Gloucestershire SMEs saving millions through energy efficiency improvements says Severn Wye Energy Agency
Nearly 500 small businesses across Gloucestershire are more resilient to energy price fluctuations after investment from a £2.2m programme delivered by Severn Wye Energy Agency.
EU-funded carbon-saving scheme Target 2030, which ran from January 2017 and ended in June, was open to SMEs ranging from global manufacturers and retailers to sports centres and community-run spaces. Initiated before the recent extreme hikes in energy tariffs, the scheme has given a greater-than-expected boost to the sector’s bottom line.
With SMEs representing 90 per cent of UK businesses, their financial sustainability will be vital for restarting economic growth; their commitment to reducing carbon emissions will also be crucial to achieving regional and national net zero ambitions.
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Severn Wye’s business energy specialists carried out hundreds of site surveys and provided bespoke advice on no- and low-cost actions as well as capital investments.
With detailed information on related savings and payback periods, the SMEs could make fully informed decisions about next steps and plan for the longer term.
As well as funding the advisory reports, a 30 per cent grant towards installation costs from Target 2030 made previously unaffordable improvements achievable for the first time.
Severn Wye CEO Sandy Ruthven said: "Target 2030 has been groundbreaking in its impact across the region, at a time when the cost of energy has threatened the very future of some SMEs.
"The range of measures our experts were able to recommend meant every organisation could take some steps towards improved energy efficiency, even if they decided the time wasn’t right for major investments.
'Over the six years of the scheme we’ve seen not just measurable financial and carbon-reduction gains but also increased interest in sustainability generally and its importance for the bottom line.’
When Severn Wye began delivering Target 2030 in 2017, it was initially only open to Gloucestershire SMEs for three years. The programme was so successful that a similar scheme was extended to include SMEs in Swindon and Wiltshire through to 2023.
Businesses across the county that took part in Target 2030 between 2017 and 2023 invested £3.6m in energy efficiency measures, returning nearly £1m annual savings amounting to £20.4m over the life of the measures installed, even without recent price rises.
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They also saved a significant 3,770 tonnes of CO2 every year – equivalent to the average emissions of nearly 1,200 of the county’s homes.
The EU-funded, £2.2m Target 2030 programme will save more than £20m for Gloucestershire SMEs at a time when soaring energy tariffs are posing a significant threat to the region’s economy.
While currently there are no similar funding schemes available, Severn Wye says it has demonstrated that improving energy efficiency for business premises is an important and achievable step towards securing a long-term future for SMEs and the climate.
