For more than a year, the UK energy market has experienced a period of unprecedented volatility, with resulting high wholesale prices impacting all businesses. While policymakers have now put short term plans in place to offer some relief from rising energy prices, a longer-term and more sustainable approach is needed to help businesses reduce energy demand and limit their exposure to the global markets.
That said, many businesses are already taking control of their own energy future by investing in sustainable on-site generation. In fact, in our Business Energy Tracker report, which launched earlier this year, more than a quarter (27%) of respondents said they are planning to invest in this measure to combat energy risk.
It’s easy to see why, not only does it provide businesses with a route to lower energy costs, increased self-sufficiency and reduced dependency on the grid, it also helps reduce emissions.
But, looking beyond this, it could also enable them to play a crucial role in reducing the UK’s overall dependency on imported natural gas.
This is something our latest report - The Future of Energy: The critical role of business in a zero-carbon world - investigated.
Via Imperial Consultants, we commissioned Dr Gabriel D. Oreggioni from Imperial College London to provide his own independent opinion and conduct scientific modelling on the future potential of sustainable on-site generation technologies, including wind, solar photovoltaic (PV), battery storage, biogas and biomethane.
The goals of the report were two-fold:
Businesses: the new power generation
The Future of Energy report concludes that power generated by businesses has the potential to revolutionise the status quo and set the UK on the path to decarbonisation and energy independence.
Crucially, the report findings also suggest that businesses investing in the right on-site generation technology now will reap significant benefits, by future-proofing their operations, cutting energy costs and reducing exposure to volatility in the marketplace. Over time, they will also help to reduce energy invoices for all businesses, by doing their bit to help balance the grid and increase energy security.
The scenarios explored in the report show that by 2035:
In addition, it will lower energy costs, with the overall levelised cost of electricity for the proposed options ranging between £49 and £261/MWh, significantly lower than current wholesale prices.
Crucially, it will also support the net zero ambition, with emissions savings of up to 6.7 MtCO2/year.
It shows that businesses really do have the power to shape our energy future. You can download the report here.
Want to make an informed start on your net zero journey?
Our Net Zero Calculator allows businesses to assess and analyse their current level of carbon emissions, as well as evaluating the environmental and financial benefits of future green initiatives they might want to implement.
For those who have already started on their decarbonisation journey, the Net Zero Calculator offers the chance to assess how these decisions have panned out, and whether further measures should be implemented. Curious to know more? You can try it here.