How Wineries can become Net Zero
thanks to thanks to everybody who joined us.
We're just going to give it a minute to let everyone get connected and then we'll kick off.
It looks like we've got some people trickling through.
We're just giving another 30 seconds to let everyone get on board.
Okay, I think we'll get started.
So welcome, everybody.
And thanks for joining us today, my colleague Lauren Pierce and myself, Simon more business development manager here.
Going to talk about how wineries can become net zero.
We'll start off with acknowledgement of country for myself.
I'm here in Perth, Western Australia, and I acknowledge the magic number of people as the traditional owners of this land.
My colleague Lauren is over in Parramatta, in Sydney, on the land of the Darren people.
In the spirit of reconciliation, Energy action acknowledges the traditional custodians of country throughout Australia and their connections to land, sea and community.
We pay our respects to their elders, passed in prison, and we extend that respect to all Aboriginal and Torres Strait Islander peoples today, so are now formally introduced.
My colleague Lauren Pierce Lawrence, our sales manager, and she's represented energy action for over eight years working within the national energy market, and Lawrence worked with a number of wineries over that period.
Thanks, Simon and welcome everybody.
It's great to be here today, and I'm looking forward to getting into the content that we've planned and providing some tangible strategies that wineries can utilise as they work towards reaching net zero.
As Simon highlighted.
I've had the pleasure of working in the Eastern States energy markets for over eight years, and I've certainly seen a lot of changes in this period.
Now take the opportunity to formally introduce Simon Simon is our business development manager in the marketplace.
He's over 10 years energy experience in conventional and renewable energies and has worked in energy markets across the UK and Australia.
Thanks, Lauren and for our participants who might not be too familiar.
I'll provide a brief overview of energy action, so Energy action was founded over 20 years ago, and our vision is to make energy simpler, cleaner and lower cost.
Today, with a trusted independent energy partner for over 7000 clients, we look after over 20,000 sites and where ASX listed and a FSL licenced.
Our customer base encompasses a wide range everything from small, independent businesses through to large top tier organisations, and it includes some of the biggest and most recognisable brands in the country.
One thing that we are extremely proud of as a socially responsible business operating in the Australian energy industry is that we are a certified net zero business, having achieved our climate active certification in 2021 Lauren, I know we both raised the glass celebration.
This achievement yes, it certainly was a great milestone.
Simon, I found the transition to net zero is now in the mind of almost all of the customers I speak to here in the East, and it's great that we lead from the front in our journey to help other businesses achieve their own net zero certifications, indeed.
And I'm seeing the same over here in the West as well, or in terms of customers that are wanting to understand how they will begin to manage this transition.
Well, with that in mind, I think before we get into any specifics, it might be beneficial to cover off some of the basics around that zero for any of our participants, who themselves are only just starting out on their journey.
Yeah, good shout Lauren.
I know from speaking to some laundry registered for today's session.
There's a really mixed bag out there with some organisations already well down that path of net zero and some that are only just beginning to focus on it.
Now there's zero can seem like a complex concept, but essentially it just means we reach a point where the carbon emissions that are attached to our day to day business activities are effectively offset or reduced to reach a neutral level.
Now carbon emissions are one of the main drivers behind climate change, and we know for winery specifically how much impact our changing climate can have given the winemaking communities dependent on the unique terra and the micro climates which allow vines to flourish in their particular regions.
According to a report from the Financial Times in September 2021 the French wine makers harvest produced a whopping 29% less wine that year than it did in 2020 and this was primarily attributed to climate changed induced frost in spring and summer rains, and it was followed by floods in Germany.
A heat wave in southern Europe and drought in California.
And one Australia, recently advised that climate change is already impacting the great and one community in Australia, and it's evidenced by changes in great phrenology and harvest states, which has ultimately led to compress harvests and greater pressure on vineyard and winery infrastructure.
As such, it is imperative the community takes action wherever possible to reduce emissions.
Now, when we talk about carbon emissions, they get broken down into three categories, or scopes.
