SME energy management Tag

On their own, SMEs don’t consume huge amounts of energy. But collectively, their energy demand is a different story. The IEA estimates SMEs consume around 13% of total global energy demand (that’s 74 exajoules for those keeping track - I'm looking at you, energy managers!). Yet, approximately 30% of that demand could be eliminated by cost-effective energy efficiency measures, such as implementing energy management software. That would save more energy than Japan and Korea consume in a year! Sounds great, right? Which business wouldn't want that level of savings? Well, according to the Observatory of European SMEs, fewer than 30% of them in Europe have implemented any measures for conserving energy, and only 4% have a comprehensive approach to energy efficiency. Hm. What gives? In a previous post, we talked about the various obstacles holding SMEs back from reaching their energy productivity potential.  Now, how can SMEs overcome these roadblocks? And how can ESCOs get better at helping them? This is the central question driving our latest free guide: Energy Management for SMEs

Energy efficiency and savings for SMEs sounds nice on paper, but can be much more complicated in practice. Only 5 years ago nearly 40% of European SMEs (more than 7.5 million companies) had not implemented any energy saving or efficiency actions whatsoever. With the European Commission’s Winter Package proposal for a 30% energy efficiency target by 2030, energy audits targeting SMEs could unlock incredible  energy savings potential in Europe. Unfortunately, due to their small size, sectoral variation, and the low returns per customer, ESCOs have a particularly difficult time reaching the SME market in order to reach these targets. Yet, if SMEs implemented energy efficiency measures to their full potential, they could shave more than 20% off their energy bills. And that is something SMEs in Europe and beyond simply can't afford NOT to do. Most importantly, SMEs have very specific needs when it comes to energy efficiency. ESCOs need to do a better job of recognising and addressing these pain points. To help with that, here is a list of the top energy efficiency challenges faced by small and medium-sized enterprises:

As an ESCO, you are probably missing out on an opportunity of serving more SME clients. After all, the EU alone is home to 22 million small and medium-sized enterprises (SMEs) which provide around 89 million jobs and represent 99% of all enterprises. However, these businesses rarely have the capacity to exploit energy savings. While absolute energy use per SME  (industrial and non-industrial) is lower than in large, energy-intensive industrial companies, focusing on energy end-use efficiency in SMEs is often very cost effective. Still, too often these small businesses are falling between the cracks as weak business cases - even though there are plenty of good reasons for ESCOs to focus on serving SME clients better. In a free online session this April 11th at 3pm CET, world-renowned  energy efficiency expert Dr. Steven Fawkes is going to show us how!