by Chris Hargreaves | Apr 23, 2024 | Carbon Sustainability, Case Studies, Energy
Discover how Total Utilities’ innovative ‘Utility Insights’ service sparked remarkable transformations in four unique settings. From schools to industrial plants, food manufacturers to national retail chains, witness the journey of overcoming challenges and achieving success through proactive utility management.
High School Aces Utility Management Test with Total Utilities
Challenge:
A local high school’s rising utility costs were putting a strain on their budget. Additionally, waste handling expenses were escalating, further exacerbating financial pressures.
Solution:
Total Utilities stepped in with their Utility Insights service, offering a comprehensive solution to address the school’s utility management challenges. By collaborating closely with the school, Total Utilities provided proactive budgeting advice and identified opportunities for cost savings.
Result:
Through Total Utilities’ proactive approach, the high school achieved remarkable success, saving $40,000 annually (20%) in waste handling costs, offsetting rising expenses. Additionally, Total Utilities’ budgeting advice enabled planning for electricity and gas contract renewals, optimising budget and ensuring sustainability.
Overall, Total Utilities’ Utility Insights empowered the high school to overcome challenges, achieve savings, and pave the way for continued success.
Industrial Plant’s $70k Savings Story
Challenge:
Utility Insights reporting on electricity cost and consumption for this industrial client revealed an alarming discovery: over $70k of reactive charges per year were being incurred. These penalty charges resulted in a significant financial burden for the plant.
Solution:
Total Utilities stepped in to address the challenge. By implementing power factor correction equipment to improve electrical efficiency, we provided a proactive solution to mitigate the reactive charges. Additionally, our system ensured that if power factor charges were incurred again, the correction equipment could be serviced promptly, avoiding any unnecessary costs.
Result:
Through Total Utilities’ intervention, the industrial plant saw remarkable results. The installation of power factor correction equipment led to a substantial reduction in reactive charges, saving the plant over $70k per year. The plant can now effectively manage power factor charges and prevent any future financial losses, ensuring long-term cost savings and operational efficiency.
Total Utilities’ Data Dive for Food Manufacturer Improves Efficiency, Cuts Costs
Challenge:
A food manufacturing plant faced the challenge of understanding and optimising energy consumption across its processing plants. Without detailed production data, it was challenging to benchmark electricity and gas usage efficiency accurately.
Solution:
Total Utilities implemented a solution by adding production data tracking at each processing plant. This provided deeper analytics for benchmarking energy consumption efficiency. By integrating production data with utility usage, our system enabled the customer to clearly visualise how energy was used in relation to production outputs.
Result:
With Total Utilities’ solution in place, the Food Manufacturing Plant achieved remarkable results. The addition of production data allowed for the creation of Key Performance Indicators (KPIs) at each plant, enabling better tracking and management of energy usage.
Furthermore, cross-site benchmarking within each business unit became possible, facilitating insights and improvements across the organisation. Through Total Utilities’ innovative approach, our client optimised energy efficiency, reduced costs, and paved the way for continued success in sustainable manufacturing.
Revolutionising Retail Efficiency for National Retail Chain
Challenge:
A national retail chain client with 45 locations across New Zealand faced the challenge of managing out-of-hours energy consumption effectively. Ten stores were identified as having significant energy usage outside of operating hours, resulting in excessive costs exceeding $140,000 per year.
Solution:
Total Utilities implemented a solution by resetting Heating, Ventilation, and Air Conditioning (HVAC) controls to ensure energy usage aligned with operating hours. This proactive approach aimed to optimise energy consumption and reduce unnecessary costs associated with out-of-hours usage.
