POWER, ENERGY & RENEWABLES


power demand, supply, and affordability - it makes sense for companies to focus on their energy strategies as a means to ensuring customer satisfaction while reducing costs and maximising benefits from capital investment. The combination of investment in renewable on-site power generation together with Battery Energy Storage Systems (BESS) can reap significant operational and financial benefits. The House of Commons Committee highlighted research from the University of Liverpool (UoL) which found that solar photovoltaic (PV) technology is on a par with onshore wind as the cheapest way to generate low-carbon electricity. Most notably, for companies looking at investing in on-site renewable generation, the UoL researchers found that - when compared to fossil fuel generation and purchase - the price of solar PV is stable. Running costs rely only in operation and maintenance, are not dependent on fuel costs, and so are beyond the reach of the weaponizing of fuel pricing. And, with the introduction of a zero-rate of VAT for selected energy saving materials in March last year, this effectively means that manufacturers looking to introduce on-site solar PV gain a 20 per cent discount on installation. This means lower energy costs, greater flexibility for on-site power demands, and the potential to significantly reduce carbon emissions. While energy prices are at record levels, the


return on investment in on-site renewables looks favourable for energy-intensive industries, with the payback period reducing in the ongoing economic crisis. At the same time, infrastructure used for renewables is exempt from business rates - currently until 31 March 2035 - again furthering the case for investment in solar, wind turbines and for the Battery Energy Storage Systems (BESS) which ensure the most flexible and secure means of harnessing and deploying the energy generated. This is of critical importance for manufacturing - especially for high-value or high-volume industries where any disruption to supply can mean massive costs in scrappage or damage to products and expensive downtime. With supply margins already tight, given the current geopolitical climate, and with the issues of inflexibility inherent in renewables, the potential for disruption to the National Grid is only going to continue. Indeed, the Climate Change Committee has predicted a 50 per cent rise in electricity demand by 2035, given the increased digitisation and automation brought about by the shift to Industry 4.0, which will undoubtedly exacerbate this. Traditionally, an Uninterruptible Power


Supply (UPS) has been adequate for manufacturers to protect individual assets, but this solution is increasingly untenable given the costs involved - wasted energy switching from AC to DC while the unit sits idle, meaning losses of 10 to 15 per cent as compared to


Continued on page 10... UKManufacturing Spring 2023 9


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