We sat down with our Head of Energy Transition, Stuart Taylor, to discuss some of the biggest challenges and opportunities businesses are facing right now.
With many still feeling the impacts of the COVID-19 pandemic, it’s been a challenging year for businesses of all sizes. Whilst it’s understandable that sustainability might not be front of mind for businesses right now, the climate crisis is only becoming more urgent with each day that passes. The transition to a low carbon energy system will be essential to reducing carbon emissions and preventing the catastrophic impacts of the climate crisis.
We sat down with our Head of Energy Transition, Stuart Taylor, to discuss some of the biggest challenges and opportunities businesses are facing right now.
WHAT DO YOU FEEL ARE THE THREE BIGGEST CHALLENGES WITHIN THE ENERGY TRANSITION FACING BUSINESSES RIGHT NOW?
1. Businesses are struggling to balance the short and long-term.
“From an energy market perspective, I think it’s safe to say that the past 18 months have brought a variety of challenges to business – all of which it’s felt have needed immediate attention. Without a doubt, the energy crisis has challenged businesses and the industry in ways we couldn’t have anticipated.
Unfortunately, I think the short-term challenge of price has turned people’s attentions in a different direction and away from sustainability. Understandably, we’ve very much seen businesses focus on getting through this past winter – it’s been about keeping the lights on and limiting the damage. I’m also starting to get a feel that in many instances, capital that had been ring-fenced for future investment has either been paused, reduced or, in some extreme cases, pulled completely. It feels that the energy crisis has derailed some companies’ net zero ambitions – at least for now.”
2. A lack of data is hampering progress.
“During a recent Institute of Facilities and Workplace Management webinar (IWFM) that Bryt Energy presented at, between 36%-49% of the businesses attending felt that they did not have enough data to have a good grip on what they’re doing within their operations1. This is something that we’ve also noted in our own conversations with businesses. There is a lack of insight which makes it very difficult for businesses to understand their operations, this in turn is making it near-impossible to create a base position from which they can build.
With new low-carbon technologies required to achieve net zero, there will be a whole wave of data that is probably not even being considered yet. The challenge now will be gathering, processing and understanding this data to be able to make decisions in live time in order to capture the opportunities.”
3. Companies are finding it difficult to bring their energy plan together, holistically.
“The cost pressures currently facing businesses seems to be resulting in additional stakeholders being brought to the table with competing agendas. Specialists are brought in, but often feel that they’re working separated from other business areas and can struggle to get the buy-in they need to push projects forwards.
Additionally, projects often aren’t viewed at a holistic level. Instead, they’re viewed in isolation and on whether they provide an immediate financial return or carbon reduction on their own. For greater success, such plans need to be considered as part of a long-term holistic view in which they can complement open opportunities in the future.”
WHILST THIS MIGHT SEEM DAUNTING, THERE ARE FINANCIAL, SOCIAL AND ENVIRONMENTAL BENEFITS TO THOSE PREPARED TO TAKE ACTION – WHAT DO YOU FEEL THE TOP THREE OPPORTUNITIES ARE FOR BUSINESSES?
1. The climate and energy crises can be tackled together.
“At Bryt Energy, we feel that really the energy crisis should be driving us faster to the UK’s net zero goals. Net zero is not something that we should be pausing or backing away from, it’s something which should be embraced and invested in. The transition to net zero is reducing our reliance on fossil fuels, increasing the UK’s energy resilience and capabilities, and it’s offering us greater security for our own energy supply needs. As the CEO of our parent company, Statkraft, Christian Rynning-Tønnesen noted – “The best measures to solve the ongoing energy crisis are the same measures that are crucial to fighting the climate crisis”.
With a long-term plan, you’re naturally also going to tackle the short-term challenges businesses are currently facing. That’s why having this plan, committing to it and sticking with it is definitely where businesses need to be. Now is a moment for reflection, but it’s also a moment for response.”
2. Bringing it all together comes with some major business benefits.
“Whilst not as severe as they have been, high energy prices and market volatility seem to be here to stay in the UK energy market. As we transition to a renewable system, there will be an increasing need to balance generation and demand, and we’re very quickly going to find ourselves in a market that must respond accordingly. We need to make sure that we’re in a position to react to what that market looks like – which at the minute, in reality, we’re probably nowhere near.
Having the data from their operations is a great starting point, but businesses need to be able to quickly respond to all this data across portfolios that may be far more complex than they are now. Optimisation solutions can help bring energy assets (both new technology and existing operations) together so that businesses can be more intelligent and sustainable with their electricity usage.
At Bryt Energy, we combine our renewable expertise and wholesale energy market access with industry leading technology providers to offer pioneering solutions; our optimisation solutions seamlessly integrate with customer assets and buildings to enhance their electricity usage and unlock the value from their operations. This can really help them access all the benefits available, whilst supporting a net zero system.”
3. There is opportunity for innovation.
“The energy landscape is changing, and businesses need to respond, or face increased risks. By being proactive and tackling it now, they can take advantage of the opportunities to utilise low-carbon technologies and discover new innovative ways of working.
Bringing people together to collaborate can be challenging and certainly feels risky, however it also offers huge opportunity. Sharing learnings means advancement of the system of a whole and increased success in decarbonisation. And, it also opens up new possibilities for innovation within businesses. Through better data insight and information sharing, it may be possible to identify improvements to ways of working, efficiencies, or even whole new systems and technologies.
Whilst the current market may be challenging, with a shared desire to find new and innovative ways of working we can achieve our net zero ambitions, together.”
Learn more about how we can support your businesses’s energy sustainability goals with optimisation at https://www.brytenergy.co.uk/what-we-can-do-for-you/optimisation/ or get in touch with our team here.
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