Energy security

Oil prices in the last 12 months have been extremely volatile and the fact remains that oil is a finite resource with a lot of the remaining supplies being more costly to extract. International experts fail to agree precisely when peak oil production will be met but it is highly likely to be in this generation. This is having an effect not on only on oil but also on electricity prices with rises of up to 40% not uncommon. So where do farm businesses fit in with this? Most farms have some options for renewable energy generation. The main aim should be to secure the farm’s energy costs and insulate the farm from any future hikes in prices. This is a huge subject but projects to look at include:

• Wind turbines – need a sufficiently windy site (ideally 6m/sec.) Typically have a payback period of 5-6 years.
• Solar water heating panels – these can be used to pre-heat water, substantially reducing the amount of electricity required to get it up to full temperature. Payback periods are also around 5 years. 
• Biomass heating – Utilising an area of short rotation coppice to supply wood for a boiler to provide heating and hot water. 
• Biogas generator – a specialised option with a significant capital outlay. Needs careful feasibility investigation.

In most areas of the country there are grants available for renewable energy, making the payback even more attractive. Obviously,as well as cheaper energy for the farm and greater control over future costs there is potential to sell surplus energy which could be a useful longer term diversification that will not detract from the main farm business. Whether you are producing electricity on the farm or buying from the national grid, however, it is beneficial to reduce energy use. Here are a few areas to look at in order to improve efficiency and reduce costs:

Water heating

• Ensure the water tank is the right size and is well insulated and not compromised by lime scale.
• Heat all the water for the day on economy 7 rate giving a boost to night heated water if you hot wash in the afternoon. This can reduce the annual cost by around £1000.
• Make sure the time clocks are accurate.
• If you are on EODC ensure the tank washer is set to heat only as required not every day.
  

Milk cooling 

• Make sure the compressors are well serviced and the intakes are clear of leaves, dog hair etc 
• Use of a plate cooler especially on a borehole reduces the costs of milk cooling by up to 50% saving £600 per 1 million litres cooled per year. An ice builder to provide iced water for the plate cooler is another very viable option.
• A heat recovery system can integrate the two using heat from the milk to heat the water. This should be looked at especially if you are replacing equipment. 

Lights and parlour

• Use sodium lighting in yards and buildings as it uses much less electric and can save at least £80 per year per light. 
• A variable load vacuum pump only takes the power it needs so install that type when you are upgrading or replacing. 
• Use sensor lights in areas where there does not need to be full time illumination. 
• Have a look at household use especially older freezers and lights and buy energy efficient models when replacing appliances.

In summary there are lots of options to reduce energy use and produce your own energy to protect the business from future volatility. In addition this will reduce your carbon footprint, which is an issue likely to become increasingly important to milk buyers.