News

NEW REPORT REVEALS ROBUST ENERGY STRATEGY INTERTWINED WITH NET ZERO TARGET WILL BE KEY IN MANAGING BUSINESS ENERGY COSTS

Soaring energy prices continue to dominate the headlines. The increasingly prolonged conflict in Ukraine is having a knock-on effect on global prices including oil, gas and power.

Similarly, a fire at the U.S. Freeport LNG terminal couldn’t have come at a worse time. Now, the UK and Europe are more heavily reliant on LNG imports from the U.S. and elsewhere, with this having been the case even before Russia’s invasion of Ukraine. With Freeport accounting for around 15% of the total U.S. exports, it was enough to cause a knee-jerk reaction in EU and UK markets.

This is in addition to inflation being at a 40 year high within the UK, with the Bank of England hinting that a gradual increase in interest rates will be required to combat the rise. Other factors include the damage from the Covid pandemic and the fallout from brexit. Unsurprisingly, these issues continue to be a cause for concern for businesses across the country.

In a new report, experts at commercial energy broker and utilities consultancy Advantage Utilities have revealed the key strategies and targets businesses can put in place to help manage the soaring energy costs, outside of the traditional energy supply agreement.

Commenting on the report, Andrew Grover, Chief Executive Officer at Advantage Utilities, said, “Timing and/ or the way we purchase energy - such as flexible contracts - can help mitigate cost increases; however, a wider, more robust energy plan, intertwined with a net zero target will likely prove key to controlling long term costs.”

He continues: “The geopolitical climate, as well as the prevailing warm weather of late, are perhaps a timely reminder of the need for Europe and the UK to expedite the implementation of more homegrown renewable, cleaner energy generation such as solar and wind, whilst moving away from the reliance on Russian gas and LNG imports.”

“The cheapest unit of energy is the unit we do not consume. In the current climate it would only take a very small percentage reduction in energy usage to yield healthy financial savings.”

THERE ARE SOLUTIONS TO RISING COSTS

Negative energy crisis reports seem to dominate the news, but Grover is confident businesses can put in place strategies to help mitigate the unprecedented spikes and increases seen over the last 9 months.

Energy technologies are becoming increasingly more affordable, with a variety of funding options available and return on investment times being reduced. Larger scale projects may also qualify for Power Purchase Agreement (PPA) funding which allows organisations to benefit from the technology without any capital outlay, risk or ongoing maintenance responsibility.

Grover states, “Feasibility studies on solar, wind, battery storage, CHP, Voltage Optimisation and more can see which energy technologies could help your business become greener. Starting from desktop audits, various energy management products and services are now an option for more businesses, regardless of your size and level of energy consumption.”

It’s difficult to predict the future course of energy prices amidst the backdrop of the ongoing geopolitical issues and uncertainty, but a robust energy plan, including the changing way we procure energy, can significantly help mitigate cost increases and effectively control energy expenditure. This is in addition to helping achieve any net zero aspirations.

Additional solutions, guidance and advice on energy management can be found within the latest report by Advantage Utilities. https://www.advantageutilities.com/ quarterly-market-report

SSE DELIVERS DECARBONISATION SUPPORT TO UNIVERSITY ESTATE DIRECTORS

SSE Energy Solutions has partnered with The Association of University Directors of Estates (AUDE) to inform Universities on the best practices to go green and decarbonise.

Energy professionals from SSE have provided certified Continuing Professional Development training across UK campuses, on the topic of decarbonisation. The sessions, led by subject matter experts, set out to provide a better understanding of how to achieve net zero goals within enforced time frames, and what considerations are necessary to achieve them.

Materials produced for the training were developed by SSE Energy Solutions, in collaboration with AUDE, which demonstrated a “whole system approach.” They included aspects from policy, legislation, procurement, contracting, investment, solution development, and examples from academia and industry.

The face-to-face courses have taken place across the UK and Ireland including sessions delivered in Bath, Birmingham, Sheffield, Cardiff, Dublin, and Edinburgh. Participants received CPD points from AUDE, as the authorising body which certifies the training.

Avi Baidya, Head of Universities & Higher Education Client Development at SSE Energy, said: “Decarbonising estates is a priority for universities across the country, not just so they can meet their own net zero goals, but because more students are factoring in where a university falls on the green league tables when choosing where to go.

“It’s vital for Directors of these estates to have reliable information on decarbonisation, which is why our CPD training has no commercial obligations attached to it; it’s an entirely educational proposition. There are many challenges to creating greener, more sustainable university campuses and through this engagement with AUDE members, we can help prepare key decision-makers to overcome them successfully.

“We hope to engage with many universities across the UK to help deliver their decarbonisation goals and to create more sustainable, green energy solutions in the process.”

SSE were recently selected to work as the strategic energy partner to the University of Surrey and is currently working in collaboration with the university to remove approximately 5000 tonnes of carbon per year from their total annual emissions in addition to increasing their on-site renewable energy generation at the same time.

Read more about SSE’s strategic collaboration with AUDE here: https://www.aude.ac.uk/ membership/business-partners/ sse-energy-solutions/