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BSEE
his was brought to the fore at the COP26 climate conference in November 2021, where the important role of businesses was outlined in several key announcements, particularly around ensuring carbon reduction plans are credible and stand up to increased scrutiny.
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It is therefore important that any plans are robust, and building engineers will be crucial to this process, working alongside their colleagues to install the right equipment to help their business meet their targets.
The start of a new year is always time to take stock and review priorities, and for many
businesses, 2022 will bring a sense of ‘normality’ after almost two years of disruption. During this time, it was understandable that carbon reduction plans were put on hold. However, there is now an increasing focus on how organisations in both the private and public sectors will play their part in addressing the climate emergency. Anthony Ainsworth, COO, npower Business Solutions (nBS) makes the case for onsite generation
However, while relatively ‘small’ changes – such as replacing lighting, heating and cooling – can make a big difference and should absolutely be in a business’ carbon reduction plan, making the case for larger investments, such as renewable on- site generation, can prove to be more difficult. With this in mind, we have developed a guide on the important role sustainable on-site generation can play in helping organisations plot their path to Net Zero to help make the business case for the investment. This report - ‘Plot Your Path to Net Zero: A Focus on Sustainable On-Site Generation’ - includes information on the different kinds of generation available, from solar photovoltaic (PV) to combined heat and power (CHP), as well as the views of over 60 organisations of their on-site generation plans and the kind of support they would welcome.
Encouragingly, the research showed that, despite the challenges posed throughout the COVID-19 pandemic, over 50% of our respondents said they had already invested – or were planning to invest – in ways to generate their own supply. That said, despite the positivity around plans to invest in on-site generation, businesses also raised some of the issues they face when it comes to building a case for the investment. The primary barrier is proving the return on investment (ROI) of an on-site asset, closely followed by access to funding. Nearly a quarter (24%) also questioned the suitability of on-site generation for their organisation.
So, how can building engineers make the business case for an on-site generation asset? For me, there are five clear reasons why on-site generation should be a key part of a business’s Net Zero strategy:
1. It reduces carbon emissions
The UK government has set some very ambitious targets for the reduction of carbon emissions. As well as committing to Net Zero emissions by 2050, it also announced a mid-point commitment of a Greenhouse Gas (GHG) emissions reduction of 78% by 2035 compared to 1990 levels. The most effective way to reduce emissions is by switching to a zero-carbon supply. On-site generation options that use 100% renewable sources – such as solar PV or wind – will help a business significantly reduce its carbon footprint.
2. It lowers energy costs
Installing on-site generation technology can make a 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.
3. It protects against price fluctuations
Linked to a reduction in energy costs, on-site generation helps to mitigate against price fluctuations in the market, which has been a huge issue in recent months, where wholesale energy prices have reached record highs. Having an on- site supply helps to protect businesses against this price volatility and increase resiliency, meaning it can plan ahead with greater certainty.
4. It provides an increased stability of supply
Any loss of energy - no matter how brief - can be costly, particularly to those mission-critical businesses that rely on 24/7 supply. Hitting Net Zero emissions by 2050 relies heavily on mass-electrification, putting increased pressure on the central grid. This means that we will see a move to a more decentralised system, with multiple energy sources contributing to the overall stability of the grid.
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. It can also provide additional revenue opportunities, allowing businesses to sell any excess energy they produce to the grid.
5.It improves reputation and sustainability credibility
As mentioned earlier, COP26 saw several announcements to ensure businesses adhere to stricter standards when it comes to publishing sustainability pledges. There has been a greater focus on exposing instances of 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 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 volatility, 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 10 BUILDING SERVICES & ENVIRONMENTAL ENGINEER JANUARY 2022 Read the latest at:
www.bsee.co.uk
ENERGY MANAGEMENT
Net Zero: the important role of sustainable onsite generation
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