On-site generation can manage manufacturing energy costs

Feb 9, 2023

On-site generation technologies such as Combined Heat and Power (CHP) can provide a long-term solution for manufacturers looking to reduce energy costs, improve resilience, and reduce their dependence on grid-imported power.

CHP is an energy-efficiency technology that cogenerates electricity and heat or steam from a low-carbon, renewable or hydrogen-blend fuel source. Manufacturers benefiting from CHP have typically saved up to 30% on their energy costs when compared to the separate purchase of electricity from the grid and gas for use in on-site boilers.

Rising energy costs are anticipated to be the biggest cost facing manufacturers in 2023, according to a recent survey published by Make UK - the industry body representing manufacturers in the UK.

The Executive Survey 2023 – Cost Competitive and Confidence, which collated views from over two hundred senior executives across the manufacturing sector, reported an overwhelming 70% of manufacturing leaders believe energy costs are expected to increase significantly this year, with a further 20% expecting a moderate increase in 2024.

The study also found 52% of manufacturers expect their electricity costs to more than double in the next 12 months, and 42% expect their gas prices to increase two-fold. Furthermore, 64% of manufacturers identified the increase in energy costs as their biggest risk to being competitive in 2023.

The manufacturing sector can mitigate rising and volatile energy costs by generating its own electricity and heat on-site. Manufacturers taking control of their energy requirements with CHP are witnessing substantial savings compared to grid-imported power, leading to sustainable growth, energy resilience, and business competitiveness.” Hugh Richmond, Edina, CEO.

The UK government Energy Bill Discount Scheme (EBDS), which supersedes the current Energy Bill Relief Scheme (EBRS) from 1st April 2023 for one year, provides relief when prices are at or above £107 per MWH for gas and £302 per MWh for electricity.

The findings also uncovered 60% of manufacturers are increasingly concerned about blackouts and threats to the security of power supply. A blackout would significantly cause on-site disruption and could necessitate resetting equipment – reducing productivity and sometimes resulting in lost stock and an increase in loss of earnings.

On-site generation, such as CHP and battery energy storage, can ensure your business has a reliable, contingency supply of power available in the event of a power failure. Energy resilience measures would negate disruption at site and de-risk your power supply and allow processes and infrastructure to function 24/7.

Contact us and discover how you can reduce energy costs and improve energy efficiency with an Edina engineered, installed and maintained Cogeneration plant.

Credit - Image by aleksandarlittlewolf on Freepik

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