The CRC Energy Efficiency Scheme is finally with us and will affect around 5,000 public and private sector organisations within the UK. Whilst at first glance the scheme looks like a significant financial outlay, those that work to drive down energy usage are likely to achieve savings well in excess of the cost of participation. Furthermore, it offers an added opportunity for companies to boost their reputation as energy-conscious organisations.
Anyone using 6,000 MWh of electricity, equivalent to an annual electricity bill of £500,000, will have to participate in the carbon emissions trading scheme, which is expected to reduce CO2 emissions by up to 11.6 million tonnes per year by 2020.
Those organisations involved will need to monitor their energy consumption and purchase allowances for the government of £12 each for every tonne of carbon dioxide it emits. Bearing in mind 6,000 MWh of electricity is equal to around 3,333 tonnes of CO2, participants will have to purchase a minimum of £40,000 of allowances per annum.
The scheme is revenue-neutral overall meaning revenue raised is re-distributed back to participants, with the highest-ranking organisations from a Government-published league table receiving the greatest financial benefits. Therefore, those successful in reducing energy consumption will not only save on energy bills but will need to purchase fewer allowances and receive higher rewards from revenue recycling.
The data centre can make up as much as a third of an organisation’s power usage, so there is plenty of scope to improve performance levels to generate long-term, bottom line benefits and reduce carbon footprint.