Building an Energy Management Plan

Written by Joe Wright

A managing consultant who is an expert in energy management and reduction strategies. His experience ranges from project managment, facilities management, construction and energy consultancy so he's uniquely qualified to advise on energy reduction and compliance for a wide range of building types and sectors

As a busy organisation, you know that energy costs can add up fast. Whether you’re required to comply with schemes like ESOS and SECR or just looking to cut costs and improve sustainability, there are real opportunities to reduce energy consumption. But without a clear strategy, those opportunities will remain just that, potential savings that never turn into real results.

So how do you take energy saving potential and turn it into actual financial and environmental benefits?

Here’s how.

1. Establish Your Baseline

Before making any changes, you need to know where you stand. This means collecting data from your utility bills, submeters, and energy management systems to get a full picture of your energy consumption. Identify where energy is used the most, when peak consumption happens, and which equipment or processes are the biggest consumers.

If you’re part of ESOS, SECR, or another compliance scheme, you likely already have this data. But even if you aren’t, you should have a good understanding of your energy usage because you’re paying for it!

2. Identify Opportunities for Improvement

Once you have a baseline, it’s time to find areas where you can improve.

For ESOS participants, Phase 3 compliance will have already provided a list of recommended measures. If you don’t have an existing list, an energy survey will highlight areas for improvement. Opportunities could include:

Upgrading to LED lighting
Replacing outdated machinery
Optimising equipment schedules
Enhancing building insulation
Investing in renewable energy sources

And many more.

Energy audits and monitoring software are excellent tools for uncovering these opportunities.

3. Prioritise the Most Impactful Measures

Having a list of opportunities is one thing, but deciding where to start is another. Prioritisation helps get the ball rolling, and each organisation will have different criteria. Here are a few ways to rank projects:

Payback period – How quickly will the investment pay for itself?
Implementation cost – Is it a low cost quick win or a larger capital investment?
Total energy saved – How much energy reduction does the measure achieve?
Total carbon saved – Does it align with your sustainability and net zero goals?

If capital is limited, start with low or no cost measures to build momentum. Reinvest the savings into future projects. A revolving green fund where savings from energy projects finance the next round of improvements can help sustain long term efficiency efforts.

4. Develop a Clear Implementation Plan

With priorities set, the next step is action. A structured implementation plan should outline:

Specific actions to be taken
Responsibilities assigned to key personnel
Deadlines for each stage
Expected energy and cost savings

Assign accountability to the right people, whether that’s your facilities manager, an energy champion, or a dedicated energy team.

One of the most important factors for success?

Senior management buy-in. Without executive support, energy initiatives can lose momentum or fail to get off the ground. Make a strong business case by presenting the financial and operational benefits alongside compliance advantages.

5. Monitor, Adjust, and Improve

Energy management doesn’t stop once measures are in place, it requires continuous tracking and refinement. Automated monitoring tools and regular performance reviews ensure that the expected savings are being achieved. If results fall short, adjustments can be made. This might mean:

Fine-tuning control settings
Improving staff training
Identifying and addressing new inefficiencies

6. Engage Your Staff

Even the best technical solutions won’t deliver maximum results if employees aren’t on board. Staff awareness programs, training sessions, and incentive schemes can encourage energy-conscious behaviours throughout the organisation.

Take Action Today

By following these steps, you can turn energy saving potential into tangible financial and environmental benefits. Energy efficiency isn’t just about compliance, it’s about making smart business decisions that improve your bottom line and contribute to a more sustainable future.