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ENERGY MANAGEMENT & SUSTAINABILITY


real impact on the bottom line through a reduction in energy costs. As a site will only generate the energy the business needs to use, it will naturally operate in a more efficient way.


There is also the opportunity to avoid non-commodity costs, such as the third-party costs required to maintain and balance the grid, if a business is generating its own electricity.


If a business can demonstrate clear savings through installing an on-site asset, then it will make the case for investment much stronger.


It protects against price fluctuations Linked to a reduction in energy costs, on-site generation helps to mitigate against price fluctuations in the market. As well as avoiding non-commodity costs, having an on- site supply helps to protect businesses against wholesale price volatility, meaning it can plan ahead with greater certainty.


In short, it puts the business in control of its energy usage, and allows it to unlock flexibility in terms of demand.


It provides an increased stability of supply Hitting net zero emissions by 2050 relies heavily on mass- electrification, putting increased pressure on the central grid. Any loss of energy - no matter how brief - can be costly, particularly to those mission-critical businesses that rely on 24/7 supply.


Installing on-site generation - particularly if combined with battery storage - helps to protect businesses from any downtime by increasing self-sufficiency and minimising the reliance on the grid.


www.tomorrowsfm.com


It improves reputation and


sustainability credibility As more and more businesses announce their sustainability plans, there has been a greater focus on so- called ‘greenwashing’ - where a company’s zero-carbon commitments do not stand up to scrutiny - particularly as the public become more climate aware.


Installing on-site generation is a clear signal that your business is serious about sustainability, particularly in the eyes of customers and throughout your supply chain.


Plotting your path to a more sustainable future When it comes to making ambitious, yet robust, carbon reduction plans, on-site generation needs to be a key consideration. However, where it is not an option due to cost barriers, one route to consider is a Power Purchase Agreement (PPA). These can be arranged via a third party funder, who can install and manage the on-site asset - the organisation then buys the energy from the funder over the course of the agreement, negating the need for up-front investment. Encouragingly, this was a route that the majority of our respondents (73%) were either already taking, or were considering.


From solar PV to CHP, there is now a great deal of on-site generation choice for businesses, with more innovative technologies on the horizon. The time to act is now - as well as reducing emissions, it makes businesses less reliant on the grid, mitigates against price changes, enables greater control of energy consumption, and provides future revenue opportunities by becoming a flexible asset. That is why investing in on-site generation really does make financial, environmental and reputational sense.


npowerbusinesssolutions.com/roadtonetzero TOMORROW’S FM | 43


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