Reduce Business Energy Costs: The Question Most Businesses Never Ask

When Did Your Business Last Review Your Energy Contracts?

Light Bulb - Electricity

Every year, businesses review payroll, insurance, supplier contracts and operating expenses to ensure they’ve getting value for money. Yet one of the largest operating costs for many businesses often receives far less attention:

Energy.

For businesses looking to reduce business energy costs, the biggest savings opportunities aren’t always found through operational changes or reducing energy consumption.

Sometimes, they come from simply reviewing whether current energy rates remain competitive, and not falling into the trap of automatic contract renewals.

 

The Challenge

The challenge is that energy markets don’t stand still. Retailer pricing changes. Market conditions shift. New offers become available. Yet many businesses continue paying energy rates they agreed to years ago without knowing whether those rates are still competitive.

That’s why one of the most valuable questions any business can ask is:

“If we went to market today, would we get a better outcome?”

 

A Brisbane Café’s Energy Cost Savings Success Story

Recently, our team completed our Free Energy Savings Audit for a thriving cake and café business in Brisbane’s West End. By benchmarking their current arrangement against today’s market, we identified an opportunity to reduce their electricity costs by 16.2% per year, delivering approximately $2,300 in annual energy savings.

Whilst a 16.2% saving is a great result, the insight gained is far more valuable:

Meaningful energy savings aren’t determined by the size of your business. They’re determined by how often you review the market and challenge the assumption that your current arrangement is still the best available.

 

Many businesses simply don’t have the time, resources or specialist expertise to continuously monitor a complex and rapidly changing energy market.

 

That’s where Edge Utilities comes in.

 

A man and woman at a computer

 

How To Reduce Business Energy Costs

Our Free Energy Savings Audit helps businesses:
✅ Benchmark current energy arrangements against the market
✅ Identify potential cost-saving opportunities
✅ Access competitive retailer pricing and offers
✅ Receive independent, expert advice
✅ Understand their options through a transparent, no-cost review

Because every business deserves access to informed energy procurement decisions, regardless of size.

 

Key Takeaway

The real takeaway isn’t that this café reduced its electricity costs by 16.2%.

It’s that they took the time to ask a question many businesses never do:

“Are our current energy arrangements still competitive?”

Many businesses assume the answer is yes. This café discovered otherwise.

Businesses that successfully reduce energy costs aren’t necessarily larger or more sophisticated. They simply make a habit of having their contracts reviewed and keeping an eye on upcoming agreement end dates, challenging automatic renewals, and understanding what the market is offering.

 

That’s where Edge Utilities provides support.

 

Through our Free Energy Savings Audit, we monitor market conditions, benchmark existing arrangements against current retailer offers, and provide independent advice so businesses can make informed procurement decisions with confidence, without needing to become energy experts themselves or disrupting their business operations.

Because the biggest savings opportunities often aren’t found by changing how you use energy.

They’re found by reviewing contracts and pricing arrangements that haven’t been challenged in years.

Savings on my Energy Bills? That’s a good feeling.

 

How You Can Create Savings Opportunities For Your Business

Request your business’ Free Energy Savings Audit: Helping Australian Businesses Reduce Energy Costs – Edge Utilities

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Impact of Australia’s Carbon Credit Changes on Energy Sector

Conceptual image of a person holding a lightbulb with a green tree inside, symbolizing eco-friendly energy, surrounded by bubbles containing icons for wind power, electric vehicle, sustainable industry, and solar panels, representing the integration of carbon management and renewable energy solutions
Small business owners should take note of the changes happening in Australia’s carbon credit landscape. The government’s new policies can have an impact on your business’s sustainability efforts and operational expenses.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is phasing out the Integrated Farm and Land Management (IFLM) carbon credit method. This is because the environmental benefits of certain land regeneration activities are difficult to prove. The Landscape Restoration Method (LRM) will replace IFLM and will have stricter limits on land use, especially grazing.

As a result, market activity has increased, with prices for existing carbon credits on the rise. This makes carbon credits a hot topic for anyone involved in emissions and sustainability. Additionally, carbon credit demand is predicted to exceed supply soon, with a peak in demand expected by 2031. This is a significant change from just a few years ago, and it could lead to higher costs for businesses that need to purchase these credits.

