Listen to any news bulletin and there’s a good chance you’ll hear a reference to the effects of rising energy costs – something that has been exacerbated by the war in Ukraine.
It’s a significant problem for businesses across Europe at present, with many energy-intensive businesses having to make difficult decisions over whether to increase costs for customers.
In Germany, France, Spain, the UK and the Netherlands, the average cost of power (for short-term delivery) spiked more than 200% year-on-year in 2021.[i]
Against a backdrop of supply chain disruption and volatile costs across many other parts of the economy, the increasing cost of power is creating significant problems for many.
However, I believe that these challenges also present a major opportunity for businesses to embrace new strategies when it comes to how they manage their energy usage.
The energy crisis is a good moment for businesses to take stock and explore where to invest in energy cost savings. It could be large or small changes - such as implementing LED lighting, a new supply contract or investing in an onsite Combined Heat and Power (CHP) plant – but any small steps can make a big difference in the long term.
The business case for CHP has transformed over the last two years, with return on investment now coming within six months of implementation in many cases, as opposed to three years in the past. Such returns can help either navigate the increased cost to serve customers, or help rocket-propel investment in other eco technology.