As energy prices continue to increase year on year and profits grow, the feeling of resentment from consumers has raised the profile of an industry under pressure.
A low carbon energy supply is the Government objective set for the energy industry, which is having a significant impact on dictating how it develops. With infrastructure requiring significant investment to maintain existing networks already operating at capacity, increased legislative pressure concerning the environment, street works and health and safety, the challenges going forward are varied and substantial. This, combined with energy security in an attempt to control volatility in energy prices and the competitiveness within the market, makes for interesting times ahead.
Fragmentation of the energy market has led to more suppliers offering consumers alternative packages in an attempt to secure market share. However, this diversity may not benefit consumers going forward. In order to meet the challenges described, long term investment is necessary combined with an increasing awareness of energy efficiency. As the economic climate alters, further pressures will be placed on individuals and business to gain clarity as to the energy being provided and the cost moving forward. Cost versus green energy, profits and the impact on sustainability.
The general public are being made aware of the drive to provide green energy, in conjunction with the drive to become energy efficient and sustainable. The industry continues to identify and progress renewable energy sources, such as wind farms and combined heat and power plants. There are also significant movements toward alternative power supplies such as hydrogen, methane extraction and CO2 capture.
However, the time taken to progress the green energy schemes hampered by localised objectors, planning and environmental restrictions is such that progress is slow. In conjunction with energy production there is the added pressure of energy storage, ensuring that the energy produced is effectively and efficiently utilised.
The energy industry is working incredibly hard to meet the challenges identified even taking into consideration the numerous factors that detrimentally impact on their progress and are outside of their control. Moving forward, the cumulative effect of the pressures identified would indicate that energy is a commodity that will become more valuable and as such consumers will be left concentrating on energy efficiency in an attempt to mitigate cost.
For further information contact Andrew Bridge on 01530 410828 email andrew.bridge@fishergerman.co.uk
