UK businesses should look for potential opportunities in the renewables industry as the market is set to double in the next five years.
In a new report, EDF Energy predicts the renewable generation market to reach the 75TWh mark, contributing around 20% of the UK’s total generation capacity. It expects growth to be driven mainly by independent generators in the wind and biomass sectors, which could account for around 60% of the total market by 2017.
Renewable energy produced on businesses’ own premises is expected to increase, with their share of output predicted to double to 38%. The energy supplier suggests existing independent specialist generators are expanding their operations and many other businesses are establishing their own independent generation operations, which are leading to significant growth in the sector.
EDF Energy is calling on those businesses new to generating their own power to look at strategies employed by more experienced generators to improve their returns. It claims firms with their own energy generation capability can create new revenue streams, reduce exposure to price uncertainty and benefit from Government incentives.
The supplier recently signed a contract with one of the UK’s leading recycling and waste management companies, which it claims shows how specialist and non-specialist generators can maximise benefits with the right approach.
Paul Bennett, Senior Manager of EDF Energy’s Export and Low Carbon Energy team said: “Our projections for growth in independent generation simply highlight the potential opportunities for all types of businesses… With the predicted growth in the market, it is encouraging that self-generating businesses are taking the opportunities available but there is plenty more to achieve.
“This most recent contract agreement is an example of best practice and where businesses that currently generate, or are starting to generate their own power, can aim to be. It is a breakthrough for these types of businesses because they can now have a longer-term framework agreement under which market exposure can be effectively managed through financial netting and trading.”
EDF Energy supplies gas and electricity to more than 5.5 million businesses and residential customers.