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The Energy Trilemma

Energy Affordability and Efficiency

The UK is facing an unprecedented increase in energy costs, which in turn is driving what many are calling a growing cost of doing business crisis. While historically procurement has played a major role in reducing energy costs for businesses, the current market means that the savings to be found through procurement are increasingly small.

At the same time, businesses are facing cost pressures from their energy use that are forcing them to make difficult decisions to compromise on productivity, or even threatening the viability of the business itself.

Electricity Meter

Mitigating the Energy Price Crisis

Energy bills are forecast to continue to trend upwards until at least 2023, and will remain volatile over the coming decade. Businesses that rely on the grid alone for their energy supply, without taking steps to either generate on-site or use the energy they do purchase more intelligently, will remain exposed to this volatility. Particularly during winter months when energy prices rise due to higher demand, electricity costs will continue to make up a significant and growing portion of your overheads.

Conversely, for many businesses, the best way to mitigate rising energy prices is to invest in technologies that are able to provide a significant improvement in terms of both energy costs and sustainability over their lifetime. The cheapest unit of electricity is always the one that you don’t use, making investing in energy efficiency measures one of the best ways to reduce overall costs. For a growing number of businesses, on-site generation such as solar PV or wind can provide clean electricity while reducing your exposure to volatile and rising wholesale energy prices.

Balancing the Energy Trilemma – Energy Affordability

Finding solutions for rising energy costs is challenging, and even more so when viewed through the prism of the energy trilemma. It would be careless and short-sighted to risk sacrificing the other elements of the trilemma, sustainability and security of supply, in favour of short-term cost savings.

That said, with many businesses at risk of breaking under the strain of rising energy costs, solutions need to be found. Powerstar’s range of technologies offer significant savings through better energy efficiency, and can even mitigate energy costs through unlocking new revenue streams.

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Related case studies

Royal Hallamshire Hospital

Voltage regulation helped to deliver more than 5% energy efficiency improvements and 11.5% reduction in kVA for this hospital

Birmingham Stopper

This UK manufacturer was able to eliminate 75 tonnes of carbon equivalent from their annual footprint with the help of voltage regulation

Quorn Foods

A combination of voltage regulation and low-loss transformers saved this leading food manufacturer over £71,000 on their annual energy bills.

Swann Morton

Voltage regulation helped to remove over 100 tonnes of carbon emissions annually from this manufacturer's carbon footprint.

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