In 2020, electricity consumption continued to be measured by the unit of kilowatt hours of thermal energy per hectolitre produced (kWh/hl) as a consistent yardstick for brewery operations.
In 2020, electricity usage for supply chain operations only – excluding administration and other support operations – saw an increase to 9.5 kWh/hl compared with a consistent 9.2 kWh/hl in 2018 to 2019 previously. Likewise, total electrical usage across all functions increased to 10.2 kWh/hl, compared to 10.0 kWh/hl in 2019.
The main reason for the decrease in electrical efficiency was the increase in overall electrical usage per hectolitre produced, mainly due to the need to maintain base electrical load during the COVID-19 national lockdown period from March to May 2020 with no brewery output while maintaining ‘operational idle’, which had a negative impact in overall electricity efficiency.
While production has since resumed, production levels remain lowered with a drop in brewery volume consistent with the reduced sales forecasts for the remainder of 2020. A detailed action plan is currently being drafted to mitigate the impact within 2021 operations.
For the next milestone in 2022, we aim to achieve a total of 8.80 kWh/hl in total electricity consumption and a corresponding 8.45 kWh/hl in electricity usage for production only.
Globally, the Carlsberg Group’s goal is 100% electricity usage from renewable sources in all breweries. As the Shah Alam brewery relies on the local electricity provider (the sole source for Peninsular Malaysia) for its grid supply, our electricity provenance still depends on the power generation mix of said provider which still relies on a large percentage of non-renewable sources for the foreseeable future.
Feasibility studies have been conducted from proposals submitted from third-party vendors of solar power generation, spurred by government incentives for green technology. Initial estimates based on the placement of solar panels on existing structures indicate only potential single-digit offsets of our current electricity usage which is insufficient to drive long-term transformation.
Therefore, our current priority remains reducing energy wastage while increasing efficiency for both our brewing and operational electricity requirements, which include capital expenditure (CAPEX) investments in more efficient equipment and power-saving measures.