March 25, 2024
In the face of continued uncertainty; climate change, the wars in Eastern Europe and the Middle East and new governments coming into power (64 countries, 49% of the global population, have elections this year), there is a question mark over the security of energy supply and consequently its availability and pricing. So, although energy prices have fallen from their peak in August 2022 and are moving more towards the 20 year average, businesses should still do what they can to lower their risks. In parallel, there is more and more demand from investors and customers for businesses to reduce their carbon emissions.
The ultimate goal would be to be energy independent - i.e. producing your own clean renewable energy and running ultra efficient operations utilising as little electricity as you can. Possible? More likely impossible for most businesses. A more manageable goal is to find a way of reducing your energy consumption and switching to a renewable energy supplier.
Here are some ideas of where to focus to reduce your energy consumption and your reliance on third party energy suppliers. This list is certainly not exhaustive and priorities will vary depending on the industry you are in.
Conduct a comprehensive audit of energy usage. Install half hour metres - these can provide you an idea of what energy is used and where during the course of the day, week, season. Try to see if there are some benchmark energy consumption numbers available for your industry sector and compare against yours.
A crucial aspect of energy efficiency lies in the insulation and structural integrity of buildings. By ensuring proper insulation and sealing any leaks, businesses can significantly reduce the amount of energy needed for heating and cooling. Identify areas where insulation could be improved and invested in upgrades to minimise heat loss and gain. Use a thermal imaging camera to inspect walls, ceilings, pipework etc to find where heat is escaping. Sometimes quick actions such as pipe insulation can do a lot.
Lighting and HVAC (Heating, Ventilation, and Air Conditioning) systems are often significant contributors to energy consumption. By transitioning to energy-efficient LED lighting and implementing smart HVAC controls, businesses can achieve substantial savings while maintaining comfortable working environments. Retrofit outdated lighting fixtures and upgrade HVAC systems with programmable thermostats and sensors for better energy management.
In today's digital age, IT infrastructure and data centres play a crucial role in business operations. However, they also consume vast amounts of energy. By optimising server usage, consolidating data centres, and transitioning to cloud-based services, businesses can reduce their energy footprint significantly.
Transportation and logistics are often overlooked areas when it comes to energy efficiency. By optimising routes, maintaining vehicles, and transitioning to electric or hybrid fleets, businesses can reduce fuel consumption and emissions.
While reducing energy consumption is vital, transitioning to renewable energy sources is equally important. Through ROI modelling tools, businesses can evaluate the commercial viability of renewables such as solar, wind, and geothermal energy. Solar can be a good solution however does require CAPEX. Additionally, exploring options like district energy sources, power purchase agreements (PPAs), and landlord partnerships can provide access to shared renewable energy generation - albeit our experience has not seen many commercial models that work well in this area - happy to discuss this more with you.
Conducting an energy audit is the first step on the path. By identifying areas of inefficiency and implementing incremental improvements, businesses can reduce energy consumption, lower costs, and mitigate their environmental impact. Moreover, embracing renewable energy solutions offers a pathway towards achieving long-term sustainability goals while contributing to a cleaner and greener planet.
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