The Safeguard Mechanism offers some relief by providing a new type of credit for businesses that manage to keep their emissions low. However, the government has set a price cap on carbon credits, and if the market continues to tighten, prices may regularly reach that cap. This is similar to what we are currently seeing in the STC market.

While ACCUs might seem more relevant to larger emitters, they do have implications for small businesses, particularly in terms of sustainability practices, cost management, and potential market opportunities. Aligning with Australia’s shift towards a greener future can help businesses thrive. Stay informed, seek advice, and act now!

This is a summary article from Edge2020 – read the original article.

Looking to reduce your business’s energy expenses without any extra cost? Edge Utilities makes it possible through collective purchasing, which enables you to unlock substantial savings. Our focus is on empowering SMEs like yours by fetching the most competitive rates available. You can get in touch with us by emailing us at save@edgeutilities.com.au or calling us at 1800 334 336. Start saving today with Edge Utilities!

Embracing Change: Late 2023’s Energy News for Australian Small Businesses

As 2024 unfolds, it’s important to look back at the significant changes in energy policies and climate goals that emerged in Australia at the end of 2023. These developments are crucial for small business owners, highlighting the importance of staying adaptable and informed in a rapidly evolving industry.

NSW’s Strategic Energy Shift
In late 2023, NSW’s Minister for Energy and Climate Change, Penny Sharpe, introduced the ‘Orderly Exit Mechanism.’ This significant policy change, backed the powers to 2021, allowing for more direct governmental control over energy generation facilities like Eraring Power Station. Small business owners in NSW should be aware of these regulatory shifts, as they could have an impact on the state’s energy supply and market prices going forward.

Queensland’s Climate Commitment
Toward the end of 2023, Queensland set an ambitious climate target of 75% below 2005 levels by 2035. This bold move suggests a strong commitment to environmental sustainability and could lead to new regulations and opportunities for small businesses. Embracing renewable energy and sustainable practices may become increasingly important.

The December Energy Surge
On December 29th, the energy market saw a significant spike, with demand exceeding 9,750MW and prices soaring. This highlights the importance of energy efficiency for small businesses. Exploring renewable energy and investing in energy-saving technologies can help mitigate the impact of such market fluctuations.

Coal Seam Gas Regulation
The Department of Resources released a draft framework for Coal Seam Gas regulation, indicating a move towards stricter environmental oversight. Small businesses in related fields should prepare for potential changes in operations and compliance requirements.

Queensland’s Environmental Stance
With the resurgence of the “polluter pays” principle in environmental law, the Queensland government is taking steps to reinforce the Environmental Protection Act of 1994. This initiative is highlighted by the recent release of a consultation paper titled “Improving the Powers and Penalties Provisions of the Environmental Protection Act 1994.” This renewed focus on environmental accountability suggests a shift towards stricter regulations. For small businesses, it means an increased need to be more proactive in managing their environmental impact, thereby ensuring alignment with evolving standards and sustainability practices.

ARENA’s Emission Reduction Initiative
ARENA’s late 2023 launch of a $40 million fund to reduce industrial emissions reflects a broader governmental effort toward sustainability. While targeted at larger facilities, this initiative might open future opportunities for small businesses to participate in emission reduction.

The final months of 2023 marked a turning point for energy and environmental policies in Australia. For small businesses in the energy sector, understanding and adapting to these changes will be key to navigating this new era of sustainability and responsibility.

This is a summary article from Edge2020 – read the original article.

Looking to reduce your business’s energy expenses without any extra cost? Edge Utilities makes it possible through collective purchasing, which enables you to unlock substantial savings. Our focus is on empowering SMEs like yours by fetching the most competitive rates available. You can get in touch with us by emailing us at save@edgeutilities.com.au or calling us at 1800 334 336. Start saving today with Edge Utilities!

Smart Energy Solutions: How Australia Can Learn from UK’s Success

As winter approaches Europe, bringing sub-zero temperatures to the UK, an energy-saving initiative has been implemented. This program allows those with smart meters in their properties to support the National Grid during critical times.

