Laura Clare Davies at Inspired Energy
With sustainability front and centre on the world stage, a climate in need of rescuing and volatile energy prices to navigate, the pressure is on all of us to transition to a low-carbon future. For the majority of businesses that already consider themselves energy efficient, what’s next on the road to net zero?
Today, many businesses have already begun to improve their energy efficiency as they recognise the need to play their part in tackling climate change and the vital benefits it has on their bottom line. During a time of volatile energy prices, these economic benefits are more important than ever before.
Many organisations start their energy reduction journey by addressing ‘low-hanging fruit’ measures like switching to LED lighting or installing sub-metering. After implementing initial energy efficiency measures, we then typically see businesses take one of two routes. Some focus on their electricity consumption by implementing measures like renewable on-site generation and voltage optimisation, which ensures that the voltage for their site is set at the optimum level for their machinery and assets.
Others take a more integrated approach by focusing on behavioural change as well. It is through taking a truly holistic approach that looks at energy optimisation, not just reducing usage, that organisations will drive real change and move beyond energy efficiency alone. The key here is not just focusing on how much energy a business is using but also when and how they are using that energy.
A holistic approach that gets staff involved in energy efficiency is very effective. By helping employees understand why they’re being asked to adapt or change their behaviour, it’s more likely they’ll engage with wider energy and sustainability initiatives. Implementing a full behavioural change programme also helps businesses to not only reduce their consumption, but their carbon emissions a well.
The importance of data
Looking ahead, organisations that are ready to move beyond initial energy efficiency measures have many options, all of which are achievable and will reap benefits for the business as well as the environment. One thing that is central to making effective change is data. Put simply, you can’t manage what you don’t measure, so businesses should start measuring their energy consumption before they begin their optimisation journey. This will enable them to know where, when and how they’re using energy. We’re already seeing that when planning a net zero strategy, it’s those organisations that don’t have the data they need to find their baseline, that fall at the first hurdle.
Sound data management is key for organisations required to comply with regulatory schemes such as Streamlined Energy and Carbon Reporting (SECR) and the Energy Savings Opportunity Scheme (ESOS). Those who have already submitted reports for SECR will tell you that data collation can be challenging, which means that starting data collection early is crucial.
Smart metering can also help businesses to keep on top of their costs by implementing an automatic meter reading (AMR) device for non-half hourly supplies or a data collection contract for half-hourly supplies. This can provide them with greater control with a managed rollout. Measuring half-hourly (HH) data, particularly for those with multiple sites can be challenging.
There are then a number of ways organisations can better use energy consumption data to help inform business decisions, keep energy costs in line with budgets and help with future planning. Firstly, they should review data regularly to understand how it can be used to support their energy strategy. Businesses should work from a baseline of their energy performance and then identify how factors such as production levels, behaviour and seasonality influence their consumption. Then they can prioritise areas for improvement and track their results to see if they are meeting or exceeding their goals and if the strategy needs further optimisation.
Taking control with on-site generation
In recent years, we have seen a real increase in the number of businesses installing on-site generation as they move beyond energy efficiency and further towards net zero emissions targets. As well as the clear environmental benefits, price is also a key motivator for many businesses. On-site generation prices are becoming more attractive, particularly in light of the record high wholesale prices we are seeing. Many organisations are also conscious that green energy contracts come with a premium – which means that investing in a renewable on-site generation asset can reduce their energy costs as well as their carbon emissions.
One question that businesses often raise is whether they should invest in battery storage as well. It is worth considering, but it will really depend on how the business pays for its energy. If their costs are fully passed through, then they’re likely to benefit from battery storage more than those that are on a fixed contract, because they could avoid higher TNUoS costs by utilising stored energy during peak demand periods. Those that are on fixed term contracts will see less benefit, because they will be paying a premium to fix their price.
The road ahead
There’s no doubt all businesses should be aiming for net zero now, no matter how far away that target may seem. While there are many organisations that are well on the road to net zero, there are some that are starting out on this journey and it’s important they have the confidence and support to move beyond energy efficiency. Through harnessing the power of their data and taking a holistic approach to energy optimisation change is possible and it’s not just our climate that will benefit.