Introduction
Energy is essential to almost everything we do: it drives industry, our homes, our working lives, transportation, and of course our phones. The energy we use is mostly delivered to us as electricity, through the national grid, which connects power stations to homes and businesses. A number of different sources make up the energy that powers the national grid, including coal, gas, nuclear, wind, solar, hydro, and biomass. For businesses to reduce their carbon footprint and preserve natural resources for future generations, it is important to use energy efficiently, which means getting the most out of the energy we consume.
Measure your usage
The first step to improving energy efficiency within your business is to measure your current energy use and identify the areas where you can make improvements. Some of the best ways to gather accurate measurement data are:
Use smart meters or sub-meters monitor the energy use of specific processes, equipment, or buildings in real time, provide detailed feedback, and help to identify areas of improvement, inefficiency, or waste.
Although most commonly used to measure electricity, smart meters are readily available for other energy sources, such as gas, compressed air, and district heating. Ensure meters are calibrated and maintained regularly and are located at, or as close as possible to the point of use, to avoid losses or inaccuracies due to leaks, pressure drops, or heat loss.
Energy management software or online energy management tools analyse energy data and provide recommendations for improvement or optimisation.
An energy audit or assessment can measure a business’s energy performance and identify potential savings, opportunities, or best practices. Energy audits can reveal how much energy is wasted by inefficient lighting, heating, or cooling systems and recommend cost-effective solutions.
Energy consultants or experts can provide professional advice, guidance, or support for improving energy efficiency. An energy consultant can help a business design and implement an energy management plan, apply for grants or incentives, or train employees on energy-saving practices.
Effective tips for improving energy efficiency
Once you have measured your business’s energy performance, you can start implementing energy efficiency measures that suit your operational needs and budget. Some of the most effective measures include:
Improve the insulation of your premises. Installing insulation, draught-proofing, and double-glazing, can help prevent heat loss and increase comfort for your employees and customers.
Upgrade to energy-efficient appliances or equipment, such as LED lighting, smart thermostats, or Energy Star certified devices. Replace old incandescent bulbs with LED ones or install motion sensors to turn off lights when not in use.
Adopt energy-saving behaviours or practices, such as turning off devices when not in use, adjusting temperature settings, or using natural ventilation or daylight. Encourage employees to switch off their computers at the end of the day or use blinds to regulate the indoor temperature.
For businesses using compressed air in their processes, leaks can be a common occurrence. A simple, cost-effective way to detect compressed air leaks and reduce wastage is to walk around your premises when everything is switched off, listening for leaks, or use an ultrasonic leak detector.
Shift the timing of certain business processes or activities, such as running heavy machinery, charging electric vehicles, or performing data backups, to when the grid carbon intensity is lower. Businesses can use a smart meter or an app to monitor grid carbon intensity and schedule their operations accordingly.
Reduce the need for travel or transportation, and promote alternatives such as videoconferencing, lift sharing, using public transit or cycling. Businesses can offer flexible work arrangements or incentives for employees to use low carbon modes of transport.
Process mapping
Process mapping is a technique that involves creating a visual representation of the steps, inputs, outputs, and resources involved in a business process. It can help identify sources of waste, inefficiency, and variation in the process and suggest ways to eliminate or minimise them.
For example, a furniture manufacturing business can use process mapping to analyse the energy consumption of each stage of production, such as cutting, sanding, painting, and assembling. In doing this, the business can find opportunities to reduce energy use, such as switching to more efficient equipment, optimising the layout of the factory, or reusing waste materials.
It’s most effective in terms of energy efficiency and waste reduction to address inefficiencies at the end of the production process, as this can avoid unnecessary costs and emissions that have accumulated throughout the supply chain. If a product is discarded at the final stage of production, it means the energy, materials, labour, and transportation that went into making it have been wasted as well. By reducing or eliminating waste at the end of the process, small businesses can reduce costs and their environmental impact.
Electrification
Today, there are almost no industrial sectors where the direct combustion of fossil fuels is the most efficient, or lowest carbon way to run its processes. Most types of business process can be switched to low-carbon alternatives without compromising productivity or quality.
One of the reasons why gas is still widely used in the UK is that it is cheaper than electricity, despite having a similar intensity of associated greenhouse gas emissions. This is because electricity is taxed more heavily than gas to support renewable energy sources, while gas does not pay for the environmental damage it causes. This creates a distorted market that discourages the switch to cleaner alternatives, such as heat pumps, which can produce more heat with lower emissions than gas boilers. Heat pumps are already a cost-effective alternative to gas heating in some cases, especially for new buildings with high insulation standards and low heat demand.
There are plans to reform the UK’s energy taxation system to reflect the carbon content of different fuels and promote electrification across various sectors, which could further increase the competitiveness of heat pumps compared to gas heating. Moreover, as grid carbon intensity improves due to the increasing share of renewable electricity generation, heat pumps will become even more attractive from an environmental and economic perspective. By supporting the deployment and innovation of heat pumps, the UK can reduce its reliance on fossil fuels for heating and contribute to its net zero goal.