Application
This unit describes the skills and knowledge required to develop a business case from an existing energy management action plan. It includes a process of defining the scope, articulating expected benefits, and determining risk and resource requirements as the basis for developing the final business case. It includes financial modelling to support well-informed decision-making.
This unit applies to operational and technical specialists, managers or similar who combine knowledge of energy management with critical thinking, communication, and financial modelling skills to develop the business case. Energy management responsibilities may be part of a broader work role or a primary job role. In some cases, the individual may work as an external advisor.
No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.
Elements and Performance Criteria
1. Define scope | 1.1 Review proposed energy management action plans and determine scope of business case requirements 1.2 Identify key stakeholders and their perspectives in influencing or improving energy management |
2. Articulate expected benefits | 2.1 Identify expected benefits of the proposed initiative across the life cycle 2.2 Specify types of benefits and improvements and their impact on different aspects of the business |
3. Determine and document resource and risk implications | 3.1 Identify and categorise costs of the proposed initiative 3.2 Make substantiated estimates of all required fixed and variable costs 3.3 Include consideration of whole-of-life costing 3.4 Use financial modelling techniques to develop accurate and complete information that supports informed decision making 3.5 Identify and articulate the key business capabilities required to progress the initiative 3.6 Identify and compare the financial and broader business risks of proceeding versus not proceeding |
4. Draft business case | 4.1 Prepare business case that clearly articulates scope, benefits, resource and risk implications and aligns with the components of an energy management action plan and requirements of ISO 50001 Energy Management Systems 4.2 Develop recommendations based on benefits, resource and risk implications 4.2 Seek input from stakeholders and refine proposal based on feedback |
5. Present and finalise business case | 5.1 Select and use presentation methodology suited to the type of information being presented and audience needs 5.2 Tailor the scope and depth of technical and business energy information to audience needs 5.3 Identify and follow processes for organisational approval of business case |
Evidence of Performance
There must be evidence the candidate has completed the tasks outlined in the elements and performance criteria of this unit, and:
developed a business case for improved energy management for 1 organisation, area of operation or process that includes:
consideration of capital, personnel, financial and time-related costs and their impact on other resources
the following types of financial modelling:
Return on Investment (ROl) (simple payback)
cost–benefit analysis
whole of life costing.
Evidence of Knowledge
There must be evidence the candidate has knowledge of:
effective business case development:
principles
process
format and structure
key components
components of an energy management action plan and requirements of ISO 50001 Energy Management Systems
key stakeholders involved in energy management
operation of the energy system, including current and emerging technologies:
ways to procure energy
how energy is charged
electricity grids and how they work
relationship between equipment, processes and opportunities
current and emerging investment decision-making technologies
types of benefits from different initiatives
methods of quantifying and articulating benefits across the life cycle
concept of capital versus operational improvements
regulatory environment and requirements
risk considerations of action and inaction
financial modelling for business case development, including
Return on Investment (ROl)
cost–benefit analysis
costing methods for capital, personnel, financial and time related costs
whole-of-life costing processes
broader business capabilities required to implement energy management initiatives
presentation methodologies and their key features
types of approval processes required for implementation.
Assessment Conditions
Skills must have been demonstrated in the workplace or in a simulated environment that reflects workplace conditions and contingencies. The following conditions must be met for this unit:
use of suitable facilities, equipment and resources, including:
action plan on which to base business case
information about organisation operations, including financial data
current and relevant information technology.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are essential to performance.
Reading skills to interpret energy management action plans
Writing skills to develop clear and substantiated arguments as part of the business case
Oral communication skills to present and explain potentially complex and technical energy information to others
Numeracy skills to analyse, manipulate and present mathematical information
Technology skills to create and format financial and other business case information; use presentation software
Other foundation skills essential to performance are explicit in the performance criteria of this unit of competency.
Competency Field
Sustainable Operations