CHAMBER OPINION CHAMBER OPINION


UK energy sector is blowing in a new direction


Simon Nicholls (pictured), CEO of Beco Energy looks at the future for renewable energy.


We are in the midst of an energy renaissance. Wind and solar are fast becoming the cheapest options for power generation in the UK and the challenge is now to develop and deploy flexible energy solutions which complement them. Despite the constant changes which the UK


renewables market has had to endure over the last decade, it is widely accepted that solar and other renewables will increasingly be the dominant power source in the UK. In a recent report by Bloomberg it is claimed


that by the mid 2020s over 50% of all power in the UK will come from solar and other renewable technologies and that by 2030 sufficient power will be generated at certain times of the day to provide more than the total demand for weeks on end. The same report holds that cost of the technology will more than halve by 2040. This is all surely good news for


a sector which has been struggling due to an oversupply of companies that flocked to the solar boom years of generous government subsidies. Beco Energy, based in the


THE POLITICAL POLICIES THAT AFFECT THE REGION


‘The future


South West, was established in 1979 in a pre-subsidy era and we welcome a subsidy free renewables landscape. It is true that subsidies created a boom market but markets which are supported by state aid tend to inefficiency if the non-free- market support (in this case subsidies) are too generous. Feed-in-Tariffs were designed to stimulate


solar and other renewable by providing returns of circa five per cent. By the end of 2015 returns were as low as six years from subsidies alone so this had to be rebalanced. However the way that Government of the day delivered the news of tariff reductions meant that the industry was caught off-guard and a plethora of businesses failed. Such policies were heavily criticised by


industry and MPs alike. Indeed the current Government’s renewable energy policy continues to be derided as a failure as we saw recently in the heated exchange between MP Tim Farron and Energy and Clean Growth Minister Claire Perry. The future for renewable energy is bright with advances in technology and cost reductions


for renewable energy is bright with advances in technology and cost reductions’


putting renewables on a level playing field with dinosaur hydrocarbon technologies. As the levelised cost of solar power started to displace that of natural gas


the boardrooms of the energy goliaths


identified solar and wind as a threat. Recent acquisitions by the same companies have confirmed that they now recognise the shifting matrix of energy feedstock and cannot swim against the tide. Critics will of course be quick to point out that


solar and wind only work when the sun shines and the wind blows. Enter the nascent world of decentralised power. Energy storage and short term peaking plants will soon combine to deliver power 24/7. Flexible power technologies such as energy


storage will be critical in helping smooth the output of solar and other renewables. The economics for battery storage remain challenging but the industry expects prices to continue to drop bringing fledgling storage technologies into play. In addition, we will continue to need standby


gas generation and also perhaps an increase in interconnectors with Europe for two-way


exchanges of power to balance loads during peak demand and peak supply. As a snapshot of what we have coming in the


energy sector we can expect the imminent meteoric rise of electric vehicles (EVs) to provide two-way storage advantages for the home owner (EVs will become a prominent source of domestic energy supply given we will soon all arrive home at 6-7pm with a car full of electrical energy that can power our homes until we need to re-charge in readiness to go back to work). Beco has a proprietary solar car port which


we are deploying in numerous railways stations, airports and park & rides. We also supply EV charging points for offices, homes and also for the forward-thinking housing developers. What is clear is that the energy renaissance is


underway and business as usual is going to be far greener. Beco celebrates 40 years next year and we look forward to the next 40.


Visit: www.becouk.com Email: info@becouk.com


Email Beco using code CBR18 for a free comprehensive energy audit of your business.


July/August 2018 Chamber Profile 15


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