Savings should be invested in efficiency upgrades and renewable energy schemes.
Energy prices fell slightly by 0.1% in the second quarter of 2013, latest data from the Lorien Energy Index (LEI) reveals. It still shows a year-on-year increase, however, of 9.2%.
The Lorien Energy Index, which is produced by Lorien Engineering Solutions, monitors the overall cost of energy for business users. It enables companies of all sizes to make sense of their current energy consumption and look at ways they can make savings in the future, by being energy efficient and utilising low carbon and renewable technologies to boost energy security.
While Lorien welcomes the dip, however fractional, the firm’s sustainability experts suggest that savings could be usefully invested in efficiency upgrades and renewable energy schemes.
Lorien’s engineering director Steve Turner said: “Investment in low carbon, efficient and renewable technologies will help future-proof businesses, and should benefit from Government incentives such as Enhanced Capital Allowances, Feed in Tariffs and Green Investment Bank funding.
“We advise clients on the most appropriate renewable technology and efficiency measures and help them understand the true business case. As energy prices rise, renewable energy projects become much more viable, with a shorter return on capital, based upon projected energy prices.
“The recent announcement of the nuclear development at Hinkley Point, where a strike price for saleable energy was agreed at nearly double the current wholesale cost of energy, gives an indication of forecasts for the next 10 years, and those are in line with LEI projections.”
Lorien Engineering Solutions has recently become part of GP Strategies Corporation, a global performance improvement solutions provider of training, eLearning solutions, management consulting and engineering services. The acquisition of Lorien Engineering Solutions adds to GP Strategies’ growing coverage of the sustainability sector.
Paul Nokes, director, GP Strategies EU, said: “Doubling the cost of energy in the next 10 years would have serious bottom line implications for profit margins, compounded by increases in raw materials and water costs. Capital investment plans and forecasts should focus on longer term paybacks and future prices, along with investment in plant efficiencies and technology.”
Lorien Engineering Solutions (LES) is an engineering design and project management organization. It is a division of GP Strategies Limited. With operations in Burton on Trent UK and Wroc?aw Poland, the company has a staff of circa 85 specialists who design and deliver manufacturing projects in the brewing, drinks, food and life sciences industries.
Lorien Engineering Solutions
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