Dr Alex Mardapittas, CEO of Powerstar, discusses how businesses can maximise the opportunities of smart energy solutions without upfront capital investment and shares a case study which demonstrates the benefits voltage optimisation technology can bring to those in the manufacturing sector.
Businesses continue to face pressures to reduce energy costs and become more energy efficient as we move towards the UK Government’s 2050 net-zero target, and many manufacturers are considering this to both reduce costs and maintain profit margins during what has been a difficult time for the industry.
As the COVID-19 pandemic continues and restrictions are tightened, many businesses have shifted their focus to survival, ensuring costs are reduced where possible. Despite this, the looming 2050 net-zero target means businesses need to act now to start reducing carbon emissions if targets are to be met as planned. However, a lack of available capital during the current climate is causing huge barriers for manufacturers looking to implement smart energy technologies.
With many industries focussed on reaching net-zero carbon, some businesses are seeking to reach the target ahead of legislation; however, this poses financial implications at a time when many businesses need to preserve cash due to economic uncertainty. Funding for energy efficiency projects has been heightened throughout lockdown; however, some businesses are struggling to secure any funding despite the innovative strategies available for businesses to implement viable energy projects.
With manufacturers often consuming high amounts of energy during day-to-day business operations, energy efficiency projects are seen as a worthwhile, yet non-essential investment, and often require some upfront capital investment. However, with attractive payback periods available on certain energy-saving technologies, the project could pay for itself within two to three years, after which the manufacturer solely benefits from the savings being achieved. Despite this, with cash preservation a top priority, manufacturers may need to consider other ways of funding energy efficiency projects, such as revenue sharing agreements and power purchase agreements.
By utilising these intelligent funding options, manufacturers can implement smart energy technologies to reduce electricity costs, minimise carbon emissions, or protect operations from power failures, without any upfront capital investment. This means the business remains cash positive from the outset, whilst still receiving the benefits of the technologies installed.
Powerstar’s portfolio of smart energy solutions are made bespoke for the requirements of each client, and a full concept-to-completion, consultative, approach with ongoing support after installation means maximum benefits can be achieved.
Voltage optimisation, an energy-saving technology used to regulate, clean and condition incoming power supply, helps to reduce the supplied voltage to an optimum level for on-site electrical equipment. Not only does it reduce energy consumption, carbon emissions and provide savings on electricity bills, but voltage optimisation is also able to improve power quality, through balancing phase voltages.
Additionally, Powerstar’s patented voltage optimisation technology is available with a 100% savings guarantee, and a 15-year warranty, providing complete peace of mind and a no-risk solution.
Swann Morton, a global manufacturer of surgical blades, which exports to over 100 countries around the world, previously benefited from the installation of Powerstar’s voltage optimisation technology.
The manufacturer faced a challenge of implementing proven and reliable technology to effectively reduce on-site energy consumption without impacting any manufacturing or operations processes. Powerstar and Swann Morton worked together through productive discussions and site evaluations to determine the best and most effective solution for the manufacturing facility.
The installation of Powerstar Voltage Optimisation ensured minimal disruption to the business and its process and has delivered Swann Morton with annual electrical consumption savings of 9.9%, reduced CO2 emissions of 102.5 tonnes a year, and £11,559 reductions in annual electricity costs, providing a payback period of 3 years.