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Benefits of a Collective Approach

 

When taking part in a collective approach, SMEs benefit from increased motivation, mutual learning and synergies between them. Research and experience from previous initiatives in several countries show that approaches involving collective elements, such as energy efficiency networks or sustainable business parks, add various benefits, for example a significantly increased implementation rate of energy measures.

The list below offers examples of potential benefits from using a collective approach towards energy efficiency in SMEs. These effects have been verified through research and experience in several countries.

Benefits from a collective approach

Significantly increased implementation rate of measures SMEs that participate in, for example, energy networking programs implement a larger share of the energy efficiency improvements identified in an audit compared to those taking part in pure energy audit programs.
Reduce barriers to energy efficiency Barriers to energy efficiency that many SMEs are facing as, for instance, lack of time, resources and knowledge can efficiently be addressed.
Provide linkage to Energy Service Suppliers SMEs can, as a group, receive help to connect to appropriate energy experts and technology providers based on the SMEs’ needs, thereby facilitating knowledge transfer as well as actual implementation.
Increase use of energy management practices Help SMEs to adopt energy management practices that have proven to be important factors for realizing energy efficiency improvements. Examples of such success factors include long-term energy strategies, concrete energy targets, and clear responsibilities.
Provide basis for collective energy measures A collective approach is necessary for efficiently implementing collective energy measures, such as local heat grids or common solar panels in a business park.
Increase cost efficiency A collective offer can be more cost-efficient from the perspective of Energy Service Suppliers (and for the SMEs). SMEs are many and small, and it might not be worth-while to offer individual services – while a joint offer to several SMEs can be a good project for the supply companies.
Facilitate access to financing Financing institutes and banks may be more willing to provide financing for e.g. collective purchases, since the activities of an individual SME may often be too small to spur interest.
Lead to benefits beyond energy efficiency Examples include improved company image, establishment of new contacts and business relations (e.g that SMEs find new customer relationships through the collective).