Most Organisations Unprepared For Energy Shortage

According to a UK survey, organisations feel that the biggest barrier to renewable back-up power is cost

More than half of organisations are unprepared for future energy shortages or disruptions despite more than two-thirds agreeing that demand for back-up power generation is set to rise, according to new data. UK power solutions provider Critical Power Supplies (CPS) canvassed the views of business leaders, facilities managers, technology managers and energy managers in October 2023 to understand how prepared UK businesses are for net zero 2050 targets, their readiness to handle potential energy supply disruptions, and the challenges they face in the transition to renewable energy sources.

More than two-thirds of respondents (68%) said demand for back-up power solutions would increase as businesses strive to meet sustainability targets. Moreover, nearly half (48%) agreed that a comprehensive energy resiliency plan, including back-up power capability, was “very important”. However, 57% said they were unprepared to handle future energy shortages and disruptions.

According to CPS’s survey, the biggest barrier to transitioning to renewable energy sources for back-up power is cost. The most cited challenge was “initial investment costs” (78%), while one-third (33%) expect no cost savings and 28% foresee only minimal cost savings. A significant issue appears to be lack of knowledge about government support, with 61% unaware of the relevant incentives and grants. In addition, CPS’s research sought to understand how businesses’ preparedness aligned with their net zero strategy, with survey participants invited to share their thoughts in more detail.

Steve Groom, CEO of IT and cloud services provider Vissensa, said, “Net zero for the UK must not economically impact the UK's ability to remain competitive while many countries are still not committed. Most local businesses are unaware that as energy consumption (electricity) through EV charging, heat pumps/ground pumps, and the phase-out of gas cooking grows, the National Grid infrastructure will not be able to keep up with demand.”

Despite the switch to renewable energy being a key component of energy resiliency, just 13% of respondents said they currently have a net zero transition plan in place, a factor that “will undoubtedly impact their ability to respond to future energy disruption”.

Jill Griffiths of Berkshire Healthcare NHS Foundation Trust said, “In theory, net zero goals are achievable, but when you apply this model to an aged NHS pre-Victorian estate, the additional costs for modifying and upgrading buildings make the projects economically unviable. To make net zero achievable in the NHS, greater support from the government or local partnership working will have to be implemented to share the costs and the long-term benefits. Perhaps some of the measurables should be completed at a regional level rather than at an individual business level.”

Jason Koffler, CEO of CPS, added, “In responding to the dual challenge posed by climate change, businesses must embark on a crucial multi-step sustainability journey, encompassing strategic planning, innovative energy management, carbon reduction solutions, and fulfilling their climate reporting obligations.”

“Switching to renewable energy is imperative. By understanding and leveraging alternative energy options, and implementing robust back-up solutions, UK businesses would not only ensure uninterrupted operations but also play a pivotal role in the green revolution. However, a notable knowledge gap on these solutions poses a significant obstacle, as revealed by our research data.”