Options for insulating sites from potential electricity price increases

Electricity prices are expected to rise by 1.5 to 3 times their current price in the next ten years as a result of aging infrastructure, growing peak demand and the inclusion of a carbon cost. Electricity at an average plant accounts for about 1/3 of the site energy use, but about 2/3 of the energy costs.


Network charges can contribute up to 50% or more of a sites electricity bill. The disproportionate growth in the electricity supply network of peak usage compared to baseload consumption means that future bills will pay more attention to consumption and demand during the peak supply period for the electricity network (summer afternoons). For many meat processing plants, this coincides with their site peak usage. The installation of interval metering and the direct load control which it enables will change the nature of the electricity market in the residential and commercial sectors, and with it changing expectations of industrial electricity users like meat processing.