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24
Aspects of Land
Spring / Summer 2018
ENERGY
K N O W L E D G E I S
output of around 250kW, along with a
custom-built, computer-based energy
management system.
“Investing in renewables was a way of
becoming more energy efficient because
we use around 70% of the power we
generate,” explains McLaren. “The more
power you can use internally, the more
quickly the investment will pay off.”
McLaren also considered battery storage
at one point but has decided against it.
“We’re exporting roughly 60,000 kW
a year at around 4p per kW; the same
electricity costs around 14p per kW to buy
in so there’s a differential of about 10p
per unit. That adds up to potential savings
of about £6,000 a year, which, although
not insubstantial, isn’t enough to justify
investing in battery storage right now.”
Instead, McLaren uses his energy
management system to fine-tune how,
where and when his energy is used. The
system monitors the temperature of the
cold stores and then adjusts the amount
of solar energy being produced. Mike can
also look at previous energy use, analyse
the areas of the farm that use most power
and adjust the system accordingly.
“With any kind of energy-management
system, knowledge is key. And the only
Changes in the energy market mean that for farmers and estate owners,
the focus should move from energy generation to energy optimisation
I
n the rush to produce
subsidised renewable energy
the last 10 years have seen
far less interest in “energy
hierarchy” (see box, far right),
which is a far more holistic
route to sustainable energy as
it addresses energy use as well
as energy production.
However, a number of changes –
including the disappearance of green
energy subsidies, the Government’s
determined roll-out of smart meters by
2020 and the introduction of minimum
energy efficiency requirements in rented
properties from 1 April this year – mean
that farmers and estate-owners can no
longer afford to ignore energy hierarchy.
“We jumped straight into energy
generation,” admits Nick Green of
Savills Energy. “It was a big opportunity
to create revenue, so everyone leapt in
and forgot about the precursor, which is
energy usage.”
It doesn’t help that energy-saving
measures are not perceived to be
particularly “sexy”. Nevertheless, as
operating margins on farms and estates
become tighter, nobody can afford to
ignore any potential financial savings.
“When returns are under pressure,
energy savings matter much more in a
bid to reduce overheads,” notes Thomas
McMillan of Savills Energy. “The number
of new energy developments peaked
about three years ago. But since the end of
the coalition government, not only have
subsidies for renewables dropped back,
there has also been no real mechanism to
encourage energy efficiency. At least when
the Green Deal was in place, there was an
awareness of more efficient energy usage.”
Now, says Thomas, renewables are
being considered in tandem with energy
savings. “Farmers embraced renewables
because they love ‘kit’, whereas energy-
saving systems tend to be software-based.
So the farmers who have undertaken
energy-efficiency measures tend to be
younger and more technology-focused.”
Mike McLaren of Cronan Farm in
Perthshire fits this description perfectly.
Cronan Farm is power-hungry: it grows
potatoes, broccoli and cereal crops across
2,600 acres; stores up to 6,500 tonnes
of potatoes a year, and chills some 30
tonnes of broccoli per day. In 2013
and 2015, McLaren installed two solar
PV systems on the roofs of Cronan’s
cold store sheds, creating a combined