A new report, Energy on an Industrial Scale – commissioned by Mitsubishi Electric, and released on Friday 31st May 2024 – makes for a really interesting read. Significantly, it found a clear ‘disconnect’ between UK manufacturing’s views on volatile energy pricing, and action taken on-site to address these concerns.
In this industry news article, we add our commentary, to Mitsubishi Electric’s and their contributor’s own, in response to the report that draws together the responses of 200 surveyed senior decision-makers. The respondees all had decision-making power and were working in UK manufacturing in January of this year.
Amongst the questions asked were, ‘what is needed to make better use of energy, and how can the sector increase its overall resilience.’ Please read on to gain a flavour of what the outcomes were.
Clear ‘disconnect’ between industry priorities and actions
The headline facts concluded from Mitsubishi Electric’s ‘Energy on an Industrial Scale’ survey were that 91% of respondents expressed concern over energy price security and interestingly, 85% were worried about grid resilience. These numbers may seem high, however we’re surprised that those percentages weren’t higher. Yet despite being what they are, only 24% of those questioned had a fully implemented on-site energy management system, and just 27% employed a dedicated energy manager.
David Bean
According to David Bean, Business Development Group Manager at Mitsubishi Electric Automation Systems UK, the disparity highlighted by these statistics demonstrates a clear disconnect between thought and action to resolve an acute, ongoing and potentially worsening problem.
“These statistics are not only eye-opening at face value, they need to be considered within the context of how energy pricing has changed in the past few years,” says David. “The sector is just coming out of one of the worst energy crises in modern memory, and the impact of this price volatility is yet to be fully felt.”
“Despite the clear concerns about the effect of energy price security and grid resilience identified in this report, the industry has not yet taken crucial steps to mitigate further fluctuations. With costs now resembling something approaching ‘normal’, it is an ideal time for decision-makers to reconsider these energy strategies and address potential uncertainty.”
So, what does UK manufacturing need to make better use of energy and increased resilience?
A key aspect of the new energy market is on-site power generation, which is growing in importance for high energy users. Small-scale energy resources, such as solar panels, battery energy storage systems (BESS) and microgrids, are rapidly transforming the way electricity is traded, delivered and consumed. These Distributed Energy Resources (DERs) will allow manufacturers to work more interactively with central grids, supporting key initiatives such as triad schemes and demand side response. Mitsubishi Electric’s research really suggests that the UK manufacturing sector is ahead in some areas and behind in others.
Energy on an Industrial Scale Report front cover screenshot
To read the Energy on an Industrial Scale report in full, please download it here or by clicking on the report front page screenshot.
Looking to become more self-sufficient and comply with clean energy goals?
Distributed Energy Resources are falling in cost and are often incentivised, making now an ideal time for your business to lower its dependence on the UK’s central power grid. However, with many sites and options available, owners need a sophisticated platform to manage assets and extract maximum value from behind-the-meter tariff management benefits. Together with Mitsubishi Electric and their Strata Resilience and Cirrus Flex options, we can help support you with that.
Majority ‘in state of paralysis’ in the face of decarbonisation pressures
The Energy on an Industrail Scale report paints a similar picture of decarbonisation pressures. Whilst 85% of those surveyed said working towards net zero was a key part of their business and 70% stated they had been asked to report on scope 1/2/3 emissions for a tender process, only 35% were currently implementing net zero within their operations.
UK manufacturers urged to understand their goal and take small but necessary steps
David advocates manufacturers to understand their goal and take small but necessary steps, with a tangible ROI, in order to achieve an energy strategy based on digitalisation to improve decarbonisation, energy resilience and carbon footprint.
“This report provides a much-needed snapshot of the manufacturing sector’s most pressing challenges, and underlines why decision-makers can no longer delay action,” he concludes. “However, the pressures and instability affecting the industry may have made businesses reluctant to do so.”
“But by starting small and implementing new tools and technologies including energy management systems, site teams and senior managers can access meaningful data needed to make these necessary decisions. It doesn’t matter where you are on your energy journey, we can help businesses develop a roadmap to a greener and more resilient future.”
At a time when state level issues of supply and security remain at the forefront of our thoughts, coupled with the uncertainty of possible changes, not only at the head of our Westminster government, but also across many states around the world – uncertainty remains. Yet, delaying positive change when it comes to responding to increased energy costs, limiting emissions and decarbonisation, will leave many UK manufacturers at a huge disadvantage in the face of competitors.
Does your business need to cut energy costs across production?
We can help you reduce costs in several ways:
- Measuring and checking – Mitsubishi Electric’s solutions can store, trend and distribute information about power consumption at all levels, from the shop floor to the board room, or anywhere in the world.
- Planning – Our team will share their deep knowledge of efficiency in production environments, preparing your business for the implementation of an energy reduction plan.
- Energy saving products – Mitsubishi Electric’s energy efficient drives and servos are designed to cut electricity consumption in energy-intensive environments. Developed for both OEMs and end users, their range is used across a wide range of manufacturing processes.
BPX, together with Mitsubishi Electric, can help put data in service of your business
By integrating data from BMS, ERP and other manufacturing control systems, energy management software delivers rich visualisation of real-time energy consumption. Be it an individual manufacturing asset, production line, entire facility or across multiple sites, this allows teams to monitor, analyse and optimise performance.
Users can quickly identify efficiency issues in production processes with Mitsubishi Electric’s energy management software – ICONICS Suite – giving site managers, facility managers, operational staff and maintenance teams the opportunity to navigate energy-related data and discover opportunities for improvement.
We believe that UK manufacturing can change its course
Digitalisation is the key driver that will keep manufacturing on track through a period of change and instability. When site teams and senior managers can access meaningful data, they can make more effective and competitive decisions. Important for the bottom line, but also key for negotiating other key priorities identified throughout Mitsubishi Electric’s research, such as net zero and the need for carbon reduction, energy security and resilience in the face of struggling grid infrastructure.
Even so, digitalisation is not a silver bullet and will require ongoing engagement at all levels to deliver a lasting return on investment. Scale and approach are critical considerations, as is the threat of cyber attacks in an increasingly connected world. If the results in the report can be extrapolated out across the country, it appears relatively few organisations have been able to implement an energy management system, even following one of the most volatile periods for high energy users in recent memory.
What we must take from all of this, is that there is a huge opportunity that’s being overlooked and one that will better prepare businesses for the years to come. What Mitsubishi Electric go on to say in the conclusion of their report is that now is the time for manufacturing to assume the initiative, with scalable solutions that limit exposure to external shocks in the global energy market.
Energy on an Industrial Scale – A Mitsubishi Electric Commissioned Report
The Mitsubishi Electric Corporation has more than 100 years of experience in providing reliable, high-quality products, and is a recognised world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment.
BPX Electro Mechanical Ltd. are proud to be Mitsubishi Electric Innovation Partners. Having originally signed as distributors in 1989, we have been for quite some time, the largest independent Mitsubishi Electric Distributor of Industrial Automation Solutions in the UK.
Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the Better.” BPX shares many common values, and with them and our shared vision, we use our knowledge, service, and passion for innovation and sustainability in pursuit of a better world.
To read the Energy on an Industrial Scale report, please download it here or by clicking on the report screenshot.
Alternatively, we have a highly knowledgeable and experienced team of Application Support Engineers ready and able to support and advise you on your energy saving, cost-reduction journey. Please feel free to get in touch using our contact form below, and we’ll be back in touch as soon as we possibly can.
