The imperative for on-site generation has never been as compelling as in today’s energy climate.
We’ve all become very familiar with the uncertainty of rising energy prices, sharply reducing capacity margins and our ageing energy infrastructure.
What we’re less familiar with is the potential role on-site energy generation could play in helping meet our future energy needs.
At Utilyx we have been very aware there is a lack of market data to validate the economic, environmental and social benefits of decentralised energy. In order to scope the potential of this market, not just in terms of size and scale but the potential cost and carbon benefits to UK Plc, we commissioned Verdantix to carry out an independent study ‘Coming of Age – decentralised energy?’
Benefits of decentralised energy
The report shows there is indeed great potential for growth as well as the potential for significant carbon and cost savings to UK businesses. The study predicts that decentralised energy will grow 130% by 2030, representing 14% of the UK’s total generation capacity.
And this could be just the tip of the iceberg. If this market is given holistic Government support, particularly in the form of a durable framework for decentralised energy investment and deployment, the potential of this sector will be even greater.
On-site generation – a piece of the jigsaw
It’s important to point out that on-site generation is just one piece of the jigsaw not just in terms of meeting our future energy needs and our climate targets but for businesses to consider when devising their overall energy strategy.
An integrated approach which takes into account procurement, reducing demand as well as the role of generating your own energy is going to be essential for organisations trying to navigate the ever changing – and challenging – energy landscape. And it will be those forward-thinking businesses that lead from the front that will reap the most benefits.
Mark Stokes is Managing Director of Utilyx Asset Management.