Result:
With Total Utilities’ intervention, our client achieved significant savings and efficiency improvements. By resetting HVAC controls, energy consumption during non-operational hours was minimised, leading to substantial cost reductions. This strategic approach not only helped the chain save money but also contributed to its sustainability efforts by reducing unnecessary energy waste.
by Chris Hargreaves | Mar 14, 2024 | Carbon Sustainability, Energy, News
Prepare for a ride into the amazing world of energy trivia with our top 10 list of mind-boggling facts and trivia. From phantom energy to compressed air energy storage – take a glimpse into the fascinating forces that power our world:
- Phantom energy – the sneaky culprit: Did you know that even when your business devices are turned off, they might still be sipping on energy? This phenomenon, known as ‘phantom’ or ‘vampire’ energy usage, contributes to about 10% of residential electricity consumption. For businesses, this translates into substantial hidden costs. Unplug and save to maximise your energy efficiency and reduce operational expenses. Why not take a look at our case study featuring a well-known NZ retail chain client who achieved significant cost and carbon savings with our help through intelligent energy insights.
- The sun’s incredible power hour: Imagine this: in just an hour and a half, the amount of sunlight that reaches the Earth’s surface could meet global energy demand for an entire year. Solar energy holds untapped potential that could revolutionise your business’s energy landscape. Just last month, the first grid-scale solar farm operated by Lodestone Energy opened in Kaitaia with an output large enough to power over 6,000 homes.
- Renewable reign – a 2020 triumph: A remarkable shift occurred in 2020 when renewable energy sources claimed over 80% of the new electricity capacity added worldwide, surpassing the once-dominant fossil fuels. The dawn of a sustainable era is upon us, enabling business owners to align with eco-friendly practices.
- Hydroelectric prowess – Nature’s efficiency: Hydroelectric power plants are true champions in efficiency, converting approximately 90% of the energy from falling water into electricity. In a typical year, 65% of NZ’s energy is produced from hydroelectric power.
- Golmud Solar Park – packing a solar punch: China’s Golmud Solar Park reigns as the world’s largest solar farm as of 2024, boasting 2.8 GW of solar capacity. With nearly seven million panels soaking up the sun, it’s a powerhouse of clean energy.
- LEDs lighting the way: Embrace the brilliance of LED light bulbs, champions of energy efficiency. These marvels use up to 80% less energy than traditional incandescent bulbs and can last an astonishing 25 times longer, illuminating the path to sustainability and cost savings for your business.
- Solar cell evolution – from 6% to 20% plus efficiency: Journey back to 1954 when Bell Labs developed the first practical solar cell with an efficiency of around 6%. Fast forward to today, where cutting-edge solar cells exceed 20% efficiency, transforming sunlight into a potent energy source for businesses looking to harness the power of the sun.
- Compressed air’s elastic energy storage: Enter the realm of compressed air energy storage (CAES) systems, where excess energy is used to compress air stored in vast underground caverns. When electricity demand arises, the released compressed air generates power, showcasing the elasticity of energy storage.
- Geothermal genesis in Italy: Italy proudly hosts the world’s first geothermal power plant, built in Larderello in 1904. Geothermal energy taps into the Earth’s internal heat to generate electricity, providing a sustainable alternative.
- Energy star’s bright certification: Discover the efficiency of energy star-certified appliances, wielding the power of up to 50% more energy efficiency compared to their non-certified counterparts. For businesses, this certification signifies a commitment to energy-conscious choices and operational savings.
Want to learn more about increasing sustainability, reducing costs, and improving efficiency? Get in touch with our experts at Total Utilities today.
by Chris Hargreaves | Jan 23, 2024 | Carbon Sustainability, Energy, News
As businesses step into the new year, the focus inevitably turns to financial goals, and one crucial aspect of this is optimising utility costs.
So, let’s explore just five practical steps you can take to save on utilities, while simultaneously promoting efficiency and sustainability:
Step 1: Comprehensive utility audit
Embark on the journey to optimised utility costs by conducting a detailed assessment of your business’s consumption patterns through a comprehensive utility audit. This thorough examination allows you to analyse current usage, pinpoint inefficiencies, and set realistic targets based on your baseline consumption.
As a strategic partner, Total Utilities provides invaluable support with advanced reporting tools, offering a deeper understanding of your utility costs. Our commitment extends beyond identification – we strive to empower your business with insights that form the foundation for targeted and sustainable solutions, ensuring lasting benefits in utility optimisation.
