Distributed energy: Powering the future of hospitality and leisure

Our new report shows how the hospitality and leisure sector can cut energy costs by almost 25% using energy innovation to tackle cost pressures and become sustainability champions.

Publish date: 3rd December 2018

The huge and under exploited opportunity for UK hospitality and leisure businesses to gain competitive advantage from energy innovation is explained in our new research report 'Distributed Energy: Powering the future of hospitality and leisure'.

Sector could save £310m per year

Our economic modelling shows that businesses across the industry could reduce their collective energy bills by at least £310m-a-year, which amounts to almost 25% of the sector's total energy spend of £1.3bn per year.

This significant cost saving could be achieved if just 50% of hospitality and leisure businesses used new distributed energy technologies. Our earlier 'Powering Sustainability' report shows that the sector could also reduce its annual carbon emissions by 14% by adopting the same strategy.

I believe that energy can be used by the UK hospitality and leisure industry as a powerful tool to unlock cost savings, new revenue streams and drive growth.
Alan Barlow UK & Ireland Director, Centrica Business Solutions


Distributed energy 'toolkit'

The components of this distributed energy 'toolkit' are detailed within the report, including: energy efficiency and energy insights; on-site power generation, such as solar and combined heat and power (CHP); Demand Side Response, and battery storage.

The economic viability of distributed energy solutions for the hospitality and leisure sector can deliver rapid payback on investment, or be financed via ongoing energy savings to protect capital budgets.

Four distributed energy benefits

If the hospitality and leisure sector is to continue to grow and thrive, it must find new ways of battling thin profit margins, mounting cost pressures (particularly from higher energy prices), and rising customer expectations.

The report sets out four key opportunities for the industry to use distributed energy solutions as a powerful weapon to:

  • Enhance customer experiences, while protecting margins
  • Strengthen brand reputation by demonstrating sustainability
  • Ensure energy resilience and safety of operations
  • Diversify operations and access new growth markets.

Energy saving in action

Examples of how hospitality and leisure businesses are demonstrating the benefits of adopting distributed energy solutions are featured in the publication. This includes our joint projects with Newcastle United, Places Leisure, and Imperial London Hotels, who we have partnered with to deliver impressive cost and carbon savings.

In his report foreword, Jorge Pikunik, Managing Director of Centrica Business Solutions, said: " I believe that the UK hospitality and leisure industry can use energy as a powerful tool. Specifically, there is a range of distributed energy solutions which can give the sector a competitive advantage and allow it to unlock new revenue streams and drive growth."

Download the full report: Distributed Energy: Powering the future of hospitality and leisure.

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