This page contains a Flash digital edition of a book.
FEATURE


POWER SHIFT


2030 might seem like a long way off for organisations dealing with today’s energy challenges. However, by exploring three future scenarios for the UK energy landscape, Wayne Mitchell, Industrial & Commercial Sales & Marketing Director at npower, explains why it is a date FMs should be thinking about now.


While the future can be uncertain, we are confident that a demand for energy will continue and supplying it cleanly, cost-effectively and securely will continue to bring challenges. To consider how government-level energy decisions being made now could impact on businesses in the future, npower commissioned The London School of Economics and Political Science to produce a report exploring the business operating landscape in 2030.


The npower Future Report, ‘Energy and the economy: The 2030 outlook for UK businesses’ examines three potential scenarios, highlighting the importance for organisations to take action now to protect themselves from the potential risks associated with energy. To better appreciate the scenarios, it is important to understand the economic context in which they sit. A range of factors are taken into account, such as the fast growth in emerging economies,


16 | TOMORROW’S FM


Europe’s ageing population and changes in financial markets, as well as labour and international competition. For example, Europe’s economic growth could stabilise at 1.4% per annum by 2030, which would create a very different business climate to some of the strong growth periods of the past.


“Europe’s economic growth could stabilise at 1.4% per annum by 2030, which would create a very different business climate.”


The report considers the changing energy situation in light of this projected economic backdrop. While the global rate of growth in electricity demand has been falling for four decades, electricity consumption is still set to double


between 2010 and 2035. The future price of gas in Europe remains uncertain, pending policy decisions on allowing the production of gas from European reserves. Gas, however, will displace coal in Europe as a cleaner energy source.


Energy costs will also be influenced by a much more rapid expansion in renewable power in response to evolving environmental concerns. The UK has committed to cutting gas emissions by 50% by 2030. In light of this, the report examines the three potential scenarios and their implications.


SCENARIO ONE:


HITTING THE TARGET The first scenario sees the UK hitting its 50% decarbonisation target by 2030 through investment in a growing mix of renewable and low-carbon generation. The main obstacle in meeting this goal is a need for record levels of investment


twitter.com/TomorrowsFM


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64