Energy Efficiency & Net Zero

Energy Reduction Strategy

Key takeaways

  • An energy reduction strategy is a documented plan setting out how a business will cut energy use across sites and over time.
  • It starts with a baseline (energy audit + bill / metering analysis) and ends with monitoring against targets.
  • Done well, it links directly to a Net Zero pathway and gives procurement a basis to challenge bad contracts.

What is an energy reduction strategy?

An energy reduction strategy is the named plan a business uses to reduce how much energy it uses and how much that energy costs and emits. It defines the baseline, the target reduction over a stated horizon, the measures to get there, and the governance to keep it honest.

It’s the connective tissue between an energy audit (what could change), Demand Side Response (what could earn revenue), procurement (what contract types and tariffs fit), and reporting (carbon footprint disclosures).

What a good strategy includes

  1. Baseline data per site (kWh, peak demand, cost, carbon).
  2. Targets with dates (absolute kWh, intensity per unit output, emissions).
  3. Prioritised list of measures with cost, savings, payback.
  4. Governance — owner, review cadence, board reporting line.
  5. Procurement playbook — when to renew, what tariff shape, role of green tariffs and PPAs.

Sources

  1. GOV.UK — Energy Savings Opportunity Scheme (ESOS) guidance
  2. Energy Systems Catapult — independent UK energy research
  3. GOV.UK — Net Zero Strategy