A changing energy landscape

As the UK transitions towards net zero, the way businesses use energy is changing. As we remove our dependency on fossil fuels across heating, transport, and energy use in buildings and industry, over time we will see more businesses adopt low-carbon technology to support with their decarbonisation efforts.

This includes on-site solar PV – a key technology in the net zero energy transition. However, the implementation of on-site solar will trigger a change in businesses’ overall electricity demand, as well as the characteristics of their consumption pattern, and businesses need to consider what this means for their electricity strategy.

Changing electricity profiles

For as long as the sun keeps shining, solar power produces zero emissions and is 100% renewable at the point of generation – making it an essential form of renewable energy generation.

However, when a business installs low-carbon technologies such as on-site solar, they will start to see changes in their electricity profile. For example, they may see a dip in their consumption from the grid in the middle of a sunny day, with on-site solar PV generating their electricity instead.

As well as on-site solar PV, other low-carbon technologies may also affect electricity profiles. For example, businesses might see their electricity consumption levels increase overall, after electrifying their heating system, and increased overnight consumption after electrifying their vehicles and charging their fleet of EVs, ready for the next day.

With the uptake of solar PV and other low-carbon technologies, a business might consume electricity at different quantities and times than previously forecasted. And as businesses across the country adopt this approach, we’ll see changes to the energy system at a national level.

How does on-site solar PV affect electricity prices on a national level?

As solar energy is at its peak between 12-3pm, the uptake of solar PV has meant that the UK has experienced more periods of high electricity generation in the middle of the day, causing usage patterns to change and prices to decrease within this period.

In fact, the UK is already seeing more frequent negative half-hourly electricity prices, which happens when the combination of high renewable generation and low electricity demand from the grid leads to periods where prices fall below zero, with users essentially being paid to consume electricity. The cause of these negative pricing periods can sometimes be challenging to understand or predict, with unknown amounts of solar being generated.

How does on-site solar PV affect electricity prices on a business level?

As well as this impact on a national level, on-site solar generation will also affect businesses and suppliers individually. If a business does not make their electricity supplier aware of any changes in their technology suite, this may result in their supplier having to sell back additional electricity during periods of underconsumption (such as when the business is using electricity from their solar PV) at potentially lower prices, and/or buying more electricity at periods of overconsumption, exposing suppliers and businesses to unpredictable market prices.

Although less electricity is taken from the grid through the use of solar PV panels, the unpredictability of solar generation means that your rates for your remaining electricity may be slightly higher, to reflect this risk to the supplier. Therefore, businesses have two choices. They can either pay to mitigate this risk, using a fixed contract, where available, in which their supplier takes on that market exposure of any differences between their forecasted electricity usage and what they actually consume, or they can proactively manage their electricity usage with a more flexible contract, and use their solar PV in tandem with other low-carbon technologies.

Using solar with low-carbon technologies

To get the most out of the electricity provided by your business’s on-site solar PV, it’s important that you don’t think about this technology in isolation. Using solar PV in tandem with other low-carbon technology to complement each other could help you use your electricity more efficiently, avoid more expensive peak periods, and save money.

Peak solar times do not always coincide with when you most need energy. Battery storage technologies can be used to store unused solar energy in times of high generation (such as in the middle of the day), which would otherwise go straight to the grid, to be instead used in times of typically high demand and peak prices (such as between 4pm-7pm, particularly on weekdays). This not only helps you make full use of your electricity when you need it, but could also help smooth out the impact of solar PV on the grid.

In the same manner, solar PV could also be coupled with electric vehicle (EV) chargers for your business’s fleets, as well as heat pumps. By powering these low-carbon technologies with solar PV, you can store your energy when not needed, and draw from it at times when both demand and prices are high, to avoid costly peak charges.

What should businesses do?

Communication is key in the transition to net zero. With an electricity supply contract, suppliers will typically assume that you will follow a traditional consumption pattern, using the same amount of electricity, in the same way as you have over the last 12 months, unless told otherwise. However, if your business is planning to make any changes, such as installing solar PV on-site, there’s going to be a difference between your forecasted electricity usage and actual consumption in the future.

So, it’s important to speak with your electricity supplier and let them know of your plans, so they can proactively build these changes into a contract that is best for you and helps reduce unexpected charges. Before quoting our customers, we ask them questions about their low-carbon technology, such as:

  • The capacity of their technology at site/MPAN level.
  • Any export capacity of their technology at site/MPAN level.
  • The installation date of their technology at site/MPAN level.

By having a long-term view of your energy strategy, thinking about how technologies on-site could impact your organisation’s electricity demand profile, and proactively discussing this with your supplier, you’ll be able to make the most of your low-carbon technology and prepare for a net zero future.

