and retention).
In contrast, energy efficiency experts traditionally present the rationale for investment as a single-issue problem. The arguments are focused on energy ‘payback’ – the length of time a capital investment takes to pay for itself through reduced energy costs. However, energy payback is not a strategic goal. As a result, these proposals are often missed or ignored because they are not prioritised by investment committees.
How businesses and professionals benefit:
- Participate in training focused on business, operations, and project-level analyses
- Apply lessons learned through Serious Gaming
- Deploy analytical methods and tools in work flows to identify and quantify multiple benefits of energy saving actions
- Bolster investment proposals by drawing on communications resources and a growing evidence base
From 2018-2021, project partners will develop a training platform. We will also create tools and work directly with organisations to analyse and propose energy-saving projects, while evaluating the operational and strategic impacts. In parallel, Multiple Benefits partners will compile an evidence base of case studies, project examples and results to bolster the business case for projects.
The societal gains from energy efficiency are potentially huge. In Germany alone, companies and households could reduce energy consumption by 21% while saving €53 billion a year through energy efficiency. Energy efficiency is also strategically important for Europe to cost effectively reduce dependence on foreign energy imports costing €400 billion annually.
Sources: Energy efficiency: A compelling global resource. McKinsey Sustainability & Resource Productivity; Energy Efficiency Financial Institutions Group (EEFIG): Final report covering Buildings, Industry and SMEs.