SUSTAINABILITY SOLUTIONS
GREENEST IS THE CHEAPEST
Dr. James Crosby, head of sustainability at Advantage Utilities, examines the steps
businesses can take to enhance sustainability credentials and decrease energy costs
O
ver the past 18 months, the wholesale energy market has experienced unprecedented
volatility. This has been reflected in seasonal wholesale pricing, with winter gas prices reaching record highs of 28p/kWh (827p/therm) and winter electricity prices reaching 85p/kWh (price constraints modelled from 26th to 29th of August). When factoring in non-energy costs such as government taxes, customer gas exceeded 40p/kWh and even electricity prices were 100p/kWh for a period of time. Fortunately for customers, the wholesale
market has since decreased, and prices are more palatable at ~10p/kWh to 20p/kWh for gas and 35p/kWh to 50p/kWh for electricity to customers. Despite this, significant pressures remain – so decreasing energy costs will be at the forefront of businesses’ minds this year. Based on data from the Department for Business,
Energy & Industrial Strategy (BEIS), centralised grid-sourced electricity and gas is still highly pollutive, with electricity production accounting for
~0.19 kg of CO2 per kWh, with gas producing 0.18 to 0.20 kg of CO2 per kWh. Switching to cheaper, greener forms of energy, will therefore be crucial to making additional progress towards Net Zero.
COST MITIGATION AND SUSTAINABILITY ENHANCEMENT In order to manage the high energy costs and enhance a company’s sustainability credentials, there are two basic principles which apply: 1) The greenest form of energy generation is the most affordable method of consumption. Renewable energy
Dr. James Crosby
www.essmag.co.uk
generators have undergone such dramatic technological advancement over the past decades. This means
technologies can now produce energy at a cheaper rate than otherwise consumed from the grid. This is achieved through technologies related to onsite generation.
2) The cheapest and greenest form of energy is that which is not consumed at all. This refers to technologies that undertake the
same function as already existing infrastructure. However, these newer and more efficient technologies consume less gas and/or electricity but have the same performance output. This is achieved through technologies related to onsite efficiency.
ONSITE GENERATION Renewable energy generators installed on a site can produce electricity at the fraction of the price of grid consumption. Commonly termed the Levelized Cost of Electricity (LCoE), these generators commonly produce figures at 1p/kWh to 5p/kWh over the warrantied lifetime of a system. Furthermore, a benefit of these systems is the decentralised nature of them. Their energy production is an independent source and completely separate from the grid. As a result, this protects customers from volatile changes in wholesale gas and power markets in addition to unpredictable non-energy cost fluctuation. Finally, renewable energy generators have little carbon/greenhouse gas emissions associated with them. Once embodied carbon – emissions from manufacture and minor emissions associated with their operations and maintenance – are factored in, they have excellent ESG credentials. These technologies will therefore dramatically enhance the sustainability of a site’s operation. As a result, these technologies form the basis of the greenest and most affordable method of energy consumption. The most suitable technologies to offset grid consumption relate to: • Solar Photovoltaic (PV) • Solar thermal • Wind • Combined Heat + Power fuelled from renewable sources
• Hydroelectric Power • Rainwater Harvesting.
ONSITE EFFICIENCY Facilities will have an abundance of energy- intensive inventory which are imperative to their successful operations. This can be related to electrical consumption to power machinery and plant, or gas consumption for heating and industrial purposes. Ultimately, the consumption of this inventory is based on efficiency. The purpose of onsite efficiency is to introduce technologies to complement or replace this inventory, so it operates more efficiently. By having a more efficient operation, it will decrease the electricity/gas kW consumption and therefore introduce energy savings. The most suitable technologies to offset grid consumption relate to: • LED Lighting • Voltage Optimisation • Gas Fuel Optimisation • HVAC Upgrades/Optimisation • Battery Energy Storage Systems • Air-/Ground-Sourced Heat Pumps.
EXPLORING THE SOLUTIONS Energy costs across the UK have hit record highs, but while the market has come down considerably, we are still in an energy crisis based on the wholesale market. Furthermore, while more renewable generators are coming online, the grid still remains a highly pollutive method of energy consumption. Consequently, the obvious route for a business to moderate their energy costs and enhance their sustainability credentials is to explore additional onsite generation and efficiency technologies. By implementing these, it will enhance their ability to produce their own sustainable energy and decrease their consumption from the grid.
Advantage Utilities
www.advantageutilities.com
ENERGY & SUSTAINABILITY SOLUTIONS - Spring 2023 11
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