Shannon Energy Blog

Debunking Common Myths About Commercial Solar PV

Tue, 11 Mar 2025 15:22:05 GMT

Debunking Common Myths About Commercial Solar PV

As businesses across Ireland explore ways to cut energy costs and reduce their carbon footprint, solar PV has emerged as an increasingly popular solution. However, misconceptions and myths still linger, preventing some companies from taking advantage of this powerful technology. In this blog, we'll set the record straight by debunking the most common myths about commercial solar PV.

Myth 1: Solar Panels Don’t Work Well in Ireland’s Climate

It’s no secret that Ireland isn’t known for endless sunshine, but that doesn’t mean solar panels aren’t effective here. Solar PV systems generate electricity from daylight rather than direct sunlight, which means they still produce energy even on cloudy days. Modern solar technology is highly efficient and designed to perform well in overcast conditions, making Ireland a suitable environment for commercial solar installations.

Myth 2: Solar PV Is Too Expensive for Businesses

While the upfront investment may seem daunting, the long-term savings make solar PV a financially smart choice. With rising energy costs and generous government incentives, many commercial installations see a return on investment in just a few years. Additionally, Power Purchase Agreements (PPAs) offer a way to go solar with minimal or no upfront cost, allowing businesses to benefit from lower energy bills without a hefty initial investment.

Myth 3: Installing Solar Will Disrupt My Business

Many business owners worry that installing solar PV will cause major disruptions. In reality, professional installation teams, like ours at Shannon Energy, work efficiently to minimise any impact on daily operations. We plan installations carefully around business schedules, ensuring that the process is smooth and unobtrusive.

Myth 4: Maintenance Is a Hassle and Too Costly

Solar PV systems are designed to be low maintenance and highly durable. Routine maintenance typically involves occasional cleaning and performance checks. With monitoring systems in place, performance issues can be detected and addressed swiftly, often before they affect energy output. Shannon Energy offers a full maintenance package on top of the solar installation.

Myth 5: Solar Panels Damage Roofs

Properly installed solar panels do not damage rooftops—in fact, they can actually help protect the roof from weathering. Our installers use secure mounting systems that maintain the integrity of the roof. Plus, the panels themselves can act as a protective barrier, shielding the roof from the elements.

Myth 6: Solar Technology Is Too Complex to Manage

With advancements in monitoring technology, managing a commercial solar PV system is easier than ever. Automated systems track performance in real-time and alert you to any issues. At Shannon Energy, we provide full monitoring and maintenance support, or we can help you and go through what is required to monitor your system.

Embrace the Truth About Solar PV

Commercial solar PV is a practical, cost-effective, and environmentally responsible choice for businesses in Ireland. Don’t let myths hold you back from making a smart investment in renewable energy. At Shannon Energy, we’re here to guide you through every step of the journey—from consultation and installation to ongoing maintenance and support.

Thinking about going solar? Let’s chat! Contact kale@shannonenergy.com today to learn how solar PV can benefit your business.

Unlocking the Power of the Sun: How Solar Panels Work

Tue, 18 Feb 2025 15:50:16 GMT

Unlocking the Power of the Sun: How Solar Panels Work

Have you ever wondered how solar panels turn sunlight into electricity to power your business? Let’s dive into the fascinating science behind solar power and how it works—no technical degree required!

The Science of Solar Power: Photovoltaics Explained

At the heart of every solar panel is a brilliant little technology called photovoltaics. The word might sound complicated, but it’s simply a term for converting sunlight (photo) into electricity (voltaic).

Here’s the quick breakdown:

Sunlight Strikes the Solar Panel: Solar panels are made of semiconductor materials—usually silicon. When sunlight hits the surface, it knocks electrons loose from the silicon atoms.
Electric Field Does the Magic: Each solar panel is built with a positive and negative layer that creates an electric field. This field directs the loose electrons into a current.
Wiring Transports the Energy: The electrons flow through the wiring in the panel as direct current (DC) electricity.
Inverters Transform the Energy: DC electricity isn’t what most buildings use, so it’s sent to an inverter, which converts it into alternating current (AC) electricity—perfect for powering lights, machines, and air conditioning.
Power for Your Business: The AC electricity flows through your building, reducing your reliance on the grid and cutting those electricity bills!

Why Solar Works Even in Cloudy Ireland

You might think solar is all about bright sunny days, but panels don’t need direct sunlight to produce electricity. Even under a cloudy Irish sky, solar panels capture diffuse light and keep generating energy. Thanks to advancements in solar tech, they’re more efficient than ever.

The Secret Sauce: What’s Inside a Solar Panel?

Each panel contains multiple layers working together:

Silicon Cells: Where sunlight generates electricity.
Glass Layer: Protects the cells while letting sunlight through.
Anti-Reflective Coating: Helps panels absorb, not reflect, sunlight.
Frame: Keeps everything secure and weather-resistant.

What Makes Solar Ideal for Commercial Organisations?

Switching to solar isn’t just about cutting costs—though that’s a major bonus! It’s also about showing your commitment to sustainability. Generating clean energy on your rooftop or ground-mounted site reduces your carbon footprint and aligns your business with Ireland’s renewable energy goals. And as most rooftops are underused it’s an easy choice to install solar panels and maximise your buildings footprint.

Ready to Harness the Sun?

Solar energy combines cutting-edge science with everyday benefits—cost savings, environmental impact, and long-term reliability. At Shannon Energy, we specialise in delivering large-scale rooftop and ground-mounted solar installations for commercial organisations across Ireland. Whether you’re looking to save on electricity or demonstrate leadership in sustainability, solar power is the future.

Let’s work together to bring clean energy to your business. Contact us today to explore your solar potential!

Transform Your Parking Experience: Why Solar Carports Are a Win-Win Investment

Mon, 10 Feb 2025 12:14:40 GMT

Transform Your Parking Experience: Why Solar Carports Are a Win-Win Investment

If your commercial property includes a large car parking area, have you considered transforming it into a hub of sustainability? Installing solar panels on carports isn’t just a smart move for your business; it’s a bold statement of your commitment to renewable energy and environmental responsibility.

At Shannon Energy, we specialise in designing and installing custom solar carports that deliver more than just renewable energy. We know that investing in solar carports can benefit your business and the environment.

1. A Clear Display of Environmental Commitment

Solar carports are visually striking. As one of the most visible renewable energy solutions, they showcase your company’s dedication to sustainability. Visitors, employees, and customers will see your proactive steps toward reducing carbon emissions.

In a world where environmental responsibility is increasingly valued, this can significantly enhance your brand reputation.

2. Significant Energy Cost Savings

With solar carports, your parking spaces double as renewable energy generators. By using the power of the sun, your business can offset a substantial portion of its electricity costs. Over time, these savings add up, making solar carports a cost-effective solution that contributes directly to your bottom line.

3. Protection Against the Elements

Irish weather can be unpredictable, and solar carports can provide welcome shelter for employees and vehicles. Whether it’s shielding against heavy rain, snow, or intense sunlight, these structures enhance comfort while keeping vehicles in better condition.

4. Future-Proof Your Business

Since 2021, Ireland's Climate Action Plan has included a target to increase the share of electricity generated from renewable sources up to 80% in 2030. As we accelerate toward this target, businesses with solar infrastructure will be better positioned to adapt to new regulations. Installing solar carports now demonstrates your commitment to sustainability while preparing for a future where renewable energy is non-negotiable.

5. Maximise Use of Space

Car parks are usually underutilised spaces - large, barren and grey. By turning them into dual-purpose areas, you increase the functionality of your property without requiring additional land. Solar carports integrate seamlessly into existing parking areas, making them an efficient investment.

6. Employee and Customer Satisfaction

Sustainable practices are increasingly valued by employees and customers alike. By providing covered parking that generates clean energy, you enhance their experience while aligning with their values. Happy employees and loyal customers are key drivers of business success.

7. Potential for EV Charging Stations

Solar carports can be paired with electric vehicle (EV) charging stations, making your business a hub for EV drivers. As the number of EVs in Ireland grows, this can be a significant draw for customers and employees, making you an employer of choice, while further enhancing your environmental credentials.

Why Choose Shannon Energy?

With extensive experience in large-scale solar installations across Ireland, Shannon Energy designs solutions tailored to your property’s needs. Our solar carports are engineered to maximise energy generation, provide durability, and align with your sustainability goals. We work with our clients to minimise the impact of any installation, ensuring business continuity.

Take the First Step

Ready to make your car parking spaces work harder for your business and the planet? Let us help you turn them into powerful renewable energy assets. Contact Shannon Energy today to learn more about solar carport solutions and how they can benefit your business. Kale@ShannonEnergy.com is ready to support your business's transition to green energy today.

The Growing Challenge of Electricity Prices: Why Businesses Must Act Now

Mon, 27 Jan 2025 16:15:23 GMT

The Growing Challenge of Electricity Prices:

Why Businesses Must Act Now

The Shift in European Gas Supply

Europe's energy landscape has undergone a seismic shift in recent years. Historically, a significant portion of the continent's natural gas supply came from Russia, with Ukraine serving as a key transit route. However, the war in Ukraine has led to the elimination of gas pipelines through this region, forcing Europe to source gas from alternative suppliers, including liquefied natural gas (LNG) imports. This disruption has caused unprecedented price spikes and heightened concerns about energy security.

Shannon Energy understands how these challenges affect businesses, especially large commercial organisations reliant on affordable, stable energy supplies. The ripple effects of these changes are being felt across Europe, into Ireland, with electricity prices becoming increasingly unpredictable. Our solar solutions can help organisations safeguard their electricity supply and protect against price fluctuations.

Electricity Price Volatility

The relationship between natural gas and electricity pricing is a critical concern. Gas-fired power plants still play a pivotal role in Ireland's electricity generation. As a result, any fluctuation in gas prices directly impacts electricity costs. The elimination of Russian gas from the market has tightened supply and driven prices to record highs.

Predictions for the coming years suggest this volatility will persist. Factors such as increased demand for renewable energy, grid constraints, and stricter climate policies further compound the challenge. For commercial organisations, the uncertainty of energy costs poses risks to both operational budgets and long-term planning.

The Impact on Commercial Organisations

For large commercial organisations, rising electricity prices translate into higher operational costs, squeezing profit margins and impacting competitiveness. In energy-intensive sectors, this volatility makes it increasingly difficult to forecast expenses and remain financially resilient. Moreover, businesses are under growing pressure to meet sustainability goals, adding another layer of complexity.

Companies in Ireland must now grapple with a dual challenge: reducing their carbon footprint while maintaining cost efficiency. Shannon Energy specialises in helping organisations navigate this transition, providing behind-the-meter solar solutions that tackle these issues head-on, helping companies remain competitive with challenging economic uncertainty.

Why Solar PV is the Solution

Solar PV offers businesses a reliable, cost-effective way to mitigate rising electricity prices. By generating electricity on-site, companies reduce their dependence on the grid and shield themselves from volatile market prices. Solar energy’s predictable costs make it a strategic investment for businesses looking to secure long-term energy stability.

Shannon Energy’s experience in large-scale commercial solar installations makes us the ideal partner for businesses seeking to make this transition, with more than 6MW in Operation and a further 250MW in development. We have completed largescale rooftop, ground-mount, and carport projects, helping organisations reduce energy costs and achieve sustainability targets. By working with Shannon Energy, businesses can unlock the following benefits:

Immediate Savings : Reduce energy bills from day one with high-performing solar systems.
Energy Independence : Gain control over energy consumption and limit exposure to external price fluctuations.
ESG Alignment : Meet environmental, social, and governance (ESG) goals with clean, renewable energy, as well as progress CSR initiatives.

Preparing for the Future

As electricity prices continue to rise, proactive planning is essential for businesses to stay competitive. Shannon Energy provides tailored solutions to help companies future-proof their energy strategy. Here’s how we can support your transition:

Energy Audits and Consultation : We analyse your energy usage and propose a tailored solution to provide you with the best solar PV installation for your needs.
Custom Solar Installations : Whether it’s a large rooftop, ground-mount system, or carport project, we design and install systems that maximise energy production and ROI.
Performance Monitoring : Our advanced monitoring and evaluation services ensure your system operates at peak efficiency, delivering consistent savings.
PPA Partnerships : Through our partnership with Electron Green, we offer flexible power purchase agreements (PPAs) that require no upfront investment, enabling businesses to reap the benefits of solar without financial strain.

The elimination of gas supplies through Ukraine from Russia has ushered in a new era of energy challenges for Europe, with rising electricity prices creating significant hurdles for businesses. However, these challenges also present an opportunity to embrace renewable energy and achieve energy independence.

At Shannon Energy, we are committed to helping commercial organisations make this transition seamlessly. With our expertise in solar PV installations and our customer-focused approach, we empower businesses to reduce costs, meet sustainability targets, and thrive in a rapidly evolving energy landscape.

Don’t wait for prices to climb further—contact Kale@ShannonEnergy.com today to learn how we can help future-proof your energy strategy.

Operation and Maintenance of Solar Panels: A Guide for Commercial Projects in Ireland

Wed, 22 Jan 2025 11:20:46 GMT

Operation and Maintenance of Solar Panels:

A Guide for Commercial Projects in Ireland

As solar energy becomes increasingly popular, understanding the operation and maintenance (O&M) of solar photovoltaic (PV) systems is crucial for ensuring long-term performance and reliability. Whether you're installing rooftop or ground-mounted solar panels, keeping your system well-maintained is essential for maximising energy production and extending the lifespan of your investment. We’ll delve into the costs associated with O&M, key questions to ask your installer, different types of maintenance costs, and best practices for cleaning and upkeep.

