Websters Group

SUSTAINABILITY ROLLOUT

LEVERAGING THE BUSINESS CASE FOR ENERGY EFFICIENCY

Delivering energy efficiency upgrades that meet internal return on investment metrics require a unique and uncommon skill set. Our Managing Director (Ryan Dillon) has a Masters in Applied Finance and has also overseen the identification of $10M in energy savings through industry leading projects. Websters Group is also actively involved in co-funding projects through it’s investment fund. This helps us practise what we preach and further prove the business case for energy efficiency.

Integration of finance and energy efficiency is a core element in many of our propriety models and services including:

  • Financial modelling of energy efficiency upgrades
  • Feasibility studies
  • Energy budgeting
  • Business case development
  • Scenario and sensitivity analysis (future energy pricing)
  • Industry benchmarking

EXAMPLE OF A CLIENT FINANCIAL MONITORING DASHBOARD

KPI 1:

FINANCIAL RETURN

  • IRR ( 10.3% BENCHMARK)

    0%

  • NPV ($32,500 BENCHMARK)

    $0

  • IRR – Internal Rate of Return
  • NPV – Net Present Value (10 yr, 10% discount rate)
  • 1% above 10.3% IRR benchmark (Business Case)
  • $91,500 above NPV benchmark (Business Case)

KPI 2:

BUDGET

  • $3,414,000
  • $3,202,000
  • $1.60M
  • Forecasted under budget
  • Forecast CAPEX contingency $158,000
  • Forecast OPEX contingency $53,000

KPI 3:

SAVINGS

  • $6,493,000
  • $6,923,000
  • $4,169,000
  • Up to $4,169,000 identified savings to date
  • Forecast savings as per Business Case (expected)
  • Final savings are verified after 12 months post install under the International Performance Measurement and Verification Protocol

0%

BUDGET ALLOCATED

0%

OF BUSINESS CASE
SAVINGS DELIVERED

PROJECT
ON TRACK

BUSINESS CASE

FORECASTED

BUDGET ALLOCATED / SAVINGS DELIVERED

IRR/NPV – ‘Internal Rate of Return’ & ‘Net Present Value’ represent return on capital from savings over 10 years based on identified and forecasted savings and associated budget(s) per upgrade as per the Business Case. A discount rate of 10% applies to NPV. CAPEX/OPEX contingency are assumed to carry over from FY19 to FY20. All Budget and Savings figures INCLUDE GST.