 

If you’re looking to learn more about how to navigate the net zero energy transition, take a read of our series of e-guides, here. Or if you have any questions and would like to speak to one of our friendly team, get in touch at heretohelp@brytenergy.co.uk.

We are proud to announce that Bryt Energy has been accredited as a Silver Carbon Literate Organisation, making us the first renewable electricity supplier globally to become Carbon Literate. This milestone demonstrates our commitment towards tackling climate change, reducing our organisational carbon footprint, and empowering our team with the knowledge to create positive change. The energy sector continues to be a major contributor to the UK’s carbon emissions, so it’s essential for us to take a leading position in driving forward change in this industry.

As a supplier of zero carbon, 100% renewable electricity*, sustainability is at the heart of everything we do. We are always looking for more ways to embed our sustainability values in every corner of our business, which is why we engaged with Carbon Literacy in 2024. Carbon Literacy training provided a course for our team that covered the causes and impacts of climate change, the key role of renewable energy in decarbonisation, and the actions we can all take to reduce carbon emissions. We were able to customise the course to include how our purpose and sustainability strategy fit within the broader approach to tackling climate change, and the important part our industry has in driving change.

The Carbon Literacy programme has four tiers of accreditation – Bronze, Silver, Gold and Platinum. We achieved our Silver accreditation by having a significant portion of our workforce certified as Carbon Literate and have committed to embedding our learnings across the business by continuing to train our employees and advocate for climate education, inside and outside our organisation. So far, we have trained over 100 of our employees across 18 teams – and in total 60% of our employees are now certified as Carbon Literate.

This is one of the many steps we have taken as part of our wider commitment to being a truly sustainable and responsible business, as outlined in our Bryt by Nature framework. Our sustainable business report, Bryt by Nature, documents our progress in our sustainability journey, year-on-year. Carbon Literacy training is just one part of our wider employee engagement strategy for sustainability, which also includes benefits such as our Climate Perks scheme, Cycle to Work scheme, Electric Vehicle (EV) Salary Sacrifice scheme, and our partnership with National Express – all of which encourage low carbon, sustainable travel.

We feel that Carbon Literacy training has given our employees the chance to become even more connected to our purpose, and to fully understand the importance of our sustainability strategy. We hope the training will continue to inspire climate action and encourage them to share their knowledge with others.

“We are passionate about making sure our employees have the resources to create long-lasting change and carry forward our purpose, as every one of us has agency and a role to play in tackling the climate crisis. We look forward to continuing our Carbon Literacy journey into the future.” – David Taylor, Sales and Marketing Director

Dave Coleman, Co-Founder and Managing Director of The Carbon Literacy Project, said:

“By becoming a Silver accredited Carbon Literate Organisation, Bryt Energy has demonstrated its commitment to genuine climate action and the building of a low carbon future for us all. With the energy supply sector currently remaining one of the biggest sources of carbon emissions in the UK, it is encouraging to see Bryt Energy delivering such a positive example of sustainability leadership.”

 

To find out more about our experience in delivering Carbon Literacy training to our team, read our blog, here.

 

*Please visit https://www.brytenergy.co.uk/100-renewable-electricity/ for more information on our products and services.

Notes to Editors

[1] Carbon Literacy:

Carbon Literacy (CL) is “An awareness of the carbon costs and impacts of everyday activities, and the ability and motivation to reduce emissions, on an individual, community and organisational basis.”

It is delivered by testing and certifying successful individuals as Carbon Literate after they have participated in a day’s worth of learning and action.

 

[2] Bryt Energy:

Part of the Statkraft Group, Bryt Energy provides British businesses with zero carbon, 100% renewable electricity*, sourced solely from Solar, Wind and Hydro power.

Through pioneering products and services, they empower businesses to create value from their electricity usage by optimising their consumption and challenging the way they interact with the electricity system.

Website: brytenergy.co.uk

Phone number: 0330 053 8620

Email address: heretohelp@brytenergy.co.uk

 

[3] The Carbon Literacy Project:

The Carbon Literacy Project (CLP) was created and founded in 2011 and launched publicly in November 2012.

Website: carbonliteracy.com

Phone number: 0161 298 1782

Email address: media@carbonliteracy.com

 

Note: ‘Carbon Literacy’ and the ‘Carbon Literacy Project’ logo (including the use of text, the speech bubble and the style of imagery including people) are registered trademarks®.

In general usage and specifically within copy, the term Carbon Literacy is correctly capitalised as a noun: It is therefore “Carbon Literacy” not “carbon literacy”.

