How to mitigate volatility with onsite energy generation

A vital part of any energy strategy is its ability to deliver long-term financial success while moving organisations forward on their progress to net zero. For today’s businesses, that often means embracing new technologies such as hydrogen-ready CHP units, large-scale Solar PV installations and commercial Heat Pumps.

The reason these technologies are becoming increasingly popular is that they give companies the ability to generate their own energy on site. But with uncertainty in the energy market seemingly here to stay, the element of control is making the benefits of onsite energy generation more apparent than ever before.

Mitigating risks

In a recent report, we surveyed a wide variety of global organisations to learn about the energy challenges they’re facing. We found that onsite generation not only helps organisations to manage their consumption and costs, two fifths of respondents said the appeal of onsite generation was in its ability to mitigate volatility in the market. In fact, for half of those in the C-suite, this is seen as the main driver of onsite adoption. 

With market conditions the way they are it’s easy to see why 63% of businesses say they intend to increase onsite generation capabilities over the next two years. Especially given that more than 7 in 10 of those businesses are in energy-intensive sectors most affected by market volatility, like hospitality, travel and tourism. 

Barriers to overcome

Despite the appetite for onsite generation increasing, our report found that the following barriers remain:

1. Budget – more than a third of those in executive management believe their organisation will struggle to invest in new technologies.
2. Regulations and tax regimes – almost 30% of organisations said that investing in onsite technologies is not worthwhile in the current regulatory climate.
3. Leadership – almost half of organisations said that decision makers are failing to see the business case for onsite generation and as many as 47% of leaders admit this is a problem.
4. Partnerships – nearly a third of all respondents say they’re having trouble finding the right energy partners.

Further delays have come from the challenge of agreeing on a fixed-rate investment strategy for low- or zero-carbon onsite technology, with just over a third of organisations saying they have either made no progress, or the limited progress they have made has not yet made an impact on their energy management.

Balancing profit and planet

In turbulent times, it’s tempting to push sustainability down the agenda as you focus instead on reducing energy expenditure. But by gaining better control of energy consumption through onsite generation, companies can do both. 

Download the full report 'How data, onsite generation and leadership strengthen energy control' to unlock new insights on how to get a grip of your organisation’s energy consumption and cost.