The Key Drivers for on-site generation are both financial and non-financial and in our experience different clients will place different levels of importance on each. For some clients, the key drivers of such a scheme in relation to their overall corporate social responsibility targets are of primary importance over and above the level of energy savings available, whereas for some other clients, more emphasis is placed on the overall level of energy saving offered.
In terms of the financial benefits, Clenergy offers its clients the opportunity to purchase electricity from the renewable development at a significant discount to that of their ‘brown’ energy supply which is linked to RPI (Typically 20-30% discount from Brown power). This normally provides a meaningful financial saving for our clients in terms of the overall cost of their electricity supply, but also offers the advantage of allowing our clients to fix a good proportion of their energy needs to RPI, which acts as a useful hedge against exposure to the volatility of wholesale pricing in the wider energy market.
Any electricity that is not used on site is exported to the grid. In return for agreeing to work with Clenergy and for providing us with exclusivity to develop the site and sell energy generated by the development direct to our clients, Clenergy asks for a long lease of around twenty five to forty years which is the expected operating life of the renewable development. In the case of biomass, the saving is linked to the cost of fuel which is typically 40-50% cheaper than oil per kW produced.
With Renewable Energy becoming one of the UK’s main energy sources also brings problems due to it intermittent nature. This means that storage of this clean and intermittent energy is an important part of the country’s energy mix.
Electric Vehicle Charging
The exponential growth of electric vehicles means that all companies now need to consider its own electric vehicle charging infrastructure. The emergence of this new technology is also enabling complies to reduce its operational costs at the same time as reducing its CO2 production by introducing electric vehicles into their fleet. Combing electric vehicle charging with onsite renewable energy production provides even more exciting possibilities.
Companies are now able to charge their fleet with excess power that would have previously been sold to the grid. Therefore running electric vehicles on their own green power which is not only cheaper but creates a large positive effect with regards to the corporate social impact.