One of the UKs largest energy companies has revealed that it is aiming to double revenues from its fast-expanding Business Energy Services division, on the back of growing corporate demand for its energy efficiency and renewables services.
Speaking to BusinessGreen, Dave Lewis, head of Business Energy Services at Npower, said that the division was expanding its workforce and enjoying a "significant growth trajectory" that should see revenues accelerate from around £70m currently to double that within the next two to three years.
The company recently hired three new business development managers for its mechanical and electrical installations and maintenance division, and Lewis revealed that a similar expansion is underway in the companys metering unit as it prepares for the UKs national smart meter rollout.
Npower is part of a growing trend that has seen the Big Six energy providers attempt to beef up their energy services offerings as they seek to enhance their green credentials and diversify their revenue streams.
"If the [UKs renewable energy and carbon] targets are delivered in any shape or form businesses will have to use less energy differently," admitted Lewis. "We have to move in line with that."
The company acquired building services firm SPI back in 2009, bolstering its mechanical and electrical installation, repair and maintenance services arm in a move that Lewis credits with strengthening Npowers proposition to business customers.
"We saw that [acquisition] as an opportunity to not just tell people what could be done, but move towards actually helping them do it," he said, detailing how the company has subsequently seen demand for energy efficiency and building retrofit services increase significantly.
He added that one of the most effective means of improving corporate energy efficiency often arises from overhauling existing electrical and heating infrastructure, rather than deploying new technologies.
"The first step has to be making sure what you have is working properly," he said. "It is often better to optimise than replace."
Despite this focus on energy efficiency, Lewis said the company is also looking to expand its renewable energy installation services. It is currently working on plans for a 2.5MW wind turbine at Walkers Crisps Skelmersdale factory, and offers solar and renewable heat installation services to corporate customers.
However, ultimately meeting the divisions revenue projections will depend on the energy industrys ability to convince large corporate customers to take a more co-ordinated approach to energy management.
Npower recently published its annual Business Energy Index survey of 300 senior executives, revealing that, while firms recognise energy supply security and costs as one of the most significant risks they face, only one in six major business energy users have a policy in place to manage energy-related risks.
Lewis said that, while growing numbers of firms are taking a more enterprise-wide approach to energy management, there was still a huge opportunity to better integrate energy issues into wider corporate decision making.
"When you are working on facilities management, you should get energy in there, when you are doing capital planning you should be looking at energy, but there are still not many organisations that have energy planning across the entire business," he said.
source: APEC-VC Korea