Understanding Operation and Maintenance Costs

O&M costs can vary significantly based on several factors, including the size of the installation, type of panels used, and the specific conditions of your site. Here are the primary categories of O&M costs to be aware of:

Routine Maintenance Costs : These are regular checks and minor repairs to ensure optimal performance. Typical services might include:
Visual inspections
Testing of electrical connections
Monitoring system performance
Preventive Maintenance Costs : More extensive than routine maintenance, this includes scheduled tasks aimed at preventing issues before they arise. This might involve:
Cleaning panels
Replacing inverters or other components
Electrical system checks

Corrective Maintenance Costs : This covers unexpected repairs due to system failures or damage. It can include:

Component replacements
Repairing wiring or connections
Emergency service calls

Questions to Ask Your Installer

Before choosing an installer, consider these critical questions to ensure you understand the O&M plan:

What does your maintenance plan include? Ensure you have a clear understanding of what services are covered under their maintenance agreement. What training or expertise do the technicians have? Is inverter maintenance covered - it should be! O&M costs are more than just about cleaning your solar panels for maximum performance. While there are no moving parts, there is still room for wear and tear and this needs to be mitigated through your O&M plan.
What are the estimated annual O&M costs? Get a detailed breakdown of the expected costs so you can budget accordingly. Understand what might happen to incur extra charges - however unlikely!
How often will the system be inspected and cleaned? Knowing the schedule can help you plan for downtime and associated costs. Understanding if you’ve any responsibilities within this schedule is important too.
What kind of warranty or guarantee do you offer for your maintenance services? This can protect you against unforeseen issues and provide peace of mind. This might be linked to installation - around warranty for parts. Solar panels typically have a lifespan of 35-40 years, at which point they are operating at about 80% original capacity. Solar PV is still a relatively new commercial offering so it’s important organisations plan for the future of their investment and ensure that their installer is future facing too.
How proactive will your installer be? Who is responsible for noticing any issues? Is your installation monitored by your provider or is this something you’ve undertaken in-house? This will assume different costs. Also, is there a call out fee if you’ve queries that can’t be answered remotely.
If you’ve opted for a Power Purchase Agreement, is this cost included?

Types of Operation and Maintenance Costs

O&M costs can generally be categorised into two main types:

Fixed Costs : These are predictable expenses that remain constant over time, such as:
Routine inspections
Basic cleaning services
Variable Costs : These can fluctuate based on system performance and unexpected issues. Examples include:
Repairs due to wear and tear or environmental factors (e.g., storms)
Costs associated with component replacement

Does your installer monitor your solar performance and will they flag any issues? You can expect to pay for this service. As all solar installations now come with monitoring software, you might decide to do this level of analysis inhouse and alert your installer if you have any queries. It might be more economical for your provider to provide this as a full service solution as they can future proof issues for your organisation and they learn from a wider community of users and service users.

Similar to having a car for which you might book an annual service, you would expect extra costs if there is a breakdown or issue in between services. You would also expect your car dealer to alert you to any wider market issues or recalls that could impact you.

Cleaning Frequency and Best Practices

Regular cleaning is vital for maintaining optimal performance, especially in Ireland where weather conditions can affect panel efficiency. Here are some best practices:

Frequency : Panels should typically be cleaned at least once a year, or ideally twice. Depending on your environment, such as areas with significant dust, bird droppings, or other debris, more frequent cleaning may be necessary.
Method : Technicians should use soft brushes and non-abrasive cleaning agents. Avoid high-pressure washing, as it can damage panels.
Timing : Clean panels early in the morning or late in the evening when temperatures are cooler to prevent water spots and damage.

And Finally!

Investing in solar panels is a significant step toward sustainability and energy independence. However, understanding the ongoing operation and maintenance needs is just as crucial. By being proactive and informed about O&M costs, asking the right questions, and adhering to a regular cleaning schedule, you can ensure that your solar PV system operates efficiently for many years to come.

For tailored advice or to discuss your solar panel installation further, feel free to reach out to us. Let’s work together to make the most of your solar investment! Contact Kale@ShannonEnergy.com

Why Solar PV Is a Smart Investment for Commercial Real Estate Owners

michelle@shannon.energy (Michelle McKenna) — Tue, 07 Jan 2025 14:32:39 GMT

Why Solar PV is a Smart Investment for Commercial Real Estate Owners

A Win-Win for Property Owners and Tenants

In commercial real estate, making a property more attractive to tenants or buyers is key to success. One often-overlooked strategy is integrating solar PV systems into your buildings. Not only does this boost the building's value and marketability, but it also offers long-term benefits for your tenants, making your property more competitive in a crowded market.

1. Enhance Property Value and Marketability

Solar installations are a long-term asset that increase a building’s value. A solar-equipped property can:

Attract environmentally conscious tenants or buyers.
Command higher rents due to energy savings for tenants.
Differentiate itself in markets where sustainability is becoming a priority.

2. Cost-Efficiency for Tenants

Energy efficiency is a major concern for commercial tenants. By installing solar, property owners can:

Lower operating costs for tenants, creating a competitive advantage.
Attract tenants in energy-intensive industries who value predictable and lower utility bills.

3. Future-Proof Against Regulatory Requirements

Governments are increasingly setting sustainability targets for commercial properties, including renewable energy quotas. Solar PV can help ensure compliance with:

Building energy performance standards.
Local regulations or incentives tied to renewable energy use.

4. Tax Incentives and Grants

In Ireland, there are generous incentives to make solar installations financially appealing. These include:

Government grants for renewable energy installations.
Accelerated Capital Allowance tax breaks.

By leveraging these, property owners can reduce upfront costs and achieve faster payback periods.

5. Improved Green Building Credentials

Installing solar contributes to achieving certifications like BREEAM or LEED. These credentials not only help attract tenants but also position the building as a leader in sustainability, helping you stand out in an increasingly competitive market place.

6. Faster Letting or Selling Process

Solar installations are increasingly seen as a value-add. Buildings with lower carbon footprints and reduced energy costs sell or lease faster, especially to organisations who prioritise Environmental, Social, Governance (ESG) targets.

7. A Low Risk Investment

Large flat roofs are the ideal space for installing solar, and monetising this underused space can be done relatively quickly and easily. As solar panels have no moving parts, they are the ideal investment option too, requiring cleaning just once a year. Opting for this low risk, high return investment option is a no brainer for most realtors.

Solar PV offers a Competitive Edge

For commercial real estate owners in Ireland, solar PV is no longer just an environmental choice—it’s a business decision that makes properties more attractive, cost-efficient, and future-ready. By integrating solar before letting or selling, you position your building for long-term success while benefiting your tenants and contributing to a greener future.

Contact Kale@ShannonEnergy.com today, to enhance your commercial attractiveness.

Why Solar is the Perfect Christmas Present for Your Business

Mon, 16 Dec 2024 10:53:10 GMT

Why Solar is the Perfect Christmas Present for Your Business

As the Christmas season approaches, it’s the perfect time to reflect on the year gone by and set your business up for future success. This year, why not give your company a gift that keeps on giving? Solar energy is more than an investment—it’s a commitment to sustainability, savings, and a brighter future for your business.

At Shannon Energy, we understand the unique needs of Irish businesses and offer tailored solar solutions to help you make the most of renewable energy. Here’s why solar could be the ultimate Christmas present for your business:

1. A Gift That Keeps Giving

A commercial solar PV system is not just a purchase; it’s a long-term investment in your business’s future. With a lifespan of 25 years or more, solar panels provide year-round savings on energy costs while shielding your business from rising electricity prices. It’s a present that pays for itself many times over.

2. Take Advantage of Available Grants and Incentives

The Irish government offers several financial supports to encourage businesses to adopt renewable energy. These include grants through the SEAI (Sustainable Energy Authority of Ireland) that can significantly reduce the upfront cost of installation. Additionally, schemes like the Accelerated Capital Allowance allow businesses to deduct the cost of solar installations from taxable profits, making the investment even more appealing.

3. Lead the Way in Sustainability

Christmas is a time of generosity, and what better way to give back than by reducing your carbon footprint? Solar energy helps your business reduce reliance on fossil fuels, contributing to Ireland’s renewable energy targets. Show your commitment to a greener planet and inspire others to follow suit.

4. Enhance Your Business Reputation

Sustainability matters more than ever. By embracing solar, your business demonstrates leadership in renewable energy, which can resonate with environmentally conscious customers and clients. It’s a powerful message that aligns your business values with the growing demand for sustainability.

5. Stabilise Your Energy Costs

With energy prices remaining unpredictable, solar PV offers a reliable way to control costs. By generating your own power, you’ll reduce reliance on the grid and protect your business from future price volatility. Solar is an investment in financial stability, ensuring peace of mind in the years ahead.

6. Start the New Year Strong

Christmas often brings a quieter period for businesses, making it an ideal time to plan or start a solar project. By investing now, you can have your system installed and operational for 2024, reaping the benefits from day one of the new year.

7. A Thoughtful Message of Hope

The festive season is about looking forward, and solar energy represents hope for a sustainable future. By choosing solar, you send a strong message to your employees, stakeholders, and community that your business is investing in the future—not just for profits but for the planet.

How Shannon Energy Can Help

At Shannon Energy, we specialise in commercial solar PV solutions for businesses across Ireland. Whether it’s a large rooftop system, ground-mounted array, or carport installation, we design systems tailored to your energy needs. Our team can guide you through the grants and incentives available, making the transition to solar as cost-effective and seamless as possible.

Make This Christmas One to Remember

This Christmas, give your business a present that delivers savings, sustainability, and a stronger future. Solar energy isn’t just an investment in your company; it’s an investment in the environment and your community.

Get in touch with kale@shannonenergy.com to discover how we can help you unwrap the benefits of solar power this festive season. Together, we can make your business greener, smarter, and more sustainable.

Data Centres in Ireland: Balancing Growth and Grid Sustainability

michelle@shannon.energy (Michelle McKenna) — Mon, 09 Dec 2024 10:57:55 GMT

Data Centres in Ireland: Balancing Growth and Grid Sustainability

A Growing Industry with a Large Appetite for Energy

The Data Centre industry has become a cornerstone of Ireland's economy, driven by multinational tech giants seeking a strategic European base. According to CSO figures, data centres now account for 21% of Ireland's electricity consumption (*2023 data), with projections indicating continued growth. This level of energy demand has raised concerns about the strain on Ireland's electricity grid and the country's renewable energy targets.

But what exactly is a data centre?

A Data Centre is a physical location for storing computers and necessary hardware. With the advances in technology, there has been an exponential growth in data, back up locations and the necessary network equipment. Think of the photos and files on your phone, your work documents, your medical records, even the solar panels on your house - and the data all of these generate. With the click of a button, we can see days, weeks and years of information - all of which is stored and backed up, to ensure we never lose it. The ‘cloud’ storage we use is fulfilled by Data Centres and GDPR stipulates our data must be stored within the EU.

Comparing Energy Consumption Across Industries

To grasp the scale of energy consumption by data centres, consider the following:

In 2023, Ireland's data centres consumed approximately 6,334 GWh, or 21% of our national electricity use.
Comparatively, the aviation sector, including all domestic and international flights in Ireland, used 180,000 GWh, or 28 times more energy.
Interestingly, data centres in Ireland consume almost the same electricity as the combined annual household energy use of 400,000 Irish homes - keeping all of our photos, data and information safely backed up and allowing us to operate streaming services, seamlessly.

As of April 2024, there were 82 data centres in Ireland, with an additional 14 centres under construction, and planning approval for an additional 40 centres ( Ryan Christensen, 2024 ). These figures highlight the sheer energy demand driven by data centres, emphasising the need for sustainable solutions.

The Impact on Grid Capacity

Ireland's electricity grid is under pressure to accommodate the rapid expansion of data centres. Key challenges include:

Grid Congestion: Limited grid capacity in high-demand regions like Dublin has prompted regulatory bodies to assess connection applications rigorously.
Renewable Energy Targets: Balancing this growth while meeting EU-mandated renewable energy targets is an ongoing struggle.

Ireland joins other European countries such as France, Germany and Holland, as a leading hub for data centres. Competitive electricity prices and stable energy grids are driving the investment. Nordic countries are also seeing a surge in data centres, given the lower temperatures, as cooling is a huge cost factor. Our electricity grid is more than 100 years old, and while upgrades have been undertaken, the pace of change in demand has far exceeded the grid improvement modifications.

Planning Regulations and Renewable Energy Commitments

In response to these challenges, the Irish government has implemented policies requiring data centres to:

Include Renewable Energy in Their Supply: Data centres are often mandated to source a portion of their energy from renewable sources, such as wind and solar, which can be incorporated into the build stage, or later through CapEx or corporate PPAs.
Onsite Renewable Energy Installations: Some planning approvals stipulate the integration of renewable technologies like rooftop solar or battery storage, helping to reduce the pressure on the grid at key times of the day.
Limits on Grid Connections: Recent moratoriums on new grid connections in certain areas ensure that existing capacity is preserved for other users. This leads to data centres and other large energy users relying on older technology, such as diesel generators, to safeguard their energy supply.

Looking to the Future

The Data Centre industry is both a driver of economic growth and a major energy consumer. Striking a balance requires innovative approaches:

Expanded investment in renewable energy infrastructure to support grid demands.
Enhanced energy storage technologies to offset peak loads.
Stricter planning regulations tying new data centre approvals to green energy commitments.

