Government support withdrawal sparks rethink on pharma’s energy strategy

Pharmaceutical manufacturers are increasingly reevaluating equipment procurement strategies following concerns expressed over winter blackouts and the planned withdrawal of government financial support.

The observation from temporary hire specialists Aggreko comes in the wake of the news that the government is poised to reduce assistance provided on business energy bills after March. This latest announcement, combined with a recent survey from trade body Make UK stating that two-thirds of manufacturers fear blackouts this winter, has led to concerns over the continued performance of the UK national grid.

With this in mind, Matt Watson, European Manufacturing Sector expert at Aggreko Europe, is highlighting the importance of alternative technologies to help maintain power baseloads at a challenging time for the industry.

“The energy crisis remains a pressing and ongoing concern across all walks of life in the UK, including in the manufacturing sector,” explained Matt. “With a recession expected and support being cut, the need to safeguard production output and profitability is more important than ever.

“In order to mitigate the pressures associated with grid constraints, alongside energy availability and pricing, equipment specifiers at manufacturing sites are exploring strategies that were previously overlooked. With ageing grid infrastructure and global factors continuing to impact financial bottom lines, one thing is clear – the pharmaceutical industry cannot stand still, and it is encouraging that new ways of thinking and acting are being embraced.”

According to Matt, decentralised energy solutions may mitigate challenges posed by grid power constraints and build site resilience. “A major consequence of volatile energy costs and supplies is that businesses are finding it more difficult to plan ahead,” concluded Matt. “Consequently, manufacturers need to expand their equipment approach beyond simply purchasing generators outright. Given the large fluctuations in fuel costs and required output, such an approach may be costly in both the short- and long-term. “Instead, we would recommend organisations look at alternative strategies, including the hire of load-ondemand, combined heat and power, and battery energy storage systems. With the business landscape continuing to look challenging for manufacturers, stakeholders must work more closely with suppliers to identify solutions that not only guard against power shortfalls, but also improve overall efficiency.”