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Embracing change

Embracing change

29/04/2008 | Channel: Renewable Energy

A look at carbon reduction initiatives in the workplace,by Charlie Crossley Cooke, managing director of Opus Energy

Volatility in energy markets is nothing new, but with oil prices hitting record highs, the issues surrounding energy usage and pricing have recently been pushed higher up the political, economic and environmental agenda.

Amongst UK businesses, concern over environmental matters to date has largely been restricted to the corporate sector. Not only do they have a larger carbon footprint but they have more resources available to enable them to analyse consumption levels and initiate demand management investment programs. UK corporates are increasingly coming under pressure from the Government to meet specific energy reduction targets, and are often now choosing to embrace a greener image from a sense of corporate responsibility.

However, energy efficiency is fast becoming an issue that all businesses will be asked by the Government to address. By May 2008 it is expected that the Government will establish a voluntary agreement relating to reduced energy consumption for small and medium sized enterprises (SME). Initially, the Government is expected to take a soft approach through proposed guidelines, but in time this could lead to compulsory targets across all businesses.

Companies like Opus Energy, are at the forefront of helping today's energy purchasers embrace the change in the market. With the investment and innovation offered by Opus Energy, the ability to reduce carbon emissions and costs is being made accessible to all businesses - large and small. No longer is the electricity industry simply about who offers the cheapest tariff. It is now about who can offer the best energy supply package at the best rate. Businesses, both large and small are being given the ability to take greater control of their usage and costs though innovative technology to help identify how to reduce energy consumption, time specific pricing deals, access to wholesale prices, opportunity to procure greener energy and online account management systems.

In short, in conjunction with the right energy provider, powering a business has become more environmentally friendly, dynamic and cost-effective.

Actively managing energy consumption
According to the Carbon Trust, on average, UK organisations can save an average of 30 per cent of the energy they buy, which otherwise equates to millions of pounds in lost revenue for businesses every year.

In a recent survey we found that 36 per cent of employees were more likely to embrace energy saving techniques when at home than if they were at work. For businesses that wish to reduce their energy spend and consumption, one of the challenges therefore is encouraging a change of habits in the workplace.

We assist our customers that wish to identify and implement initial energy-saving opportunities by advising them to adopt a five-step approach. These steps involve:

Firstly - Measure how much electricity your business is using. It is important to understand when and where a business consumes its energy. By tracking consumption businesses can see the impact of making simple changes.

Secondly - Conduct a walk around survey. Taking the time to walk round your business premises will help identify where energy consumption could be reduced. Focus will mostly be on, heating and lighting equipment and on machinery that may be left on when not being used.

Thirdly - Internal communication. Saving energy is often a team effort and
businesses can educate workers and find ways to motivate them to contribute to the energy saving efforts.

Fourthly - Assign responsibilities. Nominate individuals who will be responsible for specific areas and encourage them to communicate the benefits to colleagues.

Fifthly - Monitor success. Check progress by tracking consumption levels and costs. Review progress, communicate the improvements internally and establish new priorities for action as part of an ongoing cycle of improvement.

All businesses are different and will therefore have different energy saving opportunities. Further details of these steps, along with links to helpful websites and example tips for specific industries can be found on our website at www.opusenergy.com.

Understanding energy usage
Undoubtedly, one of the most innovative new technologies to be introduced into the electricity market is the Smart Meter. As well as empowering more informed energy purchasing, research by the Carbon Trust suggests that smart metering technology will be able to reduce the average business' consumption by 12.3 per cent a year.

The introduction of Smart Meters to the UK has simplified the process of determining usage and ensuring accurate billing. Smart meters can store up to a year's worth of half-hourly readings which are then transmitted monthly to the energy provider by a GSM mobile messaging system. At Opus Energy the data provided by a Smart Meter is made available to the customer on a secure website. Customers have access to current, accurate meter readings allowing them to easily review their monthly energy usage and monitor the company's energy efficiency. A business using a Smart Meter can determine the patterns of their energy usage, for example determining how much energy continues to be used at night time when the business is closed, or where the peak usage comes during each day.

Procurement of green energy
Reducing the impact that a business makes on the environment can be achieved though a combination of reducing energy usage and through purchasing a proportion of energy from renewable and cleaner energy sources.

Some suppliers now offer power that is partly sourced from renewable sources, or from cleaner CHP generators. CHP, or Combined Heat and Power, generators produce heat at the same time as generating electricity, so they are more efficient than standard electricity generators. Over the last few years, we've been instrumental, at Opus Energy, in finding innovative ways of sourcing cleaner power for our customers.

Between April 2006 and March 2007, 66 per cent of the energy supplied by Opus Energy to its customers came from cleaner, lowcarbon sources. 47 per cent came from renewable generators and 19 per cent from cleaner Combined Heat and Power produced by CHP generators. Opus also works in conjunction with local renewable sources such as Cornwall Light and Power, a wind farm that last year sold its entire Renewable Obligation Certificate annual output to Opus Energy. By working in partnership with independent renewable energy providers, we are supporting the development of renewable generation across the UK and helping businesses consume power from cleaner sources.

Innovation on the horizon
Technology is developing so that high-tech energy saving techniques are becoming increasingly available, not just to large corporates, but to SME businesses as well. We anticipate that the next big trend for energy saving will come in the form of micro-generators.

Micro-generators are scaled down renewable generators such as solar panels and small wind turbines that can be attached and installed to a business premises. Any energy that the micro-generator produces that is not used by the building itself, can be sold back to the supplier through metering of the output.

Until recently it was not possible to 'settle' micro-generators and meter their output through the main electricity grid. Opus Energy is pioneering a new scheme, which will allow businesses the opportunity to increase their percentage of energy taken from a renewable source, as well as sell back surplus electricity in exchange for a discount on their regular tariff.

The Greater London authority recently proposed that all plans for new buildings in Greater London must incorporate the generation of at least ten per cent of the building's power and heat requirements from renewable energy on site where feasible.

Where next?
At a landmark summit in March 2007, European heads of state agreed to move forward with ambitious objectives to slash greenhouse-gas emissions and boost renewable energy production by 2020 in a bid to reduce the EU's dependency on imported fuels and set the pace for "a new global industrial revolution". Moving forward we believe large and small UK businesses will feel increasing pressure, to embrace energy saving initiatives.

The modern utility provider needs to be able to meet and supersede the demands of these business customers by providing flexible pricing solutions, tailored service, technological support and innovative account management techniques. This will enable businesses to continue to take control of their own account and energy procurement, and will facilitate a business' initiatives to reduce energy consumption and spending where and how it chooses to. u

Charlie Crossley Cooke is managing director of Opus Energy, a leading independent supplier of electricity to the business sector, offering companies a competitive source of power and a high standard of customer care.

For further information please visit:www.opusenergy.co.uk