The Project’s Brand Guidelines covering usage of Carbon Literacy terminology and imagery are available at https://carbonliteracy.com/our-brand-guidelines/

 

[4] The Carbon Literacy Trust:

In 2013, The Carbon Literacy Trust (registered charity number: 1156722) was established and took on all Carbon Literacy Project assets, so that the charity’s trustees could oversee the dissemination of Carbon Literacy across the UK and beyond, for the public good.

As the UK’s fuel mix moves from fossil fuels to renewable electricity, and towards the target of decarbonising the electricity system by 2030, the increasing amounts of renewables on the grid means that businesses are going to be seeing the impact of these changes. As part of this, businesses may be considering low-carbon technologies such as electric heat pumps, batteries and on-site solar PV. For many, this is going to impact how they approach their electricity procurement and consumption.

Here, we will answer some of the key questions businesses may have about the energy transition and the changes that are coming to the electricity market, sharing our knowledge to help businesses navigate this evolving landscape. In doing so, we will highlight how businesses can take advantage of financial opportunities while still supporting the transition to a net zero, sustainable energy future.

What is the net zero energy transition?

The energy transition means removing our dependency on fossil fuels across heating, transport, and energy use in buildings and industry, and moving towards a net zero emissions future powered by low carbon electricity sources.

The UK’s fuel mix has drastically changed over the years, with an average of 51% of electricity in 2024 coming from renewable sources1. With this change, we’ll see our energy system shifting from a linear, ‘generator-to-consumer’ model, built around planned and controllable fossil fuel-powered generation, to a more ‘decentralised’ energy landscape, with localised on-site generation and low carbon technology. This will look quite different to our current system, with different challenges and opportunities.

While the UK’s current energy system relies on fossil fuel generation, which can be turned on at any time, you can’t control when renewable sources generate electricity. This means that consumers will need to play a more active role in balancing their electricity demand with available generated supply.

In addition to this, as the uptake of low carbon technology increases, electricity demand will change. This will, again, create a new balancing challenge, and businesses will have to think not only about how much electricity they use, but also when they use it, and what this means for their long-term energy strategies.

How will electricity demand change in the net zero energy transition?

As part of the energy transition, there will be an increased uptake of low carbon technologies. With the electrification of industries such as heat and transport, we will see a rise in the use of technologies like heat pumps, on-site solar panels and EV chargers. With this, the characteristics and profiles of electricity demand are going to change – how, when and what quantity of electricity businesses use is going to evolve.

If a business decides to electrify its fleet, for instance, and charge its vehicles overnight, its electricity consumption patterns will shift. Or, by installing solar panels on their roof, a business might consume less electricity from the grid in the middle of the day, further altering its consumption patterns. These demand changes will be even more significant on a UK-wide scale.

Consumers will need to become more flexible with their electricity usage, responding to the system to help balance the grid in times of low or high demand, supported with their use of low carbon technologies. We’ll need to maximise flexible assets, such as battery storage, heat pumps and smart grid technologies, so that electricity generation, consumption, and storage can adjust to meet changing needs without compromising reliability or affordability of supply.

By being responsive with their demand, business consumers can act as ‘good grid citizens’ to help support the UK’s changing electricity system. This means changing our mindsets to that of a ‘citizen’ instead of a ‘consumer’. If we all take a more considered and responsible approach to electricity usage, as a resource we all share, we can use renewable resources more efficiently and reduce the need for fossil fuels.

What does this mean for the electricity market?

At the moment, it’s difficult to say how the energy transition will impact wholesale electricity prices, because we don’t know exactly what this new electricity landscape is going to look like as it evolves. However, more unpredictable renewable generation will likely result in greater unpredictability for electricity prices.

In fact, negative half hourly electricity prices have already become more frequent, where the perfect combination of high renewable generation and low electricity demand led to periods where prices fell into the negative, with users essentially being paid to consume electricity. With higher amounts of solar generation being added over the past few years, we’ve seen periods of concentrated electricity generation in the middle of the day, causing lower prices between 11:00am-3:00pm. This shift in electricity patterns can sometimes be challenging to understand, with unknown amounts of solar on the grid. Similarly, in a net zero future where the majority of vehicles have been electrified, if everybody charges those overnight ready for the next day, off-peak overnight prices will rise.

What do these changes mean for businesses?

When businesses get their electricity supply contract, the supplier, unless you tell them otherwise, will assume that they will use the same amount of electricity, on the same profile, as they have over the last 12 months. Depending on what that business’s electricity procurement strategy looks like, they might buy their energy up to three years in advance based on the forecast that they had for their previous 12 months, and fix it at market price. If that business makes any changes, such as deciding to install EV charging points or electrify their heating, there will be a difference between their forecasted electricity usage and actual consumption.

