Adding energy flexibility into the mix

In a recent edition of Food Processing magazine, Wayne Davies, Head of Energy Flexibility at Enel X - explains the steps the food industry can take to reduce greenhouse gas emissions, support Net Zero and generate additional revenue. 

The key highlights are below, or you can download the full story.

In the face of rising production costs and pressure to keep food prices stable, the food and drink industry is seeking new ways to reduce operational expenses and environmental impact. A key focus is energy consumption, which typically accounts for around 15% of operational costs, particularly in areas like refrigeration, heating, and processing. Energy flexibility has emerged as a viable solution to simultaneously lower costs, support sustainability goals, and create new revenue streams.

The food industry is confronting the "energy trilemma" - balancing energy affordability, security, and sustainability. With the Food and Drink Federation aiming for Net Zero by 2040, well ahead of the UK’s national target, companies are under pressure to align with ESG (environmental, social, and governance) commitments. However, many firms still struggle to deliver on sustainability. One way to address this is by participating in energy flexibility markets, which help stabilise the grid and integrate more renewable energy, while offering payments for reduced or shifted electricity use.

Renewable energy, while clean, is intermittent. To manage this variability, grid operators collaborate with high-energy users like food manufacturers. Facilities can temporarily reduce consumption or use on-site generation and storage systems (such as Battery Energy Storage Systems) during times of peak demand. These adjustments, even when small, help balance the grid without disrupting operations. For instance, refrigeration systems can reduce power briefly with minimal impact, and other energy-intensive processes can be rescheduled.

A major opportunity lies in the Capacity Market, which pays organisations for being ready to lower energy use during grid stress events. Many production processes, such as bottling or baking, can be timed around peak demand without compromising quality. Equipment like mixers, ovens, and fermentation tanks often have adjustable cycles, making them ideal for flexibility. Participation is low risk, often cost-free, and feasible for businesses with at least one megawatt of flexible capacity, either at one site or aggregated across multiple.

A recent regulatory change, Ofgem’s P415, now allows commercial consumers to access the wholesale electricity market through third-party aggregators. This change empowers businesses to trade surplus or flexible electricity, even without direct agreements with their energy suppliers.

Overall, energy flexibility allows food and drink manufacturers to contribute to decarbonising the grid, reduce their environmental footprint, safeguard operations, and unlock new financial returns - all crucial steps in achieving long-term Net Zero goals.