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Building on Energy Savings.

The following is an interview held in September 2009 between Declan Cronin, MD of James Sheehan Associates and Mike Collins of The Coaching Partnership.

Mike Collins: "Declan, your company - James Sheehan and Associates - is introducing a new service where you carry out an energy survey for businesses. This service is free upfront. You then audit, generate a report, recommend approaches and equipment for reducing energy overhead. You make money by taking a percentage of the savings. What is your rationale behind offering this service?"

Declan Cronin: "There are huge energy costs in running a business. With the Irish business psyche - if it costs, it will be rejected, if it's for free it'll be questioned! But if we were to get our reward from the energy cost-savings then it is a win-win."

"Also, we aren't tied to any particular supplier - so we can offer the right recommendations around what is fit for purpose. Without a product-allegiance we can do the best thing for the building, energy savings and the client. I believe that we offer a great cost-savings approach that makes sound business sense - but it's also the right thing to do, given what's happening in the wider environment."

MC: "So, let's say I'm a sceptic in an audience listening to you outline this service - I might think that the cost-savings and green energy solutions are fine when the economy is down. But, when things pick up again, I can't see a need to keep such a close eye on things. How would you answer that?"

DC: "I think energy cost-control is here to stay. We could afford to be wasteful in the past, but with carbon taxes and the increased costs for energy - keeping energy costs down is going stay with us."

"However, rather than just looking at your energy bottom line in isolation, it's about having a joined-up plan. Look independently at how your building uses power, light, air - all the utilities."

"And this is an area where the local councils and government can take a lead. Grants by themselves won't make a difference - more leadership is needed."

MC: "Taking a slightly different tack - a lot of the opportunities in building seemed to lie with speculation in the past. Looking into the future, where do you think the business opportunities lie when it comes to the built environment?"

DC: "Firstly, I think we are going to see lot of retrofits moving forward. But, people need to see a model of what can be done. We're involved in a model village in Daragh near Clonakilty - spearheaded by Cork County Council - and I believe that will be a great showcase of how a sustainable model village should work. It shows a good balance of what is affordable and what is sustainable."

"Secondly, we need to get the right business models and incentives into place. Take the example of local authorities - I'd suggest that the local authority needs to pay for the right sustainable services up front for existing and new housing stock."

"They can then get the money back with an increase in rent. This increase can be afforded because of the energy savings over time. I think we need this change of business model - with demonstrable leadership and examples provided by both local authorities and people running the larger projects.

MC: "Thank you for your time Declan."