As the electricity market evolves, in periods where businesses have over- or under-consumed, and they need to buy or sell some electricity back, they could be exposed to more unpredictable market prices.

At the moment, businesses have two choices. They can pay to mitigate this risk, using a fixed contract where their supplier takes on that market exposure of any differences between their forecasted electricity usage and what they actually consume. Or, if that business is able to be flexible and adapt their consumption in response to the system, they could take advantage of these changes to reduce or off-set costs, or at least hedge against greater risk.

What do businesses need to do to embrace the net zero energy transition?
  1. Businesses can better understand their electricity usage and their consumption patterns – this can then be brought into a long-term holistic energy strategy. It’s important to think ahead, and any plans to integrate low carbon technologies, such as EV charging or electric heat pumps, need to be considered to understand what impact that might have on consumption profiles.
  2. Businesses will need to communicate their energy strategy both internally and externally, and include everyone that may be involved, many of whom might not have had anything to do with energy before. For example, if someone who’s responsible for fleet is going to electrify their business’s vehicles, they’ll need to install charging points, but unless they communicate with the people procuring their electricity, that business could be exposed to unexpected electricity prices or fees.
  3. Businesses will also have to proactively manage their electricity usage with their supplier. By speaking to their supplier in advance, rather than relying on previous consumptions forecasts until technologies are in place, businesses can build any planned changes into appropriate contract structures and potentially benefit from financial gains.
  4. If businesses want to take this a step further, they could also take control of their assets on site and optimise them in line with market price signals. Bryt Energy, with our technology partners, can take information about electricity demand, generation and weather forecasts alongside our knowledge of the electricity market and, based on this, help customers adjust their electricity usage in line with system needs. Without interrupting their day-to-day operations, customers can be rewarded for these activities.
FIND OUT MORE

To find out more about what the energy transition might mean for your business, download our series of guides on ‘Navigating the Net Zero Energy Transition’ here. Alternatively, get in touch with our team to see how we could help your business’s sustainable energy journey.

Sources
  1. https://www.neso.energy/news/britains-electricity-explained-2024-review 

For many years, the energy transition and the idea of a net zero world has felt like something for the future. Obstacles such as poor availability, uncertain cost effectiveness and a lack of widespread knowledge or proven case studies have prevented businesses from embracing key energy transition-enabling technologies and taking action. Now, as these technologies become increasingly affordable and familiar, businesses are in the perfect position to act.

In this blog, we look at four technologies that will be key in the net zero energy transition and what they could mean for your business’s sustainable energy journey.

1. Storage: Maximise your self-generated electricity

Investing in energy storage is one of the simplest and most-effective ways to take advantage of the opportunities within the net zero energy transition. Able to store self-generated electricity as well as intelligently collect energy from the grid at times when it’s cheapest, batteries can help businesses avoid costly peak charges whilst also providing resilience. Batteries can also import energy from the grid when it’s at lower carbon intensity to help support a net zero system.

Battery energy storage also enables your business to maximise the use of other low-carbon technologies such as photovoltaic (PV) solar panels. Solar panels are a great choice for business looking to generate renewable electricity on-site because they can help you make use of otherwise largely unused space, such as rooftops.

Pairing technologies such as PV and battery storage can form the basis of an effective, wider energy strategy as storage enables your self-generated electricity to be used when the sun isn’t shining, instead of going to waste. Businesses could also choose to trade back to the grid at a time when others need it more, providing a new stream of revenue whilst supporting a net zero system.

2. Electric vehicles: Adopt a sustainable transportation strategy

Electric vehicles (EVs) are another way businesses can take their next steps in the net zero energy transition. And best of all, with the right strategy in place, there are multiple benefits to electrifying a business fleet. Having EV chargers on-site could boost footfall as EV cars become more popular among the public. Additionally, they could provide an extra revenue source if businesses rent out charging spaces to the community or other companies outside of office hours. And, if paired with a renewable electricity supply or on-site generation, a fleet of electric company cars can help a business reduce its carbon footprint straight away.

3. Heat pumps: Electrify your heating

With non-domestic buildings accounting for nearly 1/5 of the UK’s carbon emissions1, electrifying and decarbonising heating is becoming an increasing priority for businesses. Heat pumps have a key role to play in this and, as they become better understood, more affordable and accessible, how can businesses take advantage of them?

Air source or ground source heat pumps can be installed on the outside of commercial buildings and are powered by electricity. They work by extracting heat from air or water and using it to heat a building. This electrification of heating can help businesses reduce both their energy bills and, especially if powered by renewable electricity, their carbon emissions. Whilst a relatively new technology, businesses adopting heat pumps now can enhance their reputations as leaders in the energy transition.