We've scope one emissions being direct business activity that generates greenhouse gases, so things like burning fuel in boilers or in diesel engines.
Scope two Emissions are the indirect emissions attached to a business's energy use, as most of the energy we use in Australia is still produced through burning fossil fuels and scope three emissions.
These are often the toughest category of tackle, as these are the indirect emissions attached to a business's supply chain.
So aspects such as buying products from suppliers will normally have greenhouse gas components involved in either the manufacturing or the distribution of those products.
There are a number of steps involved in reducing emissions and reaching net zero.
The first is to be able to actually measure and understand your existing carbon impact and then look to reduce those emissions as much as possible via measures such as energy efficiency, shifting to on site renewable energy generation and moving to electric vehicles would have a massive impact overall as wood procurement of offsite renewable energy supply through the existing power grid.
The final step would then be to purchase carbon offset certificates to offset any remaining balance of emissions.
Now, while the engulfing net zero is to have all of our energy generated from renewable sources, I think we all acknowledge that the transition itself is quite complex and it's not something that is going to happen overnight.
With that being said, though, we do know some wineries are already making big steps in this transition.
And Lauren, I believe you're going to share some insight into one of these.
Simon, as was highlighted in Energy Actions Free White Paper earlier this year, which is available to download from the Webinar registration link.
Dr Katherine Kidman from the famed Winds Kunwar, a state recently outlines that their operation has fully embraced sustainable practises and from 2024 will have 100% renewable energy and be fully net zero by 2030.
Yeah, that's great to see Lauren, and I'd recommend everyone that's joined today, jump on and download that white paper for a more detailed in toy.
It's also encouraging to know there's a number of other wineries that are also exploring those same plans for a short term transition to next year.
Oh, for many wineries, though, and for many energy users in general, the present and the short term outlooks do still appear to involve a high dependency on that traditional grid supplied energy.
And with this in mind, Lauren, I think it might be good if we provide a bit of insight for our participants into what's been happening in the markets for great supply energy lately, as we've all likely seen in the media, I think it's fair to say there's been a bit of turmoil in the Eastern States.
Energy markets? Yes, definitely.
Simon turmoil is certainly a fitting word to use and unfortunately, the harsh market conditions we've been experiencing and now starting to directly impact a lot of businesses we know from the sustainable winemaking 2021 impact report that for many wineries.
Energy is one of the highest single operating costs, so volatile energy market can have significant impacts as we can see from the state by state wholesale price of charts of the screen.
We've seen unprecedented price increases on the back of historic pricing loads during the covid period.
This has largely been driven by an increase in demand as we return to business as usual, along with an increase in emissions reduction targets.
Driving a shift away from coal fired generation gas is becoming the replacement fuel source at a time whether a gas shortages both locally and globally.
We have seen a number of announcements recently regarding the closure of some local coal fire stations along with the unplanned outages which is impacting baseload generation.
Last month, a G L announced the early closure of lawyering in yet another indication that private investment is being directed away from base load generation.
Loy Yang currently supplies approximately 30% of Victoria electricity demand, while the closure in 2035 provides sufficient time to address the federal.
The only transitional fuel available to do this is gas fired electricity generation.
There was some hope for government intervention last month to address the market issues.
However, the decision was made to rely on the current market to meet demand.
Unfortunately, the lack of action by government has now left small to medium businesses with the continued prospect of rising energy costs.
So that gives some insight into what we've been seeing in the name markets recently.
And I believe so.
I mean, the story isn't quite as bad for our participants joining us from the West.
Yes, that's right, Lauren.
Very great overview of the name markets there.
And yes, I am pleased to report things haven't been quite as bad in the West as they have been overseas recently in what we are on a separate energy network to the other, the Eastern States.
As you can see on screen here we have a map showing our southwest interconnected system, often referred to as the contestable network.
We've most of our key winemaking regions, such as the beautiful Swan Valley and the renowned Margaret River areas falling under this network.
Being on that separate network means we're not as exposed to some of that volatility that we've seen in the East, and W.
