Following our article last week that highlighted that cost is the most frequently cited concern when it comes to achieving net zero, particularly for SMEs, we take a closer look at the cost of net zero, as well as the potential cost of kicking the can further down the road.
The good news for businesses that haven’t yet taken action to improve their sustainability is that the initial phase is typically the most rewarding. Better energy efficiency is a key aspect of sustainability, and for many organisations there are simple changes that can be made, at low cost, that can have a substantial impact on their energy costs down the line. This can include technologies, such as voltage optimisation, LED lighting or equipment upgrades, but can also include behavioural changes and engaging staff with the need to better conserve electricity and eliminate waste.
Reducing carbon emissions also plays a growing role in branding, with key audiences now increasingly aware of an organisation’s sustainability performance. Again, for organisations that are just beginning their sustainability journey, small changes can make a big difference. For carbon reduction, it is crucial that your organisation sets out with a clear picture of how its current emissions and where they originate, allowing for opportunities for improvements to be identified and acted upon easily.
Whitbread
Hotel and restaurant chain Whitbread have an extensive ESG policy, known as ‘Force for Good’, which includes committing to the Science-based Targets Initiative. This includes investing in several energy efficiency technologies, including LED lighting and rooftop solar.
Looking to unlock further reductions in carbon emissions, as well as cost savings, Whitbread worked with Powerstar on an initial pilot scheme to install voltage optimisation on one of their sites. Impressed by the seamless installation, low upfront cost and strong payback period, the scheme was eventually rolled out to more than 400 Whitbread sites, delivering an average energy consumption reduction of more than 12% while eliminating over 12,000 tonnes of CO2e annually.
How Powerstar’s Technologies Help
Voltage optimisation can be an extremely cost-effective step when it comes to reducing both energy costs and carbon emissions. Our lower cost, fixed reduction voltage optimisation is typically cost-effective even for SMEs or single sites across a larger retail or hospitality business, potentially paying for itself in as little as two years. The exact level of savings will vary depending on a site’s incoming voltage from the grid, as well as the nature of the technologies used across a site. Sites that use large numbers of motors for example, such as manufacturers, will often see a higher level of saving.
The challenge for most organisations comes further down the energy transition journey, where the more obvious changes to reduce energy consumption and carbon emissions have been identified and implemented. As an organisation gets closer to their ultimate net zero target, eliminating those last tonnes of CO2e from their carbon footprint becomes increasingly challenging, as well as often more expensive.
With a growing number of organisations taking charge of their carbon emissions, many are finding themselves at this stage. Many have turned to smart microgrid solutions as a way of reducing carbon emissions from their energy usage further. By utilising on-site, renewable generation alongside energy storage and intelligent control software, organisations can take complete control over how they use energy and how carbon intensive that energy is.
While grid-supplied electricity has significantly reduced carbon intensity compared to a decade ago, the ongoing usage of gas generation to balance the UK’s supply and demand means that it can still be substantial. By using a microgrid, organisations can fully switch over to net zero energy usage. Further, smart microgrids also play a crucial role in providing the site capacity required needed for major electrification upgrades that will play a key role in achieving net zero for many organisations, allowing existing fossil fuel processes to be replaced by electric alternatives powered using clean, low-cost on-site electricity.