For businesses in the renewable energy sector, this presents an opportunity. At Shannon Energy, we are committed to working with commercial organisations, including data centres, to deliver tailored solar PV solutions that meet organisational sustainability goals while reducing pressure on our national grid.

Installing solar panels on the rooftop of datacentres can be done relatively quickly and easily. A large data centre rooftop, facilitating 1,000 solar panels, could offset 3,000T of carbon over a 20 year period, and generate enough electricity to power more than 110 homes. While this might be a small percentage of a datacentre's overall energy consumption, it is not insignificant.

New regulations are emerging to address the sustainability challenges of data centres in Ireland, influenced by broader EU policies. Key developments include:

EU-Wide Sustainability Reporting : The European Commission introduced a regulation requiring data centres with a minimum IT power demand of 500 kW to report on sustainability metrics like energy use, renewable energy integration, water consumption, and waste heat reuse. The first reporting deadline was September 15, 2024, followed by annual submissions. This measure aims to enhance transparency and encourage more energy-efficient and sustainable designs
Energy Efficiency Directive (Recast) : The EU has set binding energy consumption reduction targets (11.7% by 2030), with a focus on high-energy sectors like IT and data centres. Operators will also need to disclose energy performance data, aligning with the Directive's goals to manage the sector's growing energy demand
Ireland-Specific Implications : While Ireland hasn't yet fully transposed the Directive into national law, future compliance is expected. The country, hosting many hyperscale data centres, faces unique grid pressures and may see stricter enforcement of energy-efficient practices, renewable integration, and possibly limits on new connections

These regulations signal a shift towards balancing data centre growth with energy sustainability. Ireland, as a key data centre hub, will likely experience notable operational adjustments as these rules are implemented. Many of our large tech companies want to continue to invest in Ireland and expand their operations, but our grid and planning laws work against the wider appeal of growing in Ireland

Conclusion

The Data Centre industry in Ireland is at a crossroads. Its growth must align with our national climate commitments, which means stakeholders across sectors must collaborate to find sustainable solutions. Renewable energy, efficient grid planning, and robust regulations will be the pillars of this transition, and it is up to all of us, to harness the power of green energy, renewables and others, to be the change we want to see.

Contact Kale@ShannonEnergy.com to find out how we can help your organisation meet its renewable energy targets, reducing grid congestion and greenhouse gas emissions.

Learn how an energy audit could generate big savings for your business

michelle@shannon.energy (Michelle McKenna) — Mon, 02 Dec 2024 10:40:38 GMT

Learn how an energy audit could generate big savings for your business

An energy audit is a systematic process that assesses an organisation's energy use and identifies opportunities to improve energy efficiency, reduce costs, and minimise environmental impact. It provides a detailed analysis of energy consumption across operations, facilities, and equipment, offering actionable recommendations for improvement. An energy audit will generate a full report for your organisation, covering everything from the smaller jobs like installing LED lights across your organisation (if you haven’t already done so!) to the bigger jobs of installing solar panels or improving insulation.

Key Components of an Energy Audit

Data Collection and Analysis :

Assessing utility bills, energy meters, and historical consumption patterns.
Identifying energy-intensive processes, equipment, or systems.

2 . Site Inspection :

Evaluating the condition of facilities, HVAC systems, lighting, machinery, and insulation.
Identifying inefficiencies like leaks, outdated equipment, poor operational practices and utilising more peak electricity than necessary.

3 . Energy Efficiency Recommendations :

Proposing measures such as equipment upgrades, renewable energy installations, or operational changes.

4 . Cost-Benefit Analysis :

Estimating the savings, payback periods, and return on investment (ROI) for each recommendation.

5 . Implementation Plan :

Creating a roadmap for integrating improvements, including timelines and budgets.

Types of Energy Audits

There are a variety of energy audits available, depending on the organisation's appetite for change. For organisations with high energy consumption, there is an energy audit voucher available from SEAI, which in many cases covers the full cost of the audit: www.seai.ie/grants/business-grants/energy-audits

Preliminary Audit : A high-level overview of energy use to identify major inefficiencies.
Detailed Audit : A comprehensive evaluation that includes in-depth measurements and analysis.
Investment-Grade Audit : Provides detailed data and financial projections to support significant capital investments.

How Can an Energy Audit Impact Your Organisation?

1. Financial Benefits

Reduced Energy Costs: Identifying and addressing inefficiencies can lower energy bills.
Improved ROI: Investments in energy-saving technologies often yield long-term savings.

2. Operational Efficiency

Enhances the performance and lifespan of equipment through maintenance or upgrades.
Optimises resource allocation, reducing downtime and operational bottlenecks.

3. Environmental Benefits

Lowers greenhouse gas (GHG) emissions by reducing energy consumption.
Facilitates compliance with environmental regulations and carbon reduction targets.

4. Strategic Planning

Supports informed decision-making for future energy investments, including renewable energy sources like solar or wind, which reduce electricity and gas consumption.
Aligns energy management with corporate sustainability goals.
Supports international climate change progress and peer-learnings through organisations such as Science Based Targets (www.sciencebasedtargets.org)

5. Compliance and Certification

Helps meet legal obligations, such as Ireland’s Energy Efficiency Obligation Scheme (EEOS) .
Contributes to achieving certifications like ISO 50001 (Energy Management Systems) .

6. Employee and Stakeholder Engagement

Demonstrates a commitment to sustainability, improving stakeholder trust and employee morale.
Encourages a culture of energy awareness within the organisation.

Why Should Your Organisation Conduct an Energy Audit?

To gain a competitive edge by lowering operational costs.
To comply with regulatory frameworks and avoid potential fines.
To future-proof operations against rising energy prices.
To position the organisation as a leader in sustainability, enhancing brand reputation.

Conducting an energy audit is a strategic investment that provides insights into how energy is used and opens opportunities for operational and environmental improvements. Get in touch today if you’d like to understand more about how your organisation uses energy and where cost and carbon savings could be made.

Kale@ShannonEnergy.com will be happy to answer any questions and help you start your energy efficiency journey today.

Financing your solar installation...What is a PPA?

Mon, 18 Nov 2024 15:45:20 GMT

Need Financing for your Solar project? How a Power Purchase Agreement (PPA) could be perfect for your Business!

As businesses around the world look for innovative ways to reduce operational costs and meet sustainability goals, many are turning to solar power. Shannon Energy offers commercial organisations a powerful solution to achieve these goals through Power Purchase Agreements (PPAs). But what exactly is a PPA, and why are more businesses choosing this path for their solar PV installations? In this blog, we break down what you need to know about PPAs and how they can benefit your business.

What is a Power Purchase Agreement (PPA)?

A Power Purchase Agreement, or PPA, is a contract between a solar developer and a business. Under this agreement, the developer designs, instals, and maintains a solar PV system on the business's property—typically on a large rooftop or in a dedicated area such as a groundmount or carport. The business then agrees to purchase the electricity generated by the system at a fixed rate for a specified term, typically between 15 and 25 years.

This arrangement allows businesses to benefit from clean, renewable energy without the upfront costs usually associated with solar installations. Instead, the developer assumes the financial risk of installing and maintaining the system, while the business gets reliable access to solar power at predictable rates. This is increasingly of interest to Irish businesses following the price fluctuations over the last few years and growing international instability.

Who Organises a PPA?

PPAs are organised by a solar developer or energy service company, who manage every step of the process: conducting site assessments, handling permits, securing financing, and overseeing installation and maintenance. Each solar developer has their own financing company that they work with, where all terms and conditions are agreed upon between both parties. This end-to-end service relieves the business of the time, expense, and complexity of managing a solar project on its own.

Shannon Energy, for example, not only provides customised PPA solutions but also monitors the performance of each system through a dedicated operations centre, ensuring that it delivers optimal energy generation over the life of the contract. This allows our clients to remain focused on their core business, knowing their solar energy needs are fully taken care of.

The Benefits of a PPA

There are numerous reasons why businesses are increasingly choosing PPAs for their commercial solar needs:

1. No Upfront Costs : A significant barrier for many businesses is the high upfront cost of purchasing a solar PV system. PPAs eliminate this hurdle, making solar accessible to organisations that may not have the capital available for such an investment.

2. Lower, Predictable Energy Costs : By entering a PPA, businesses often gain access to energy rates that are lower than what they’d pay for grid electricity. PPAs offer either a fixed or discounted rate, helping businesses hedge against future energy price fluctuations.

3. Alignment with Sustainability Goals : Many businesses are adopting renewable energy as part of their sustainability strategies. By securing a PPA, they can reduce their carbon footprint, enhance their environmental credentials, and appeal to environmentally conscious customers and stakeholders.

4. Maintenance-Free Operation : With a PPA, the developer assumes responsibility for system maintenance. This allows the business to benefit from clean energy without having to worry about repairs, replacements, or other operational tasks.

5. Option to buy the system outright: With a PPA although the system is originally not owned by you, you have the option to buy the system outright at any stage during the PPA duration.

Potential Challenges of a PPA

While PPAs offer many advantages, businesses should consider a few potential challenges:

Long-Term Commitment : PPAs are long-term agreements, typically spanning 15–25 years. This means businesses need to commit to the property and energy arrangement over this period, which may not be suitable for all organisations.

Potential Limitation on Property Use : A solar PV system may limit future property modifications or expansions due to roof space usage, building restrictions, or shading concerns.

Who Benefits Most from a PPA?

PPAs are especially beneficial for commercial organisations that:

Have consistent, predictable energy needs.
Want to reduce energy costs and carbon footprint but lack the capital to fund a solar PV installation.
Have ample rooftop space, ground area, or parking spaces that can host a solar PV system.
Are committed to being in their current location for the foreseeable future.

Why Choose Shannon Energy for Your PPA?

At Shannon Energy, we specialise in providing businesses with tailored, behind-the-metre solar PV solutions. With our extensive experience in large rooftop projects, ground mounts, and carports, we help businesses harness solar energy to achieve their sustainability and cost-saving goals. Through our National Operations Centre, we offer ongoing monitoring and performance evaluation, ensuring the maximum Return On Investment for every PPA client.

Ready to Explore Your PPA Options?

PPAs are a fantastic option for businesses looking to gain the benefits of solar without the investment burden. If you're interested in learning more about how a PPA could work for your organisation, contact Kale@ShannonEnergy.com today. Together, we’ll create a solar solution that meets your needs and advances your environmental objectives.

How Rooftop Solar Can Boost Your ESG Accreditation

Tue, 12 Nov 2024 13:47:26 GMT

How Rooftop Solar Can Boost Your ESG Accreditation

As companies increasingly prioritise sustainability, Environmental, Social, and Governance (ESG) accreditation has become a benchmark for responsible business practices. Many organisations are realising that rooftop solar can play a key role in achieving ESG accreditation by contributing to environmental impact goals, supporting social responsibility, and enhancing governance practices. Let’s dive into how rooftop solar can benefit each of these areas, driving both ESG credentials and long-term value

1. Solar’s Impact on Environmental Standards

One of the strongest arguments for rooftop solar is its environmental benefit. Solar power aligns with the “E” in ESG by reducing carbon emissions, lowering energy consumption, and supporting renewable energy use.

Lower Carbon Footprint : Solar power is one of the cleanest energy sources available. By generating electricity on-site, rooftop solar reduces reliance on the grid and fossil fuels, effectively cutting greenhouse gas emissions and aligning with carbon reduction goals. For companies targeting net-zero emissions, solar is an impactful, measurable step.
Enhanced Energy Efficiency : On-site renewable energy production also decreases the overall demand from conventional power sources. This improves energy efficiency, which is often a key criterion in ESG frameworks and environmental certifications like LEED and BREEAM.
Support for Green Certifications : Many green certifications for buildings prioritise renewable energy. Incorporating solar into your building’s energy portfolio is a powerful way to support these certifications, which further strengthens ESG credentials and demonstrates a strong commitment to sustainability, keeping investors, stakeholders and employees happy.

2. Solar’s Contribution to Social Responsibility

Investing in solar isn’t just about the environment; it also reflects a commitment to the broader community and can enhance a company's social impact—essential for meeting the “S” in ESG.

Positive Community Impact : A solar installation is a visible commitment to sustainability, which can foster goodwill in the community. It signals to clients, tenants, and the public that your organisation is actively working to reduce its environmental footprint and embrace renewable energy. This can positively shape how your company is perceived within the local community.
Employee and Stakeholder Engagement : Companies increasingly find that employees and stakeholders are motivated by sustainable initiatives. Installing rooftop solar demonstrates that the company is actively involved in climate responsibility, a quality that can enhance morale and help attract talent. Employees often feel more engaged and proud to work for organisations that prioritise a sustainable future, which contributes positively to corporate culture and brand reputation.

3. Solar’s Role in Governance and Transparency

Transparent governance and accountability practices are essential for any ESG-aligned organisation, and solar energy directly supports these principles, contributing to the “G” in ESG.

Transparent Reporting : Solar power production is easily monitored, providing concrete data on renewable energy usage that can be shared in ESG reports. This transparency strengthens your company’s governance by offering clear metrics for stakeholders and ESG auditors, showcasing how the organisation meets its sustainability commitments. Most solar PV installations now offer the opportunity to showcase your carbon impact in real time, a nice addition to any commercial reception area.
Financial Responsibility and Stability : While rooftop solar requires an initial investment, it leads to long-term savings on electricity bills and provides protection against volatile energy costs. This forward-thinking approach to financial management aligns with responsible governance practices, supporting fiscal responsibility, which is a key factor in ESG performance.