Also has its reserve capacity policy where 15% of the gas produced here is held on shore for domestic supply.
And I know Lauren, there was hope that the government would have intervened to introduce that similar mechanism over East.
Yeah, there was that hope that government would have introduced this measure as it would have bolstered our gas supplies and reduced our exposure to the historically high gas spot prices.
Well, it certainly has helped us here in the West, and we'll be watching keenly to see what might happen there in the future.
While hasn't seen that same level of supply or pricing volatility that we've seen in the East, we are also in a rising market here, with a number of the drivers being similar to those in the Net.
So locally, we've seen prices increase as we also transition away from coal and onto gas as the main fuel source used for generating ws energy.
As Laura mentioned earlier, the change in federal government has seen an increase in emissions reduction targets to 43% by 2030 and in line with this, the state government made the announcement to market that our biggest coal fired power station colleague.
Coal will be decommissioned by 2030 with gasping that interim replacement fuel for energy generation.
We are experiencing forecasted gas supply shortages in W.
As we've seen a number of delays with new gas projects coming online, such as W s proposed Scarborough Gas Project.
This coupled with the global shortages in the gas markets following withdrawal of Russian supplies into European markets.
And, of course, the ongoing high inflation levels that we're all experiencing globally are all factors that continue to impact our local energy pricing.
It is great to understand the market over there.
I know from speaking to my local customers that the rising prices are a big concern at the moment, especially for those with a net zero focus, as the increased cost of commodities like energy often means having to divert capital away from areas such as sustainability initiatives.
Yes, the same to see that happen, Lauren and I guess this sort of highlights how crucial it can be to have a plan for the next zero transition and be able to focus your resources in the areas where they'll have the most impact now for scope one emissions These can vary greatly depending on the winery's internal processes, so individual solutions would often be tailored on a case by case basis.
Now, energy action does offer a service for an in depth review of your individual emissions and preparation of a roadmap to net zero, so please reach out to us directly if you'd like more info.
Solutions for spoke to emissions, however, are normally applicable to all organisations, and it can often make a great high impact step in that net zero transition scope.
Emissions often represent a large chunk of the wineries overall carbon footprint, and we can see here on the screen.
Data from the government's Department of Industry that shows fossil fuel use in electricity generation contributes nearly a third of Australia's total emissions.
Solving the energy problem would have a massive impact on our overall transition towards that net zero future.
The great news on spoke to emissions is they are actually a very easy category to take action on, and it can often be that low hanging fruit for those that are just starting their net zero journeys.
So, Lauren, did you want to share some insights into how we can start to tackle these types of initiatives.
Certainly, Simon, one of the best options for negating fossil fuel use in your energy supply is to instal solar power and generate your own clean energy on site.
We know that solar has numerous environmental benefits, and at a time when energy prices at a record highs, it's a step towards net zero that can also leave you better off financially.
While the solar market can seem confusing at times with numerous different retailers and system options, Energy Action operates a platform that easily allows an apples for apples comparison of the market and is designed to ensure you can procure your solar system at the most competitive price.
When energy action launched over 20 years ago, we introduced Australia's first online reverse auction platform for electricity.
We've since expanded this model to incorporate clean energy and solar power, and we provide 100% transparent process with the various energy and solar power.
Retail providers been against each other in real time to supply your requirements.
Energy action would work with you and engineering specifics of your best clean energy solution based on your business's requirements.
We then release these out to market and invite our panel of retailers to competitive.
You bid against each other through a highly competitive platform.
The retailers are then bidding down the cost of your clean energy solution to help you secure the best available market rates for you.
On completion of the auction, we provide a full comparison report on all the office received.
These provide an easy to understand apples for apples comparison and simplifies our traditionally complex and often confusing language and landscape of energy markets where solar may not be practical or is insufficient in covering your full energy needs.
Energy retailers offer a number of avenues to procure renewable energy directly through the existing power grid.
So I'm gonna believe you're going to share a little bit of insight into these options for us.
Yes, I mean, actually highlighted.