The process is simple: sign up, and when a power-saving event is declared, usually during peak hours between 5:00 PM and 6:30 PM, you will be notified to reduce the use of heavy energy-consuming appliances.

Last winter, the scheme successfully reduced power usage and CO2 emissions significantly. It wasn’t just about saving money on bills; it was a collective effort.

Could Australia adopt a comparable energy conservation program? Although the installation of smart meters has been slower in certain regions, the impetus for change may come from the consumers. The increasing use of smart appliances, solar panels, and batteries is setting the stage for these initiatives.

For small business owners and households to benefit from such schemes, there must be a change in how energy tariffs work to reflect this new flexibility. However, this transition also presents challenges, especially for energy retailers. They must adapt to more dynamic energy consumption patterns, moving beyond the traditional view of peak, off-peak, and shoulder times. Time Of Use tariffs will also need significant refinement to accommodate the flexibility offered by these technologies.

While there are some concerns about regulations and ensuring fair metering during these saving periods, with stats like 3.3GWh saved and AUD 21 million in incentives, it’s an opportunity that’s too good to pass up.

This is a summary article from Edge2020 – read the original article.

Looking to reduce your business’s energy expenses without any extra cost? Edge Utilities makes it possible through collective purchasing, which enables you to unlock substantial savings. Our focus is on empowering SMEs like yours by fetching the most competitive rates available. You can get in touch with us by emailing us at save@edgeutilities.com.au or calling us at 1800 334 336. Start saving today with Edge Utilities!

Energy insights for SMEs – Australia’s energy transition

Small to medium-sized businesses (SMEs) in Australia, prepare for subtle yet significant changes in the energy sector that might impact your operational costs and sustainability efforts.

Firstly, good news for the near future as the revival of the Tallawarra B gas station is expected to ease the energy supply deficit by late 2024. However, potential delays in the commissioning of the Kurri-Kurri gas plant highlight the need for SMEs to explore diverse energy sources and contingency plans.

By 2025, the closure of Eraring, which contributes ~25% to the New South Wales’ (NSW) energy grid, could potentially escalate energy bills by increasing spot prices across the National Electricity Market (NEM). Further, potential delays in the ambitious Snowy 2.0 hydroelectric project could also contribute to energy contract price increases. These shifts underscore the significance of energy efficiency and renewable alternatives for SMEs.

Policy changes are also on the horizon with the possible introduction of a capacity mechanism, which could influence how you source your electricity, adding more stability and affordability.

For SMEs operating in South Australia and Victoria, the government’s new scheme promoting non-fossil fuel generation could have substantial implications for your energy sourcing and costs.

The growth of large-scale battery projects in South Australia and Victoria’s goal for a 95% renewable grid by 2035 presents intriguing opportunities. This transition could stimulate additional renewable initiatives, providing compelling prospects for SMEs in the renewable sector.

In summary, while the forthcoming Electricity Statement of Opportunities (ESOO) might bring some challenges, it also unveils opportunities for innovation. By staying informed and adaptable, your business can flourish in Australia’s transforming energy landscape. Keep an eye out for further legislative changes coming this September.

Edge Utilities offer market leading services for business and strata energy users. We help you navigate the ever-changing energy landscape, focus on renewables and save on your power bills through our Edge Utilities Power Portfolio. Reach out, we would love to assist you: info@edge2020.com.au or call on:1800 334 336

Is your business ready to be part of the Brisbane Olympics 2032?

Brisbane Olympics 2032 Precinct

Brisbane 2032 International Olympic Committee (IOC) have called for businesses to be “Brisbane Olympics 2032 Ready” but what does this mean for your Business Energy?

As we countdown to the Brisbane 2032 Olympics, action towards creating Australia’s first net zero carbon region has commenced with the launch of the Brisbane 2033: Legacy Project. This project outlines a policy and framework of SMART goals across the key themes of Connected, Creative, Equitable and Enterprising with the goal to achieve a Climate Positive Games and positive legacy for the region.

“In 2032, the eyes of millions of people will be in our homes, what do we want them to see?” John Coates AC, President of Australian Olympic Committee.

The Queensland Government has indicated that all business intending to be a part of the Brisbane Olympics 2032 will be required to meet the net zero carbon goals and the Games’ procurement rules on zero emissions and zero waste.

