NOVEMBER/DECEMBER 2019 ENERGY
supply chain, which means
that CSR is now a board-level
concern for many organisations.
Manufacturers that are required
to comply with the Streamlined
Energy and Carbon Reporting
(SECR) scheme must detail
any actions they have taken to
improve their efficiency in their
annual reports, which means
that those that have previously
relied on ‘greenwashing’ will
no longer stand up to scrutiny.
As we move towards net-zero,
the pressure on businesses to
reduce their emissions will only
increase, so investing in lowcarbon
on-site generation is a
great way for manufacturers to
demonstrate they are dedicated
to decarbonisation.
On-site generation could
also help manufacturers to
keep their operations running
smoothly while our energy
system adapts to growing
levels of renewable generation.
While the shift to renewables
is necessary, it could also
make blackouts more likely, as
weather-dependent renewable
generation sources such as solar
panels or wind turbines can be
intermittent. Having a lowcarbon
generation asset on-site
can help manufacturers to avoid
business disruption in the event
of a power cut, boosting their
energy security and resilience.
Finding the funding
As many of the existing
benefits of low-carbon
generation technologies are
set to increase as we get
closer to our net-zero target,
manufacturers that want to
get the most out of these
opportunities will be looking
to install on-site assets
now. But in today’s volatile
economic environment, many
are finding that proposed
projects are falling at the first
hurdle - funding. With various
organisational requirements
competing for often limited
budgets, obtaining the upfront
capital to invest in low-carbon
technologies can be difficult.
For those who are facing
resistance when it comes to
investment, however, there
are options available if selffunding
is not possible.
AMP Clean Energy, as
a specialist provider of
renewable heat and low-carbon
heat and power projects, is
striving to raise manufacturers’
awareness of the long-term
energy supply agreements that
can remove the obstacle of
funding. These agreements,
known as ESCOs, can be used
to fully fund, develop, and
sometimes operate, low-carbon
and renewable installations.
With an ESCO in place,
manufacturers can access all of the benefits that
low-carbon generation assets can bring to their
business, without needing to provide any of the
upfront capital. They simply pay for the heat or
electricity they use at a pre-agreed rate for the
duration of their ESCO, which is typically 10-20
years. As businesses can see revenue savings
within the first year of installation, and their
carbon emissions should reduce from the day
a project goes live, an ESCO can be the ideal
funding solution to enable manufacturers to
start making the most of the carbon and cost
savings sooner rather than later.
Understanding the options
The range of low-carbon technology options
available to manufacturers means that there’s
an ideal solution for businesses of all shapes
and sizes, but identifying the right solution
can be complex.
AMP Clean Energy’s recent whitepaper,
Simplifying the business journey to decarbonisation
(https://bit.ly/2Nylkv8), is designed to help
businesses understand the options that are
available to them when it comes to on-site
generation assets. It’s important to understand
which technologies are best suited to certain
sites and energy profiles, as what works for one
may not work for another. For example, solar
PV is best suited to sites with at least 900m2
available to locate the solar panels, and a heat
recovery project will require space for storing
and processing the waste.
The whitepaper contains key insights into
the specific requirements of the low-carbon
technologies on the market today, enabling
manufacturers to make a well-informed decision
about installing on-site generation within their
organisation.
Under an ESCO
agreement,
companies can
receive funding
for low-carbon
installations
www.manufacturingmanagement.co.uk 35
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/www.manufacturingmanagement.co.uk