With COP27 currently going on one of the main issues at the summit has been how countries can commit to decarbonisation whilst securing an uninterrupted availability of power sources at reasonable prices.
This year the energy market has been extremely volatile globally, mainly due to Russia’s invasion of Ukraine. Since then, Russia has been cutting exports to certain countries, mainly Europe. The fallout that has happened due to this has highlighted the global reliance on fossil fuels.
Many people believe that decarbonisation and energy security go hand in hand. Renewable energy systems can provide better energy independence and reduce oil dependence.
The war between Russia and Ukraine has acted as a catalyst for renewables in some countries. They have had to invest in clean energy in order to make up for a lack of energy exports from Russia. However, this situation has also meant some countries have had to increase fossil fuel usage. For example, the UK has asked energy suppliers to delay the shutdown of coal-fired power stations in the EU.
This year there has been a divide as some countries believe decarbonisation and energy security both need to happen together for them to work, while others are more focused on securing an energy supply and prices before focusing more on Net Zero.
The gas market is stopping decarbonisation from happening
The current gas market is creating an unstable global energy market. This means that the gas industry is holding us back from moving away from the fossil fuel industry.
Since the wholesale prices of energy have gone up across the world, this has created a cost of living crisis for many countries including the UK. Due to the high energy prices, global economies are starting to struggle.
This has led some countries to turn more towards fossil fuels as they focus on energy security to lower energy bills for domestic and commercial customers.
For example, new energy initiatives in the UK have included reopening oil and gas rigs in the North Sea and plans to restart fracking. As we mentioned before the UK has also secured a deal with energy suppliers to delay the closure of coal fired power plants.
What is energy security?
Energy security has recently become a more commonly used phrase since the world has been scrambling to replace Russian supply.
Energy security is making long-term investments to supply energy in line with economic developments and environmental needs.
Whilst renewable and clean energy would be able to provide energy security in the long term a lot of countries including the UK do not have the infrastructure for renewable energy to be part of the short-term plan.
A short-term plan is crucial especially in the UK at the moment as energy prices are rising. This has led to a spike in the use of fossil fuels; however, this will only be temporary until the energy market can be stabilised.
Net Zero
As well as stabilising the energy market the world is also trying to phase out fossil fuel usage in order to meet net zero by 2050.
Many people believe that the only way global nations are going to keep the world below 1.5C is by keeping oil and gas in the ground and moving towards a renewable generation. Whilst this is important governments at the moment are focusing on keeping gas and electricity running around the countries.
Oil and gas has been named transition fuel for many countries, they need to increase the use of these transition fuels in order to be able to invest in renewable projects. These countries such as the Uk believe by using gas and oil is vital to help them reach net zero by 2050.
How to reduce your business energy bills
Although the country has recently become more dependent on fossil fuels doesn’t mean that your business has to. With a suite of energy and carbon reduction solutions, we could help your business lower energy bills and become less reliant on the wholesale energy market.
One way you could do this is with a carbon reduction plan. A customised plan for your business will reduce energy consumption and therefore costs. This will also help your business transition into the renewable generation, which the economy is moving towards.
Your business could also reduce electricity consumption through voltage optimisation. This lowers the voltage that is supplied to your electrical equipment to the optimum level needed for them to work effectively. The energy that is not needed is then bounced back to the national grid. You can save up on your energy bills by using this. Find out more about voltage optimisation here.
Another way to reduce consumption and energy efficiency in your business could be solar panels. By using this infrastructure your building could be generating its own power and saving money by not having to pay for electricity from the grid. FInd out more about how solar panels could benefit your business here.
By moving your business towards this energy efficient change, you will reduce your business's dependence on the wholesale energy market. This means that even if it takes longer to stabilise the UK energy market your business could still be in a better position with energy bills.
If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.
