From the 1st of January 2021, the UK will have left the EU. This, alongside some other incoming government regulations, will have an impact on your business from 2021 onwards. 2021 business energy regulations are changing, so your corporate energy strategy might want to change too. Most of these regulations are being brought in to combat climate change, so are not only governmental orders but regulations to help mitigate against the perils of climate change.
On top of the Brexit changes, there are also, of course, the short- and long-term effects of COVID to deal with, so ‘normal’ for businesses is likely to look unrecognisable. The impact of government lockdowns and beyond has affected all sorts of industries, the energy market in the UK included, with significantly reduced demand levels and disrupted supply chains. Choosing your business’ energy supplier wisely could save a lot of money.
What is the future of business energy?
This could equally be subtitled ‘what is the future of renewable energy?’ because the two are becoming more and more interlinked.
Switching to renewable energy for your business can likely lead to a reduction in your company’s energy costs anyway, but also bring about a significant reduction to your company’s carbon footprint. When you choose to use renewable energy in your business, this can be off-set with your carbon targets.
Business Benefits for switching to Renewable
The government’s CRC (Carbon Reduction Commitment) Scheme, now called the CRC Energy Efficiency Scheme, incentivises energy efficiency and therefore cuts emissions in large energy users, across the UK’s private and public sectors. These big users include businesses like supermarkets, water companies, banks, local authorities and central government departments. Once an organisation meets the criteria for inclusion, they are required to participate. This means that they must buy an allowance, offsetting every tonne of carbon they emit.
Business energy costs can have a dual meaning, then – how much your energy costs to buy, but then also how much of a penalty you might have to pay for utilising fossil fuels rather than renewables. As all businesses, small and large, have a responsibility to minimise their carbon footprint, switching to renewable seems an easy first step towards achieving it.
Renewable energy use will continue to grow, becoming our major energy source.
Fossil fuels will prove resilient to change, as some parts of the world with less political will to change, and cheap coal available will stick to non-renewable sources.
Flexibility and innovation in supply will be prioritised, as reliability becomes an area of concern.
Price and efficacy of energy storage will both improve.
Demand and supply issues will be balanced by conversion technologies, which convert extra power to hydrogen, heat or some other form of energy.
The future of energy is bright, then, if we are optimistic about the move towards renewable. We predict that early adoption of renewable sources cannot be a bad idea, both in terms of future legislative demands and in terms of your sustainability as a company. Although the second point, that fossil fuels will prove resilient, will be more important across developing countries than in the UK and other Western states, who are investing in renewables and are committed to green prerogatives such as the Paris Climate Agreement.
Businesses: What is the best energy source for the future?
This year, Forbes reported the previously unprecedented – that, even without considering subsidies, renewable energy is the cheaper option. If you’re looking for business energy ideas to bring down your bills, then, the sustainable business energy option looks to be all for renewables. Cheap renewable energy, and better, lower-priced batteries have led to predictions suggesting that wind and solar will produce 50% of the world’s electricity by 2050.
Choosing the right gas or electricity source for your business could be really important then, and will only grow in importance, as renewable sources become cheaper, more accessible, and better subsidised.
The future of business energy? It’s looking like renewable is the only way to go.