So how can you become Brisbane 2032 Olympics Ready and be a part of Australia’s first net zero carbon region?

Our team of energy experts at Edge Utilities have outlined three key ways below.

3 ways to show your business’s commitment to a Climate Positive Games with Edge Utilities.

 

  1. Reduce your carbon emissions.

Taking action to reduce carbon emissions is a crucial step in preparing for the Brisbane 2032 Olympics. There are various effective approaches to achieve this goal. These include conducting equipment assessments, upgrading to energy-saving infrastructure, implementing solar panels, integrating smart technology, and adopting energy-efficient lighting solutions.

By implementing these strategies, businesses can make significant strides towards Brisbane 2032 Olympics readiness while actively contributing to a sustainable future.

  1. Purchase green energy.

Simply purchasing green energy is another great way to show your Climate Positive commitment to the Brisbane 2032 Olympics. Edge Utilities can work with you to secure cost effective energy procurement from renewable resources, such as solar, wind and hydro. We do the administrative work for you, ensuring reliable secure energy for your business whilst, managing cost and reducing your emissions through green purchasing.

As part of our comprehensive services, we can guide your business in exploring energy procurement and generation options, including energy carbon offsets, enabling you to make informed decisions towards sustainable and low-carbon operations. We are deeply committed with renewable energy, which play a critical role in preparing for a Climate Positive Olympics.

One of our key offerings is the facilitation of Power Purchase Agreements PPAs powered by Edge2020. Power Purchase Agreements allow businesses to procure energy from renewable sources such as solar, wind, and hydropower at fixed, predictable costs. This approach is particularly advantageous for small to medium-sized businesses, providing a cost-effective path to lower carbon emissions and fostering growth within the renewable energy sector.

Learn more about Power Purchase Agreements.

  1. Join a renewable energy portfolio.

A renewable energy portfolio can open a wealth of opportunities for your business and goes beyond simply securing renewable power. By joining a power portfolio, you will benefit from the power of bulk purchasing, yielding cost advantages not usually accessible to individual businesses and mitigating price fluctuations. Edge Utilities offers individual businesses the opportunity to apply for a renewable energy portfolio through our Edge Utilities Power Portfolio (EUPP).

When businesses join the Edge Utilities Power Portfolio, they gain access to the kind of purchasing power that is typically only available to larger portfolios. This opens the door to custom-made electricity contracts, providing an essential tool for businesses aiming to achieve net zero emissions. Edge Utilities Power Portfolio serves to remove obstacles for Australian businesses, making the goal of 100% renewable electricity within their contracts a more achievable reality. This not only supports environmental initiatives but also echoes the sustainable business strategies akin to the values championed by global events like the Brisbane 2032 Olympics.

Discover more about the Edge Utilities Power Portfolio.

Edge Utilities has a climate active registered consultant, and it’s powered by Edge2020. Gain access to tailored energy solutions, green energy experts, risk management and emission reduction strategies designed to secure your energy procurement, mitigate fluctuating energy prices, and go for green and gold!

 

Connect with us today.

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Europe’s Climate Stride: Unpacking the Carbon Border Adjustment Mechanism

Container Ship on the Ocean

In an ambitious bid to combat climate change, the European Parliament has introduced legislation, including a Carbon Border Adjustment Mechanism (CBAM), aiming to drastically cut greenhouse gas emissions.

With a target of at least a 55% reduction by 2030, this initiative could have far-reaching effects, particularly for large industries whose operations produce considerable carbon emissions.

Central to this package are two key measures. Firstly, it proposes to phase out free allowances under the European Emission Trading Scheme (ETS) by 2026. Secondly, it introduces the Carbon Border Adjustment Mechanism (CBAM), which sets tariffs on goods produced using carbon-intensive processes, particularly those prone to ‘carbon leakage’ — a term for shifting carbon-intensive production stages to countries with more lenient climate policies.

While the CBAM concept is gaining momentum globally, with countries like the UK, Japan, Canada, and the US exploring similar mechanisms, it presents its own challenges. Despite Australia’s ongoing considerations for a CBAM amidst resistance from carbon-intensive sectors, the complexity and cost of compliance, including intricate accounting and potential auditing bottlenecks, could pose significant obstacles to its widespread implementation.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

What shade of green is your business?