4. Green hydrogen: Prepare for alternative fuels

As well as taking advantage of existing low-carbon technologies, businesses can also be aware of innovations that are – although in their early development stages – likely to play a major part in the future energy system. Green hydrogen is an example of this – a sustainable alternative to fossil fuel gas that can be produced using renewable energy sources. Extremely versatile, it can be used to power a variety of applications, and can be used as a fuel, to generate heat and electricity, as well as a raw material in industrial processes and products. As such, it’s likely to have a key role in decarbonising heat and transport, and for existing energy-using assets that cannot be electrified, such as high-temperature processes.

Optimisation: Take your energy transition to the next level

Through optimising their electricity use, businesses can maximise the benefits of these low-carbon technologies and reduce their electricity costs. Optimisation involves using data analytics and machine learning to analyse electricity consumption patterns and identify areas where usage can be adjusted for greater efficiency and in response to the grid’s needs.

For example, here at Bryt Energy, we use integrating technologies to harmonise customers’ electricity consumption (in operations such as industrial machinery, refrigeration or HVAC) with periods of high renewable generation and system needs. This enables businesses to be more intelligent and sustainable with their electricity usage, to earn revenue and reduce costs by making use of what they’ve already got – all while business activities remain unimpacted.

Get started, today

Low-carbon technologies are becoming more widely available, and increasingly more cost-effective. By considering storage technologies, on-site generation, electric vehicles, heat pumps and being aware of green hydrogen, businesses can embrace the cost saving, revenue and reputational opportunities these technologies offer. And, by bringing it all together with optimisation and a holistic energy strategy, businesses of any size can gain all the benefits and take this vital next step in their net zero energy transition journeys. And they can do it now.

Read the third guide in our Navigating The Net Zero Energy Transition And What It Means For Your Business series to find out more: https://www.brytenergy.co.uk/navigating-the-energy-transition/.

Sources
  1. https://adveco.co/the-future-of-fossil-fuels-in-uk-commercial-buildings/

Businesses are facing a difficult balancing act. On the one hand, the challenges presented by high energy prices and a volatile market require immediate attention. On the other, the need to decarbonise and prepare for a net zero energy transition remains important. However, we believe that these challenges can all be tackled together, and that there are actions businesses can be taking right now to do so.  

That’s why we’ve created a series of guides to help companies navigate the net zero energy transition.

Part 2, ‘Take control of your energy, now’, shows what businesses can do to confidently take control of their energy usage while navigating the current landscape. Discover how you can adopt a new energy mindset, use good quality data to make informed usage decisions, talk to your electricity suppliers and rethink procurement strategies – and use all this to get ahead.

The guide also shows how optimisation technologies can help businesses become smarter and more responsible with their electricity usage, ready to support and benefit from a net zero system. 

To download the second e-guide in our series and start preparing your business for the net zero energy transition, today, visit: https://www.brytenergy.co.uk/navigating-the-energy-transition/.

Awareness of the net zero energy transition (the move from fossil fuels to renewables) has been growing in recent years. With the effects of climate change becoming increasingly visible, strong and sustained reductions in greenhouse gas emissions are needed to minimise further impact.

This isn’t a new concept for businesses, who are now increasingly recognising their role within a sustainable energy future. However, what isn’t so well known is the number and scale of opportunities available to businesses prepared to embrace this transition.

Whilst the net zero energy transition may seem daunting, it’s something that is not only achievable but can also offer financial, social and environmental benefits to those prepared to get involved early. That’s especially true now as businesses face more obvious, immediate challenges such as high, volatile energy costs and a tough economy.

However, we believe that tackling these issues and preparing for a sustainable energy future can go hand in hand. Here are four reasons why your business should embrace the energy transition:

Boost financial resilience

With the right contract, businesses can already see the financial rewards in becoming more engaged with their electricity usage and the grid.

By gaining greater control over their energy usage, businesses can save on costs, and access new revenue streams by offering flexibility to the grid. In fact, through our optimisation solutions, our customers have offset up to 20% of their energy spend by allowing us to tweak their consumption, within agreed limits, in line with system needs.

These benefits will only become more apparent in the avoidance of potential fees, high energy prices or costly infrastructure upgrades as the transition continues.

Future proof your business

As the world moves to decarbonise, businesses embracing the energy transition sooner rather than later can also put themselves in a better position to understand their own energy consumption.

By gaining this knowledge around their own operations, businesses can plan for the future. In doing so, they can ensure they adopt the low-carbon technologies most suited to their operations, alongside the tailored supply contracts to suit them. This enables businesses to work towards sustainability targets, reduce carbon emissions and meet regulatory compliance requirements.

