A new research paper from Siemens Financial Services (SFS) says innovative Energy-as-a-Service solutions can help UK manufacturers save up £5.6 billion over the next five years, including £954m in savings for the chemical manufacturing sector and £800m in for the Food and Drink sector.
The report, entitled ‘Future Savings – Current Gain’, estimates that by partnering with a trusted vendor to deliver energy savings, some manufacturing sites could reduce their costs and deliver energy saving by 25-40%.
Manufacturers are under increasing regulatory pressure to lower their carbon emissions. And, with energy prices also on the rise, businesses are motivated to invest in reducing their energy usage. Yet the research highlights that some manufacturers are discouraged by the cost and complexity of undertaking energy investments. However, delaying investment not only means industrial energy users are missing out on operational cost reductions but also risking their competitive position as other businesses race ahead.
In order to protect and improve their competitive position, businesses need to confront energy issues using Energy as a Service solutions, which combine strategic planning, system deployment and digital technology. According to the report, Energy as a Service can help future-proof their energy supply, drive down consumption costs, reduce exposure to unpredictable cost hikes, drive carbon reduction achievement, and create new revenue streams.
By partnering with dedicated energy solution providers with an Energy as a Service solution, businesses can secure better financial and strategic outcomes, protect themselves from risk, and allow them to focus on their core competencies.
Mark Kelly, Project Development Director, Distributed Energy Systems (DES), Siemens says, “The benefits of having industry expertise on side when looking to implement an intelligent energy saving strategy are becoming increasingly clear to manufacturers. By partnering with a trusted vendor which is focused on delivering outcomes through Energy as a Service, businesses can optimise their energy use more rapidly and access operation cost savings more quickly.”
Mark McLoughlin, Key Account Manager – Siemens Industries and Markets, Siemens Financial Services adds, “There’s so much untapped potential to leverage manufacturers’ energy savings for their competitive advantage. New financial arrangements like Energy-as-a-Service enable businesses to take a strategic approach to their energy challenges, immediately improve operating cashflow, and focus their limited capital on their core business.”