There are few industries changing as quickly and as dramatically as the energy industry. The movement from centralised to decentralised energy networks is well underway.
An ever depleting supply of fossil fuels and a growing global commitment to tackle the climate crisis has set the stage for a revolution in the way we buy, use, generate and store energy.
Recent years have witnessed an explosion of renewable energy supply, the slow death of coal and improvements in the digitisation of energy management in the workplace and the household. So what trends can we expect over the next twelve months and how will these impact UK consumers?
The Big Picture
One trend that’s sure to continue is the tumbling cost of renewables. The price of solar power has plumetted by 80% in ten years and is expected to halve again by 2020. Offshore wind has witnessed an even greater fall in price, with costs decreasing by an amazing 50% in just 24 months as knowledge and technology improve.
Speaking at a recent conference on sustainability, the Director General of the International Renewable Energy Agency (IRENA) Mr Adnan Amin, said:
“the scale and pace of the transformation has accelerated, and this is leading to very significant structural changes to the energy system around the world”.
As costs continue to fall, the economics of renewables become increasingly appealing. Some experts predict global oil demand to peak as soon as 2020 and to decline thereafter, in part due to a rising uptake of electric vehicles.
The Rise and Rise of EVs
Perhaps the greatest shift in energy consumption will come with electric vehicles.
As with other renewable technologies, the costs decline as production ramps up and economies of scale take hold. The number of electric cars on UK roads has risen from 3,500 in 2013 to 125,000 today. This trend is not just because of improved affordability.
A shift in the public’s perception of ‘EV’s,’ plus better consumer choice, an improved network of charge points and reductions in charging time has made them an increasingly appealing alternative to petrol.
In 2018 we can expect to see ever more electric vehicles on our roads, which in turn will stimulate a greater demand for electricity and the further advance of renewables ; a perfect feedback loop!
During 2018, there will be greater exploration of the benefits that EVs can bring to local energy networks in helping balance supply and demand in our communities.
In our next energy trends blog, we’ll take a look at the impacts we can expect from the Government’s smart meter rollout, as well as the game-changing role that battery storage will soon play in the energy industry.
On Thursday 1st June 2017, US President Donald Trump proceeded to do what everybody knew he was going to do and announced that he was pulling the USA out of the Paris Climate Agreement.
The agreement was made in December 2015 and brought together 195 nations from around the world to create a united response to the threat of global warming. Given his history of describing climate change as a hoax created by and for the Chinese, it was widely expected that the Trump administration would reverse the sustainability actions put in place by Barack Obama in favour of policies promoting fracking, coal, and oil, industries in which he has considerable investments.
And that’s exactly what he did.
However, what at first may appear to be a catastrophe for the climate movement may in fact prove to be a catalyst.
There has been magnificent response from America’s states, defying their President’s agenda and declaring their intention to build a sustainable future despite Trump’s decree.
As the Mayor of Pittsburgh, I can assure you that we will follow the guidelines of the Paris Agreement for our people, our economy & future. https://t.co/3znXGTcd8C
— Bill Peduto (@billpeduto) June 1, 2017
In the days following Trump’s announcement, over 246 city mayors signed a joint statement pledging to “honour and uphold the commitments to the goals enshrined in the Paris Agreement”. Together, city and state officials have committed to reduce emissions by more than one gigatonne of carbon-dioxide by 2030 — the same amount pledged by the US in the Paris Agreement. Commenting on these developments, former mayor of New York Michael Bloomberg said:
“The fact of the matter is, Americans don’t need Washington to meet our Paris commitment, and Americans are not going to let Washington stand in the way of fulfilling it”.
It seems that Trump has misjudged the mood of his people, and unwillingly ushered in an newly invigorated spirit of environmental determinism. As one reporter from CNBC writes:
“The Trump presidency marks a new era. As citizens and business leaders, it is now up to us to take the future into our own hands and create the change we want to see”.
And it’s not just Americans who have beeen vocal about a renewed fever of climate activism. The day after Trump’s retraction, China, India and Europe repeated their commitment to save the future of our planet. German Chancellor Angela Merkel said:
“To everyone for whom the future of our planet is important, I say let’s continue going down this path so we’re successful for our Mother Earth.”
In fact, one of the only global leaders not to decry the actions of the U.S. president was the UK Prime Minister Theresa May. Very little was said about the threat of climate change during the recent election campaign, the topic receiving minimal attention from mainstream politicians and media alike.
That’s why we must follow the example of American environmentalists and unite locally to set our own emissions targets and carve our own path to a sustainable future. We cannot rely on leadership from above.
There are many examples of community energy projects across the UK, with at least five thousand community groups undertaking energy initiatives in the last five years, all motivated by a desire to develop locally owned low carbon energy solutions.
We’re in the middle of a seismic shift in the way we produce and consume energy, with the impetus coming from grassroots communities. The change is unstoppable, whatever President Donald Trump and other backwards looking politicians think.
Be a part of the energy revolution. Find your nearest communtiy energy group and get involved today.