Optimise existing assets, now

A common misconception among businesses is that embracing the energy transition is something they can’t afford the time or money to do. But getting started doesn’t require any huge expenditure, sweeping machinery upgrades or costly staff retraining – most businesses likely already have the technology in place to start making their move to a sustainable energy system.

Energy-using assets such as HVAC (heating, ventilation and air conditioning), electric vehicles (EVs), energy storage or heat pumps have the potential to be optimised. This means businesses can start optimising their energy usage now, and see the financial rewards for providing flexibility to the grid.

Empower a sustainable energy future for all

Whilst the immediate business benefits may be primarily financial, long-term, changing our approach to electricity will also benefit our society as a whole. By adopting a new mindset when it comes to consumption, we can use the electricity network more responsibly. Thinking in terms of being energy “citizens” rather than “consumers”, we can act as “good grid citizens” and take a more considered approach to consumption, using only what’s needed.

Businesses embracing the energy transition, as good grid citizens, can help ensure a reliable and affordable net zero grid for all. This brings the opportunity to gain a reputational advantage as a leader in the energy transition space. As more and more businesses begin, or accelerate, their transition journeys, they will be looking at the examples and successes of early movers for inspiration.

The time to get involved is now

All these benefits, and more, are available to businesses who embrace the energy transition right now. Optimisation solutions are already available to help organisations use electricity more intelligently and sustainably, and to support the wider energy system in the UK in achieving net zero.

 

Download our FREE guide ‘Navigating the Net Zero energy transition and what it means for your business’ to find out more: https://www.brytenergy.co.uk/navigating-the-energy-transition/

The world is moving from an energy system based on fossil fuels, to one powered by renewables. Businesses now understand that they have a major part to play in this transition and will need to become more active participants in the grid. While this might seem daunting, we believe Net Zero is something that is not only achievable but also filled with financial, social and environmental opportunities for businesses. 

That’s why we’ve created a series of guides to help businesses through the energy transition. Part one of ‘Navigating the Net Zero energy transition and what it means for your business’ lists four key things businesses need to know about getting involved with the energy transition.

Our experts have outlined how the energy industry is changing, why getting started on the transition may be easier than you think – and how to take advantage of vital opportunities for your business.  

To download our first e-guide and start preparing your business for the Net Zero energy transition, today, visit: https://www.brytenergy.co.uk/navigating-the-energy-transition/

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.

Sources
  1. Institute of Facilities and Workplace Management (IWFM) and Bryt Energy webinar

We’re proud to announce the launch of our partnership with Wattstor, the pioneer in intelligent energy management systems, and our new combined offering: MarketShield.

With a shared commitment to sustainability and a dedication to driving progress in sectors that haven’t typically had access to innovative transitional energy technologies, together we’re poised to revolutionise the way businesses generate, store, consume and trade their electricity.

Our partnership has resulted in the launch of our collaborative offering, ‘MarketShield’. MarketShield combines our zero carbon, 100% renewable electricity supply and unique access to electricity market revenue streams, with Wattstor’s pioneering optimisation technology, to enable industrial and commercial end-users to take advantage of the electricity market volatility, whilst maintaining supply cost certainty. Whether businesses have batteries, solar, electric vehicles or other assets, they can be rewarded for adjusting their consumption in line with system needs.

This offering is aimed at mid-size industrial and commercial businesses, whether on fixed or flexible contracts, that have been left out of the energy picture due to their size, yet have much to contribute to the net zero energy transition and much to gain from the savings opportunities.

We have had several clients sign up since our beta launch in Summer 2022, all of which have seen significant savings. One client, a hospitality setting in the UK, has seen a reduction in their energy bill of 70%, an equivalent to £248 per kW per year.

Stuart Taylor, our Head of Energy Transition, commented, “The net zero energy transition is only achievable if we embrace technology and find new solutions. Flexibility is no longer just for large, industrial businesses in ancillary markets – it should and needs to be accessible to all. That’s why we’re excited to announce our partnership offering with Wattstor.

If your business has technologies such as solar, batteries, electric vehicles, HVAC or refrigeration, you could be sitting on untapped sources of flexibility that could be optimised to save you money, earn revenue, and play your part in the net zero energy transition.”

Stephan Marty, CEO at Wattstor, commented, “We are thrilled to have forged this strategic partnership with Bryt Energy. Business end-user needs are evolving. The energy crisis has delivered catastrophic blows to mid-market I&C businesses, a sector that is often left behind when it comes to participating in energy initiatives. We are delighted to offer a solution that will help these businesses to reach both their environmental and financial goals.”

