The Ring Fencing Mechanism: a case study of innovative self-financing approach for energy efficiency upgrades [version 1; peer review: 1 approved, 2 approved with reservations]

The Ring Fencing Mechanism: a case study of innovative self-financing approach for energy efficiency upgrades [version 1; peer review: 1 approved, 2 approved with reservations]

Blog Article

This paper introduces an enhanced energy auditing process including a ring-fencing mechanism for the selection of energy efficiency measures considering a multi-stage planning of the energy retrofitting project.The proposed ring-fencing approach enables SMEs to overcome the barrier of lack of capital for the implementation of energy efficiency measures by implementing first no-cost measures and only after that energy savings are accumulated considering the installation of low-cost, medium-cost and finally high-cost measures.The advantages of the proposed methodology are illustrated by means of Cereal three case studies, where a variety of energy efficiency measures were first identified throughout the auditing process involving three different SMEs, then 2 Pc. Living Room Package w/ Chair and a Half most effective measures were selected and scheduled to be implemented according to a multi-annual plan while considering budget and operational constraints.The results of the pilot studies show that the business owners have improved their decision-making with respect to energy efficiency upgrades by engaging in the auditing process and accepting the recommendations about the suggested interventions to maximize financial (and environmental) benefits.