Get ready for the energy transition and CSRD with smart strategies

Jorlan Peeters, Managing Director, HyTEPS

The European Corporate Sustainability Reporting Directive (CSRD) requires companies to report on energy consumption and efficiency throughout their supply chain. The CSRD will be introduced in phases between 2024 and 2026, with start dates depending on the type of enterprise. Non-compliance with this regulation can result in penalties, legal action, and reputational damage.

At the same time, the energy transition and sustainability efforts call for significant actions, such as the deployment of renewable energy sources, battery storage, and efficiency improvements in electrical installations. How can these transitions be managed smoothly without financial or operational disruptions?

Challenges and risks

CSRD requires companies to provide detailed reports on their energy consumption, energy efficiency, and sustainability impacts – as well as details of their suppliers and partners. This necessitates the collection and documentation of data on electrical installations and processes across the entire supply chain. CSRD compliance, therefore, demands investments in monitoring and analysis improvements—but it also presents opportunities to significantly enhance sustainability performance.

Looking at the energy transition, it is essential to manage risks and develop strategies to ensure the reliability and quality of energy supply. An unstable power supply can disrupt production processes, damage equipment, and even result in economic losses. Renewable energy sources such as solar and wind are dependent on weather conditions, which can lead to unpredictable fluctuations in supply. This increases the risk of congestion in the electricity grid, resulting in disruptions such as flickering lights and failures in sensitive equipment. Moreover, growing electrification of systems can overload the grid during peak hours.

The role of Power Quality in Sustainability Goals

Good Power Quality (PQ) is essential for an efficient and sustainable energy supply. Optimizing PQ can prevent inefficiencies, while ensuring better utilization of existing installations, and safe integration of renewable energy sources. This contributes to long-term organizational stability and reduces financial risks, such as higher insurance premiums as a result of by poorly managed electrical installations.

PQ also plays a significant role in an organization’s sustainability performance. Poor PQ can result in inefficiencies, malfunctions, and higher costs, which negatively affect reporting and compliance with CSRD. However, many installations are not equipped with the necessary technologies for PQ monitoring and improvement—such as voltage stabilizers, harmonic filters, and energy storage systems. Periodic maintenance and updates to installations are also crucial to ensure efficiency and reliability.

While CSRD and the energy transition pose challenges, they also present opportunities for growth and sustainability, provided companies manage risks and adopt strategic approaches. By leveraging smart technologies and best practices, organizations can improve energy supply reliability, ensure CSRD compliance, and take significant steps toward sustainability.

Practical tips

  1. Enhance Network Flexibility
    Implement smart grid technologies to increase the flexibility and resilience of the network. Smart grids utilize digital technologies, automation, and data analysis to make energy generation and consumption more efficient.
  2. Protect Against Imbalances
    Use energy storage systems and voltage stabilizers to better balance supply and demand and protect equipment from fluctuations. Harmonic filters can help prevent energy losses and malfunctions.
  3. Monitor and Analyze Data
    Install measuring equipment at strategic points to monitor electrical installations. Use data simulations to test and optimize networks, minimizing energy losses.
  4. Invest in Regular Maintenance
    Routine preventive maintenance reduces the risk of malfunctions and improves reliability. Ensure compliance with laws and regulations, and consider certifications in energy management and PQ.
  5. Make Sustainability Transparent
    By producing accurate reports in line with CSRD requirements, companies can not only meet legal obligations but also benefit from favorable insurance conditions and improved investor perception.

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