• • • NET ZERO • • •
The path towards net zero: How the energy industry is transitioning to a more sustainable future
In the past twelve months we have seen the continued transition towards more sustainable energy practices, driven by both regulatory requirements and market demands
By David Sheldrake, Senior Vice President of Sales360, POWWR A
cross nearly every market, renewables are reliably and economically transitioning the grid away from the fossil fuels of the past.
Battery storage continues to expand exponentially. Plus, retail suppliers and their customers are increasingly responsible for the generation of the energy itself.
Renewable energy is
getting cheaper Perhaps unsurprisingly, the path towards net zero is being driven by economics as much as the desire to be green. Renewable energy production is getting cheaper all the time. The cost of solar panels and batteries, has never been lower. This has made set up costs far more palatable than they were in the past. Plus, renewable energy initiatives continue to qualify for subsidies, making them even cheaper still.
Across the pond, it was calculated that the average cost of generating a MWh of electricity is as little as $27 for onshore wind farms and $29 for
solar PV. This compares favourability with the up to $108 per MWh it costs with gas and the $168 it costs with coal. Plus, this is before any subsidies have been taken into account.
The need to minimise loss Continued growth in solar capacity will push renewables’ share of total energy produced even higher over the next two years. According to ERCOT data for the state of Texas, 26,087 MW of solar capacity is currently installed on to the system. By this summer, it expects an additional 6,380 MW. However, efficiency gains there and closer to home could still be improved. After all, it is said that six to ten per cent of energy is still lost during its journey through the grid. This is primarily due to the waste heat released in the air when it is travelling through power lines, but also includes conversion losses in transformers and other line equipment. Having customers deploy their own generation methods mitigates such line losses
since the electricity does not have to travel through the grid anymore. As more generation sources come online, it also reduces the strain on the grid, which can also reduce line losses substantially.
The biggest catalyst Battery storage technologies has been one of the biggest catalysts for the move towards net zero. Modern lithium-ion batteries have far better energy density than in the past, allowing for longer-lasting batteries in smaller, lighter packages. Plus, as efficiency has increased, cost has gone down. The rapid addition of battery storage capacity has certainly played a part in helping the industry transition to a more sustainable future. However, it has also greatly added to grid reliability and played an important role in helping with net peak demands which, after all, generally occur after the sun has set and solar generation has ended. Without the addition battery power flowing back onto the grid during these net peak hours, additional thermal generation from fossil fuels would still be required.
Significant progress has been made
There is no doubt that significant progress has been made towards net zero in the UK, with stricter regulations and mandatory carbon reporting for businesses. There has been an increased adoption of low-carbon technologies, electrification of transport and heating and greater use of carbon capture and storage (CCS). Coupled with this, there has been enhanced corporate responsibility and transparency across the board, with businesses publishing detailed sustainability reports. Leading to more environmentally conscious investments and operations. Only time will tell whether the investments will be enough though. With the weather extremes we have seen across several markets last year, this transition has been particularly timely and helped illustrate how renewable energy and storage can reliably run power systems as they move away from fossil fuels.
The winners will be those in the industry that ensure they remain ahead of the transition curve. In the coming years, a retail supplier’s competitive advantage will be more and more down to whether or not they own the generation of renewable energy. And for good reason. By cutting out the middleman, they can increase margins and reduce risk.
24 ELECTRICAL ENGINEERING • JULY/AUGUST 2025
electricalengineeringmagazine.co.uk
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