Why Solar Matters for ESG Accreditation

ESG accreditation involves demonstrating measurable, positive impacts across environmental, social, and governance criteria. A rooftop solar installation provides direct, tangible benefits in each of these areas, positioning companies to not only achieve ESG goals but also gain the economic and reputational rewards associated with them.

In cities like Dublin, where sustainability and green building practices are increasingly prioritised, rooftop solar is a strategic asset for ESG accreditation. Whether you’re a building owner, developer, or tenant, solar power is a powerful tool for boosting your environmental credentials, meeting corporate social responsibility goals, and enhancing governance practices.

Moving Forward with Rooftop Solar for ESG Success

Embracing rooftop solar is a valuable investment that enhances both sustainability and long-term business value. Beyond boosting ESG accreditation, it also future-proofs organisations against regulatory and market shifts towards renewable energy. By demonstrating a clear commitment to sustainability through solar, companies can position themselves strategically in a world rapidly transitioning to greener, cleaner practices.

If you’re considering rooftop solar as part of your ESG strategy, choosing the right solar installer is crucial to a successful and hassle-free installation. The expertise of a skilled, reliable installer not only ensures a safe and compliant installation but also maximises your solar system’s performance, helping you achieve both immediate and long-term sustainability goals.

At Shannon Energy, we’re dedicated to supporting clients on their journey to a sustainable future. Take the time to research and engage with your installer, and you'll be well on your way to harnessing the power of solar energy for your business. Shannon Energy can help you make your transition to solar energy smooth and safe, and aligned with your ESG objectives - just contact Kale@ShannonEnergy.com to learn more. Together, we’ll create a solar solution that brings measurable value to your ESG commitments and strengthens your sustainability profile for the future.

Financing Your Solar Installation: Smart Options for Long-Term Savings

michelle@shannon.energy (Michelle McKenna) — Mon, 04 Nov 2024 15:48:53 GMT

Financing Your Solar Installation: Smart Options for Long-Term Savings

As the demand for renewable energy solutions continues to rise, many businesses are considering solar installations. However, the initial investment can seem daunting. Understanding your financing options is crucial for maximising savings and ensuring a successful solar project. It’s important to work with your solar PV installer, sharing your consumption information, so they can determine the best fit solar solution for your business, helping you avail of grants and financing to meet your business needs. Here, we’ll explore different ways to finance a large solar installation.

1. Capital Expenditure (CapEx) Financing

CapEx financing involves purchasing your solar system outright. While this may require a large upfront investment, it offers significant long-term benefits:

Lower Long-Term Costs: Owning your solar system means you won’t have to pay ongoing lease payments, leading to greater savings over time. Full analysis by your installer will help you understand your payback period. Typically your solar project will begin generating free electricity for your business after just 5–7 years!
Accelerated Capital Allowances (ACA): In Ireland, businesses can benefit from ACA tax breaks, allowing you to write off the cost of the solar installation against your taxable income. This can reduce your initial investment by as much as 12.5% and improve your cash flow.
Increased Property Value: A solar PV installation can enhance your property’s value, making it a more worthwhile investment if you decide to sell in the future. Green energy being supplied to a building can increase the rental value and attract longer term tenants. It can also impact the societal value of your organisation, giving a clear signal as to your green credentials.

2. Loans

If upfront costs are a concern, financing through a bank or financial institution can be a viable option. Here’s how it works:

Solar Loans: Many banks offer specific solar loan products that cater to renewable energy projects. These loans usually have competitive interest rates and flexible repayment terms. Strategic Banking Corporation of Ireland (SCBI) offers a Green Transition Finance package, as well as a Growth and Sustainability Loan Scheme. Both of these qualify eligible businesses for lower cost green business loans.
Tax Benefits: Like CapEx, solar loans may also allow you to take advantage of ACA tax benefits, depending on the structure of your loan and the ownership of the system.

3. Leasing Options

Leasing can be an attractive alternative for those who prefer to avoid the upfront costs of purchasing a solar system outright, reducing organisational risk.

Operating Lease: In this arrangement, you pay a monthly fee to use the solar system without owning it. While this reduces your initial cash outlay, you won’t benefit from ACA tax breaks since you don’t own the system. There are usually some buy-out milestones included should the business wish to buy the system outright after a period of time. This is a good way of reducing the businesses initial risk exposure at the start of the project, though it does impact the overall price negatively.
Power Purchase Agreement (PPA): This is a long-term contract, typically 25 years, where you agree to purchase the power generated by the solar system at a predetermined rate. Like leasing, you avoid upfront costs but may miss out on long-term savings and tax incentives. The solar PV provider will agree to a rate per unit over the term of the lease, with lump sums payable should more or less electricity be used or produced over the course of the PPA. Payments are typically calculated on an annual basis and your business will usually take control of the solar system at the end of the PPA period.

4. Government Grants and Incentives

In addition to financing options, there are a number of government grants and incentives that can help offset your costs. The Sustainable Energy Authority of Ireland (SEAI) offers various programs that can significantly reduce the financial cost of your solar installation, usually calculated per expected kW installed. There are additional grants available through the Dept of Agriculture for farmers - specifically the TAM3 grant (Targeted Agricultural Modernisation Grant) and your solar installer will be able to advise you accordingly.

5. Crowdfunding and Community Funding

For community initiatives consider crowdfunding or community funding options. This approach allows multiple investors to pool resources and share in the benefits of renewable energy projects. There are a variety of supports and grants available through SEAI: https://www.seai.ie/grants/community-grants who can guide you through the process and help you avail of grants of up to 50%.

Finally...

Choosing the right financing option for your solar installation is essential for maximising your investment. While CapEx projects may require a higher upfront cost, the long-term savings and tax benefits make them a compelling choice. A well designed and planned system can generate returns in as little as 5 years - though it’s important to start with understanding your energy use. Whether you opt for a loan, a lease, or seek government support, understanding your options will empower you to make informed decisions that benefit both your business and the environment.

If you’re considering a solar PV installation, get in touch with Kale@ShannonEnergy.com for personalised advice and to learn more about financing options tailored to your needs. Let us bring your solar project to life.

Key Questions to Ask Your Solar Installer: Ensuring a Smooth Installation Process

michelle@shannon.energy (Michelle McKenna) — Mon, 21 Oct 2024 15:21:20 GMT

Key Questions to Ask Your Solar Installer: Ensuring a Smooth Installation Process

Installing solar panels is a significant investment for your business, and choosing the right installer is crucial. Having a good installation experience will cost money - having a bad installation experience will cost a lot more! To ensure you make a well-informed decision, here are some essential questions to ask your solar installer before proceeding.

1. Can You Help Me with Grant Applications?

There are a variety of grants available for solar PV installations and your installer will be able to help guide you in the right direction and will also support your application. Ensure they are properly certified to allow you to claim the maximum grant.

Grant Eligibility: What grants or incentives am I eligible for? Which one do you recommend and why?
Application Process: Do you assist with the paperwork and submission process? What will I need to make a successful claim?
Timelines: How long does it typically take to receive approval for my grant and will I receive the money before or after I pay you??

2. How Will the Installation Impact My Business Operations?

If you're a business owner, it's important to understand how the installation may affect your daily operations:

Installation Timeline: How long will the installation take, and will it disrupt my business? Will there be heavy machinery on site and do you need any special access?
Working Hours: Will your team work during regular business hours, or will it be scheduled outside of these times?
Noise and Disturbance: What level of noise can I expect during the installation?
Power outage - Will I lose power when my solar installation is being connected? For how long?

3. What Steps Do You Take to Handle Complaints?

Understanding how the installer manages complaints can give you peace of mind:

Complaint Resolution Process: What is your procedure for handling customer complaints? Have you had any issues in the past?
Warranty and Guarantees: What warranties do you offer, and how do they protect against defects? What do you protect against and what might I need to contact the manufacturer about? How do I contact the manufacturer?

4. What Regulations Should I Be Aware Of?

Solar PV installations must comply with various regulations. New planning permission exemptions for rooftop solar panels came into effect in October 2022, with the aim of fast tracking our national solar uptake. if you are within a safeguarding zone, you are restricted to 300 square meters, without needing planning permission. Ground mount installations of more than 17 kWp also need planning permission.

Local Regulations: Does my business fall within one of the Solar Safeguarding Zones? https://housinggovie.maps.arcgis.com/apps/instant/basic/index.html?appid=5d9bad421ce242b280cd709d4c50afca
Compliance: Will this installation have any environmental impact? How do I ensure compliance with safety and environmental regulations?

https://www.gov.ie/en/press-release/9ba0e-new-planning-permission-exemptions-for-rooftop-solar-panels-on-homes-and-other-buildings/

5. What Business Impact Should I Expect During Installation?

Understanding potential business impacts can help you plan accordingly and select the right installer. Installers should work with you to minimise business impact, though you should flag any particular concerns in advance of work starting.

Downtime: Will there be any downtime required for my business, and if so, how long will it last?
Preparation: Are there any preparations I need to make before installation begins? Does my roof need any prepping or cleaning in advance? Are there any ground or civil works I need to complete separately?
Post-Installation Support: What ongoing support do you provide once the installation is complete? How does the monitoring app work? Where will the data be sourced from?

6. What is Excluded from the Terms of Work?

It’s crucial to understand what may not be covered in your contract. Each project is different and your project team will be able to guide you, depending on your site and project.

Exclusions: What specific tasks or issues are excluded from the installation agreement? Are these things I will need a specialist for? Or should I be able to complete these myself?
Additional Costs: Are there potential additional costs I should be aware of? Will your installer leave the job complete and switched on, or will they need someone else to finalise the project? What about monitoring of the project? Will they have an app up and running for you on the day of installation?
Liabilities: What liabilities do you hold, and what falls under the client's responsibility?
Health and Safety: Who is responsible ?

7. Can I add on to an existing solar project?

Whether you want to extend an existing project, or you want to start with a small project, your installer will help you plan. You will be limited by your Maximum Import Capacity (MIC) in the first instance, though you can upgrade your line if necessary.

If you are adding to your existing system, your installer will need to know current connection size, MIC and details of cables and inverters to price the extension correctly.

If you are planning on a future upgrade, or getting additional work done in the future, keep all documentation and drawings in a safe place, to make it easier to share and plan for future developments.

8. Financing Options

Many installers can help with financing, whether supporting grants for CapEx projects, or connecting you with a financier for PPA projects. Review information from your installer to understand the payback period for a CapEx project, compared with the unit rate for a PPA project.

It’s important to understand what is covered in your after-sales service. Will they monitor your software over the lifetime of the project? Is annual cleaning included? What about call out fees?

Finally…

Choosing the right solar installer is key to a successful and hassle-free installation. By asking these questions, you can ensure that you select a professional who prioritises safety, compliance and customer satisfaction. Each project is different, so utilise your installers expertise to ensure you are maximising your investment. We will be working through answers these questions and more, over the coming weeks. We welcome your thoughts and input - should you wish to contact us.

Take the time to research and engage with your installer, and you'll be well on your way to harnessing the power of solar energy for your home or business. Contact Kale@ShannonEnergy.com to find out more about how we at Shannon Energy can help with your smooth and safe solar installation.

Unlock the Power of Solar with Grants and Support for Businesses

Tue, 08 Oct 2024 09:31:33 GMT

Unlock the Power of Solar with Grants and Support for Businesses

As more companies in Ireland embrace the shift to renewable energy, the support available to help businesses make the transition to solar energy has never been greater. If you're considering adding solar PV to your commercial property, you’ll be pleased to know that several government-backed grants, financial incentives, and supports are available to ease the financial burden. There are also a range of discounted loans available, among a variety of financing options. Shannon Energy is here to guide you through the entire process—from identifying the right grant to managing your installation.

1. Non-Domestic Microgen Scheme

The SEAI Non-Domestic Microgen Scheme supports businesses and organisations that want to generate their own renewable energy, such as solar PV. This scheme helps with the upfront costs of installing systems of up to 1MWp, making it ideal for SMEs looking to lower energy costs and sell surplus energy back to the grid. The grant value is tied to the size of your solar installation, with a maximum of €162,600 available per project.

How We Can Help: From application to installation, we guide you every step of the way, sizing the right system for you, filing paperwork and ensuring you're eligible for any available payments for excess energy exported to the grid.

2. TAMS 3 Grant (Targeted Agricultural Modernisation Scheme)

The TAMS grant is aimed specifically at farmers looking to invest in energy-efficient equipment, including solar PV. With up to 60% grants available, capped at €90,000, this grant offers substantial savings for those in the agricultural sector. Solar energy can significantly reduce your farm's energy bills, particularly if you’re running high-energy demand equipment like milking machines, ventilation systems, drying fans or irrigation pumps. Reducing dependency on fossil fuel is a key aim for the Department of Agriculture, supporting farmers with grants to invest in renewable energy sources. You can install up to 300kW on your roof, or 17kW ground-mounted, without the need for planning permission.

How We Can Help: We understand your usage patterns and assist in the application process, helping you select the right solar solution tailored to your farm's needs, maximising the grant funding available. We conduct glint and glare studies if you’re close to an airfield, working smarter, to maximise your returns.

3. EXEED (Excellence in Energy Efficiency Design)

EXEED-certified projects help businesses achieve energy-efficient design and operations. The SEAI EXEED programme offers grants to companies who follow a certified energy-efficient design approach, which can include solar PV, as well as enhanced insulation, improved lighting, heat pumps and other retrofit initiatives.

