Member Article

Businesses urged to take control of energy efficiency ahead of uncertain future

The UK energy sector faces an uncertain future, and businesses are being warned to take control to protect themselves from risk.

Research within the npower Future Report, which was published by the London School of Economics, examined the key challenges the energy industry is currently facing and assesses the impact this could have on business.

The report, entitled ‘Demanding times for energy in the UK’ suggests that £200 billion of new investment is required by 2020 to replace ageing energy infrastructure in the UK and move toward smarter, lower carbon technologies.

Volker Beckers, CEO of RWE npower, said: “We commissioned the npower Future Report to assess how the UK’s energy market infrastructure could change in the near to midterm and the impact this would have on UK businesses”

Four scenarios are presented in the report, and present what may happen if the right balance is not found.

These include a government backtracking on decarbonisation commitments, and focus on gas; investment shortfall caused by poorly implemented policies, and over optimistic environmental targets causing spiraling costs.

Volker continued: “The scenarios outlined are entirely possible, which means policy to attract the required £200 billion investment needed to ensure the current intended route for the UK’s energy infrastructure is established quickly, happens effectively, and delivers an attractive market to invest in.”

Wayne Mitchell, interim industrial and commercial markets director at npower, added: “Whatever happens in the future, business energy users can take control by becoming more energy efficient, controlling the timing of their consumption and relying on their own stand-by generation when it is economic to do so.

“Organisations that actively manage their energy demand not only reduce the risks for themselves, they also become part of the solution and can help the grid match supply and demand.”

He went on to say that there was an opportunity to gain additional revenue by selling back power to the grid.

This was posted in Bdaily's Members' News section by Tom Keighley .