On-site energy generation could help UK businesses save around £33 billion by 2030, a new study claims.

It could also contribute to 14% of the nation’s energy needs as well as save 350 million tonnes of carbon emissions, according to energy consultancy Utilyx which commissioned the report.

Electricity and heat generated on-site from sources such as wind turbines, solar panels and recycled food waste is predicted to increase by 130% to 17GW by 2030.

Solar is expected to lead the growth, with Combined Heat and Power (CHP) and energy from waste forecast to lead the savings with £20 billion.

One of the main benefits of on-site generation is the decentralised nature of the energy generated, Utilyx claims, with problems such as transmission losses – traditionally associated with centralised generation – avoided.

Decentralised energy is the electricity generation directly connected to a local distribution network rather than the high-voltage electricity transmission system. The energy is produced close to where it will be used rather than at a large plant elsewhere.

Mark Stokes, Managing Director for asset management business at Utilyx said on-site energy generation will play an increasingly important role in the future energy mix.

He added: “Traditionally businesses and organisations have focused on one aspect of energy management – typically procurement or energy efficiency.

“The report reveals the need to look at the bigger picture and adopt a joined up approach including considering on-site energy generation. In a climate of volatile and rising energy prices, decentralised energy can help businesses save money, reduce carbon and provide energy security.”