Grants of up to €3m are available and the EXEED programme can cover design, construction and commissioning costs, allowing businesses to incorporate energy efficiency into their overall system design.

How We Can Help: Our team of experts will ensure your solar project meets the EXEED requirements, assisting with the design and ensuring all relevant documentation is in place to secure maximum funding.

4. Energy Audits

An energy audit is the first step to understanding where you can save on energy costs. SEAI offers grants that cover part of the cost of energy audits, which can determine the benefits of installing solar PV. It’s a great starting point for businesses looking to assess their overall energy use and determine the best areas to target for maximum impact. Up to €2,000 is available for an energy audit which can often cover the full cost.

How We Can Help: We conduct thorough energy audits, providing recommendations on how solar PV can reduce your energy costs and enhance sustainability.

5. Accelerated Capital Allowance (ACA)

The ACA scheme allows businesses to write off the cost of their solar PV systems against their profit in the year of purchase, reducing their taxable income. This scheme makes investing in energy-efficient technologies like solar PV, even more attractive, allowing organisations to recover the full capital cost in a single tax year.

How We Can Help: Our straightforward paperwork process makes claiming the ACA allowance as simple as possible. Our team are on hand to help you maximise your returns and claim this tax benefit.

6. Power Purchase Agreement (PPA)

A PPA is an arrangement where your business can install solar PV with zero upfront costs by entering into an agreement with a solar provider who installs, owns and maintains the system. In return, you buy the electricity generated at an agreed, lower-than-market rate. PPAs are ideal for businesses that want to reduce energy costs without the capital expenditure. PPAs are typically offered over 25 years, but include buyout options for early ownership, should your organisation wish to take control of the solar installation before the end of the agreed PPA period.

How We Can Help: We offer tailored PPA solutions for companies of all sizes, allowing you to benefit from solar energy while maintaining cash flow.

7. SBCI Green Loans

The Strategic Banking Corporation of Ireland (SBCI) offers low-interest green loans to help SMEs finance energy-efficient upgrades, including solar PV. These loans are designed to make the upfront investment in renewable energy more affordable, with flexible repayment terms. They have both the 'Green Transition Finance' loan and the 'Growth and Sustainability' loan available to Irish businesses.

How We Can Help: We can advise you on how to apply for an SBCI Green Loan, providing guidance on the application and the best solar solution to maximise the return on your investment.

Why Choose Us?

At Shannon Energy, we understand that navigating the grants and financing options available can be overwhelming. That's why we’re here to help at every stage of your solar journey, from conducting initial energy audits to ensuring your project meets all the criteria for grants and funding. We provide a full service—from consultation to installation—so you can focus on what really matters: running your business, while we take care of the rest.

By choosing solar PV, your company will benefit from:

Reduced energy costs
Improved sustainability and reduced carbon emissions
Potential to earn revenue through exporting excess energy
Significant financial support through grants, tax relief, and low-interest loans

Our team of experts is ready to tailor a solution that meets your needs and helps you unlock the full potential of the grants and supports available.

Take the Next Step

To begin your solar journey, start compiling your energy data:

Determine your MIC (Maximum Import Capacity) - usually written on your energy bill, it determines the maximum size of your solar installation.
Contact MRSO to obtain your energy usage data ( http://www.mrso.ie/about_mrso/index.htm )
Gather 12 months of your electricity bills, to understand how you are being charged and allow us to work out your solar installation payback period.
Get in touch with us to begin transitioning your business to renewable energy, unlock grant funding, and reduce energy costs.

Contact Kale@ShannonEnergy.com today.

Maximising Cost Savings and Sustainability with Behind-the-Meter Solar Solutions

michelle@shannon.energy (Michelle McKenna) — Tue, 01 Oct 2024 08:47:21 GMT

Maximising Cost Savings and Sustainability with Behind-the-Meter Solar Solutions

In an era of rising energy costs and increased focus on sustainability, more and more businesses in Ireland are turning to solar energy to power their operations. For commercial and industrial (C&I) sectors, installing solar panels is not only an environmental commitment but a smart financial decision. One of the most effective ways for businesses to reap the full benefits of solar power is through behind-the-meter (BTM) installations .

BTM solar installations allow businesses to generate and use electricity directly from their own rooftops, reducing reliance on the grid and driving significant cost savings. Front-of-meter (FTM) refers to the more traditional method of mass production of electricity by a specialist energy provider, who then distributes it to the end user.

Let’s explore the advantages of BTM solar for commercial and industrial properties and how it can benefit Irish businesses, where the speed to market of BTM solar solutions are very much in contrast to the lengthy planning processes surrounding solar farms and most other types of renewable energy solutions.

1. Immediate Energy Cost Savings

Electricity prices in Ireland have seen considerable hikes in recent years, and commercial electricity rates remain high. BTM solar installations enable businesses to produce their own electricity on-site, reducing dependency on costly grid electricity. Because solar energy is free once installed, companies can significantly lower their energy bills by offsetting their daily consumption with clean, renewable power. Excess power can be stored onsite to a battery, then distributed when needed, especially to reduce peak cost consumption. By generating your own energy and taking less from the grid, you reduce your grid costs, which can include standing charges, per unit billing and maintenance costs.

Key Benefits:

Lower energy bills : Businesses can reduce their peak demand charges and overall electricity costs.
Energy independence : Companies can shield themselves from future price volatility and supply constraints.

2. Fast ROI and Long-Term Financial Gains

The financial return on investment (ROI) for BTM solar is often much faster than most businesses expect. With various government incentives like SEAI’s Exceed and Non-Domestic Microgen schemes, with grants of up to €162,600, TAMS support available at an enhanced rate of 60%, and an Accelerated Capital Allowance (ACA) scheme (of up to 12.5%) the investment in solar can be much less than expected. Many businesses see full payback within just a few years, after which the energy produced is essentially free.

Key Benefits:

Increased cash flow : Reduced energy bills translate into direct savings that can be reinvested in your business.
Tax benefits : Availing of the ACA scheme allows businesses to deduct the full cost of solar equipment against profits, providing a tax-efficient investment.

3. Reduced Carbon Footprint and Environmental Impact

Sustainability is no longer a luxury but a necessity for businesses striving to meet environmental standards and regulations. BTM solar systems help businesses dramatically cut their carbon emissions by relying on renewable energy instead of fossil fuels. Ireland has ambitious targets to reduce greenhouse gas emissions, and companies that embrace solar energy will play a key role in helping the country achieve these goals. Our national climate action plan, to reduce our greenhouse gas emissions by 51% by 2030 and becoming climate neutral no later than 2050, can only be achieved if we all take action.

Key Benefits:

Carbon reduction : Solar energy significantly lowers the carbon emissions of your business, helping meet sustainability targets.
Green branding : Installing solar panels enhances your company’s reputation as an environmentally responsible business, which can resonate with customers, partners and stakeholders alike.

4. Reliable Energy Supply and Grid Stability

BTM solar can improve energy security for businesses by providing a more reliable and consistent power source. By generating electricity on-site, businesses can protect themselves against potential grid failures or energy shortages, ensuring continuity of operations. When coupled with battery storage, solar systems can provide further stability, allowing businesses to store excess energy generated during sunny periods for use during peak demand. Our growth in population, housing, data centres and more is creating demand at a level not matched by supply. Data centers alone can consume 30MW, the equivalent of 8,000 homes.

Key Benefits:

Energy security : Reduces reliance on an often-unstable grid and protects against blackouts or power shortages.
Future-proofing : Businesses can maintain stable energy supplies, even in an evolving energy market.

5. Enhanced Building Utilisation

Commercial and industrial rooftops are often vast, unused spaces. Installing solar panels maximises the potential of these areas by turning idle space into an energy-producing asset. Whether you have warehouses, manufacturing plants, or office buildings, you can transform your rooftop into a valuable energy resource that contributes to your bottom line. Car parks can also be transformed into energy assets. Though more expensive to install due to the concrete foundations and anchors needed, carports can power employees EV’s, as well as generate electricity for onsite use.

Key Benefits:

Optimised rooftop usage : Turn your existing real estate into a productive, energy-generating asset.
Increased property value : Solar installations can increase the long-term value of your building.

6. Supporting Ireland’s Renewable Energy Transition

Ireland is on a journey to reach 80% renewable electricity by 2030, and businesses are essential to achieving this target. By investing in behind-the-meter solar solutions, companies contribute to the decarbonisation of Ireland’s energy grid and help meet the country’s climate action goals. This not only aligns your business with national policies but showcases your commitment to Ireland’s sustainable future. Businesses and individuals need to work independently to help meet the government targets, to ensure we are giving ourselves the best opportunity to thrive. While national targets are being measured and missed, these usually exclude BTM, of which there are approximately 100,000 households, with 3kWp capacity, generating up to 300mWp - a not insignificant number.

Key Benefits:

Leadership in sustainability : Businesses that adopt renewable energy demonstrate leadership in driving climate action, a growing factor in attracting and retaining employees.
Community impact : Support the wider transition to clean energy and contribute to a more sustainable, resilient economy. As well as being a leader in the community, green businesses are a focal point for education and green engagement initiatives.

Why Choose Us for Your Commercial Solar Installation?

At Shannon Energy, we specialise in delivering custom solar solutions for businesses in the commercial and industrial sectors. Our team of experts will guide you through the entire process—from design and installation to maintenance and monitoring—ensuring your system maximises energy production and cost savings. We can support CapEx projects with grant applications. We also work with funding partners to ensure you get the best rate PPA, reducing your costs and supporting your green journey.

We work closely with companies across Ireland to install tailored BTM solar solutions that meet your energy needs while offering significant financial and environmental benefits. By partnering with us, you’ll be making a smart investment in your company’s future and Ireland’s clean energy transition.

Ready to Power Your Business with Solar?

If you’re ready to lower your energy costs, reduce your carbon footprint, and future-proof your business, get in touch with us today to learn more about our behind-the-meter solar solutions. Together, we can turn your rooftop into a powerhouse of clean, affordable energy!

Invest in Solar, Invest in Your Future

As energy prices remain high and sustainability becomes a core business priority, behind-the-meter solar solutions provide an ideal opportunity for Irish businesses to gain control over their energy costs and reduce their environmental impact. Now is the perfect time to make the switch to solar, and we’re here to help you every step of the way. Email us today to begin your solar project: Kale@ShannonEnergy.com

What is Green Energy?

michelle@shannon.energy (Michelle McKenna) — Fri, 20 Sep 2024 12:52:08 GMT

Green energy is any type of energy, generated from renewable resources. It does not produce any greenhouse gas emissions and can be replenished naturally, unlike fossil fuels which deplete the earth's natural resources and rely on unsustainable extraction methods. Ireland has an abundance of green energy sources with solar, wind and water opportunities allowing us to generate electricity readily. As we understand more about the impact of burning fossil fuels globally, from price wars to climate change and political strong-arming, we equip ourselves with powerful arguments and motivations for the continued development and implementation of green energy for all. If we can generate energy, without depleting natural resources or changing the landscape drastically, we all benefit from the reduction in damaging emissions.

The two largest sources of green energy in Ireland are wind and solar energy. Wind energy is currently the largest contributing resource of renewable energy in Ireland. It is Ireland's largest and cheapest renewable source. From our first wind farm developed in Co. Mayo back in 1992, generating 6MW of electricity, to the current output of 192MW, that’s a 3200% increase over a 32 year period. We were one of the first countries in Europe to make such a large investment in renewable energy - 20 turbines, generating 300kWh each, with a blade tip height of 46.5m. The current project, to replace the Bellacorrick turbines with 18 new turbines, with a blade tip height of 200m, will allow Bord na Mona and ESB generate a total of 192Mw.

Bellacorrick Oweninny Change

Year of installation 1992 2024 32 years

Number of turbines 20 18 -10%

Blade tip height 46.5m 200m +430%

Output 6Mw 192Mw +3200%

By comparison, our first grid scale solar farm only became operational in May 2022 - 30 years after our first wind farm. The rate of change and innovation in the sector is balanced by the slow pace of development through planning minefields. The potential for solar remains large however, with our national Climate Action Plan targeting 5GW of solar by 2025 and GW of solar by 2030. With just 700MW connected to the national grid in 2023, we are making gains, but slow gains. The rate at which solar energy is intercepted by the Earth is about 10,000 times greater than the rate at which humankind consumes energy. Harnessing some of this power and having readily available storage, on a mass scale, would allow us to reduce, if not eradicate, our dependence on fossil fuels totally. It is the cleanest and most abundant of renewable sources.

Why is it important?

Our national Climate Action Plan 2021 (CAP21) provides a detailed plan for taking decisive action to achieve a 51% reduction in overall greenhouse gas emissions by 2030 and setting us on a path to reach net-zero emissions by no later than 2050. As a nation, we are well behind achieving this target. We need more action, by the masses, to make an impact.

As sustainability becomes more critical, reducing the production of greenhouse gases and other pollutants is a key action for our generation to safeguard future generations. Introducing solar to your business, whether roof mounted or ground mounted, is a significant investment in the future of your business.

Benefits include :

Reduce your Energy Bills: One of the most compelling benefits of solar energy for your business is the reduction in electricity costs. By generating your own power, you can drastically reduce your utility bills. Shannon Energy will analyse your consumption patterns to generate the best-fit solution that offsets as much grid consumption as possible. This in turn reduces your organisation's emissions. Electricity generated from solar can also reduce gas consumption onsite, that is traditionally used to heat water. Clever design can allow you maximise your return on investment, reducing electricity and gas costs on-site.

