Collage Maker 13 Jul 2023 03 13 PM 2064

Energy For Industry – Construction 

The UK’s construction industry consumes massive amounts of energy – both commercial and residential builders will see energy costs as one of their largest outgoings. It is possible in some projects for energy expenses to account for 5.7% of the total budget… 

When energy prices go up (like they are just now), then so too do construction costs… 

From start to finish, every project will need a constant stream of energy. Regardless of the contractor goal, whether it is to reduce equipment energy costs or simply build energy-efficient homes, there are countless ways to introduce energy-saving strategies into the business plan… 

In today’s world, there is a growing pressure exerted on construction companies to reduce consumption of non-renewable fossil fuels like oil and gas. So too do regulatory bodies continue to crack down with legislation on excessive emissions. If you are a small construction business, you may struggle to keep navigate through an every changing industry… 

Companies of all sizes can heavily benefit from implementing a strong energy strategy tailored towards construction. In this article, we will outline some short-term in-house measures that are ready to be rolled out as well as offering the best long-term solution for a truly energy savvy construction business 

Energy Efficiency and Construction 

Energy efficiency should be held at the forefront at every stage of the production process, from equipment sourcing to the final appliances installed in a finished building. Contractors should consider many factors when hoping to begin an energy-efficient home or commercial building, at all stages. Some locations where energy-efficiency is key have been outlined below: 

  • Building materials 
  • Transporting materials 
  • Site preparation 
  • Tools 
  • Heavy equipment 
  • Fuel requirements 
  • Location of the new home or commercial building 
  • Landscaping 
  • Insulation 
  • Windows 
  • Appliances 
  • Lighting 
  • Heating, ventilation and air conditioning (HVAC) systems 

As energy costs continue to rise and environmental regulations brings welcome pressure, builders are showing innovation by exploring a range of energy-efficient designs. Material suppliers too are looking introspectively to where they can increase energy efficiency too. 

An example of this that most will know about is in light-emitting diodes (LEDs) which have gained popularity in recent years thanks to their incredible efficiency gains – in the region of 6 to 7 times as efficient as conventional bulbs. This can contribute to energy savings of more than 80%. Not to mention, they also last 25 times longer than conventional bulbs. Builders have now began to implement LED bulbs throughout homes, attracting a new eco-friendly clientele. 

This is just one tiny aspect of energy efficiency in construction, but it illustrates how a small change can lead to massive benefits. Heavy equipment and vehicles will consume huge amounts more energy than light fixtures, so imagine how big the savings could be with them? 

Why Energy-Efficiency for Construction Is Important 

The International Energy Agency (IEA) has stated that commercial and residential buildings consume around a third of the world’s total energy… a staggering figure. 

Most of the energy in buildings will be used for cooling, heating, ventilating, water heating, cooking, and lighting – combining to a huge draw on resources. 

More interestingly, is the follow up statement that suggests that buildings could possibly account for 41% of global energy savings by 2035 if energy-efficient construction practices are followed.  

So, either sink or swim, really. 

Where to Achieve Efficiency 

It is a difficult task to identify all areas you can improve, and certainly not one that can be completed overnight. The IEA has however identified three main areas to focus on. Each will have its own return for different businesses, but a combination of all three is sure to pay dividends. 

  • Using advanced designs and construction techniques that reduce heating, cooling, ventilation and lighting energy consumption 
  • Upgrading buildings and replacing equipment with energy-saving devices 
  • Managing energy consumption with active and ongoing methods 

Also mentioned by the IEA is how important it is to operate energy-efficient equipment during construction. If you can’t afford to upgrade your equipment, then you can certainly find some time for some maintenance and repairs. 

Energy Efficiency Challenges 

The IEA also reported these following challenges to implementing energy efficiency: 

  • High costs of converting to energy-efficient methods 
  • Problems with gathering reliable energy efficiency information 
  • Lack of technological expertise to design, construct and maintain buildings and equipment 
  • Poor incentives to invest in energy efficiency programs 
  • Limited access to energy efficiency financing 
  • Difficulty in coordinating construction industry stakeholders 

It is crucial for energy-efficient practices to take lasting effect to identify these barriers and remove them. It will obviously be a difficult process, requiring strong leadership and a committed team all pulling in the same direction. 

The ready-made solution for Construction 

Flexible contracts are a relatively new contract type that helps to pass on the benefits of the wholesale energy market to consumers. The price that consumers will pay for their energy is strongly dependent on the movements in wholesale market, meaning that there are opportunities presented during periods of volatility.       

As you can imagine, flexible energy contracts are exactly that – flexible.       

The predictable portion of customer energy use can be thought of as the bulk of their demand, with most businesses able to provide very accurate estimations of this through smart meters, sub-meters, and even energy audits. The peak is essentially the spike in demand outside of this predictable consumption – this then forms the tradeable volume that can be traded within flexible contracts.       

You purchase too much energy, and your baseload and peak volumes exceed your profile? Well, just sell the excess back to the supplier.      

You don’t purchase enough energy to cover baseload and peak volumes? Well, just top up with a little extra.      

For those manufacturers with tight profit margins, it’s a game changer.     

The long-term solution – Why Construction and Energy Brokerage go Hand-in-Hand      

One thing that is universal with all types of construction is the long hours and demanding nature of the job.      

It is unthinkable for most to deal with energy procurement and strategy on top of their already vast daily responsibilities. Dealing with suppliers, complex calculations, paperwork, long phone calls, complex jargon, and even more paperwork…      

We don’t blame you.      

Wouldn’t it be nice to have someone on your side to alleviate the load when it comes to energy?       

That’s when partnering with an energy procurement specialist comes in handy. Acting as a knowledgeable consultant for everything energy, they’ll keep you on the best possible energy contract available to you. Saving you money and time to spend on whatever else you’d rather be doing.      

Energy Solutions by Us, for You            

At a time of great uncertainty in global energy markets, it is easy to feel lost in it all.          

Keeping up to date with developing situations and the associated ramifications is a tricky and time-consuming job. It is also one that is not likely a priority for you and your business.         

So, what do you do?          

You partner with energy procurement experts to take the load off your desk.        

Energy Solutions have been trusted brokers for countless businesses for over twenty years, which means we know how to navigate the energy markets during a time of uncertainty.      

Contact us today to find out how we can help you and your business          

Website: https://www.energybrokers.co.uk/      

Contact Us: Click Here      

Email: nick@energybrokers.co.uk      

Call Us: 0131 610 1688      

WhatsApp: 07757 400 788