Lawrence Solar is great wherever possible, but there are a number of instances where it's just not viable, and this is where clean energy supplied through the existing grid can assist.
So there are a number of products available in this space, such as carbon neutral energy plans, green power contracts, corporate PPS and progressive purchasing strategies, and we'll cover some of the key points around these options, it is important to consider the details of any option your organisation looks into for winery transition to net zero.
There are various benchmark and certification schemes in existence basically used to review your businesses actions in the next zero space and certify the results of your initiatives.
As such, it is key to ensure that the steps you take in the gating emissions will meet the requirements of any applicable framework that you may use.
So carbon neutral energy plans can seem there if they often entail minimal financial premiums compared against your standard energy rates.
Different carbon neutral plans negate energy emissions through various carbon offset schemes, both locally and around the globe.
These schemes may not always involve renewable energy generation, and some may not include a direct link to those measures actually being used for offsetting the emissions, meaning carbon neutral plans may not always meet the accounting standards for a number of the net zero benchmark schemes.
At the other end of the scale, we have corporate power purchase agreements, or PPS.
These allow you to purchase renewable energy directly from a local and identifiable source of renewable generation and can also provide marketing opportunities to highlight your partnership with a renewable generator.
While cost effective, PPS are generally suited more for the larger energy consumers, as they would often involve a long contract term of around 7 to 15 years.
And PPS can also involve taking on a percentage of risk associated with that generation.
Source, meaning any issues or unplanned outages at the source may have financial knock on effects for the end.
Users of the energy Large energy consumers can also look at taking advantage of L.
G C progressive purchasing strategies, where certificates are strategically purchased through the trading markets and we are able to provide and tailored voice around this for anyone who's interested, an option that can be a great fit for the majority of wineries and energy users in general is the Australian government accredited green power scheme.
So green power allows you to source all or part of your business? Is grid supplied electricity from accredited Australian renewable energy generators like wind, solar, mini hydro and bioenergy? So when these renewable energy generators come online, it's obviously not feasible to run a power cable straight from the source to the end users, so the clean energy that's generated gets fed into the local grid and extract through certificates called REX.
With green power, you automatically purchase the RECs certificates from these clean energy generators to offset the emissions attached to energy use in your business.
There is now over 160 accredited generators across Australia, with wind turbines and solar generators making up the majority of our green power mix.
One of the benefits with Green power is that it offers flexibility in the amounts that you purchase and I know from hearing from yourself.
This has been a big draw recently for a lot of your customers.
Yes, I've definitely found something that the Flexibility Green Power Office has been really popular out in the market.
A lot of businesses are just starting out on the Net zero journeys, and many plan to incrementally reduce emissions over a number of years.
The fact that green power allows you to increase the percentage of clean energy by makes it a great fit for aligning with incremental targets.
Yes, I've also seen a lot of customers recently.
Lauren, who may have short term goals of, say, 50% reduction in emissions.
So being able to match the green power percentage in line with the businesses targets has been massively effective.
Green power also provides a business with a number of markets and opportunities to highlight your clean energy credentials.
So purchasing over 10% green power would allow you to use the green power logo on your website and promotional materials to really differentiate yourself from the competitors purchasing over 50% or purchasing 100%.
Green Power opens up options to have your business featured on the green Power website and with more and more wine consumers having a focus around environmental credentials, the fact that green power allows you to highlight your wineries efforts in being sustainable makes it a great product.
Now, with so many different aspects to consider when looking at energy and next zero is crucial to have an energy expert involved, who can drill down into the details and also provide you with impartial guidance, energy action, we're here to help wineries and all types of businesses.
In formulating a net zero roadmap.
We can assist with assessing your individual setups to work out which markets solutions would provide the best results, and we can also provide emissions monitoring, reporting and ongoing energy management services through our energy metrics.
For we spoke earlier about how the first step in the Net zero journey is being able to measure and understand your existing carbon impact.
Well with metrics, it's easy to see key and for around your energy and emissions with a simple, user friendly dashboard interface.
Lauren, Did you want to give us a few more words around energy metrics? Yeah, sure, Simon.
