The UK has become the first major economy to pass laws requiring all greenhouse gas emissions to be net zero by 2050. The electricity grid is decarbonising (its carbon intensity has dropped by over 50% since 2011 to where it is today – 254 g CO2 per kWh) and is forecast to drop another 50% by 2030. Grid costs are rising to pay for this transition.
A key lies in the word “NET” because whilst some businesses will struggle to reduce carbon, others could actually become POSITIVE – e.g. generating excess renewable power. New business models and revenue streams could emerge though
So what does this mean for YOUR business ? How do you develop a net zero strategy ?
- Significant changes will be needed to the way you do business and use energy.The changes could impact how your employees come to work, how you distribute your products, sell your products, procure your raw materials and use your facilities. Processes may require to be redesigned and reengineered. This will mean the ability to embrace change, challenge existing assumptions, innovate and understanding of alternative methods and costs
Businesses should be looking NOW at their own operations and looking for ways to BOTH reduce consumption AND generate their own low carbon power locally in a sustainable way. Simply buying a green energy tariff is not sufficient. There are many very good long term business benefits by embracing this genuinely, which can become a source of competitive advantage.
For businesses that use a lot of gas, this is going to be particularly challenging. Gas is cheap (5-6 x cheaper than electricity), so changing away from gas will be expensive.
- Those changes will have financial costs that may not be affordable within conventional capex constraints.New business models such as energy as a service are increasingly available to help bridge the gap, and enable changes to happen.
NET ZERO WILL REQUIRE NOTHING SHORT OF AN INDUSTRIAL REVOLUTION, with new business models and technology, and all within the next 30 years.
These are the reasons Onsite Energy Projects exists – we help businesses innovate, reengineer their energy supply chain and implement the full potential of both energy efficiency and on-site generation measures. We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet, solution to make it all happen.
If you would like to know more email us at firstname.lastname@example.org or call on 0161 444 9989.
Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.