Step 2: Implement energy-efficient practices
After establishing your baseline, the next step is adopting energy-efficient technologies and practices – for example, upgrading to LED lighting, installing smart thermostats, and using energy-efficient appliances.
Strategies like off-peak energy usage can also lead to significant savings. Taking advantage of lower rates during off-peak hours contributes not only to cost efficiency but also supports a sustainable approach to energy consumption.
Step 3. Waste management & reduction
Conducting a waste audit is an important step in fostering sustainable business practices, identifying opportunities for waste reduction and recycling.
Implementing strategies like composting and material reuse post-audit contributes to significant waste reduction, aligning with eco-friendly practices and often resulting in both environmental benefits and cost savings.
Educating employees on sustainable waste practices ensures the ongoing success of these initiatives, fostering a culture of responsibility and active participation in environmental stewardship.
Step 4. Strategic procurement and RFP management
Optimising utility costs involves a strategic approach and Total Utilities can assess your current providers and explore competitive proposals through a well-managed Request for Proposal (RFP) process. It’s crucial to prioritise providers that offer both competitive rates and sustainable solutions.
Ensuring that procurement decisions align with long-term sustainability and cost-saving goals is essential. A commitment to fiscal prudence and a sustainable, forward-thinking ethos results in responsible long-term utility management. Making strategic procurement choices not only contributes to financial efficiency but also establishes a positive, enduring impact on the environment.
Step 5. Invest in renewable energy and low carbon solutions
Begin by exploring the integration of renewable energy sources, such as solar or wind power, strategically aligning with both environmental conservation and financial objectives. In tandem, direct investments towards low carbon solutions to actively contribute to a greener future. Simultaneously, leverage cutting-edge technology and innovations to minimise reliance on high-carbon resources.
This strategic step extends beyond mere cost considerations, actively supporting environmental goals and embodying a forward-thinking approach to sustainable utility management. By embracing renewable energy and low carbon solutions, businesses not only pave the way for financial efficiency, but also make a lasting positive impact on the environment. This dual commitment reflects a conscientious and forward-looking strategy in the pursuit of optimal utility management.
Smart, efficient, sustainable choices with Total Utilities
With Total Utilities by your side, steps to manage your utility costs become more manageable. Our advanced reporting tools and expertise in waste management, energy efficiency, and sustainable solutions ensure that your journey towards financial efficiency aligns seamlessly with your commitment to the environment.
In a nutshell, this isn’t just about saving money. It’s about making smart choices that save you cash and help the planet.
As your business steps into the new year, remember – by making the right choices, you’re creating a future where your success and environmental stewardship go hand in hand.
Find out more:
Start your New Year off on the right foot by contacting us to book a free utility management consultation.
by Chris Hargreaves | Dec 10, 2023 | Carbon Sustainability, Energy, Energy Attribute Certificates (EAC's), News
Contributed by Paul Coster, Founder of EVA Marketplace
Given the need for businesses to slash fossil fuel consumption, part 1 asked the burning question, ‘can backing renewables be both a pragmatic commercial decision and contribute to climate action?’ I then explained that the climate-friendly way for most New Zealand businesses to back renewable energy is through electricity, by both demand response and supporting additional renewable generation.
Here in part 2, I will start by detailing the solutions available to businesses, explain the role played by energy certificates, and then discuss which solutions can have the most impact.
Solutions
Readily available solutions for supporting renewable electricity are shown below. Each of these solutions requires an electricity supply agreement, and some require a power purchase agreement (PPA). See this recent blog post by EVA to learn more about PPAs and how they differ from supply agreements.
Businesses can combine solutions for greater impact, such as having demand response, on-site generation, and a corporate PPA. In all cases, a relationship with an electricity retailer is retained.
1. Demand response
Technology is installed on the business’s site that allows electrical equipment (including battery storage) to respond to changes in the electricity market, such as high prices or plentiful renewable generation.