  • Do you use a re-usable bag when you shop?
  • Do you recycle at home and work?
  • Do you conserve water where you can?
  • Do you turn off you lights when they aren’t being used?
  • Do you try and avoid single use plastics?

These are choices we all naturally make every day, and all contribute towards a healthier planet. So, why would you not incorporate this concept into your business behaviour?

Of course, it is more complex for a business, especially larger energy users such as hotels, supermarkets, manufacturers, data centres, cold storage warehouses etc.  where large amounts of energy are required, but that doesn’t mean it has to be avoided.

Here we have tried to pull back the curtain and show you how Edge Utilities can easily assist in helping your company achieve their climate goals. This will not only allow you to future-proof your organisation but assist in ensuring your employees to feel like they work for a purpose driven company.

Now, if you investigate net-zero and what it means, a minefield opens

Do you include Scope 1? (direct emissions from company activity) and Scope 2 emissions? (indirect emissions from the power you purchase to use).  Scope 3 is an option. What is a scope 3 emission? It’s indirect emmissions that occur in your value chain, but are not controlled by you.

What are your company’s abilities to be green? Would you like a project linked – Power Purchasing Agreement (PPA) or Carbon Offsetting? Does Green Power suit you more than a solar panel?

Corporate Emission Reduction Transparency (CERT)

With the Government’s Corporate Emission Reduction Transparency (CERT) report asking companies to describe how they will set and meet their targets, the UN are placing more pressure on companies to set and meet ambitious targets. Stakeholders and customers are increasingly demanding a green pledge from companies they use. So,  the time to act is now, but where do you start?

It doesn’t have to be this hard!

Let’s start at the beginning

What is Net Zero? Well don’t panic it isn’t eliminating all emissions. We are not trying to be moved back to cave men with stone tools and no internet (Hear the hooray from all 14 year-olds!).

Net Zero’s aim is to ensure any human-produced Carbon Dioxide (and other gasses such as Methane) are removed from the atmosphere, either by technological advances, reducing emissions or planting trees (they are pretty good at taking the CO2 out of the air and replacing it with oxygen, and I think we can all agree oxygen is a pretty handy gas to have about!)

So, what do you do as a company to get there?

Well first you define your emissions and boundaries. Not to put words in your mouth but with NGERs (National Greenhouse and Energy Reporting Scheme) reporting the answer for most companies we be “Well to Gate”(WtG)*. It also means you have your Scope 1, 2 and 3 emissions all easily accessible.

If you don’t have an NGERs report, you can set your own by using something like the WWF Ecological Footprint calculator. Alternatively, you can ask a Carbon Neutrality advisor such as Edge with an in-house Climate Active© Registered Consultant to define your carbon footprint.

So now you know your emissions to reduce. The big question then is, which is where we can end up in a quagmire: How green is your green?

Carbon credits

Some companies are happy to carbon offset their emissions using certificates bought from the wider market or a specific project. This can be through projects right here in Australia which create Australian Carbon Credit Units (ACCU’s) or abroad through other schemes. If you are offsetting 100 per cent of all your Greenhouse Gasses as a company, you can advertise you are 100% Carbon Neutral and have achieved Net Zero.

These certificates can usually only (currently) be bought on the open market for the current year. Therefore, Edge can assist in pairing you with a project and certificates for the length of your commitment.

What if this doesn’t sound like you though – What if you want your scope 2, or electricity usage, to come from another source, not be classified as carbon neutral . What if you wish for up to 100% of your electricity usage to be renewable green, using renewable electricity. You will still meet your ‘net zero’ target but you are classifying your electricity slightly differently.

Renewable Green

Well, have you ever driven past an Ikea or Bunning’s and seen the Solar on the roof? Some of these solar panel’s feed into the Governments GreenPower scheme where you can buy electricity which has come from a government accredited GreenPower source. If more than 10% of your electricity is from GreenPower you can utilise the GreenPower logo and marketing materials for your business to meet your social licence marketing materials.

Certificates aren’t your only option, however.

