Cigarette maker British American Tobacco (BAT) has tripled its solar power consumption in the past year after completing major solar installations to improve its renewable energy capacity.
The latest filings show the company’s solar power consumption has risen to 1,271 megawatt-hours in 2023, up from 474 megawatt-hours previously, reducing its reliance on oil fuels and purchasing electricity for its power requirements. A megawatt-hour is equivalent to 1,000 kilowatt-hours of electricity generated and is used to measure electrical output.
Solar now contributes about 6.6% of the company’s total energy consumption of 19,254 megawatt-hours, up from 1.8% in 2022 even as fuel oil and purchased electricity remain the company’s main sources of energy.
BAT’s other sources of energy include LPG, diesel and petrol, with the latter mostly used to power the company’s fleet vehicles. BAT has invested Sh145 million between 2021 and 2022 to increase solar power generation. The company launched the second phase of a 250kW peak solar installation last year, increasing on-site electricity generation from 300kW to 550kW.
British American Tobacco also installed a 25kW solar hybrid system to support office operations, and commissioned a 1MW three-phase solar project, increasing on-site electricity generation from 400kW to 1,400kW.
The company says it has further reduced overall electricity consumption to reduce emissions.
“Reducing greenhouse gas emissions and mitigating climate risks requires fundamental shifts in the way we run our business,” British American Tobacco said. “We are addressing climate change and accelerating the decarbonisation of our operations through three key elements including energy management, afforestation and biodiversity and sustainable agriculture.”
The company has reduced electricity consumption in its offices and factories through energy management efforts including installing an energy monitoring system on equipment to help analyze losses to help address areas for improvement.