Use case: industrial facility installing technology to switch between an electric boiler and a thermal (e.g. biomass) boiler to produce steam. The thermal boiler is used during high prices or when the carbon intensity of the grid is high. An example is
Open Country using Simply Energy’s technology.
2. On-site generation
Renewable generation is installed on or near the business’s site. The project is owned by the business, or owned by a developer who agrees to sell the electricity onto the business via an on-site PPA.
3. Corporate PPA
Renewable generation is constructed remotely (‘off-site’). The project is owned by a developer who agrees to sell the electricity to the business via a corporate PPA, helping to financially support their project. The corporate PPA will typically be sleeved (bundled) into the business’s supply agreement.
4. Indirect utility PPA
Renewable generation is constructed off-site. The project is owned by a developer who agrees to sell the electricity onto a retailer via a utility PPA, helping to financially support their project. The retailer on-sells the electricity to the business under similar terms using PPA sleeving (bundling).
5. Project-linked supply
Renewable generation is constructed off-site. The generator agrees to sell the project’s renewable attributes onto a retailer via energy certificates. The retailer passes the certificates onto the business under their electricity supply agreement or another agreement.
Use case: a business that receives energy certificates from a new renewables project under their electricity supply agreement.
Energy certificates
Energy certificates play an essential role for these solutions where renewable electricity is exported into a network. The certificates track renewable attributes for each unit of electricity, avoiding double counting (*1) and reducing the chance of mis-leading claims (*2).
Currently, energy certificates don’t consider the impact of a solution, such as its economic, environmental or social benefits. In New Zealand, issuers of energy certificates are Brave Trace. (NZ-ECs) and Energy Market Services (iRECs). Certified Energy recently announced future plans to add an impact attribute to their certificates.
Impact
In assessing the potential impact of each solution, we’re going to focus on their economic and environmental impact. The social impact of each solution will greatly depend on the approach taken by the project developer (e.g. community involvement and initiatives).
In order to assess potential impact, I considered various factors, including these three key solution characteristics by asking the following questions:
- Additionality: To what extent would the avoided system emissions have occurred in absence of the solution?
- Location: How does the physical location of the solution (on-site or off-site) affect energy cost savings and avoided costs or emissions?
- Timing: How does the timing of the demand response or electricity generation affect energy cost savings and avoided costs or emissions?
A broad brush assessment of each solution’s potential impact, based on NZ’s current market and the evidence I’ve seen, is shown below. In the complex real-world, the impact will vary for each individual solution (or combination of solutions) and, in the case of demand response, how it is operated day-to-day. Discussion of real-world impact is rich and requires its own series of blog posts.
Generally, demand response and on-site generation, particularly when combined, have the highest potential for commercial and climate impact. They’re followed by PPAs, an excellent solution for businesses where on-site solutions aren’t feasible or can’t meet their full electricity needs. Solutions that solely rely on energy certificates, like a project-linked supply, will typically have the lowest impact. Their impact depends on the revenue created by the certificates and how this money is used (businesses should request transparency).
Like part 1, this post is my current thinking, which I hope opens up more discussion about the impact businesses can have on Aotearoa’s clean energy transition.
* References
1. “The GHG emission reductions or removals from the mitigation activity shall not be double counted, i.e., they shall only be counted once towards achieving mitigation targets or goals”, Core Carbon Principles, The Integrity Council
2. Energy certificates can be used to claim lower scope 2 emissions, and are therefore a form of carbon credit or offset. To be high integrity offsets, they should align to The Integrity Council’s Core Carbon Principles.
by Chris Hargreaves | Nov 14, 2023 | Carbon Sustainability, Energy, News
These days, embracing sustainability is not only a vital choice, it’s a game-changing strategy! At Total Utilities, we help businesses like yours optimise, reduce costs, and contribute to a greener world every day.
We understand the hurdles businesses face, and are well-equipped to guide you towards a future where efficiency meets sustainability. Our customer-centric approach ensures that your business not only embraces eco-friendly business practices, but also reaps the tangible rewards.
