A lot has changed since I started EnAppSys nearly 20 years ago on my kitchen table. Back in 2003, the call for more renewable energy was only starting to gain momentum following the dash for gas in the 1990s. Now, cleaner, greener power is seen as an essential component in the global push to tackle climate change, secure our energy supplies and become a net zero society.
The North East of England is playing a key role in the green revolution. It is already seen as a leading light in offshore renewable energy production and now Teesside has been chosen as the preferred location for a multi-millionpound electric vehicle battery recycling facility. Aura Power Developments’ plans to create a large solar farm in Darlington look set to be approved, while mineral processing specialist Green Lithium has announced plans to build the UK’s first large-scale lithium refinery in Teesside – a move that will support the battery, energy storage and automotive sectors.
The need for renewable energy production (and more gas storage capacity) has been highlighted by the conflict in Ukraine, which has significantly reduced gas supplies from Russia into Europe. This has sent wholesale gas prices soaring to record levels and significantly increased energy bills for businesses, with some wondering how they’ll get through the winter. This isn’t just putting a large dent in corporate profit margins; it’s leading to other problems. Some firms are finding it difficult to recruit and retain staff in the middle of a cost of living crisis, prompted in part by energy prices, with many people looking for jobs that offer higher wages. Others are finding it hard to access finance, with some institutions reluctant to lend money to businesses that are struggling to cover their increased costs.
However, there are things that businesses can do to mitigate these risks and reduce their energy consumption, such as installing motion-sensing lighting, looking to improve insulation, maybe using the roof for solar, installing batteries on site, turning down the thermostat by one degree, and switching off electrical equipment that isn’t being used. They can also access funds from the government’s Energy Bill Relief Scheme.
Here at EnAppSys, we’ve been providing data, consultancy and information services to help companies understand the current and future challenges facing the energy industry, and maximise the value they’re able to extract from it. Our customers have traditionally been electricity generators, suppliers and traders in the UK and all over the world but in future the flexibility in commercial premises and industrial processes allows consumers to become virtual power plants, moving their demand in response to price signals and providing services to National Grid which we have seen with their innovative Demand Flexibility Service this winter. Now and in the future, understanding how businesses can take advantage of their inherent energy flexibility will be a key driver to maximise profit and help the transition to a green economy.