We can explore options to help your company offset its emissions by purchasing renewable energy credits or by investing in a wind or solar farm. One approach is to buy enough offtake from a renewable generator to ensure that all your company’s emissions are covered.

By doing this, your company can demonstrate its commitment to reducing its carbon footprint.  This can be a positive message as it shows that your company is taking concrete steps towards a more sustainable future. Imagine your CEO on a press release next to a Solar Panel – ok not that glamorous – but effective!

Wind and Solar are often touted as the main sources of green renewable electricity, but we have a vast number of options here in Australia, including Hydropower from both rivers and dams as well as an increasing number of Battery projects, Victoria is leading the way with 48% of current battery capacity but the rest of the east coast is hot on its heels, and Victoria will not hold this share for long.

Green generation

A final option is to install your own generation and use this for some of your usage. It can also be used for you to show you are physically investing in your company’s net zero pledge.

However, you want to get there, whichever green shade suits your business, we can help.

Edge will review your business’ requirements; all we need from you is a yes and we can help define the rest and paint your business with the right shade of green for you.

It really isn’t that hard. Pull back the curtain and join us. https://edgeutilities.com.au/edge-utilities-power-portfolio/ or contact Laura on 1800 334 336.

* Well-to-Gate (WtG) is a term used in the life cycle assessment (LCA) of a product or service to describe the environmental impacts associated with the production process up to the point where the product or service leaves the factory gate or production site.

Energy savings for boutique hotels and smaller chains

Boutique hotels

From our side of the fence as energy partners, we are accustomed to working with hotels, especially through our sister business Edge 2020 who look after power purchasing, progressive purchasing and renewables for some of Australia’s largest energy users. Large hotel brands fit right into this category with their 24 hours service, multiple locations, high rise format and climate-controlled comfort. So what if you are a boutique hotel, or a small chain, is there benefit in using a broker? And if so, what does it cost?

For smaller hotels energy brokers not only save you money, but we can also add value through:

boutique hotel

  • Negotiating energy supply contracts: We have extensive knowledge of the energy market and can negotiate better energy supply contracts on behalf of your hotel, ultimately saving you money on energy costs.
  • Sourcing renewable energy: We can help your purchase power from renewable energy sources. A responsible choice and a positive point of difference for your occupants.
  • Managing energy consumption: We can help and advise you on how to monitor and manage your energy consumption by analysing your energy usage data and making recommendations for reducing energy waste.
  • Compliance with regulations: We watch the market and are knowledgeable about current energy regulations. We can ensure that your hotel is in compliance with all relevant laws and regulations.
  • Improving energy efficiency: we can work with you to identify and implement energy-efficient strategies, diversifying your energy portfolio, to deliver you real savings.
What does an energy broker cost?

Edge Utilities operates much like a mortgage broker, or insurance broker – we work for you. Our team will find the best energy deal for your hotel’s requirements and then process the administration for you to transition to the new service. So contrary to popular belief, the service actually costs you nothing.

We are remunerated directly by the energy retailer upon settlement of your contract, so there is no out-of-pocket cost to the business for the use of our services.

How does it work?

At Edge we have recently set up a service for business energy users to leverage our collective buying power through what we have called the Edge Utilities Power Portfolio. We take your energy requirements to market in our portfolio, that attracts lower fees, and then overlay the power of bulk purchasing to achieve greater savings for individual businesses.

We still contract each business separately with the chosen retailer, but use a collective customer portfolio to negotiate on your behalf.

So, if you are not part of a global brand or one of Australia’s biggest energy users but still feel the rising price of energy hitting your bottom line, it might be worth reaching out for a discussion. Not only can we provide valuable expertise and support in your efforts to reduce energy costs, we can also lower your carbon footprint, and improve your energy efficiency.

If you feel you need more control of your hotel’s energy spend, please reach out to discuss joining our Edge Utilities Power Portfolio (EUPP) where we use the power of bulk purchasing to help Australian businesses of all sizes save on their energy bills. We’ll conduct a free no obligation comparison to show you how you can save. Read more: https://edgeutilities.com.au/edge-utilities-power-portfolio/ or call us on 1800 334 336 to discuss. 