Avail of Government Grants: There are a variety of grants and incentives currently available from the government, to support businesses investing in a more sustainable future. These grants can reduce the upfront costs by as much as 60%. Whether it’s a full review of energy consumption with a business-wide energy audit, or a targeted upgrade in facilities, such a move to solar, there are a range of grants available to support you. Shannon Energy can advise you as to the best option.

Cement your commitment to Sustainability: Businesses that adopt renewable energy solutions demonstrate a stronger commitment to sustainability and environmental responsibility. This can enhance your corporate image, making you more attractive to stakeholders, investors and environmentally-conscious consumers. Our bespoke proposals outline your potential carbon savings with a Shannon Energy solar investment.

Achieve Long-Term Financial Stability: After the initial installation investment, solar energy systems require minimal maintenance, leading to predictable and stable energy costs. This financial predictability allows you to better manage your budgets and allocate resources more effectively. We typically see payback periods of 5-7 years with our CapEx projects. We also offer fixed-price electricity options, for clients who want to avail of PPA financing, essentially resulting in reduced electricity costs over the term of the loan and full ownership of the solar project at the end of the 25 year period.

Why not contact Shannon Energy today to discuss your solar potential? We can provide a free assessment of your organisation's electricity consumption. We would be happy to provide a tailored quote for your solar installation, maximising electricity production and grant support available, as well as to discuss pricing options that meet your business needs. To find out more, contact Kale@ShannonEnergy.com to start your solar journey.

Is my land suitable for Solar Energy?

Fri, 28 Jul 2023 09:24:36 GMT

28th July 2023

......and what could I expect to earn?

The ever increasing warnings about the dire consequences of climate change are causing many landowners to consider if their land might be suitable for solar energy production - and if so, then what revenue expectations might there be and generally how to go about an assessment.

We develop these projects and we are regularly asked to evaluate sites to see if they are suitable candidates for this purpose.

There are three main considerations:

Land - is it firm and relatively flat, with large areas which are not overlooked or close to any amenity, housing or road network.
Planning - will it get Planning approval from the Council and/or An Bord Planala
Grid - is it close to the Grid network line or a substation with capacity to take the newly generated power.

The most important of these is Grid access - and is generally the main reason why most sites are deemed to be unsuitable.

If the site is viable, then it can attract a very high rent per acre for a 40 year period with no cost and zero labour required from the landowner. Growing power instead of using the land for any other purpose is also contributing enormously to meeting our climate change goals and improving the lives of everyone on the planet. Sounds great doesn't it !!

Over the next few weeks we will explore each of these aspects in greater detail and if you are interested in an assessment of your land for solar then contact me at noel@shannon.energy

Shannon Energy powered by Obton awarded 11 solar projects in RESS

Wed, 19 Aug 2020 08:57:00 GMT

Shannon Energy powered by Obton awarded 11 solar projects in provisional results of Irish Government's Renewable Electricity Support Scheme (RESS) The projects from the Danish-Irish joint venture represent an initial investment of €100 million in the Irish solar energy sector, which when developed will deliver a total of 120 MW of solar power to homes throughout the country The 11 projects are located in eight counties throughout Ireland and represent 15% of the total projects provisionally awarded in RESS

12 August 2020, Aarhus, Denmark and Dublin, Ireland:

Shannon Energy powered by Obton is delighted to announce that it has been provisionally awarded all of the 11 solar energy projects it submitted to the first round of the Government’s Renewable Electricity Support Scheme (RESS). The results of the process are scheduled to be finalised on 10 September. The Danish-Irish joint venture’s successful projects in the RESS process represent an initial investment of €100 million in the Irish solar energy sector, which when developed will deliver a total of 120 megawatts (MW) of solar power for homes throughout the country.

The 11 projects are situated in eight counties throughout Ireland, with sites located in Cork, Galway, Longford, Meath, Offaly, Tipperary, Waterford and Wexford. The combined 120 MW of power generated will be enough to fulfil the yearly energy requirements of up to 20,000 households. The projects will be fully operational and supplying renewable energy to the Irish power grid by 2022 and it is expected that more than 200 jobs will be created in the construction of the solar photovoltaic (PV) technology.

Shannon Energy powered by Obton is a joint venture between Obton, a Danish solar photovoltaic (PV) business, and its Irish partner Shannon Energy. The project portfolio that has been successful in the provisional results of RESS 1 marks the first phase in the joint venture’s overall €300 million investment to provide over 500 MW of renewable solar power in Ireland over the next five years

Commenting on the provisional RESS results, Anders Marcus, CEO of Obton, said:

“We are delighted that all of our 11 projects have been successful in the provisional results of the public auction process. These 11 projects are an important vote of confidence in our investment in sustainable energy generation in Ireland and in our partnership with Shannon Energy. Together with Shannon Energy we have secured a pipeline of projects that will bring the total capacity of our overall portfolio to more than 500 MW, which will be submitted in subsequent rounds of the RESS process.”

Noel Shannon, CEO of Shannon Energy, said:

“Shannon Energy powered by Obton are delighted to have been provisionally awarded all of our 11 projects in the first phase of the RESS process. We believe the result represents the quality of this initial portfolio and we are looking forward to working with all of our partners to move forward with these projects and bring more renewable energy to the grid in Ireland.”

Gerry Shannon, Chairman of Shannon Energy, added:

“This success with our first 11 projects marks a significant milestone for Shannon Energy powered by Obton and reflects a huge vote of confidence in the Obton fund's decision to invest in Ireland. We look forward to working with our partners to construct all these projects as quickly as possible and help the Government achieve its goal of 70% electricity production from renewable sources by 2030.”

Shannon, Obton to spend €60m on solar farms

Thu, 30 Apr 2020 15:55:00 GMT

Danish and Irish group in joint €300m venture to build renewable energy plants

Irish Times - 30/04/2020

Irish group Shannon Energy and Danish company Obton plan to kick off a €300 million investment in the Republic by spending €60 million on plants that will generate electricity from solar power.

Shannon and Obton formed a joint venture this year to build solar farms, which use panels of specially manufactured cells to convert the sun’s heat to electricity, around the Republic.

They plan to spend €60 million developing their first 11 solar farms here. The generators will produce 105 mega watts (MW)of electricity, enough to cover the energy consumption of 20,000 homes, the pair say.

The investment will be the first tranche of an overall €300 million that they intend spending on developing solar farms that will produce about 500 MW of electricity at full capacity.

Their plans could employ up to 1,000 people. Shannon and Obton have been in talks with farmers around the Republic to acquire the 2,000 acres they will need for the overall plan.

Work on the first 11 projects could create up to 200 jobs. The solar power plants will be in counties Cork, Galway, Longford, Offaly, Tipperary, Waterford and Wexford.

Shannon Energy and Obton will bid for aid for the developments from the Government’s Renewable Energy Support Scheme, which will back plans that generate electricity at the lowest cost.

The pair must submit the projects for inclusion in the scheme’s first round today, Thursday April 30th. The original closing date was early this month, but the Covid-19 crisis led to this being postponed.

National grid operator Eirgrid will oversee the auction, which will be held in July. This will be the first of several that the State will run over coming years as it bids to lure more investment in renewable energy.

Support scheme

The Government wants renewable power to generate 70 per cent of the electricity used in the Republic by 2030. It averages at about 30 per cent at the moment. However, figures released this week by the Sustainable Energy Authority of Ireland show that wind generated almost 44 per cent of the electricity used in the Republic through the first three months of this year.

The new scheme will replace the previous renewable energy feed-in tariffs that paid guaranteed prices to companies generating electricity from green sources such as on-shore wind.

Solar power and off-shore wind farms will qualify for supports under the new support scheme. That system is also designed to cut the cost to consumers and businesses of aiding renewable energy.

Opening the new system to technology such as solar and off-shore wind prompted several big European players to consider investing here.

Noel Shannon, chief executive of Shannon Energy, said that he hoped his company’s joint bid with Obton would succeed July as that would allow them “proceed rapidly” with their development plans.

“By participating in the renewable energy support scheme auctions we are marking a significant contribution towards achieving the Government’s goal of 70 per cent electricity production from renewable sources by 2030,” Mr Shannon added.

Anders Marcus, chief executive of Obton, described the 11 projects as an important milestone in its work and in its partnership with Shannon Energy.

Obton has invested in solar energy projects worth a total of €1.85 billion across Europe and Canada. It has operations in Belgium, France, Germany, Hungary, the Netherlands and Poland.

Dublin-based Shannon Energy is involved in similar businesses in Ireland, Britain and western Europe and previously worked on projects in South Africa.

Danish-Irish group plans €300m Irish solar farms project.

Tue, 14 Jan 2020 11:57:00 GMT

Obton and Shannon Energy intend spending €300 million over three years on building solar farms that will generate up to 500MW of electricity.

Barry O'Halloran, Irish Times, Wednesday 8th Jan 2020

Danish group Obton and Irish company Shannon Energy plan to spend €300 million building plants that will generate electricity from solar power in the Republic.

Obton and Shannon Energy said on Wednesday that they had formed a joint venture to develop solar farms, which use panels of specially manufactured cells to convert the sun’s heat to electricity, in the Republic.

The pair intend spending €300 million over three years on building solar farms that will generate up to 500 megawatts (MW) of electricity, creating about 1,000 jobs in the process.

Obton chief executive Anders Marcus said the Danish company would provide most of the cash, while Shannon Energy would provide local expertise and do much of the work on the ground.

The joint venture has earmarked sites in counties Cork, Galway, Longford, Tipperary and Westmeath where it will instal solar panels capable of producing 150MW of electricity, enough energy to cover the yearly consumption of 25,000 homes.

Mr Marcus said the business was in talks with farmers about acquiring other sites around the Republic where it could instal the remaining 350MW. Overall it will need 2,000 acres for its plan.

Government support

Government promises to launch a new scheme to provide cash support to renewable energy projects, mainly wind and solar power, helped lure Obton to the Republic, according to Mr Marcus.

He pointed out that renewable energy still needed a “bit of back up to make sense investment-wise” so proposals for the scheme were a factor in Obton’s decision to invest here.

“The way it is structured, with an auction system, is the right way to ensure that people do not pay too much for electricity,” Mr Marcus added.

All electricity users, including homes and businesses, will fund the Government’s proposed Renewable Energy Support Scheme through a public service obligation charge on their bills.

Obton to invest €300m in the Irish solar energy sector https://www.irishbuildingmagazine.ie/

Tue, 14 Jan 2020 11:09:00 GMT

Obton has just announced details of its €300m investment in the Irish solar energy sector. Obton, a Danish solar photovoltaic (PV) business, and its Irish partner Shannon Energy, will develop up to 500 MW of solar PV projects in Ireland over the next five years.

The investment will see over €300m being spent in the Irish economy at today’s energy prices and will create over 1,000 jobs particularly during its construction phase.

Obton’s significant investment in the Irish solar energy sector was launched today by Anders Marcus, Obton CEO, Mark Foley, Eirgrid CEO, and H.E. Uffe Balslev, Ambassador of Denmark, at an event in University College Dublin. This investment will see around 2,000 acres of farmland converted to the production of renewable energy, helping to deliver the Government’s strategic goal of zero carbon emissions by 2050.

In 2018, Obton formed a joint venture with Dublin-based Shannon Energy. Together they are building an impressive pipeline of solar power investment projects in Ireland and are committed to playing a key role in the transition towards renewable energy.

In conjunction with the investment announcement, Obton and Shannon Energy have also announced details of their first three strategic project acquisitions: the Grian portfolio of solar projects in Westmeath, Longford and Tipperary; the IGP portfolio of projects in Tipperary and Cork; and the Wind Energy Direct solar project in Galway. These three projects will deliver approximately 150 MW of solar power, which would be enough energy to cover the yearly energy consumption of 25,000 homes.

Speaking at the launch event, Anders Marcus, Obton CEO, commented, “Obton’s vision to create a sustainable future for the coming generations is of highest priority. Through Shannon Energy and our business partners, we are in a great position to do just that in Ireland.”

Commenting on the investment announcement, Noel Shannon, Shannon Energy CEO, said, “Shannon Energy are delighted to have secured the financial strength for constructing Utility Scale solar projects in Ireland, through our partnership with Obton, and we look forward to securing the licences for our planned implementation in the upcoming Renewable Electricity Support Scheme (RESS) auctions over the next five years.”

Welcoming the announcement Mark Foley, Eirgrid CEO, commented, “As the operator of the national electricity grid in Ireland, EirGrid is committed to achieving 70% renewable energy on the power system by 2030. Investments in renewable energy projects, such as the one announced by Obton and Shannon Energy today, are critical to achieving that goal.”

H.E. Uffe Balslev, Ambassador of Denmark commented, “Obton is an ambitious Danish company with long experience within solar power investment in many countries. I am proud to support their entry into the Irish market and excited about their expected substantial contribution to making Ireland meet the 2030 renewable energy targets of the Government’s Climate Action Plan.”

New Obton-Shannon Energy JV to spend €300m on 500 MW of PV in Ireland

Tue, 14 Jan 2020 09:35:00 GMT

Anders Marcus , Obton CEO

By Cecilia Keating Jan 08, 2020 PV Tech

Danish renewables investor and developer Obton Energy has formed a joint venture with Irish solar developer Shannon Energy to develop 500MW of solar in Ireland over five years.

In interviews on Wednesday morning with PV Tech, both companies confirmed that Ireland’s forthcoming inaugural renewable energy auction scheme spurred the €300 million plan.