Some great info there around Green Power.
And before we wrap up, I just want to spend a few minutes talking about effective energy management and how metrics can help your business Metrics is our energy management and reporting sweet, and it's designed to streamline the traditionally complex and often time continuing task of effectively managing a business is energy portfolio.
With energy being a crucial backbone to almost all business operations, it's important to understand how effective energy management can benefit of business financially, environmentally and in terms of hours spent on energy management.
So, I mean, I know you've mentioned before have conversations used to have around energy tended to always be solely focused on price But that's changed quite a bit recently, hasn't it? Yes, it has.
I mean, pricing is still a key factor in these discussions, but I think there's also a lot more focus and understanding now of the actual impact energy use has, and not only in terms of expenditure but also in regards to those environmental and even administration or impacts of energy use in the business.
Yeah, it's great to see the increased awareness around these aspects.
And essentially, these are the key areas Metrics focuses on by effectively managing your energy portfolio.
Your businesses, then empowered to reduce your spend, reduce your emissions and reduce the overall man hours spent on energy related admin.
The results in higher savings, a lower carbon footprint and more time for you to focus doing what your business does best.
So let's dig down into how metrics actually addresses these challenges, and many businesses face in these areas.
On the administration, side metrics can provide you with all the data you need to understand your energy portfolio.
On top of the ongoing contract and account management that energy action provides for our customers.
Our online metrics portal gives you fast and easy access to all your key energy data across all of your sites.
It can combine data from multiple retailers multiple locations into one simple to use dashboard.
The advanced data visibility on the metrics portal allows you to view keen on areas such as spent usage load profiles and emissions at either a portfolio or a single site level.
Metrics also provides automated reporting, which Simon I know you have a few customers who absolutely love.
Yes, that's right.
The automated monthly reporting on usage spending emissions, along with the annual budget estimate reports, consolidates that key energy data and automatically issues those reports to the relevant personnel within the business.
And this means a lot less internal admin for a number of my clients.
Environmentally metrics can also be a great tool on the journey towards that zero.
The detailed energy usage and emissions monitoring metrics provides allows you to track your energy usage and the associated carbon emissions across all of your metering points.
This also allows you to continuously monitor your emissions and, more importantly, monitor the impact of any energy or carbon reduction strategies that your business decides to implement.
Metrics can also provide actionable insights in reducing your ongoing energy usage and carbon footprint.
By reviewing a specific patterns of energy usage, we can then recommend tailored steps to effectively lower both your cost and your overall emissions.
On the financial side of things are network tariff reviews are one of the most powerful tools on the platform.
When entering into an energy contract, you lock in the set unit rate for your energy over a set number of years.
But the contract doesn't look in your network charges as these are updated annually by the network operators.
With metrics, we undertake a detailed annual review of your network tariff charges and compare these against the updated network tariffs available in your area.
This immediately identifies any areas for cost reduction.
And over the last six years, we've saved our metrics customers over 26 a half million dollars simply by reviewing and switching their network tariffs.
Network tariff reviews can also undercover additional savings and business instal solar as a drop in the level of power required from a network can result in different network tariffs being more suitable.
Bill validations, another powerful financial aspect of the metric service.
It may be surprising to learn that on average, over 10% of energy bills issued by retailers contain errors resulting in overcharges or under charges.
But how would your business spot these with the metrics Product bill Validation Service cross checks the data directly from your electricity metres against the retail charges on your bill and immediately spots.
Any errors to date are metric.
Service has recovered in excess of $5.4 million in retail overcharges to our customer base.
Essentially, metrics provides you with an advanced suite of tools and functions, along with ongoing support from the energy action team behind the scenes that empowers your business to make energy simpler, cleaner and lower cost.
Please reach out to us today.
If you'd like some more information on the metrics product, we have a number of plans available and for different energy energy users, we can happily take anyone through who's interested a quick live demo of the system.
The great thing about metrics is you don't need to be an existing energy action customer to take up this service.
