Modern Building Services

FEATURE NET ZERO MODERN BUILDING SERVICES OCTOBER 2022 21 Maximise energy efficiency It goes without saying that the less energy you use, the less you will pay. Energy efficiency was highlighted in the report as the top tactic organisations were taking to reduce risk - more than half (58%) said they were increasing energy efficiency - which rose significantly to 84% among those that spend more than £2 million on energy. Energy efficiency will also help you meet your net zero goals, so it’s a win-win all around. Invest in on-site generation You can also consider investing in sustainable on-site generation such as solar, wind, or combined heat and power (CHP). This has multiple benefits, including lowering emissions and making your organisation less reliant on the grid. Again, this was a popular option in our report - more than a quarter (27%) of respondents said they are planning to invest in this measure to combat energy risk. When looking at specific technologies, solar PV is the most popular, with 27% already investing in it, and 43% planning to invest. Wind, combined heat and power (CHP), and biomass would also be considered. Waste heat recovery is also seen as an important emissions reduction technology, with 23% already invested and 33% planning to invest, with similar numbers also backing energy storage. Power Purchase Agreements (PPAs) are also on the rise, with a third (32%) of businesses planning to use one to hit their sustainability targets. Many options now have an attractive ROI, so it’s important to work with your energy partner to help you make a strategic plan. What do organisations want to see from Government to support their net zero plans? As mentioned, the businesses we spoke to overwhelmingly believe that Government needs to do more to support them as they navigate the current crisis. For example, businesses were clear that, where possible, they want their operations to be powered by low-cost renewable sources. As such, when asked what measures they would like to see from Government in terms of energy policy, the top answer was more incentives to switch to renewable energy, with 56% of respondents calling for this action. In addition, nearly half (45%) want to see an acceleration in investment in technologies to support their business’s net zero plans, such as hydrogen and carbon capture and storage (CCS). Energy policy needs to step up For us, this research shows that there are several key actions that should be considered by Government: 1. There is a need to accelerate energy efficiency: Hydrogen will be an important fuel for decarbonising major energy users, but viable green sources at scale can’t really be expected until the end of this decade. There is a need to double down on activities that can have an impact now: reducing energy demand through energy efficiency and electrifying heat and transport where possible. While existing schemes such as tax incentives and capital allowances go some way to supporting this, more can be done. 2. A greater focus on direct business support: We need to ensure that organisations, as well as households, can survive the coming cost of living crisis as energy and other costs rise rapidly. Government support for households is welcome, but support for hard-pressed businesses or public institutions is so far scant. Therefore, policy support for businesses should be a key priority in the next Autumn Budget. 3. Net zero cannot losemomentum: The next 10 years is undoubtedly the “decade of delivery” when it comes to net zero. That is why it is so important that net zero momentum cannot stall. This research shows that there is weakening confidence in net zero, despite many organisations recognising the benefits it will bring. Businesses need support to keep their plans on track. We are committed to ensuring that the voice of business is heard at the highest level. The insight from the report has given us the opportunity to present the findings to Government, as well as other influential stakeholders. Only by working together will we see the progress we all need to keep net zero momentum on track during the energy crisis. Source 1 www.npowerbusinesssolutions. com/businessconfidence More information can be found at www.npowerbusiness solutions.com