“Ireland is fertile ground thanks to the government’s new auction process,” Gerry Shannon, who runs Dublin-based company with his brother, explained. Ready-to-build projects totalling 150MW have already been secured and developed, he said, and the partners intend "to reach further back into the development process and look to secure greenfield sites” over the next five years, too.

A number of European and Irish banks are “ready to give” debt finance to the operation, according to Shannon.

Details of Ireland’s long-awaited Renewable Electricity Support Scheme (RESS) were unveiled in December. The first, 300GWh, auction is scheduled for the summer.

The government has devised the scheme, which will be administered by Ireland’s transmission system operator EirGrid, in order to increase renewables' share of Ireland's electricity to 70% by 2030 from about 40% today.

“Ireland has launched some ambitious plans for the future and we would like to be part of that,” Anders Marcus, chief executive officer of Obton, told PV Tech.

He said that the JV hoped to win “about 100MW” of capacity in the maiden auction.

The JV has already secured one-third of the 2,000 acres it estimates it needs to roll out 500MW, according to Marcus. His firm will lead on equity financing while Shannon Energy will front local development efforts.

Future projects likely to involve energy storage and corporate offtakers

Obton's Marcus noted that Ireland’s grid will be tested by the influx of new capacity ushered in by the auction program.

“It’s one thing to launch ambitious plans; the other is to prepare the grid. We are confident that Ireland will be able to fulfil that, but that’s something that needs to be proven,” he said.

Both Shannon and Marcus confirmed that while energy storage was not included in short-term plans, it is likely to be included in the long-term.

Corporate offtakers will also be considered in due course. “Corporate PPAs tend to be shorter term, five or seven years, and we’re going to hold these projects for 30 years, meaning we would prefer to have a longer-agreement," said Shannon. "In the future, if we can find a corporate PPA or a private PPA that would be suitable for us, then of course we will go ahead and construct, provided that the bank regards to paperwork of such a PPA to be a viable risk.”

Marcus said: "We are putting all our attention in the coming auction. When we see the results, then we will have the possibility to do PPA outside of the system. But the focus right now is the auction."

Obton presents a new billion dollar solar fund

Thu, 28 Nov 2019 15:32:00 GMT

Irish Projects with Shannon Energy included in new Solar Fund

''Our newest solar fund will accommodate investments in solar parks for DKK 12 billion, and allow investors to put their money in a 100 per cent green product that benefits both them and the community. Many European countries are lagging behind the EU's climate targets, and solar energy is an obvious choice for greener energy production. This is where private investment fits in perfectly and helps lift the world in a more sustainable direction'', says Obton Investment Director Oliver Peters.

“Impact” is an energy company that owns solar parks in a number of countries, such as Germany, Ireland, France and the Netherlands, and produces electricity from the solar parks to consumers. A smaller part of the portfolio will consist of solar parks in North America and Asia, where solar energy is currently rising massively. The project is aimed at professional and semi-professional investors and has an expected equity of DKK 3 billion. kr.

Obton has been in the solar energy market for over ten years and was thus one of the first players in the industry. Ten years ago, when we had to spend time convincing both countries and investors about the benefits of solar energy, today we see a completely different interest in the field. The massive international awareness of climate change and how to convert to sustainable power generation, coupled with rising module prices, has meant that solar energy is growing massively in large parts of the world, and we have high expectations for the years to come, says Oliver Peters.

Obton is already experiencing great interest in the new solar fund, replacing Obton's former fund "Stabil", which raised more than DKK 2 billion. and already have solar parks for DKK 8 billion. DKK in eight countries.

More and more investors have found that you do not have to compromise on returns, even if you want to invest green. Today, there is simply money in sustainability, which is not just about solar energy. We see a global megatrend with a market potential that, over and over again, exceeds all expectations, says Oliver Peters.

IKEA

Wed, 20 Nov 2019 15:06:00 GMT

The IKEA-effect: How big companies are driving demand for renewable energy

Corporate demand for renewable energy will only continue to rise in the future. To understand what is driving the change, you need only look at IKEA. The global furniture retailer is rapidly becoming a corporate activist in the area of sustainability. One of the first milestones is IKEA’s own energy consumption, and a company the size of IKEA has the power to increase global demand for renewable energy, explains our analyst.

In many ways, being the world’s most well-known retail furniture brand seems at odds with sustainability. IKEA makes well-designed and inexpensive furniture available to 830 million customers annually (a staggering 2.3 billion customers shop in IKEA online store), and this naturally requires a significant consumption of energy and natural resources.

But perhaps it is directly as a result of IKEA’s massive environmental footprint that the retail furniture chain has committed itself to one of the world’s most ambitious sustainability strategies. Published in June 2018, IKEA’s sustainability strategy “People & Planet Positive” sets out the company’s ambitions to be not just “less bad” or neutral in its use of energy and natural resources - but to be a net positive force.

- It is hard not to overestimate the significance of IKEA’s sustainability strategy. A company of that size has more power than many national governments, says Teresa Conde Muñoz, Transaction Specialist at Obton.

Consumers are adding to the pressure

To understand why companies like IKEA are making significant changes to the way they do business, it is worth looking at the changing attitudes among consumers.

- There is a sense of urgency in the general public about climate change, says Teresa Conde Muñoz, and points to a recent survey published by the European Investment Bank (EIB) and YouGov. The study showed that 78% of EU citizens are concerned or alarmed by climate change (63% in US and 65% in China).

- Obviously, people are looking to their governments to act, but increasingly consumers also expect companies to play a role in tackling climate change, says Teresa Conde Muñoz. The EIB study also showed that 67% of Europeans say that the impact of a product on climate change is very or fairly important when purchasing items.

- Companies are increasingly coming under pressure from consumers and investors to reduce their carbon footprint, says Teresa Conde Muñoz. Her company, Obton, is experiencing increased interest in solar energy from both large and smaller companies across Europe

Renewable energy goal fast approaching

IKEA is one of many companies showing how corporations can lead the way on climate change.

The company’s overall ambition is to “become climate positive and regenerate resources while growing the IKEA business” by 2030. One of the first goals of the strategy is fast approaching: To cover 100% of its energy demand with renewable energy sources by 2020.

IKEA looks likely to achieve this goal. In 2018, the company already had covered 81% of its energy demand with renewable energy. The key components of IKEA’s renewable energy mix are 440 wind turbines, as well as a staggering 900,000 solar panels on the roofs of its many stores.

Produce and purchase renewable energy

Apart from building its own renewable energy production on site, IKEA also typically signs power purchase agreements with off-takers to cover its renewable energy demand.

In this regard, IKEA joins a rapidly growing number of businesses working to reduce their carbon footprint. Globally, 179 major companies so far have committed themselves to procure 100% renewable electricity through the RE100 initiative. Among the signatories to the initiative are companies such as 3M, AkzoNobel, Coca Cola, Facebook, Google, H&M, Johnson & Johnson and many more.

- These big companies are driving demand for renewable energy – independently of national governments, but it is still necessary that public and private actors motivate and guide medium and small companies to be sustainable, says Teresa Conde Muñoz.

As a result, the business case to switch to 100% renewable electricity has never been stronger.

Cheaper than fossil fuels

A recent report by the International Renewable Energy Agency (IRENA) documented that renewable energy is already the cheapest source of energy in many parts of the world.

The report examined renewable energy projects from 2018, comparing the latest cost and auction price data. It clearly shows that costs from all commercially available renewable power generation technologies decreased even more in 2018 – with solar photovoltaic (PV) and onshore wind costs decreasing by 13%.

The report concluded that onshore wind and solar PV are now frequently less expensive than any fossil fuel option – even without financial assistance.

The corporate rush to renewables

With major corporate players like IKEA leading the way while the costs of renewable energy production continue to decline, we are clearly on the verge of a breakthrough in corporate PPAs.

- We will be seeing a steady rise in corporate PPAs – and a solar market that is able to move forward independently of government support, says Teresa Conde Muñoz.

BloombergNEF (BNEF) documented in its Corporate Energy Market Outlook that corporations bought a record amount of clean energy through PPAs in 2018. A total of 13.4 GW of clean energy contracts were signed by 121 corporations in 21 different countries.

According to BloombergNEF, this trend will only continue – driven by growing global corporate alliances such as RE100.

Want to hear more about how your company can reduce its carbon emissions?

2020 goals

Mon, 30 Sep 2019 15:36:00 GMT

2020 goals: For many member states the green finish line is a long shot

EU member states will have to raise the bar to achieve the common 2020 goals for sustainable energy. As things stand now, we are headed in the wrong direction. Solar PV systems could be a future solution if the EU is to reach the next climate goals.

We have heard it all before. The ice caps are melting, water levels are rising, and Pacific islands will see flooding. These are the consequences of the global CO2 footprint.

Therefore, It is critical that the EU member states continue to wave the green banner and make an extra effort to achieve the common goal of 20 percent of all energy consumption in the EU coming from green energy sources by 2020.

But even if, overall, the EU countries are on their way to meeting the climate goals, many countries are lagging behind and, in all likelihood, will not reach their individual 2020 goals. This is the conclusion of a report from the European Environment Agency (EEA).

And that is a problem, according to Senior Business Developer at Obton Klaus Andersen, who has kept a close eye on the European energy sector for many years. He sees solar PV as an obvious choice if member states – that are far away from the finish line – are to reach their goals. If not in 2020, then in 2030, when the EU goal is for 32 percent of the total energy consumption to come from sustainable energy:

“If we don’t get our acts together, there are going to be serious consequences for the entire planet”, says Klaus Andersen, adding:

“The biggest challenge is that 2020 is right around the corner. So it is unlikely that all countries will reach their goals. It takes a long time to transform your power plant production or switch to, e.g. wind power. It also takes time to switch to solar cells. But solar PV projects tend to be approved faster and easier to deal with from a purely technical perspective. So they could be a possible solution to helping member states to reach their goals for 2030.”

Energy consumption in the EU is increasing

The report shows that sustainable energy's share of the final energy consumption in the EU has doubled since 2005. But even though the EU is on its way to achieving its goals for 2020, the share of energy from sustainable energy sources is no longer growing as fast. It rose from just 16.7 percent in 2015 to 17 percent in 2016 and 17.4 in 2017.

This is because the total final energy consumption in recent years has risen in some EU member states – especially in the transport sector. There, the share coming from sustainable energy was just 7 percent in 2017 – with the majority coming from biofuels.

In comparison, 85 percent of all new electrical capacity came from sustainable energy. And wind power and solar cells accounted for three quarters of this energy.

“For some countries, it is a very ambitious goal, while for others, it is not so ambitious. One could say that Europe is split in two. The Nordic countries, as always, are leading the pack, while the countries of Southern Europe are having a harder time keeping up.”

That is also in the report. There are countries where over 30 percent of the final gross energy level comes from sustainable green energy. This is true of countries such as Sweden, Denmark, Finland, Austria and Latvia, while countries such as Belgium, Luxembourg, Malta and the Netherlands are below 9 percent.

EU citizens are concerned about the climate

The domestic political climate in the various EU countries determine in part why achieving the individual climate goals can take so long, Klaus Andersen explains. He points out that politicians often make decisions based on what gets the most votes – for instance, nursery schools and nursing homes. The climate has not typically been at the top of the list.

“In the latest elections in Denmark, however, climate policy was a hot topic. And in Germany and the Netherlands, it has also been high on the agenda.”

If you ask the European population, the climate is an important topic. As Obton recently wrote in an article on the ‘IKEA effect’, 78 percent of EU citizens are concerned about climate change – while that is only the case for 63 percent in the USA and 65 percent in China.

Klaus Andersen notes that we should turn our attention to those countries that are lagging behind – and where there is still the political will to switch to green energy. If you look south of the border – to the Netherlands and Germany, these are countries he believes are worth focusing on.

They have namely established a system that promotes sustainable energy production from, e.g. wind and solar. And this could be the path forward for getting the wheels turning on the green energy machine.

“The Netherlands has licensing rounds where energy projects are contracted out, so you can bid with the possibility of winning the contract and getting a government subsidy. Several countries are adopting their own similar model.”

2050 goal was abandoned

It is not only 2020 and 2030 that countries have their sights on. Of the EU countries, a majority of them will make 2050 the year that the EU becomes CO2-neutral. But at the climate meeting in June it became clear that the countries could not reach an agreement after all on a joint EU strategy for CO2-neutrality.

This, despite the EU heavyweight Germany having just announced it would back up a strategy for CO2-neutrality – just as 17 other EU countries did.

Instead, the countries now point in a memorandum to the UN's 2015 Paris Accord, in which the 2050 goal is to maintain the overall rise in temperature to below 2 degrees Celsius.

Get control in one's own back yard

It is important now that those EU countries that are lagging behind understand the gravity and reach the climate goals. Not only is there pressure from the EU on the individual countries, but it is also the EU’s goal to pressure the rest of the world at the UN Climate Action Summit in New York on 23 September:

“Scandinavia, and now the EU, too, have taken the lead on waving the green energy banner. So it is important that we hold the banner high and reach out to the big energy countries when global energy policy is discussed at the highest levels. If the EU cannot control what goes on in its own back yard, it is easy for other countries to point a finger at us.”

China, India and the USA are the big energy consumers in the global arena and accounted for two thirds of the total increase in energy consumption in 2018.

“So it is here that the real work lies”, says Klaus Andersen

A revolution in sustainable investments?

