How ESOS Audits Can Unlock Cost Savings for Manufacturers
In the competitive landscape of manufacturing, controlling operational costs is paramount, and one of the most impactful areas to address is energy consumption. Manufacturing is an energy-intensive sector, consuming around 16% of the UK’s energy annually and facing average energy costs that can amount to over £10 billion industry-wide. The Energy Savings Opportunity Scheme (ESOS) offers manufacturers a structured framework to identify energy-saving opportunities. Beyond regulatory compliance, ESOS audits can reveal substantial savings, providing long-term financial and environmental benefits.
Uncovering Energy Waste: Insights from ESOS Audits
An ESOS audit is a comprehensive analysis of energy consumption across a company’s operations. For manufacturers, these audits can uncover waste in high-energy processes, such as: heating and cooling systems, compressed air usage, and production line efficiencies. For instance, process optimization and equipment upgrades are common areas where energy use can be streamlined. Data from the UK government shows that in similar sectors, process efficiency improvements can lead to savings of up to 25% on energy bills. By focusing on these critical areas, ESOS audits often highlight low-cost or no-cost measures, like optimizing machinery schedules, maintaining equipment to ensure peak efficiency, and improving insulation in production areas.
Key Areas for Potential Savings
- Compressed Air Systems: Often essential in manufacturing, compressed air systems account for roughly 10% of energy consumption but are prone to inefficiencies. Simple steps like sealing leaks, optimizing pressure, and regular maintenance can cut energy use by up to 30%.
- Machinery Upgrades and Optimization: Machinery operating past its prime often consumes more energy than necessary. Upgrading to newer, energy-efficient models or retrofitting existing equipment can offer substantial savings. ESOS audits can pinpoint machinery with high energy usage, allowing manufacturers to prioritise investments.
- Lighting and HVAC Improvements: Lighting alone can represent a significant portion of a facility’s energy bill. ESOS reports frequently recommend LED lighting upgrades and motion-sensor systems that can lower costs significantly. Similarly, improving heating and cooling systems by providing better insulation or making them more efficient can lead to substantial cost reductions.
Real-World Example: Manufacturing Case Study
A UK-based manufacturer recently underwent an ESOS audit, which revealed that inefficient machinery and a lack of energy management strategies were leading to unnecessary energy costs. Following the audit, the company implemented the recommended changes, such as: adjusting equipment settings, sealing leaks in compressed air systems, and upgrading outdated machinery. These changes resulted in a 15% reduction in their annual energy costs, equating to savings of over £100,000 annually.
Financial and Operational Benefits of ESOS Compliance
Implementing ESOS audit recommendations goes beyond reducing immediate energy costs; it also helps companies mitigate the risks associated with energy price fluctuations. By reducing reliance on energy-intensive practices, manufacturers can enjoy a more predictable and manageable cost structure, enhancing overall financial stability. Additionally, as ESOS guidelines are now being updated to incorporate net-zero requirements, future audits may include recommendations that align with broader sustainability goals, adding long-term value and resilience to the business.
Avoiding Common ESOS Pitfalls
Many manufacturers, particularly those with complex operational structures, struggle with collecting accurate energy data. It’s essential to include all relevant sources, from transport to building energy use and industrial processes. Additionally, planning audits well in advance of deadlines can help avoid penalties and missed saving opportunities.
Taking the Next Step
For manufacturers, engaging in an ESOS audit represents a significant step toward operational efficiency and cost savings. By treating energy audits as an ongoing strategy rather than a compliance hurdle, businesses can unlock value across multiple areas of their operation. For more information on ESOS compliance and to explore the financial benefits of energy efficiency, manufacturers can visit the UK government’s ESOS guidance page:
Investing time and resources in ESOS audits can yield substantial returns, offering both immediate and long-term advantages. As energy prices remain volatile, ESOS compliance and energy management are crucial to the financial and environmental success of the UK’s manufacturing sector. See how Elemental can help you benefit from ESOS here: https://www.elemental.org.uk/compliance/energy-savings-opportunity-scheme/