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BREXIT BRIEFING



        Time running out for decarbonisation



        Siemens has published advice for businesses on steps they can take to decarbonise

        Decarbonisation is a clear global target and
        there is a growing urgency for businesses to
        act. If they don’t, they risk exposing
        themselves to potential risks from policy-
        driven increased operating costs, increased
        energy costs or increased compliance
        costs. In addition, decarbonisation is not just
        an objective imposed by policies such as the
        Paris Agreement: with the right approach,
        it  also  creates  tangible  business
        opportunities that go beyond long-term
        financial savings.

        These include increased brand reputation,
        customer preference over competitors and
        attractiveness to investors. Industry leaders
        have paved the way; Now it’s time for other
        businesses to follow suit.

        Technical advancements such as digital
        solutions and decentralised energy systems
        have made decarbonisation more feasible.
        To help businesses create their individual   l  Use smart load controls that utilise digital   typical way in which businesses can even
        decarbonisation strategies, Siemens has   solutions to go beyond just monitoring a   achieve carbon ‘negativity’ on the supply
        published a new whitepaper suggesting a   facility’s equipment. With the right control   side, which is used to offset carbon from
        range of specific steps towards carbon   and automations, a business can have   other parts of the business. It also helps to
        neutrality. These are grouped into three   significant energy savings, while modern   tap into new revenue streams from the
        different areas: actions on the management   BEMS can go as far as simulating the facility   commercialisation of the excess energy.
        side, actions on the energy demand side and   and how it reacts to load changes.   l  Purchase zero-carbon electricity. This
        actions on the energy supply side.   l  Electrify the transport fleet. This   involves signing-up for green tariffs with
                                            significantly reduces direct emissions,   suppliers or signing power purchasing
        Actions on the management side: These   especially when combined with smart   agreement with a renewable energy
        steps will typically be overarching and   charging solutions.           generator leveraging the guarantees of origin
        strategic.                          l  Review production processes. This refers   for the energy consumed.
        l  Assign responsibility to an energy   to any energy savings that are a result of   l  Deploying energy storage on its own is
        specialist internally, to ensure a realistic   adjustments in parts of a production   not necessarily providing carbon savings but
        overall strategy is defined and successfully   process,  for  example  lowering  the   can enable carbon savings when used as an
        implemented.                        temperature of steam in a process without   optimisation asset (for example optimising
        l  Align energy KPIs with business KPIs to   compromising overall process quality.   power flow of on-site generation).
        make sure that energy indicators are being                              l  Optimising supply with demand and
        considered  when  measuring  overall   Actions on the energy supply side: These   energy tariffs, while on-site generation on its
        business success.                   steps are designed to reduce indirect   own already provides significant carbon
        l  Challenge  the  supply  chain  to   emissions from the generation of purchased   reduction, this can be further enhanced by
        decarbonise, as this will affect the carbon   energy.                   optimising with other energy elements, from
        content of any purchased good.      l  Generate “green” electricity on site, which   a basic storage and PV installation to the
        l  Support customers to decarbonise,   involves power generation with low-carbon   holistic solution provided by microgrids. This
        leading to overall less carbon related to   technologies like solar PV, wind power,   can also be combined with energy tariffs
        business output.                    bioenergy, etc.                     adaptation, which can further optimise costs
                                            l  Shift to low-carbon heat. This can result   and carbon savings.
        Actions on the energy demand side: A key   in a drastic decrease in emissions.
        goal of these steps is to save energy, which   Decarbonising heat is one of the biggest   “The success of any decarbonisation
        will be translated into carbon savings and   challenges that the energy industry is facing   strategy will depend on a clear vision and
        eventually OPEX savings.            currently. Efforts are focused on increasing   strong commitment from the business,”
        l  Replace  and  renovate  outdated   the efficiency of the supply (for example with   explains Faye Bowser, head of Siemens
        equipment. This is one of the most standard   a CHP system), electrification of heat (low or   Energy Solutions. “Well-defined targets,
        forms of increasing energy efficiency in a   high temperature heat pumps depending on   clear commitments and a dedicated budget
        facility. The interventions can be anything   application) or decarbonising the fuel source   are key. Heightening the responsibility in a
        from a basic upgrade to LED lighting to a   (for example moving from natural to “green”   clear way up to the C-level for all aspects
        more sophisticated upgrade to electric   gas).                          relating to decarbonisation, beyond just
        motors and their drives in a manufacturing   l  Become a prosumer in the energy   documenting the commitment, can have a
        facility, or improvements in the efficiency of   markets, ie generate excess electricity that   significant impact in the overall success of
        a building’s HVAC system.           can be sold to the energy markets. This is a   the transition.”

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