Advantages tailored to you
Every business is unique and that’s why our services are carefully tailored to meet your specific needs. By leveraging data-driven insights, we empower you to optimise your operations, reduce costs, and make meaningful contributions to environmental conservation.
Let’s look at four major ways Total Utilities can help make sustainability a compelling and advantageous choice for your business:
COST EFFICIENCY & SAVINGS
We pinpoint areas for improvement, negotiate highly competitive contracts with our procurement service, and implement strategies that lead to substantial cost reductions. Your bottom line matters, and we’re dedicated to enhancing it. Our services include:
– Conducting comprehensive utility audits: Evaluating and optimising your current utility expenses.
– Identifying energy optimisation measures: Eliminating unnecessary energy consumption.
– Negotiating competitive strategic contracts: Securing cost-effective utility contracts tailored to your business needs.
SUSTAINABLE PRACTICES WITH REAL IMPACT
Contributing to a greener world is a shared responsibility. Choosing Total Utilities means actively choosing and engaging in sustainable business practices. Our tailored services include quantifying your carbon footprint and recommending carbon measures to decarbonise your business. With us you can:
– Track and reduce your carbon footprint: Utilising our advanced tools to measure, analyse and reduce carbon emissions.
– Integrate energy-efficient practices: Implementing technologies and strategies for reduced energy consumption.
– Establish a waste reduction programme: Comprehensive and cost effective waste reduction and recycling initiatives.
INTEGRATE SERVICES WITH THE FLEXIBILITY TO START SMALL
We understand the complexities of modern business and that’s why you can bundle up our services any which way you like, with tailored, hassle-free, and seamless integration! Begin with one service and add on others as your sustainability journey progresses. For example:
– Start with utility procurement
– Add on carbon measurement and reduction with our Carbon Insights service
– Add on a waste audit.
EXPERT GUIDANCE & CONTINUOUS SUPPORT WITH CLEAR ACTIONS
Total Utilities not only provides compelling services, but our seasoned experts are dedicated to helping you make informed decisions with straightforward, practical advice.
– Engage in expert training sessions: Helping you interpret utility data and explore cost and carbon savings.
– Benefit from dedicated support: Tailored suggestions for continuous improvement based on your unique business needs.
– Manage regulatory risks: Expert guidance to ensure your business’s sustainability responsibilities are always met.
– Support with Greenhouse Gas Emissions Programmes: Helping you disclose your emissions and drive for continuous improvement.
Your success is at the heart of all that we do. We are not just service providers, but we are your partner in sustainable growth.
Let’s unlock the potential of data-driven sustainability to make your business more efficient, environmentally responsible and economically robust.
Contact Total Utilities today and discover how our services can empower your business towards an extraordinary future of sustainable success.
by Chris Hargreaves | Nov 14, 2023 | Carbon Sustainability, Energy, Energy Attribute Certificates (EAC's), News
Contributed by Paul Coster, Founder of EVA Marketplace
As businesses navigate the need to slash fossil fuel usage, the burning question is: can backing renewables be both a pragmatic commercial decision and contribute to climate action?
Some businesses may be surprised that while Aotearoa’s electricity is ~85% renewable, our energy consumption is only ~30% renewable. This means around 70% of New Zealand’s energy consumption is met by burning gas, oil and coal, mainly for transport, heat and electricity production.
So, how do businesses burn less fossil fuel, and therefore meaningfully contribute to climate action? There are three main options:
-
- Eliminating or reducing fossil fuel use (e.g. reduce air travel, encourage active and public transport)
- Increasing energy efficiency (e.g. improve building insulation)
- Supporting renewable energy
In this article, I’m going to focus on ‘supporting renewable energy’, which is a more nuanced topic than you might think. Currently, there are two climate-friendly options for New Zealand businesses to support renewable energy:
- Demand response: consume more electricity when renewables are plentiful, and less when gas and coal-fired generation is running.
- Additional renewables: procure electricity in a way that helps to add more renewables to the electricity system.
