Version : STEMS Business case Your logo Slide 1 Business Case Template Guidance This is a suggested template Please modify as required OR do your own presentation to suit your organisation Notes are for information only and can be deleted from the main slides or moved to the notes view

Version : STEMS Business case Your logo Slide 2 Guidance Strategic Obligatory Discretionary –Essential to survival –Plant Failure –External regulation –Desirable Touche Ross (1994) Most organisations classify the decision on Making an Investment into three categories : Note: For the most part, energy management investments will be seen as discretionary. The best chance to increase the priority is to investigate the areas of external regulation and legislation. This may upgrade the project to the obligatory category.

Version : STEMS Business case Your logo Slide 3 STEMS Business Case Guidance: Review project costs and funding The first implementation of STEMS in an organisation is likely to focus on “no cost” measures only. However ensure that you have considered any cost or funding implications before presentation of project to sponsor at the STEM_1 review The attached slides are intended to assist the project finance review Remember that this is an estimation process only –so give your best estimate

Version : STEMS Business case Your logo Slide 4 Agenda Project strategy Savings Team costs Equipment costs Implementation costs Financial analysis

Version : STEMS Business case Your logo Slide 5 Project strategy Minimise energy Costs & maximise environmental benefit Reduce energy use & CO 2 emissions Pay less for energy Review energy suppliers & tariffs Minimise carbon taxes Audit and Survey to find opportunities No-cost & Low-cost measures

Version : STEMS Business case Your logo Slide 6 Savings 10-15% savings on energy by simple no-cost measures (source: UK Government Energy Efficiency Best Practice Program) Carbon tax estimated savings For every euro saved on energy costs, most businesses would have to make €10 worth of sales to make the same €1 of profit Wasting €1,000 a year would thus need €10,000 worth of sales to make that much profit Public and private sector organisations can invest energy savings in other areas Enter total estimated savings = €

Version : STEMS Business case Your logo Slide 7 Team Costs Estimate costs associated with running the STEMS team (if any) e.g. –Time related costs –Travel –Training Enter total estimated team costs = €

Version : STEMS Business case Your logo Slide 8 Equipment costs Estimate costs associated with equipment (if any) e.g. –Electricity monitor –Meters Enter estimated equipment costs = €

Version : STEMS Business case Your logo Slide 9 Implementation costs Estimate costs associated with implementation (if any) e.g. –Posters and stickers –Literature –Website –Audit and survey costs (if expertise needed) Enter estimated implementation costs = €

Version : STEMS Business case Your logo Slide 10 High Cost measures It is unlikely that the STEMS project will include high cost measures Analysis in this case should be carried out with assistance from your Finance department to include appraisal methods such as : –Payback –Cash flow –Net present Value –Internal Rate of Return

Version : STEMS Business case Your logo Slide 11 High Level Analysis Projected Savings€ Team costs(€ ) Equipment costs(€ ) Implementation costs(€ ) Balance€

Version : STEMS Business case Your logo Slide 12 Assumptions Include any assumptions that were used to derive the estimates