Hotels – how to reduce energy consumption and your rising power bill

Hotel dining and pool area

Rising energy costs are having a massive impact on hotel businesses and the travel industry across the world. A significant part of hotel operations management falls outside of filling beds and high electricity costs are a major contributor to soaring operating expenses. In addition to a price spotlight on energy there is also an important focus, and certainly customer pressure, to transition to energy supply from renewable resources. So, what can you do while the pressure is on?

Generating your own power through renewables sounds like a sensible idea but onsite renewable energy can be challenging to implement for many hotel sites, solar panels and batteries require significant investment and significant space.  It is challenging because in a post covid world priorities are changing and customers want to know hotels and restaurants are following sustainable practices, it influences their choices and this trend is continuing to grow. Millennials are particularly conscious consumers, and they are now the biggest market of all consumer age groups.

With all this in mind, “greenwashing” is not always the right path, and if generating your own power doesn’t make economic sense for your business then there are many other avenues you can take that will improve your sustainability rating, save energy and therefore reduce your hotel electricity costs.

So, what can hotels do to save on electricity?

Advances in technology now mean that there are several other solutions that can significantly reduce hotel energy outlay. In addition, energy brokers can help you buy energy more competitively. Not only can they negotiate on your behalf and buy at wholesale rates, but they can also build a power purchase portfolio that can support your sustainability goals as well as save you money.

A good place to start is to make sure that you have data on the energy use in your hotel. Keeping track of average energy usage, tracking peak times and patterns that lead to high energy bills is the most useful data you can have. Understanding your impacts will help you prioritise so you can take action in the areas which will have the highest impact. A hotel can cut its overall energy expenses 20 percent by using basic energy efficient measures, this is good for you and for the planet.

10 energy saving tips to bring electricity bills down:

  1. Tracking and processes, remembering the old saying of what is measured gets managed. Work with your team and encourage them to be aware, turn off lights, close fridges etc.
  2. Nudge your occupants to be more aware of energy consumption, even just with simple messaging. There’s an interesting study on this HERE
  3. Use LED light bulbs, they use less than a quarter of the energy of traditional bulbs and they last longer.
  4. Install smart climate and lighting control thermostats and sensors. These are real-time sensors that can adjust and detect changes in occupancy on a room-by-room basis. Clever technology that can save you money on lighting, ventilation, air conditioning and heating.
  5. Consider keycard managed power switches if you don’t already have them.
  6. Look at your equipment – modernising equipment can save. e.g., ventilation and extraction system in kitchens, refrigeration, dishwashing, your HVAC systems, pool equipment etc. There are some very interesting figures from Sustainability Victoria on equipment in the hospitality industry HERE.
  7. Retro-fit existing west (sun) facing windows with energy-saving furnishings or film.
  8. Regularly clean and service your air conditioning and ventilation systems and service your heating/hot water boilers, this can reduce the monthly energy costs by 10%.
  9. Plants and green walls help modify temperature and naturally purify the air.
  10. Definitely consider solar if it could be suitable for your premises.

Save money and the planet

With energy prices continuing to rise and customer opinion paramount, becoming energy efficient is now a necessity. Going green is no longer just a trend. 2030 and indeed 2050 is fast approaching, and we are all (thankfully!) becoming more environmentally conscious. You can reduce your operating costs and your carbon footprint with commitment and focus. Maximpact Ecosystems (a UK based advisory) estimate that in hotels:

“Energy costs amount to 5-8% of overall operational costs, and while this number might seem low or insignificant, the truth is that energy is often the second highest controllable portion of costs after labour. Energy efficient practices can provide energy savings of 20-35%, which over time can make a big impact on the bottom line.”

 

Hotel sign

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. Our customers’ most common goals are savings and sustainability, we are pragmatic in our approach and would love to help you reach your goals.
 If you feel you need more control of your hotel’s energy spend, please reach out to discuss joining our Edge Utilities Power Portfolio (EUPP) where we use the power of bulk purchasing to help Australian businesses of all sizes save on their energy bills. We’ll conduct a free no obligation comparison to show you how you can save. Read more: https://edgeutilities.com.au/edge-utilities-power-portfolio/ or call us on 1800 334 336 to discuss.