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.
Evidence from a variety of sources suggest that the world is heading for a serious energy shortage in the years ahead. Rapid economic development in China and India, coupled with consistent energy use in already industrialized nations, will put a huge strain the world’s ability to meet a projected rise in energy demand.
To everyone at BHESCo it seems abundantly clear that a consequence of this global rise in demand will be a huge corresponding rise in cost, unless action is taken now to increase energy efficiency and reduce energy waste.
“One thing is certain,” said Nobuo Tanaka, the IEA’s executive director, “the era of cheap oil is over.”
‘Business Green’ reported that the Government may have to extend financial support to UK industry, as the latest projections from the independent Committee on Climate Change (CCC) confirmed that business energy costs may rise by around a third by 2030.
According to one forecast published by The National Grid, the price of electricity could double over the next two decades. Indeed, this year already oil prices have nearly doubled from their February lows.
And of course, a tremendous increase in energy consumption by industrialising nations like China, India, and Brazil, will lead to an increase in global greenhouse gas emissions.
The IEA believe that this anticipated emissions increase would result in a 6oC rise in the average global temperature by 2100, which would likely devastate many species and coastal communities worldwide.
It is essential that visionary leadership on a national scale is matched by a proactive grassroots movement at the local level to promote a rollout of energy saving measures and habits. Much like communities came together to ‘Dig For Victory’ during the war, we feel that the same ethos is needed now in the battle against climate change.
There are dozens of small changes that households and businesses can make in order to lower their energy use and carbon emissions, ranging from to replacing lights that are frequently on with LEDs, replacing old inefficient appliances and topping up your insulation.
Through our Energy Saving Service, BHESCo is helping our local community to make these essential changes to the way we use energy. The beauty of it is that by initiating energy saving measures in the home and reducing carbon emissions, people are also able to make huge savings on their annual energy bills. Its almost like getting paid to save the planet!
For help reducing your energy use, please view our Energy Saving Tips page or contact BHESCo to book a visit from our Energy Saving Team.