Reducing Carbon Emissions
A Business Case for The Digitisation of Utilities
ENABLING CARBON REDUCTION TARGETS: THE DIGITAL UTILITY
Fast, and comprehensive action is required to preserve life as we know it.
Carbon emissions must be slashed by 43% by 2030, and to net-zero by 2050. Only this will reverse the impact of climate change and satisfy Paris Agreement targets.
To reach carbon reduction targets, every individual, household and business must become part of the change. The fastest ways to reduce emissions is to reduce energy consumption and to shift to greener energy options.
Consequently, carbon credit schemes have been implemented by governments on a global scale. These programs financially incentivise more sustainable consumption and punish polluters.
Meanwhile, Utilities can also drive a shift to green energy options with pricing incentives that benefit both the utility and the consumer. This includes efficient ‘solar sponging’ tariffs when low-cost solar energy is abundant in the grid.
None of this is achieved however, without accurate water, gas and electricity consumption data. Data captured digitally, at regular intervals each day, is required to calculate carbon footprints and time of use tariffs.
SUSTAINABILITY STARTS WITH VISIBILITY
DIGITAL UTILITIES AND ACCUS
Carbon credit schemes recognise that one of the fastest, and most effective ways to reduce carbon emissions is reducing consumption. They also recognise that financial incentives will spark healthy changes in behaviour, kickstarting new and more sustainable consumption habits.
The Australian Carbon Credit Unit (ACCU) scheme has an important role to play in Australia’s journey to net zero by 2050. The scheme aims to remove atmospheric greenhouse gases, or to prevent their emission by applying one ACCU for each tonne of carbon offset. It also allows some ACCUs to be purchased by the Australian Government, some by emitters to offset a proportion of their continuing emissions, or traded on the domestic market.
Carbon and energy management go hand-in-hand. Until accurate, real-time water, gas and electricity consumption data is available however, we can’t effectively manage consumption. Only once accurate consumption (and thus, carbon) metrics are available can benchmarking, reduction or offsets be measured at the household and business level. Accurate consumption data is therefore, required to maintain credible carbon credit schemes and make real impact on carbon reduction targets.
HOW SNAPI ENABLES CARBON REDUCTION
SNAPI enables governments, utilities, businesses and households to accurately benchmark and calculate carbon emissions or ACCUs.
Transforming analogue meters into devices for the remote capture of consumption data empowers every Australian to reduce their consumption, carbon emissions, and save money on energy.
Corporations with Environment, Sustainability and Governance (ESG) policies, meanwhile, comply with regulator ESG Reporting obligations.
TARIFF PRICING & CONSUMER INCENTIVES
Whether adopted by an organisation seeking to satisfy its own ESG obligations, or a household keen to save money on electricity, green tariffs are an effective tool in the reduction of carbon emissions.
Limitations to current metering capabilities have reduced the availability and effectiveness of flexible tariff pricing in Australia. Remotely read digital meter reading, however, changes this.
SUSTAINABILITY STARTS WITH VISIBILITY
Research also demonstrates that when consumers are provided a snapshot of their energy consumption in comparison with peers, usage immediately drops. Reduced rates of consumption are sustained for an average 7-12months without any incentive or instruction to reduce consumption.
But we also know that financial incentives do work to change consumption behaviour. For example, rebates offered to those who invested in solar panels has contributed to Australia’s position on the solar energy leaderboard. In 2021, more than 15 percent of the nation’s total energy consumption was generated from solar installations.
Similarly, green tariffs, including solar sponging tariffs that mop up abundant solar in the grid during daylight hours, is set to drive mainstream adoption of green energy.
Therefore, by providing real-time insights into consumption, Utilities empower households and businesses to monitor and manage their energy use. But utilities also have the option of consumer reward programs that financially incentivise more responsible energy consumption to save money and emissions.
HOW SNAPI ENABLES DECARBONISATION
SNAPI makes significant contributions to national and international decarbonisation programs by digitising water, gas and electricity utilities at scale.
Only SNAPI can currently help the utility to overcome a massive challenge to digitise analogue meters in a low cost, low risk way – and fast. Therefore, only SNAPI Utilities will achieve the critical mass required to deliver pricing structures that motivate changes in consumer behaviour required to reduce global warming, without risking significant investments in time and money. Only rapid digitisation at scale can satisfy the utility’s desire for data-driven insights and decision support that will unlock further efficiencies.
By 2025, SNAPI will digitise the NEM and significant water infrastructure to achieve a 10% reduction in household carbon emissions per annum.