If you recently negotiated a new energy contract, you can still harness the power of the metrics platform great run down there on the metrics platform.
So we've got a couple of minutes left before we jump into the Q and A.
I think we've covered a good bit of info there, and I hope it's been useful for everyone that's joined us, uh, for our participants, when you are looking to implement a solution in your own business and be that for an expiring energy contract and on site solar system or procurement of grid supplied clean energy.
One of the key drivers in these uncertain economic times is to have that peace of mind to know that you are getting the best possible value from the market being the most cost effective when procuring energy or solar essentially boils down to two simple words.
The various energy and solar power retailers in the market want your business and they're willing to compete for it.
In fact, the energy markets in Australia were first deregulated to encourage competition in the space energy action.
We work with numerous energy and solar installers to harness that competitive tension and drama of the best value outcomes for our customers are reverse auction platform has been running for over two decades and is a tried and tested methodology that stimulates maximum competitive tension between retailers.
The process is 100% transparent, with all retailers bidding on the same specifications, and you can actually watch on in real time as they bid down the cost of your energy solution and fight to win your business.
For anyone who would like more info, please feel free to reach out to us directly.
Did you want to add anything before we jump into the questions? No, Simon, I think we've covered all the key points there today.
Well, now have a look at any questions.
Look like there's any in there, Simon? None At the moment.
We'll give it a couple of minutes.
Anyone who does have a question feel free to fire through in the zoom question section there.
We'll give it a couple more minutes just to see if there's anything coming through and looks like it's still pretty quiet on the question front and a question here.
What's the easiest thing to look at when starting out on that net zero journey? Um, well, I think, as we sort of highlighted earlier the scope one sort of emissions.
It's very different from one winery to another winery.
So it is often tailored solutions that are required to do a deep dive into your business's operations, um and then actually formulate a roadmap around reducing those emissions those scope two emissions we spoke about.
Generally, we would suggest that is the easiest category to tackle.
It can be done without any sort of significant capital investment and, as we sort of highlighted is often that low hanging through in the next zero transition.
So for those businesses that are just starting to explore this pathway, tackling scope to is probably the easiest thing to look at and as we sort of highlighted as well.
The emissions that come from scope to or from energy use in a business would often represent a large chunk of the wineries carbon emissions.
So it is also an area where it can have a good level of impact, and we'll just give it a minute or two to see if, uh, we have another question here.
So I got a question from a winery owner referencing electricity use being seasonal, obviously using more electricity during the harvest season, which is pretty common, I think, for all sort of wineries there, Um and can we indicate how e can help understand usage further and help find ways to save cost? So there's a number of aspects there.
So the metrics platform that Lauren spoke about What that basically does is gives energy action the direct access to the live data feed from your metres on site.
So by having that sort of visibility of the live data, what we can start to do is understand what we call your load profile.
So how much energy is consumed and how that's actually being used.
So sort of things around times a day, peak drawer levels from the network, etcetera.
So by really brilliant down into that sort of data and starting to actually assess the energy use in the business, we can then look to give some tailored sort of suggestions around energy efficiency measures.
So, yeah, if you did want any more information on the metrics platform and feel free to reach out.
But that can be a great tool in actually being able to understand energy usage.
And from that then being able to uncover a number of avenues to reduce the usage, reduce the spend and obviously the overall emissions.
And we'll give it another couple of minutes just to see if there's any more questions coming through.
And if not, I think we'll we'll give everyone 10 to 12 minutes back in their day.
And if anyone has questions that they are unable to put in the chat for any reason or pop contact details up on screen here you can jump on our website.
You can reach out to us via email via socials, and we'll be happy to assist for any other sort of specific questions.
But I think as there's as there's no more questions coming through, I think that we'll probably wrap it up there.
Um, and a link to the recording of this webinar will be issued to all our registration members.
So anyone who wants to revisit the content should be able to do so at their leisure.
And we'll take this opportunity to thank everyone for joining us today.
And we hope we've been able to share some useful insights into how wineries can become net zero.
Yes, thank you for everyone joining.