Katie Rees, Head of UK Corporate, Power and Green at SEFE Energy
In 2025, the need for the public sector to minimise its carbon footprint only grows greater. In fact, the government recently announced it aims to reduce direct greenhouse gas emissions from public sector buildings by 75% for 2037.
This target will have a big impact on how institutions such as schools and hospitals plan for the next few years as they look to implement greener policies.
But where to start? One crucial way the industry can take a big step in the right direction is through better monitoring of its energy usage. So, let’s take a look at what obstacles organisations may face throughout this process and the actions they can take for positive progress.
Data to enable decarbonisation
Data is the golden thread that enables us to monitor, predict and reduce emissions. Conducting an audit to better understand this data and ensure higher accuracy is one of the most fundamental building blocks to improve energy efficiency. This is particularly important for the public sector as while precise energy data is frequently relied upon throughout the procurement procedures of public bodies, many organisations still don’t fully understand how to submit readings – or the benefit of doing so.
An audit also helps us understand trends and patterns in energy use, including leakages and identifying sites that are underperforming, enabling us to make more informed decisions for the future.
Whilst long-term technological solutions cannot be ignored, the industry needs to also focus on short term, easy to implement changes which can have a cumulative effect. The use of smart meters is effective due to its detailed real-time consumption data, helping organisations adapt quickly to changing conditions. It’s important to note that meters vary by building size and location and there are many factors that can impact the accuracy of a meter, logger or even a more advanced energy management system (EMS).
Once organisations have this right, they can then look to implement practical strategies which can notably reduce costs. This of course includes any behavioural changes that could provide a quick win.
Managing a complex regulatory framework
While data quality improvements are critical, companies must also navigate a complex and evolving regulatory framework which can make long-term planning difficult. As while the public sector is set up with frameworks which promote responsible energy practices, for example the Official Journal of the European Union, there can be unexpected changes or new policies pushed through. This is especially true when there are shifts in government which we’ve seen this year. The challenge is finding the best ways to balance the need for immediate compliance with the foresight to manage investment to address incoming regulations.
On the positive side, there are incentives and subsidies available to support the green transition, including tax breaks, grants, and low-interest loans for investments in renewable energy and energy efficiency projects. Many institutions are not aware of the benefits or lack the in-house expertise to take advantage of these and it’s an area where external consultation can be particularly beneficial.
Taking advantage of technological innovation
Looking to longer-term investments, the rapid pace of technological advancement promises new tools and solutions that can also help.
While there are cost-effective short-term solutions which can be implemented quickly, broadly speaking, transitioning to longer term green energy solutions also requires longer-term investment. Upgrading existing infrastructure, for example, or integrating renewable energy and deploying smart grid technologies.
We can expect AI and IoT devices to soon play a bigger role in optimising energy distribution and reducing losses. AI and machine learning does this by predicting demand and adjusting energy supply while IoT devices can automate and optimise energy use.
In a bid to help lower energy costs and reduce environmental impact, some businesses are starting to generate their own electricity to be used in-house and any excess is sold back to the grid. This is usually done through a power purchase agreement (PPA) which provides an opportunity to generate a further revenue stream for companies, while allowing them to reduce costs, and increase their sustainability credentials in the process.
Challenges and opportunities
As governments, suppliers and businesses continue on their decarbonisation journeys, they must strike the right balance between investing in advanced technologies and making meaningful incremental changes to operations. At the same time, accurate data is essential for informed decision-making.
While the challenges are substantial, ranging from regulatory compliance and high capital expenditure to technological integration, the opportunities are equally significant.
This article appeared in the Jan/Feb 2025 issue of Energy Manager magazine. Subscribe here.