PC-MAY23-PG42-43.1_Layout 1 11/05/2023 11:44 Page 42


SOLAR ENERGY THE TRANSITION TO CLEAN ENERGY


Chris Voet, Director of Key Accounts Europe at SolarEdge


Technologies, shares his insights on the key issues that


companies operating in heavy industries need to consider to achieve their


sustainability goals


ith governmental pressure in most countries ramping up and bold deadlines to phase out fossil fuel within the upcoming decades, many companies and industries are adapting to the large-scale transition to clean energy. For traditional heavy industries such as manufacturing and logistics, the shift is a big one, and identifying how to achieve that objective can seem like a very complex challenge.


W


In Europe, there are some 300 industries – many of them international – that have set due-dates to significantly reduce carbon emissions. The years commonly range from 2025 to 2035, and for some, 2050, depending on the country. While genuine commitment to ‘play their part’ is a key factor, action is also spurred by incentives from regional utilities to encourage adoption of renewable energy – as well as the incoming carbon taxes on industries that do not meet legislated emissions levels.


Among the companies leading the cause are the heavy industries historically perceived as major polluters, such as oil and gas, chemical and automotive, logistics and large- scale industrial manufacturing. I have been working closely with companies in these industries for over a decade, helping them to transition to renewable energy, specifically solar. These operators typically have large premises and potentially acres of empty roof space, and solar modules provide a very visible demonstration of their commitment to sustainability. At the same time, the flexible nature of solar means it does not typically require planning permission, and, thanks to improvements in solar technology and fluctuating energy prices, the ROI period for solar projects is becoming more attractive. For organisations whose business has never been power generation, making the transition


42 MAY 2023 | PROCESS & CONTROL


to solar can present a challenge, and certainly there are several considerations that need to be taken into account. For example, there may be variations in national or even regional regulations that dictate the maximum size allowed for a PV system. Sometimes, the buildings used by companies may not have suitable rooftops, or the buildings may only be leased or rented, making the landlord’s commitment to installations problematic. Landlords are often reluctant to allow a solar installation with a return on investment (ROI) of less than the occupier’s lease.


Within large industrial corporations there can often be complexity in the decision- making process. This may involve corporate-level management, investors, regional management, plant managers, risk assessment officers, energy managers, sustainability managers, insurance officers, local officials (including fire departments), and often risk, insurance and energy consultants. The challenge here is to ensure all stakeholders in the decision-making process understand what the end-goal is and that they can work together to achieve it. Once a company is aligned internally, the next step is to find competent partners who can help it navigate the transition and minimise risk. These are likely to include a mix of companies, from consultants and EPCs to technology providers who can provide expertise on installing solar systems. These providers could be either local or global depending on the needs of the company, though many companies that have made the transition often find that the involvement of local partners who know the regulatory and operational conditions is very important. In a recent meeting with a large chemical company, I was asked in jest, ‘if our tree has always been fruitful, why take it down and grow a new one?!’. Referencing their


longstanding use of traditional energy supply, they knew the answer to the analogy, but it does exemplify a wider industry consensus that while the transition to solar is needed, it comes with a lack of understanding of its value and how to best implement it. The transition to solar requires a solid understanding of the requirements and risk factors involved. First, the financial case needs to be considered. Solar provides a very attractive ROI over the total lifetime of a system, having saved many of our customers millions. However, companies will have to bear the majority of the cost up front as CAPEX. The next step is the process of putting solar panels on the roof of buildings and achieving the promised energy supply, which is a relatively simple and low risk exercise.


With chemical, oil and gas, and automotive companies, the main concerns are around safety and risk. These concerns come from a variety of sources, from risk and safety officers, to building managers (and owners), local councils and fire departments, and the companies’ insurance managers. Insurance itself is complex as it includes building insurance, insurance of the solar system, business insurance and general liability. As the solar industry matures and the number of installations increase, stricter safety standards and regulations are now commonplace. These standards outline that, should maintenance on the roof be necessary, or in case of an emergency, the solar inverter must be able to reduce the DC current produced by solar panels to a touch-safe voltage within a specified amount of time. Overcoming fear of risk takes time and requires the right experts to provide credible data-backed input and proper due diligence. We work with Marsh LLC, who are global experts in risk management and insurance- focused brokerage. Our partnership with such


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58