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Businesses to double in-house power generation by 2030

In-house power generation by UK businesses including banking, manufacturing and construction will double to 17GW by 2030 to meet 14 per cent of the country’s demand, according to a report by consultant Utilyx.

So-called on-site generation of electricity and heat could save businesses £33 billion by 2033 says the consultant. Some 20 billion of those savings will come from combined heat and power and energy-from-waste schemes Utillyx predicted.

Mark Stokes, managing director for Utilyx’s asset management business, said: “Traditionally businesses and organisations have focused on one aspect of energy management – typically procurement or energy efficiency. In a climate of volatile and rising energy prices, decentralised energy can help businesses save money, reduce carbon, and provide energy security.”

The study, by market analyst, Verdantix showed on-site CHP growth from 3.1GW in 2011 to 7.1GW with energy from waste reaching about 5GW both by 2030. It forecast growth in on-site wind during the same period from 1.5GW to more than 3GW.

David Metcalfe, chief executive of Verdantix, said: “UK corporates, councils, universities and hospitals are increasingly interested in the cost saving potential and carbon reduction benefits of on-site power generation.”