Net zero at risk following power price hikes

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Plans to reach net zero are no longer a priority for 19% of UK manufacturing businesses, and 68% are missing the opportunity to save millions of pounds on their energy costs, because they do not understand the alternatives to sourcing power from the National Grid, according to a survey commissioned by Ylem Energy.

The survey, which examined the impact of rising energy costs on the manufacturing industry, revealed that 38% of businesses had placed net zero plans on hold until the energy market stabilises and the cost of power falls. 57% also confirmed that rising energy costs had significantly, or very significantly affected plans to reach net zero.

It is a worrying indication of how the energy crisis is affecting industry and the reality is that the UK will not be able to reach net zero unless businesses lead the way. The fact is that higher energy prices are here to stay. After a decade of relative stability, the ongoing turmoil in global gas markets will continue to drive higher electricity prices – around 45% of the UK’s power is still generated by gas and the significant cost of large-scale renewable energy developments required to meet rising demand, will see further wholesale price rises passed on to businesses. Higher energy bills are therefore a long-term trend which we will all have to contend with.

Some businesses will have used hedging to mitigate the risk of future prices but for many large energy users, there is another option. The solution lies in onsite solar, gas generation and battery storage systems that fully integrate with the sites they serve and can help businesses on the path to net zero. Ylem Energy can design, install, operate, and maintain appropriate on-site generation or energy storage solutions, using the most efficient technology available and guarantee savings for up to 25 years, with no CAPEX or additional costs.

But according to our research, more than two thirds of UK manufacturing businesses are still missing out on millions of pounds of savings because they do not understand that alternatives to power from the National Grid are available. Indicating they only had a general understanding of the issues affecting the energy market, 68% of businesses said they had limited or no awareness of the benefits of on-site generation. And impacting negatively on their ability to remain competitive, 85% of businesses surveyed also indicated they would increase their own prices, if energy costs continued to rise, fuelling inflationary pressures.

Ylem Energy also understands that renewables – such as the adoption of Solar PV – may only be able to generate around 20% of the power required by a large manufacturing business or other major energy users. Therefore, businesses should work with an onsite generation specialist like Ylem Energy, to look at an integrated solution that uses various technologies including systems that operate on hydrogen fuel or take advantage of new battery storage advancements and support the UK’s legally binding targets for tackling climate change and decarbonisation.

Ultimately, coupled with rising operational costs across the board, the requirement to develop more substantial net zero carbon plans is placing greater financial pressure on businesses than ever. But reducing your carbon footprint doesn’t have to cost the earth. Fully funded onsite generation solutions can be implemented by Ylem Energy with no additional costs, so businesses can start saving immediately. In fact, not only is it a proven means of reducing costs but the adoption of onsite generation solutions which are fully operated and maintained by Ylem Energy, improves resilience and creates pricing stability at a time when the energy market is more volatile than ever.

Find out how you can cut carbon and save money by beating the rising cost of grid-derived energy.

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