Renewable energy is a hot topic, and even more so in light of Russia’s invasion of Ukraine, Russia being Europe’s ‘petrol station’.

Approximately 28% of the energy we consumed in 2020 was imported from Norway, the US, the Middle East, Qatar and previously Russia*. Hence, net zero carbon targets aside, there is a need to find alternative sources in both the short and long-term. We need to become more self-sufficient in a world where global energy prices are rising exponentially, and zero carbon emission targets are looming.

The UK has made huge strides, reducing its CO2 emissions over 35% since 2010 through a combination of increased renewable energy sources, reduced consumption, and a huge reduction in the use of coal. Coal now accounts for less than 1% of all energy production, down from 20% in 2013.

From a global perspective, we are ahead of the game in a world that still uses coal to generate 40% of electricity consumed. But there is no room for complacency and little room for celebration with the average household energy bill set to rise by 100-200% over 12 months.

Nuclear power will be a significant part of our renewables strategy, providing 25% of all UK energy consumption by 2050** (this is still a renewable energy), but what other options are there to replace gas and oil? The main candidates are solar, wind, water and bioenergy, but can they do all the heavy lifting?

The short answer is, no. Solar generation has barely grown since government subsidies were phased out in the noughties (0.7%), wind has expanded rapidly (10-fold increase in 10 years to 4%), and bioenergy has expended over 3-fold in 10 years (to 7.8%).*

We have to reduce our consumption by making our manufacturing processes more energy efficient or avoid using the energy in the first place. For example, energy is required to make every plastic water bottle, and disposable cardboard coffee cup. If everyone uses a reusable cup / water bottle, then demand for the disposable versions will plummet.

The good news is that changes have been happening for years, and our total consumption continues to fall year-on-year. One ‘benefit’ of the current energy crisis is households and businesses alike are being forced to review every device and process, as even small marginal changes, such as switching electronics off, will make a difference in the short and long term.

Human innovation, in the face of a climate catastrophe, has the power to fill the gap where processes, transportation methods, and home appliances, are unlikely to disappear. Hydrogen and biodiesel driven buses and HGV’s, electric cars, and more efficient aeroplanes have started to become more mainstream over the last decade, as we look to reduce our CO2 emissions, whilst huge leaps forward in battery efficiency, and could make a sizable dent in electricity, gas and oil consumption across the world.

There is no silver bullet, but we can all play our part by consuming less, whether it be through the use of more re-usable items, or a greater awareness of the devices we use every day, from our PC monitors to TV’s being left on standby. No one person can change the world, but we can all play our part in helping it change for the better. After all, you’re the one who’ll benefit from lower energy bills!

If you would like further information, please do get in touch with your usual Partners Wealth Management adviser.

 

 

Sources:
* Department for Business, Energy & Industrial Strategy UK Energy in Brief, 2021
** BBC article, 10 May 2022

 

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