Renewable Energy: Pitfalls to Avoid #4
This blog post is the final in our series of posts on Renewable Energy Pitfalls. We want to help readers to understand the different renewable energy choices and some of the mistakes we have seen made in the decision making process - so that you can make the best long-term investment for your organisation.
Scenario #4: “Picking the most attractive proposition”
Here’s how a well known food manufacturer lost out on £300,000…
What they wanted: A proposal for a large (2MW) wind turbine on one of the production sites was submitted to the large food manufacturer. The turbine would be fully funded (development and capital) by a third party investor.
The business would save £150,000 (& rising) each year through buying a substantial amount of their electricity needs from the turbine, at a lower cost than from the grid. This was a very good offer.
What they did: The food manufacturer felt sure that they could do better and after some further exploration eventually obtained what looked like a much more attractive proposition.
As an independent consultant reviewing the proposals, it did not look to us as a viable option.We therefore advised the client to be extremely cautious and examine the small print of the terms very carefully before making any commitment.
However, the detailed terms and conditions never arrived and after considerable delay and excuses, the alternative turbine developer pulled out of the project.
What happened next: Our client asked if the original proposal could be revived. With a two year delay, the food manufacturer lost out on £300,000 cost savings and emitted around 13,000 tonnes of CO₂ that would have been eliminated. The company had wasted hundreds of man hours internally on the project.
What they learned: With or without independent advice, if a renewable energy proposal looks too good to be true - you can bet it is!
energyTEAM provide a range of Renewable Energy consultancy services including the provision of a detailed review and business case for one or more technologies, looking at the practicalities of installing and successfully integrating a solution on site. energyTEAM will work with your organisation and evaluate the most appropriate options available to you.
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