The future landscape of power suppliers in UK

The situation of any sector and its suppliers usually relies on the economic, political, environmental, and social factors of the country. By the end of 2023, the energy production in UK by oil dropped by 10%, gas by 13%, and fossil fuels dropped by 31%. With the new wave of green energy adaptation, many power suppliers in UK feel obligated to shift from conventional energy sources to green energy sources, increasing the number of green energy suppliers in UK and the production share of green energy increasing up to 44% of the total energy sector.

If expected inflation appreciates it can limit consumption and can also slow down the progress of the energy sector.

Three key factors modifying the energy sector are decarbonization, decentralization, and digitalization.

Decarbonization

Decarbonization is the reduction of carbon dioxide emissions using lower carbon power sources. Climate change and its effect on the environment have managed to grab the attention of policymakers and have sped up their search for carbon emission-free resources for energy. Renewable sources like solar and wind power are getting the spotlight because of this and the trend of electric vehicles is also on the rise with renowned brands jumping on the cause with their top-of-the-line vehicles being electric and eco-friendly. This will be a dream come true scenario for the green energy suppliers in UK that the government policies are oriented towards the path to save the environment and minimize the effects of global warming.

Decarbonization is one of the right paths that can lead UK to achieve its goal of 2050 under the zero carbon policy timely.

Decentralization

Decentralization is the concept that is being adopted along with the increase in the number of renewable sources. In decentralization, the load of energy being dependent on a central grid system is transferred to multiple smaller grids, geographically located close to the resources and the consumer region. This distributes the load in a balanced way and can form a more competitive market with affordable rates with the energy being optimized more efficiently and with minimum wastage.

Digitalization

We have witnessed the advancements in technology that have expanded its roots into every field of life. With the need for simplifying the usage and giving control with the click of fingers, the whole system is being digitalized gradually from the generation to the supply of energy reducing the e-wastage. The implication of smart grids and smart meters are playing their part in this revolution of digitalization forming a bond of transparency among the consumer and the supplier.

Digitalization will help be a pillar in generating energy from 100% renewable energy sources.

Post Russia & Ukraine Conflict

After the Russia and Ukraine conflict in 2021 disturbed the supply of sources for the utility providers in UK which led to a significant increase in the bills by the suppliers. Enforcing the government to introduce a relief scheme for the consumers to make the bills bearable for them.

This disturbance in the flow of sources caused a crisis because the global gas reserves weren’t sufficient to fulfill the energy requirements. After this crisis, the energy sector is compelled to switch to renewable sources.

The damage done by this shortage may be short-term but can benefit the environment in the long term as the energy suppliers can catch up with the trend of renewable energy and escalate the zero-carbon emission policy of the government because of its potential to save the environment.

Renewable Energy “The Savior”

With the increase in the costs of energy every year renewable energy sources can be a savior for the pockets of the consumers. Among the domestic and commercial electricity suppliers in UK solar and wind power are the ideal renewable sources for energy generation and meet the criteria to fulfill the energy needs.

Solar: It is expected to be the fastest-growing sub-sector of energy generation, it is not just a temporary solution but is forecasted to have the potential to fulfill the need from 20% to 30% of the total energy sector increasing the revenue of the energy sector by almost 50%. With the increase in demand and under the government policy of zero carbon emission solar power energy is encouraged and looked at as a smart choice.

Wind: With climate change and storms rising in UK the scope of wind energy has increased, solar and wind collectively have the potential to share 56% of power generation in the coming future.

Wind power is expected to capture a major chunk of the green energy suppliers in UK with the annual percentage increasing to 10% in the coming 10 years proving that the future is renewable energy.

End of Relief

The pound performed weakest against the dollar after decades. With the reductions in taxes, the sources of energy are mostly imported and have to be dealt with in dollars and euros, resulting in the increased price of energy generation, bound the government to end its relief support scheme which supports consumers in energy bills. The claim of the cheapest gas supplier in UK might also be at risk if the relief program gets shut down.

Conclusion:

The power suppliers in UK currently benefiting from the relief policy of the government can face a setback in their operation or maintaining affordable rates and bills for the consumers. The global sanctions limiting the supply of resources have also created a huge gap in demand and supply which led to a crisis for all the utility providers in UK. Any domestic or commercial energy provider aiming to be future-proof its sustainability in the energy sector has to adopt sources of renewable energy. Wind and solar are the renewable energy sources with the most potential to support the domestic and business energy supply in UK while being cost-effective. The government policy and goal of zero-carbon emissions by 2050 is achievable by spreading awareness among the users and suppliers that how they can play their role in saving the planet from global warming and switching to renewable energy.