LATEST MARKET UPDATE: Gas and Power prices are largely trading at parity with last week’s levels, despite some significant price swings at the front of the pricing curve. The bout of low pressure has seen reduced wind output, increasing demand for gas-fired power generation and stretching a European gas system which is struggling to attract global LNG. Winter prices have also been volatile with concerns over gas storage levels being partially offset by positive supply news surrounding the potential completion of the Nordstream 2 gas pipeline. Prices further out have been softer, as renewed coronavirus fears in the wake of the delta variant have weigh on global oil markets.
In October 2021, the UK Government announced that all of the UK’s electricity will come from renewable energy by 2035. The UK announced this as part of their plan to achieve net zero by 2050; if your business is not already on a renewable energy contract, it is time you started looking at your options.
To understand what this means for your business, we have put together this article to explain what renewable energy is, the benefits of using it compared to traditional brown energy and what the future of renewable energy looks like.
Renewable energy is energy sourced from natural materials that can constantly be replenished, meaning it can never be exhausted and we will never have a shortage. Examples of this are resources such as wind, sun, and biomass. Producing energy from these sources has a lower impact on the environment as they don’t release harmful chemicals into the environment, unlike brown energy sources such as coal and gas. To speed up the transition to renewable energy the UK government has passed legislation that all electricity must come from renewable energy source by 2035.
Many people are confused about how renewable energy works, as it is not always windy and sunny- especially in the UK! However renewable energy can be stored and released into the grid so that we still have electricity even if it is not windy or sunny.
As the global demand for energy increases, renewable energy has become an increasingly important focus worldwide as traditional energy sources are unsustainable. Now that we are becoming more innovative as a country, renewables are becoming more powerful than conventional sources, such as fossil fuels. The expansion of renewables is happening at a fast pace, from solar panels to offshore wind farms; soon renewable energy will completely takeover and energy from fossil fuels will no longer be needed.
The benefits of renewable energy
Renewable energy has many benefits to it; the main benefit is it is an environmentally friendly way to source energy. Traditional methods such as coal, oil and fossil fuels are very damaging to the environment. Some renewable energy sources such as biomass and geothermal do emit air pollutions but at a much lower rate than traditional energy sources. Switching to renewable energy will lower your carbon emissions and reduce air pollution.
As mentioned previously, renewable energy is an infinite resource; it is constantly replenished. By using these resources, we have no risks of running out and reducing our ability to generate energy as a result, which is one of the main disadvantages of fossil fuels.
Although there can be premiums attached to renewable energy the continued investment in renewable energy will help drive down the premiums despite it becoming more popular
What does the future of renewable energy look like?
The importance of renewable energy is likely to increase as the environmental benefits continue to grow and a shift towards more cost-efficient energy sources. Solar energy has huge potential for the future, considering the amount of energy the sun produces is thousands of times greater than the earth's needs. In the UK, there were over 1 million solar panel installations in 2018, and with the cost of solar panels going down by 15-35% by 2024, this will encourage more growth.
How can Utility Team help?
At Utility Team, we understand that businesses want to become more environmentally conscious and save money at the same time, which is where we come in. At Utility Team, we will find the best renewable energy contract for your business. Whether your business wants to switch so you reach net zero or gain a competitive advantage against competitors who may not have considered green energy, we will find the contract that suits your needs.
Our expertise puts us in the best position to support your business transition to renewable energy. To find out how we can support your business, speak to one of our advisors today. Email us at email@example.com or call us on 02476 997901.