He continued, “Many businesses don’t realise the scale of the opportunity in the energy markets. Our customers don’t want complex contracts, or technology that requires their input and maintenance. That’s why MarketShield works so seamlessly, everything is automated. This approach showcases that market access need not carry risk, and that sophisticated technologies such as Wattstor’s are very much accessible.”

For more information on how this pioneering combination of technology and contract could work for your business, get in touch with our team here, or contact Wattstor.

About Wattstor

Wattstor empowers energy freedom. Businesses and communities are pushing for their energy to be more sustainable, less costly, and better optimised towards markets. Simple-yet-sophisticated flexible energy management technology is the key, Wattstor is the partner.

Wattstor is a pioneer in energy management systems. Their automated technology enables electricity end-users to harness the power of renewables, storage, load and EV charging to deliver carbon-reduction and cost savings. They do this through intelligent control of onsite distributed energy resources, ensuring the best ROI within grid constraints, and maximising participation in electricity markets, all without risk.

About Bryt Energy

Part of the Statkraft group, we provide British businesses with zero carbon, 100% renewable electricity, sourced solely from Solar, Wind and Hydro.

Through our pioneering products and services, we empower businesses to create value from their electricity usage by optimising their consumption and challenging the way they interact with the electricity system.

For decades now, the task of balancing our electricity network has been supported by large businesses. Through services like Short Term Operating Reserve (STOR) and peak avoidance, businesses have contributed to resolving any mismatch between demand and supply, supporting National Grid in avoiding potentially disruptive balancing events.

 

But as we transition to a low carbon energy system and balancing the system becomes increasingly complex, it’s time to rethink demand response. We are no longer dealing with a linear generator-to-consumer model built around dispatchable, fossil fuel-powered generation. Now our generators are ‘greener’, but they’re also more distributed, more intermittent and less dispatchable. And with a wave of electric vehicles and heat pumps set to connect to the system over the coming years, the shape, volume and variability of electricity demand will grow significantly, putting extra pressure on the system.

 

This means that system operators will become increasingly reliant on flexibility to ensure demand can match supply. In fact, The Carbon Trust1 recently suggested that in order to operate an efficient net zero energy system by 2050, 11GW of flexible demand will be needed from commercial users, 12GW from smart assets, and 48GW from electric vehicles.

 

It’s clear that demand flexibility is critical to an efficient net zero energy system, so why aren’t more businesses being helped and encouraged to participate? While the tools and mechanisms have been developing to meet those needs, the investment now must go into developing consumer-based flexibility products with real appeal.

A UNIQUE ROLE IN DECARBONISATION

In a net zero system, responsible consumption isn’t just about using less energy; it’s equally about when you use it. The more consumers can synchronise their energy usage with renewable generators, the easier it will be to support a system powered on renewables alone. If we could always time our electricity usage to coincide with periods when the sun is shining or the wind is blowing, there would be considerably less requirement to store and shift generated power, or to deploy fossil fuel generators to fill the gaps.

 

Whilst necessary to decarbonise, the roll-out of electric transport and heating will also put networks under increased stress at specific times. For instance, a cold evening where entire neighbourhoods switch on their heat-pumps and plug in their cars would cause existing networks to fail. Dynamic management of these assets (and others) would help to avoid network stress events, mitigating the need for the expensive and time-consuming infrastructure upgrades.

 

Put simply, smart consumption of electricity will both enable and support the transition to net zero.

THE EVOLVING VALUE PROPOSITION OF DEMAND FLEXIBILITY

Until now, DSR schemes have been largely focused on targeting red band periods: the 7% of the year when avoidable energy costs are the most concentrated. In today’s more sophisticated energy landscape, this approach is outdated, limiting participation from businesses unable to turn down during this time and failing to offer support to the system throughout the day. The value of red band avoidance will also be greatly diminished once the Targeted Charging Review (TCR) takes effect. Today, demand flexibility needs to be more continuous, subtle and agile; to enable greater participation and support the system’s flexibility needs for 100% of the year. We will need to focus on ‘optimisation’ rather than ‘turning down’, and to do so at scale.

 

For businesses prepared to participate in an agile energy system, there are financial advantages to be gained, from saving money to accessing new revenue streams. For instance, organisations opting for Bryt Energy’s optimisation solutions are able to offset 20% of their energy spend by allowing us to subtly tweak their consumption (within agreed limits) in line with system needs, without impacting their operations2.

MEASURING SUSTAINABILITY SUCCESS

Whereas the financial incentives of optimisation are increasingly clear, the carbon incentive for businesses remains less so. Unlike installing a solar PV system or switching to an electric vehicle, where carbon savings can be easily measured and reported on, there is currently no mechanism for businesses to account for the benefits created through demand flexibility.

