Jaron Reddy, UK and Ireland Manager at ENTRNCE explains how organisations can protect themselves against soaring energy costs and set a clear route to net zero.
The energy problem isn’t going away any time soon. The cap on energy bills for organisations such as schools, charities and hospitals was a welcome intervention, reducing energy prices to well below what they would be on the open market. But there are two big caveats here. Firstly, the cap is on prices per unit, not on overall bills. Secondly, the government help is scheduled to run for just six months.
Meanwhile, many public sector organisations are still under pressure to deliver on their net zero promises. Some have set themselves targets more ambitious than the government’s “net zero by 2050” pledge; the NHS in England aims to reach net zero by 2045 and over two-thirds of local councils in England are aiming to be carbon neutral by 2030.
Developing your own energy security
Many organisations are investing in their own renewable energy sourcing, both to protect themselves from energy market volatility and to help with climate goals. There are various options for this, from installing your own renewable asset to signing a power purchase agreement (PPA) with a renewable generator.
Castle Hill Hospital in Yorkshire is now powered by solar panels on adjacent land, and July 2022 claimed to be “completely powered by solar energy” – but obviously only in the daytime! Manchester Council is moving forwards with plans to buy its own solar farm, possibly in the sunnier south rather than in Manchester itself. Many other public sector organisations don’t have the budget to purchase their own renewable asset upfront, but they are signing PPAs with renewable generators to guarantee a green energy supply at an agreed price.
The reality of renewables
Investing in renewables makes sense on multiple levels: security of supply, avoidance of pricing shocks and lower emissions. But the nature of renewables is that their output is intermittent. Even the best solar panel array can’t power a hospital at night, and the output of a wind turbine will depend greatly on wind speed. To keep the lights on, organisations will still need to get some energy from the grid, whether they have their own asset or a PPA.
This means that claims like “100% renewable” are not based in reality, because 24/7 renewable energy is not yet here. But we can still work towards it. Data is the key. If your organisation knows exactly when renewable production is high, or likely to be high, you can align your consumption with it to maximise use of renewables.
What’s your real renewables score?
This is where the Matcher comes in. ENTRNCE developed this pioneering data technology platform to show exactly how well an organisation’s consumption is aligned with output from its renewable energy sources. It does this by taking half-hourly snapshots of both consumption and sourcing patterns, then shares that data in an easy-to-read visual form.
For many organisations, looking at their data in the Matcher is a real wake-up call. They find out just how much grid energy is being used to cover the gaps between renewable production and their actual consumption. It is not unusual for an organisation aiming for 100% renewable sourcing to find that their true renewable energy “score” is below 40%.
This kind of information allows you to make better decisions about your organisation’s energy consumption. For example, a council might make real-time decisions about when to charge any electric vehicles.
Designing a better future
As well as helping you make ongoing adjustments to optimise your renewable usage, the Matcher can also help with the big long-term decisions. It has simulation functionality, allowing you to model the potential impact of any changes you are considering. This might be investing in a new generation asset, signing a new PPA or looking at battery storage. Crucially, the simulation you see is not generic; it is based on your organisation’s real consumption patterns to date.
In an environment where every budget decision has to be justified, the data-driven simulations from the Matcher provide the hard evidence you need to move forwards with capital expenditure or a new contract. And, of course, when you have made these decisions you can keep using the Matcher to track the ongoing success of your renewable energy strategy.
The public sector is facing challenging times, but smart use of data can protect your organisation from multiple risks: energy price volatility, supply uncertainty and scrutiny on your climate action.
To learn more about how ENTRNCE can help your organisation design a better future, visit www.entrnce.com/cfe
Jaron will be speaking about net zero and carbon free energy at the Public Sector Sustainability Event at Old Trafford on 1st November 2022. For more information visit www.pssevents.co.uk