At this juncture, I need to briefly discuss three other commonly discussed renewable energy options:
- Green hydrogen (hydrogen made from renewable electricity)
- Biogas and biomethane
- Woody biomass
Globally, green hydrogen is in its early stages and, in New Zealand, biogas and biomethane are in their infancy. Currently, woody biomass is primarily used in the wood, pulp, and paper sectors, where harvest residuals are readily available (*1).
Experts and scientists are cautious about the scope of these fuels in the clean energy transition due to issues such as: green hydrogen’s inefficiency compared to direct electrification of heat and most land transport (*2), the challenging economics of large-scale biogas/biomethane production in New Zealand (*2), and elevated CO2 emissions over decades created by burning woody biomass produced from whole trees (*3 & *4). In my view, woody biomass production should be limited to harvest residuals, and priority given to its use as energy storage to address electricity shortages.
Ok, returning to demand response and additional renewables:
Demand response
Demand response (also called ‘load shifting’) is the shifting of electricity consumption into periods of time when renewables are plentiful (and out of periods of time when it’s scarce), and was discussed last month by Andy Cooper from The Energy Collective.
Andy explained how businesses can use demand response to save money, reduce scope 2 carbon emissions, and help defer costly investment in the electricity network. He also discussed current limitations of Renewable Energy Certificates (RECs), also called Energy Attribute Certificates (EACs).
Additional renewables
It’s necessary to support additional renewables such as wind and solar, otherwise new electricity demand (e.g. EVs, heat pumps) will need to be met by gas or coal-fired generation.
According to the Climate Change Commission, Aotearoa needs approximately an additional 1,000 GWh of renewable electricity every year between now and 2030 to meet our climate targets. That’s around 2.5% of New Zealand’s annual demand (~40,000 GWh), roughly equivalent to 300 MW of wind or 550 MW of solar, every year.
So, how can businesses help add renewables to New Zealand’s energy system? Impactful and readily available solutions for businesses are:
- On-site renewable generation (e.g. rooftop solar)
- Corporate Power Purchase Agreement (PPA) (*5) with a renewable generation project (i.e. a business buys electricity directly from a generation project)
- Indirect PPA with a renewable generation project (i.e. a PPA entered into by an electricity retailer on behalf of a business)
- Electricity supply agreement (*6) linked to a renewable generation project
Businesses can combine these solutions, such as having on-site generation, a corporate PPA and an electricity supply agreement. Combining a PPA with a supply agreement is called PPA ‘sleeving’. For all solutions, businesses retain a relationship with an electricity retailer.
In Part 2, I’ll look at each solution in detail, discuss their pros and cons, and explain why solutions 1 and 2 tend to be the most impactful. I’ll also discuss the important role played by RECs, or EACs, explaining why these certificates should be used in most cases.
These posts are my current thinking, which I hope opens up more discussion about the impact businesses can have on Aotearoa’s clean energy transition.
—
About Paul Coster
Paul is the Founder of EVA Marketplace, Aotearoa’s marketplace for renewable PPAs. EVA assists businesses by matching them to renewables projects, facilitating PPA negotiations, supporting green products (including RECs/EACs) and enabling corporate PPA sleeving. EVA also publishes a quarterly report on the renewables market.
Total Utilities works with EVA to offer customers the option of a corporate PPA sleeved into their electricity supply agreement, helping to control electricity costs and ethically reduce carbon emissions, while retaining the convenience of an FPVV supply arrangement.
* References
- Biomass energy in New Zealand, EECA
- 2023 Draft advice to inform the strategic direction of the Government’s second emissions reduction plan, Climate Change Commission
- Why burning trees for energy harms the climate, World Resources
- 500+ scientists tell EU to end tree burning for energy, WWF
- PPAs tend to be longer term contracts (5 – 15 years) where a buyer commits to buying electricity from a specific project, such as a solar farm, usually at a fixed price.
- Electricity supply agreements tend to be shorter-term contracts (1-5 years) where buyers purchase electricity from a retailer for their sites or buildings, typically at a fixed price.