 

What we believe businesses need next is a means of articulating the success of their optimisation efforts. While it’s not possible to put a tangible metric on the tonnes of carbon saved through optimisation at an individual business level, we’d like to see incentives for participation and a recognition of their contribution to a cleaner energy system. That’s when we’ll see a real acceleration in adoption, as sustainability-focused businesses will be able to demonstrate how energy optimisation is supporting system decarbonisation.

DEMAND FLEXIBILITY SERVICES THAT ARE FIT FOR THE FUTURE

Given the clear system requirements and value proposition, the foundations to accelerate adoption of demand flexibility certainly exist. However, to truly make a difference, flexibility needs to be accessible to businesses of all sizes and types. It must be simple to understand, place no additional time or resource strain on the business, and create no operational disruption. It should also be able to provide all of the commercial, environmental and reputational benefits that come with making a commitment to net zero.

 

So, we’re developing a range of optimisation solutions to help businesses use electricity more intelligently and sustainably, and to support the energy system in achieving net zero. Combining our expertise in renewables and market access with industry leading technology providers, our solutions seamlessly integrate with customer assets and buildings to optimise their electricity usage and unlock the value from their operations. This approach helps to secure an efficient, affordable and reliable renewable future for us all.

 

If you’re interested in how our optimisation solutions can support your business on the next step of its sustainability journey, get in touch with our team of experts at heretohelp@brytenergy.co.uk or on 0330 053 8620.

Sources

https://publications.carbontrust.com/flex-gb/analysis/

Bryt Energy and partner’s analysis

It has been a challenging few weeks for the UK energy market, from low generation capacity to volatile energy prices. With many businesses wondering how they will be affected, we’ve taken a look back at the recent events and the opportunities available to those prepared to support the system with demand flexibility.
THE SITUATION

As has been well publicised in the news, over the past few weeks energy prices have increased drastically, due to unexpected pressure on the UK’s energy system. Day ahead auction prices for energy (N2EX) have reached record highs of £2,500 per MWh1, compared to averages of £50 per MWh this time last year2.

SO WHY HAVE ENERGY PRICES BEEN SO HIGH?

There are various factors contributing to the current pressure on the system, leading to volatile energy prices.

Firstly, the UK has experienced one of the least windy summers on record3, meaning less wind power has been generated than usual. It has also not been particularly sunny or bright, so overall we have had considerably less renewable energy generated in the system than we would normally expect at this time of year. In addition, some power stations that usually provide capacity are currently offline, due to planned maintenance and servicing. And a recent fire at an electricity interconnector in Kent has unexpectedly reduced access to European generation capacity. This means that we have been limited in terms of switching on other generators to replace the missing renewable energy.

As a result, gas and coal-fired electricity plants have been called upon to make up the shortfall. However, gas prices have recently soared, due to additional demand for Liquid Natural Gas (LNG) from Asia creating a global shortage, and historic low levels of gas in storage ahead of winter causing the UK to rely on expensive imports. This has in turn pushed up electricity prices in the UK.

The return of coal to help meet demand is disappointing news after celebrating record-breaking coal-free periods last year, especially in the run up to COP26 – the Glasgow Climate Summit.

THE OPPORTUNITY FOR BUSINESSES

Whilst the current market situation presents some challenges, it also highlights the importance of flexibility and the rewards businesses could gain for supporting the system.

As we transition away from fossil fuels towards renewable energy, we will be more reliant on intermittent generation affected by weather, such as the period of low wind we are currently experiencing. The resulting volatile prices are a signal that the system needs support in balancing supply with demand.

With the right set-up and market access, consumers can be paid for supporting the system in times of need, by shifting their usage away from the expensive periods. For example, last week we were able to sell some of our customers’ energy back at the £2,500 auction price referenced above. This allowed our customers to generate revenue whilst directly supporting the energy system, offsetting coal emissions in the energy mix along the way.

Increasing business participation in demand flexibility will be crucial in the transition to net zero and will help reduce the system’s reliance on fossil fuels, one KWh at a time. If you’d like to learn more about how our optimisation solutions can help your business, get in touch with our team of experts at heretohelp@brytenergy.co.uk or on 0330 053 8620.

Sources

https://www.standard.co.uk/news/uk/electricity-prices-soar-fire-national-grid-sellindge-kent-b955632.html

 

https://www.nordpoolgroup.com/Market-data1/GB/Auction-prices/UK/Hourly/?view=table

 

https://www.theguardian.com/business/2021/sep/13/britain-last-coal-power-stations-to-be-paid-huge-sums-to-keep-lights-on-record-energy-prices