Thu, 26 Sep 2019 16:02:00 GMT

A revolution in sustainable investments? Meet the EU’s new list

The days of making wild and undocumented claims about sustainable investments may soon be over. With its new detailed list, the EU aims to provide investors with a clear framework for assessing whether an investment is sustainable or not. This is obviously good news for solar PV facilities – although there are some conditions.

For many years, investors were at the mercy of their advisors when making sustainable investments.

The absence of widely recognized sustainable investment criteria has made it extremely difficult for investors to distinguish between truly sustainable investments and “greenwashing”, says Obton’s CEO, Anders Marcus.
The biggest investors – typically pension funds and other institutional investors – have traditionally relied on the UN’s Principles for Responsible Investment (UNPRI) to evaluate potential investments. The institutional investors signing up to these principles commit to incorporating the so-called ESG (Environment, Social and Governance) issues into their investment analysis and decision-making process.
Today, the job of assessing an investment’s ESG rating is carried out by private ESG rating agencies. Although these agencies have become increasingly professional, there are no widely recognized principles for their assessments, and agencies have been known to give different ratings for the same investments, says Anders Marcus.

However, with its taxonomy the EU is working to improve this by creating a set of universal principles to evaluate an investment’s sustainability.

A taxonomy for sustainable investments

As part of its Action Plan for Sustainable Finance, the EU has established a Technical Expert Group to develop a Taxonomy approach for environmentally sustainable economic activities. The group presented its first draft taxonomy in June 2019, which will be adopted by legislators before the end of the year.

The EU taxonomy is a classification system that seeks to separate the wheat from the chaff when it comes to assessing sustainable investments within different sectors of the economy, says Anders Marcus. It is a tool to bridge the gap between international sustainability goals, such as the Paris climate agreement and investment practice.
The EU is serious about pushing financial markets in a more sustainable direction. To reach their climate and energy goals, an additional €180bn per year is needed. For this reason, the EU taxonomy only includes projects that are in line with the EU’s ambition of net zero emissions by 2050. It has the potential to become the gold standard for sustainable financing, says Anders Marcus.

Solar (naturally) makes the list

The EU taxonomy has set up criteria for different sectors, and the first sectors to be included are agriculture, manufacturing, energy, water, waste, transport, ICT and buildings. More sectors are set to follow.

The set of criteria distinguishes between economic activities that may themselves be decarbonized, or activities that enable decarbonization in other sectors.

Solar PV obviously plays a central role in the EU taxonomy. Not only as a direct means of shifting our energy production into a more sustainable direction, but more crucially as a way of “greening” other sectors, says Anders Marcus.
The manufacturing sector is an excellent example. The European manufacturing sector is the second largest contributor of CO2 emissions and has a significant potential to reduce its emissions.
Both solar PV facilities and the manufacturing of components for solar PV panels will be deemed “sustainable investments” under the proposed EU taxonomy, says Anders Marcus. However, some conditions apply for solar PV facilities to be eligible.

It is also worth noting the industries, that are not included in the taxonomy. Most prominently, maritime shipping and aviation are not included.

These industries are obviously important to greenhouse gas emissions, but the EU’s expert group has yet to find solid criteria to evaluate them, he says.

Increasing demands for efficiency

Because the EU taxonomy is designed to aid the EU in its ambitions to become a net-zero CO2-emitter by 2050, demands will be steadily increased.

Only solar PV facilities operating at life cycle emissions of 100g CO2 e/kWh will be eligible from the outset. This threshold will be reviewed every 5 years to ensure that emissions decline to 0g CO2 e/kWh by 2050, says Anders Marcus.

He adds that the EU taxonomy also will take into account any potential negative environmental damage resulting from solar PV facilities such as development of a facility in designated conservation areas or areas with important ecosystems.

Getting familiar with the EU taxonomy

At the moment, the EU taxonomy is still only a political proposal expected to be adopted by the EU before the end of 2019. The next step will be to implement the EU taxonomy into the regulations of member states – and not least to familiarize the financial sector with the tool.

This taxonomy is the first and most comprehensive of its kind in the world, and it will apply to all financial players that label their portfolio as environmentally sustainable. It will obviously take some getting used to for investors, and it will be interesting to see how they apply it to their investment practice, says Anders Marcus. But the bottom line for solar investors is clear:
The EU taxonomy will only increase demand for solar energy because it is a key component in the green transformation of many sectors, he says.

Obton amongst the 11 largest European solar asset owners

Wed, 18 Sep 2019 16:07:00 GMT

Obton amongst the 11 largest European solar asset owners

Danish investment company Obton sits 11th on the ranking of the biggest asset owners in the European solar business, according to a recent report from the industry platform Solarplaza.

In the annual ranking of solar asset owners in Europe, Danish solar investor Obton is rapidly approaching the top ten. Obton has advanced six spots since last year’s ranking, which pleases CEO Anders Marcus. “We are proud of advancing in what is becoming an increasingly competitive market, and approaching a spot in the top ten. Given the speed of the industry over the past couple of years, I am impressed that we are able to strengthen our position in the market.”

According to Solarplaza, the number of European solar PV systems has risen 23 percent in the last year alone. Currently, Obton has 600 solar PV systems worldwide with a total capacity of more than 600 MWp – and more are on the way.

“In 2018, we expanded our activities in several countries including the Netherlands, Germany and France. 2019 will be no less exciting with our plans of adding 350 MWp to our portfolio. More than likely, we will sit even higher on Solarplaza rankings next year,” explains Anders Marcus.

Obton is a part of the investment group Obton Group, which presented another record-breaking financial report with profits of DKK 145m before taxes.

A revolution in sustainable investments? Meet the EU’s new list

Thu, 15 Aug 2019 13:19:00 GMT

You know your audience better than anyone else, so keep them in mind as you write your blog posts. Write about things they care about. If you have a company Facebook page, look here to find topics to write about

Once you have a great idea for a post, write the first draft. Some people like to start with the title and then work on the paragraphs. Other people like to start with subtitles and go from there. Choose the method that works for you.

Be sure to include a few high-quality images in your blog. Images break up the text and make it more readable. They can also convey emotions or ideas that are hard to put into words.

Once you’re happy with the text, put it aside for a day or two, and then re-read it. You’ll probably find a few things you want to add, and a couple more that you want to remove. Have a friend or colleague look it over to make sure there are no mistakes. When your post is error-free, set it up in your blog and publish.

Obton lands Canadian contract of record proportions: Signs Canada's largest PPA ever

Thu, 15 Aug 2019 13:19:00 GMT

The Danish solar developer Obton has just entered into the largest Power Purchase Agreement (PPA) to date on the sale of electricity from a 170-megawatt solar park in Alberta

“Our Canadian staff have worked on the project for over three years, and we are tremendously proud and pleased that we have now secured a PPA that will allow the implementation of the project. It is a big contract for us, and we are looking forward to getting involved in the Canadian energy market.”

These were the words of Obton CEO, Anders Marcus, who can now look forward to an initial eight-year-long cooperation with the Canadian power company TC Energy, following the signing of the unprecedented PPA. The solar park is situated in the province of Alberta, in Western Canada, and will cover 200 hectares. In the PPA, TC Energy agrees to buy nearly 60 percent of the power. The remainder will mostly be sold on the market, says Anders Marcus:

“We have been in talks with several potential buyers of electricity from the remaining portion of the park, but we have to weigh what we get out of selling power on the spot market against expectations for energy prices in Alberta.”

A major market for renewable energy

The construction of the solar park will begin in Q4 2019, and the park is expected to be complete in the autumn of 2020. Canada, which has traditionally invested in oil and coal power, has in recent years made efforts to transform large parts of the country's energy supply from black to green. Among other things, solar parks are on the rise in the country and in a few years have become a major market for renewable energy.

The project in Canada is Obton’s first and, as well as the Danish solar investor's first merchant project being implemented via a negotiated and signed private PPA.

“We have seen a clear rise in the number of Power Purchase Agreements around the world, due to the fact that a PPA secures a series of benefits for both the power producer and the buyer. The PPA on our park in Canada is for eight years, which is a long time for such a contract in Canada and it means we are ensured a fixed price on the power for those eight years. With the expected increase in the price of electricity in Alberta as a result of, e.g. CO2 taxes and the phasing out of coal, we are convinced that we can also secure a good price for the electricity after that period, either through a new PPA or via the market,” says Marcus.

He further explains that in the future Obton will have increasing focus on PPAs and currently has its eye on several, for instance in Spain and Australia.

Facts about Obton’s solar park in Canada:

Construction expected to be completed by autumn 2020

130 MW AC, corresponding to 170 MW DC (unit of calculation in EU)

5 things to do to become a green company

Thu, 15 Aug 2019 13:19:00 GMT

Climate changes challenge us and are much in focus in the public debate. So how can companies make the most sustainable choices? Obton talked to Christian Ibsen, director of the green think tank CONCITO, and he suggested the following: He would like for companies to find their biggest CO2 pruning knife and to become green from head to foot. However, less can also do it:

“Within a couple of centuries, we have to be entirely CO2 neutral. To succeed, each company must actively run its business in a sustainable way,” says Christian Ibsen.

He points to the fact that companies need to zoom in on their value chains to pinpoint where they harm the environment:

“If the company produces food products, the company has to go back and see where the food is coming from. It is necessary to go all the way out in the field and make demands on the suppliers.”

If the company chooses to go all in with sustainability and to work strategically with specific CO2-reducing targets in line with the goals from the Paris agreement that aim to keep the temperature rises below 1.5-2 degrees, the work will be in agreement with the initiative and strategy of Science Based Target:

“You have to look at all links to end up with a final plan for the company’s CO2 goals,” says Christian Ibsen and adds,

“Obviously, it is critical that the politicians set the main framework and rules, but the companies also have to take some of the responsibility. When the climate is at stake, I doubt that consumers will put up with companies simply doing nothing.”

If a company does not roll out a major analysis but still wants to grow greener and more sustainable, focusing on a few points also has effect - right where the company knows that it has a large carbon footprint. The five points that should be in focus for the company are typically the following:

Give transportation a thorough going-over

Figures from The European Environment Agency (EEA) shows that transportation is accountable for more than one fifth of the greenhouse gas emissions in EU countries.

Transportation of goods is therefore an obvious area to go over carefully if you want to walk the green road. To mention an example, it saves fuel and is therefore more climate-friendly for container ships to go slower which is what Mærsk has started to do.

Down the road, fuel for ships as well as lorries and airplanes can be replaced with biofuels or other renewable energy - e.g. from wind turbines, wave power or solar cells.

All forms of transportation must be filled up with goods. Fewer deliveries and full lorries, trains, ships and airplanes are more climate-friendly than half-empty transports. Sustainable companies will have to require climate-friendly transportation of their own finished products but also of raw material supplies from subsuppliers.

If we zoom in on the company itself, charging points can be established at the workplace for the employees’ electric vehicles and bathrooms for employees who choose their bicycles and the resulting exercise. Finally, one or more companies working together can offer free transportation with an electric bus from the nearest train station - and schedule meeting times accordingly.

Throw out old machines and invest in green energy

To be a green company, reducing the energy and resource consumption as much as possible is necessary. For example, switching to more modern manufacturing machines that are also more energy-efficient often makes sense. Machines that are not supposed to be on may not be left running. Any waste heat from the production should be recycled.

Replacing resources that are problematic to the climate also makes sense - like LEGO that is currently replacing fossil plastic with bioplastic.

Once the energy and resource consumption has been reduced at the company as well as for subsuppliers, converting to solar cells or other renewable energy is recommended. That is better for the climate and also for the company's climate profile. It also supports the Danish goal of having all electricity come from renewable energy by year 2030.

At the same time, investing in renewable energy such as solar cells or wind turbines might also be good business. If for example your company emits 260,000 kg CO2 a year, you can invest DKK 1 m. in solar energy - e.g. through Obton - and thus become CO2 neutral.

An analysis from Finance Denmark shows that more than 80 per cent of Danish investors are interested in sustainable investments - including green investments.

Save water

Getting clean water is becoming ever more challenging across the globe. Reducing the water consumption therefore makes sense - the way it is seen at many filling stations where car washes today use recycled wash water after local treatment.

Water savings should occur both in the production if the production consumes a lot of water but also in office spaces and cafeterias. Quite simply, water can often be saved by replacing toilets and water-consuming machines, changing routines and finally by purifying water locally if there are no good public purification plants.

Finally, rainwater can also be collected from roofs if the water can be used in the company. Water savings makes sense, especially in countries with water scarcity - as is the case in many Asian and Southern European countries.

Eat less meat and drive electric vehicles

Looking at energy and resource optimisation in the production as well as in the operations of the company itself is important. We have already looked at everything from new toilets to charging points for electric vehicles. These might be minor matters, but yet worthwhile - which is also the case when it comes to choosing climate-friendly food in the cafeteria.

Minor and visible thing are important to show that the company leads the way and takes green choices. They are also important to engage all employees in the company - for the sake of the climate but also because it makes the company more competitive when the management is listening to the employees’ proposals for sustainable initiatives.

Make demands on your subsuppliers

One of the most important points might be to make demands down the supply chain. Very often, only the end producer’s climate profile is visible to the customers. Subsuppliers have no end customers. In order for improvements to take place, the company with the end products will have to make demands on subsuppliers - on behalf of its own end customers.

The demands may e.g. be to convert to renewable energy within a number of years, to implement resource savings or use sustainable transportation. In general, suppliers with a low carbon footprint should be chosen.

Only if the entire resource chain is engaged, a company can act sustainably for real.

The information in the five points is primarily based on professional knowledge from CONCITO