Energy optimisation: from cost to control

Energy costs have moved from an overhead to a performance driver. Manufacturers that treat it that way are unlocking margin, resilience, and credible carbon reductions – without waiting for perfect clarity on net zero pathways.

Why heat and energy control matter now

For most sites, heating and cooling (including space/process heating, hot water, ovens and dryers) account for most of the consumption. Turning down a single degree, sequencing heat intelligently, or tightening schedules can deliver meaningful, low-capex savings – but only if you can see, control, and validate them.

UK manufacturers face some of the highest industrial energy costs, which are four times higher than in the US and 46% above the global average (which heightens the financial case for tighter energy control and a faster return on optimisation investments. Source: Make UK, Tackling Electricity Prices for Manufacturers, June 2025

• Critical reality: People, process, and product often determine minimum temperature thresholds; any optimisation must protect quality and safety while cutting spend.
• Key stakeholder question: “What is our measurable return on every kWh we avoid?” If you can’t evidence outcomes, you won’t be able to scale them.

According to the Department for Energy Security & Net Zero, almost all manufacturers (98%) rely on electricity, with 41% also using natural gas and 17% using liquid fuel. Larger manufacturers are more likely to use natural gas or liquid fuel in conjunction with electricity. Source: Department for Energy Security & Net Zero, “Energy Efficiency in the Manufacturing Sector”, 2021

What’s making net zero hard (and how to make it practical)

“Get to net zero” is clear; the route isn’t. The pathway is site-specific: legacy equipment, heating and cooling requirements, shift patterns, and tariff structures all differ. For many businesses, the route forward is murky at best. And the general noise around net zero makes it hard to understand what is right.

Instead of aspirational goals, leaders should demand four things for each solution under consideration:

• Upfront cost (and funding route: capex vs. opex)
• Site-specific return on investment (ROI) (clear baseline, runway of savings, and sensitivity)
• Co-benefits (quality, uptime, safety, maintenance)
• Evidence model (Measurement & Verification (M&V) method, data sources, confidence intervals)

A practical five-step playbook that actually scales

While every site is different, several proven best practices can help manufacturers take meaningful steps forward:

1) Start with a defensible baseline

If you don’t know what you are using, you can’t improve it. Start with mapping both electrical and thermal loads by asset, zone, and time. For this, you can use interval data, meters/sub-meters, and production context.

• Example: Assess your non-operational baseline. If it mirrors operational consumption, you can then implement reduction targets and review weekly performance to lower it to an acceptable level.

2) Establish control levers and governance

Understanding the data is a first step, but you also need to know what things you can actively control. Catalogue what you can actively control, such as setpoints, schedules, sequencing, setbacks, deadbands, energy controls, and access rights. Results can be amplified by educating all staff to understand the importance of energy and how their choices/behaviours can impact the cost of energy is very important.

• Governance essentials: Who changes setpoints? How are changes approved/logged? What’s the rollback if quality is impacted?

3) Optimise first, electrify/replace second

Aim to squeeze existing assets via controls and scheduling before major capex investment. Then assess electrification (e.g. heat pumps), fuel switching, or heat recovery on a case-by-case basis with M&V baked in.

• Rule of thumb: Prove the return on investment from control and optimisation savings that you can reinvest into bigger moves with confidence.

4) Operationalise measurement and verification (M&V)

Adopt a simple and accepted M&V method that generates credible numbers. Control for weather, throughput, and shifts.

• Suggested metric: Use degree-day analysis to account for local weather variations.

5) Build a repeatable change cadence

It’s all about putting positive changes into practice. This is easier said than done and requires constant assessment and refinement to understand which changes are right for your site. Treat optimisation like continuous improvement: use short cycles, conduct site walkdowns, make control tweaks, and conduct regular reviews.

• Act now: Publish a monthly Energy Performance Brief to the executive: targets, realised savings, pipeline, risks.

In our work with a leading national logistics operator, a multi-site heating control programme delivered average gas savings of 68% and achieved payback in just 16 months. By standardising controls, tightening schedules, and adding visibility across 40+ locations, the business demonstrated that measurable, site-level optimisation can unlock significant cost and carbon reductions – without incurring major capex or disruption.

Key considerations for CFOs, CEOs, and site leaders

• Evidence beats enthusiasm: Can you prove the savings? Define data sources, baselines, and variance rules upfront to ensure consistency and accuracy.
• ROI clarity: Half of all manufacturers (49%) who have taken steps to improve energy efficiency were unsure of what the average ore expected payback period. You can close that gap with board-quality business cases and post-project M&V. Source: Department for Energy Security & Net Zero, “Energy Efficiency in the Manufacturing Sector”, 2021
• Carbon with credibility: Track the cost per tonne of CO₂e avoided alongside the money saved – it avoids greenwashing and guides capital allocation.
• People and quality first: Temperature is often a key factor in how your site operates. For more efficient management, build guardrails such as alerts, overrides, and change logging.
• Cyber-secure controls: If it’s connected, it’s exposed. To protect yourself, implement role-based access, patching cadence, and network segmentation for energy and optimisation controls.

Takeaways and next steps

Through our discussions with our clients and the industry, we are attuned to the focus on sustainable cost reduction. The three priority actions we recommend as next steps are:

1. Take ownership of your data and controls. Without a defensible baseline and governance, savings won’t stick.
2. Sequence the journey: Optimise, verify and reinvest. Use today’s savings to fund tomorrow’s decarbonisation.
3. Publish results to the board monthly. Treat energy like safety or quality – managed, measured, and reviewed.

The opportunity is clear: those who own their data, optimise what they have, and measure what they achieve will lead the manufacturing transition, turning energy costs into control and competitive advantage.

Phoebe Baker, Head of Sales, ArcSett

Phoebe leads the Sales team at ArcSett, formerly Pilot Group Net Zero Solutions. ArcSett partners with manufacturers to reduce energy cost and carbon impact through intelligent, data-driven control of heat and power across single sites or complex, multi-site operations.

Visit arcsett.com or contact Phoebe Baker on  [email protected]