NET ZERO & ZERO CARBON BUILDINGS
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Dr James Crosby- Wrigley, head of sustainability for commercial and industrial energy supply and usage at Advantage a global supplier of vacuum equipment installed solar PV to address challenges of energy costs, market vulnerability and carbon emissions
he past two and a half years have presented unprecedented volatility in the energy market for UK businesses. This volatility can easily be observed in wholesale energy prices, with peaks in August 2022
recording wholesale prices for power at ~£850/MWh (85p/kWh) and gas at ~£800/ therm (23p/kWh), giving record energy costs for end-users. This can be largely attributed to the Ukraine-Russia conflict and the damaging effects this has had on gas supply volumes to Europe, as well as the influence this has had on short-term risk uncertainties. Thankfully, the wholesale energy market prices have come down and have begun to resemble historic norms (£65 to £80/MWh (6.5 to 8p/kWh) for power and £60 to £80/therm (1.7 to 2.3p/ kWh) for gas).
Whilst the wholesale market may have come back to relative historic norms, the additional costs paid by businesses for energy attributed to transportation, distribution, and climate taxes (termed non-commodity costs), continue to increase. Whereby, a typical business will now pay approximately 2x more in non-commodity costs in 2024 (9p/kWh to 10p/kWh) relative to those issued in 2014 (4p/kWh to 5p/kWh). The overall result is that energy costs to businesses are still above those typical before the Russia- Ukraine conflict.
Additionally, businesses are now under pressure to reduce their carbon emissions associated with their business operations. This is driven by the undeniable impact that greenhouse-gas emissions have had on the global climate, with average temperatures well-above 1oC relative to pre-industrial times. The necessity and urgency of this are most obviously represented by key government laws and policies (e.g. Climate Change Act of 2008, and Net-Zero Emissions by 2050) and expanding compulsory disclosure of carbon emissions from each company. With the grid remaining a costly and highly intense source of energy (~0.2kg CO2e/kWh), businesses are left with three key challenges to address:
1. How to decrease energy costs for site operations?
2. How to protect against future energy market volatility?
3. How to decrease carbon emissions from a site?
In this article, we provide a case study of the Kurt J Lesker Company – a global leading supplier of high-quality vacuum equipment –
which installed a 100.04 kWp solar PV system to address these challenges. This installation was undertaken in June 2023 with a rapid installation timeframe (approximately three weeks).
Solar PV provides a direct source of electricity to a facility. It does this through generating power and feeding it to the facility beyond the point of connection to the grid. This system is forecasted to generate ~107,413 kWh in the first year (with 80% being consumed by the site), reducing the grid demand by ~85,624 kWh and saving £25,687.20 in energy costs (30p/kWh) in the first year alone. Over the forecasted 25-year lifetime of the system, it is forecasted to save over £500,000 in grid purchases (average at 25p/kWh). Furthermore, due to supply chain maturity, the system will provide a lifetime cost of electricity ((Installation Cost + Ongoing Costs) ÷ kWh Generated) of ~5p/ kWh with a return on investment (including tax incentives) of only 4 to 5 years.
The solar PV system for the Kurt J Lesker Company is forecasted to provide 30% of the power requirements for the facility. As a result, future fluctuations, and volatility in wholesale and non-commodity costs for grid purchases will be less impactful. Additionally, there is scope for future PV expansion and integration with battery technology, which would further decrease the facilities vulnerability to the grid.
Solar PV is a source of renewable power generation – meaning it will be providing power from a low/zero carbon source of energy (the sun). At 0.2kg CO2e¬/kWh, in the first year the system will reduce the Kurt J Lesker Company
16 BUILDING SERVICES & ENVIRONMENTAL ENGINEER MAY 2024
Scope 2 carbon emissions by approximately 20.7 tonnes (or the equivalent carbon activity of 90 forestry acres – Environmental Protection Agency). Once the embodied carbon emissions are accounted for (~3 years of activity), the system will reduce the Scope 2 Emissions of the site by ~257 Tonnes CO2e over the 25-year expected lifetime of the system.
Solar PV represents an excellent and largely unrivalled technology for businesses to decrease their energy costs, reduce their exposure/ vulnerability to energy market, and decrease their carbon emissions. However, businesses may also want to consider additional opportunities and technologies. In this author’s opinion, there are two key philosophies which form the backbone of this consideration:
a. The greenest form of energy generation is the most affordable and sustainable method of consumption - this is undertaken through technologies which directly provide power into a facility utilising renewable generators. Alternatives/supplements to solar PV generators may include wind turbines, heat pumps, fuel cells, solar thermal system, and suitably applied combined heat and power generators.
b. The cheapest and greenest form of energy is that which is not consumed at all - this is through technologies with undertake the same function as the existing infrastructure, but more consume less energy (more efficiently). This can come in the form of lighting upgrades (e.g. LED), more advanced building management systems (e.g. heating and lighting sensors/controls), voltage optimisation, boiler upgrades, and fabric measures (e.g. enhanced insulation).
In conclusion, the volatile energy market and evolving importance of environmentally sustainable operations mean that businesses have to adapt. Fortunately, there are technologies which enable an integration of cost saving, risk management, and carbon reducing operations. This is most obviously highlighted by solar PV deployment as illustrated by the Kurt J Lesker Company.
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