Aggreko survey finds power supply concerns
15 July 2022
A recent report from Aggreko suggests that the impact of rising energy costs and volatility of supply are encouraging manufacturers to look at other power sources and methods.
The survey, called The Power Struggle, sought opinions from 251 manufacturers and SMEs across the UK. Some 75 per cent claimed that rising cost are having a direct impact on their ability to remain competitive.
Interestingly, 65 per cent said their business had experienced a power cut in the last 18 months.
Consequently, over 60% of manufacturers are now considering generating their own electricity using distributed solutions. Energy as a Service contracts were cited as a popular way of achieving this as it removes the barriers of high upfront capital investment, though there were concerns that getting locked into such contracts could leave businesses exposed to high demand penalties from the provider.
Chris Rason, managing director at Aggreko Energy Services, said: “The results of our latest report indicate that many UK manufacturers are looking to on-site power generation as a solution to the current energy crisis. However, capex budgets and restrictive contracts remain a key barrier here.”
In response, Aggreko has developed a business model of Hired Energy as Service (HEaaS), enabling customers to access distributed energy solutions without being locked into long-term contracts and fixed energy pricing.
“Our latest research serves to compound concerns that were highlighted in our 2019 report, Bridging the Energy Gap,” said Chris Rason. “The rising cost of energy has long been a concern for the UK manufacturing sector, though recent events have escalated the scale of this challenge to entirely new levels.
The latest report found that capex restrictions have denied businesses access to new equipment but almost 60 per cent are now using hired power to get around financial constraints.
LED lighting, new heating systems and solar/thermal PV arrays were the most popular solutions selected by manufacturers when asked about the steps they were taking to lower energy consumption.
Over 70 per cent added said the rising cost of energy was having a direct impact on their company’s ability to remain competitive.
Also, almost 60 per cent of those surveyed said the current crisis had accelerated their organisations' progression towards net zero.
