Many businesses are increasingly concerned with demonstrating sound environmental performance by controlling the impacts of their activities, services and products on the environment. Stricter regulations and legislation, plus a need to report environmental performance to appropriate stakeholders, has resulted in many organisations integrating environmental management systems into their corporate structure.

Corporate Social Responsibility reports are becoming more widespread, and the uses of organisational tools, such as ISO 14001, provide a framework for managing environmental responsibilities. Companies who have already put an emphasis on these issues are seeing the benefits to their bottom line.

Both EU and UK Government policy indicate that energy efficiency and energy saving targets will be prime political objectives. It is not only large organisations, particularly the big energy consumers that are affected by these various legislative instruments. Other business sectors are being targeted with stringent controls, such as public sector bodies.

To some, the apparent myriad of new assessments and rating schemes could be confusing; Climate Change Levy, Renewables Obligations, Renewable Guarantees of Origin, UK and EU Emissions Trading Schemes. But these all have a common purpose and a common goal; tackling carbon emissions and reducing environmental impacts.

The drive to be more responsible corporate citizens is leading companies to adopt a more environmental approach to energy procurement. Renewable electricity, such as that sourced from renewable supplies including wind farms and hydro plants, is usually top of the wish list.

The problem is that this shift in demand has meant traditional renewable energy is increasingly in short supply with existing UK capacity already oversubscribed. Although this may cause some frustration for organisations keen to demonstrate sound corporate social responsibility, there are viable alternatives.

Output from Combined Heat and Power (CHP) sites is enjoying a renaissance amongst UK industry as a means to meet environmental ambitions.

CHP is the production of electricity and useful heat or steam in a single process. CHP plants are usually located within heavy industrial plants, such as oil refineries, where the heat or steam produced during the generation of electricity can be put to good use within manufacturing processes, rather than being wasted.

Traditional coal fired power generation in the UK has an average efficiency of around 34 percent; in other words, only about a third of the energy gets delivered as useful electrical power at the point of use. The remainder of the energy is lost as heat via power station cooling towers and from the electricity transmission and distribution systems. In recent years, there has been a move to use gas firing for power stations in an attempt to reduce atmospheric pollution, but even the modern combined cycle gas turbine stations only achieve a delivered efficiency of about 50-55 percent.

By contrast, CHP plants are up to 80 percent efficient, producing useful energy, at the point of generation, in the form of both electricity and heat.

CHP should not been seen as a solution solely for heavy energy users. Generally plants are sized to meet heat demand on sites where they are located with any excess power production sold back to the grid as Good Quality CHP electricity.

As the production of Good Quality CHP is more efficient than energy generated from traditional coal or gas fired sources, energy suppliers can offer the excess electricity from certified sites to customers as another means to help meet their environmental ambitions.

As well as the benefits of far higher efficiency in generation, changes in legislation have meant that the Government has allowed for Good Quality CHP to qualify for Climate Change Levy exemption on electricity exported to the grid. This is prompting a revised attitude towards CHP which is now viewed as providing a positive boost to those looking to tackle carbon emissions.

npower business encourages its customers to use Good Quality CHP as it is in greater abundance than traditional green energy. Recent deals have seen Good Quality CHP play a central role in helping two UK businesses reduce their impact on the environment. Both Barclays and Marks & Spencer are purchasing large proportions of their future energy consumption from Good Quality CHP. Barclays will use the electricity to help power over 2000 Barclays and Woolwich branches, while all Marks and Spencer stores in England and Wales, as well as the company’s Head Office in London, will soon be running on this ‘greener’ energy.

While energy procurement has a role to play in improving CSR credentials, the greenest unit of energy a company can have is the one it does not use. In other words, energy efficiency and energy management are crucial to meeting environmental ambitions effectively.

Energy management and energy efficiency are long established practices, but, for many organisations, they have remained outside the core of business management practice. Initiatives, such as the EU Emissions Trading Scheme, are causing carbon management to emerge as a new management discipline.

To manage these increased expectations, organisations may want to consider a root-and-branch review of how energy is consumed. Understanding is core to this process; understanding where, when, how and why energy is used. Reviewing metering capabilities, assessing consumption data and analysing usage patterns will all help establish robust energy management protocols.

At npower business, we are witnessing a paradigm shift within industry from the traditional pursuit of ‘best price’ to ensuring ‘best use’. Fuelled by growing regulatory and economic pressures, as well as CSR considerations, many companies are now taking a holistic view of energy, from procurement to consumption, to meet environmental and economic ambitions effectively.

Recent environmental success stories

Barclays

Barclays has entered into a three year contract with npower business, which will see over 2000 Barclays and Woolwich branches supplied with energy from renewable or Climate Change Levy exempt sources, including wind farms, hydro plants and combined heat and power. The deal will result in cost savings for Barclays as well as reducing its CO2 emissions.

Over the course of the three year contract Barclays is committed to buying 30GWhs of certified green energy, an amount capable of powering 230 branches out of a total network of over 2,000.

Marks & Spencer

Retail giant Marks & Spencer (M&S) has agreed a three year contract with npower business. Commencing in April 2006, npower business will supply M&S with over 2000 GWh of Good Quality Combined Heat and Power.

The three year deal will power over 350 M&S stores across England and Wales, as well as the firm’s HQ in London.

Comet

Leading UK electrical retailer, Comet, has signed a 22 month, fixed-price electricity contract with npower business. Almost 300 half-hourly and non half-hourly sites totalling 98GWh will now be powered by Good Quality CHP.

Printer friendly version

Email this article to a friend