2014 will be a year of action for the UK’s energy industry, predicts Brian Smithers, strategic development director at Rexel UK, a destributor of products and services for the energy world.
Looking back: 2013 recap
2013 proved to be a year of heated debate for the green energy sector in the UK. Twelve months ago, the government was preparing to rollout the long-awaited green deal. In March, the Department of Energy and Climate Change appointed a new face, bringing in Michael Fallon as energy minister. But the price of energy was the big story of the year, as prices rose another 10 per cent and Labour proposed a price freeze. Meanwhile, as the year closed Parliament still hadn’t finished its game of ping pong over how the next generation of electricity generation will be paid for, as the Energy Bill was further delayed. So what does 2014 have in store?
Looking ahead: 2014 predictions
1. The rise and rise of solar:
For the first time ever, the UK will use more solar than Germany, the industry leader. As energy prices soar, and pressure continues to grow on the ‘Big Six’ energy suppliers who are pushing prices up, consumers and businesses alike are looking at how they can respond. The answer, for many, will be solar. Ernst & Young predict that solar installations will outstrip wind turbine installations for the first time this year.
2. The Renewable Heat Incentive won’t change the world…at least not this year:
The Renewable Heat Incentive, the first long-term financial support programme for renewable heat, is a government incentive scheme that was launched in November 2011 to reward those who use renewable energy to heat their buildings. There are two phases: one for the non-domestic sector (industrial, commercial, public sector and community organisations) and one for residential homes. Businesses have been able to claim the RHI since 2011, but by the end of March this subsidy will be open to householders as well. Still, don’t expect to see a massive change in 2014. The RHI has barely started, but it still has a ‘start and stop’ history due to the multiple delays in the domestic version of the initiative which was initially meant to kick-off in autumn 2012 but has since been pushed back twice and will official begin in spring 2014. This constantly changing start date has created weariness across the board for the success and outcome of the programme.
Across the industry we’ve begun ‘ticking the boxes’, but there’s a lot more education and infrastructure development that will need to happen in 2014 before we see mass adoption of renewable heating systems funded by the RHI. Growth will happen, sceptical consumers will become more aware and by the end of the year we’ll have start to see change in behaviour and adoption.
3. LED will rule:
As the energy debate only continues snowball around the UK, light emitting diodes - or LED lights - can be expected to be the trendiest energy efficiency technology. 2013 proved to be the year of knowledge-gaining for consumers, business owners and enterprises across the country with LED solutions beginning to gain popularity as a cost-saving energy solution
Next year we’ll see further proof of this as the UK moves from knowing about LED lighting, to understanding the difference in quality and therefore making the right energy decisions. On the business side, we’ll start to see further retail chains following in the footsteps of big supermarkets like Sainsbury’,s, by installing LEDs in an effort to save energy. Holding roughly 20 per cent of the lighting market share in the UK, LED will look to soar above 80 per cent by 2020, which puts 2014 at an integral point for growth. This year is the year consumers, businesses and enterprise move from education to action.
4. ‘Range anxiety’ will be lessened:
Electric vehicles will be crucial for the UK in the long term. Having made major strides over the last few years, the region already offers one of the most long-term, comprehensive packages of support for consumers looking to make the transition – over 6,000 ultra low emissions vehicles have been sold with government-funded consumer incentives, and 10,000 charge points installed to-date. Electrical vehicles are going to become a more and more common sight on our roads and 2014 will be the year to further prove they have a day-to-day place in UK society. As adoption grows over the next year, we’ll start to see ‘range anxiety’ (people who are anxious about the distance/accessibility of chargers) lessen as the infrastructure grows and proves that it’s ready for mass adoption.
5. ‘Action’ will be the word of the year:
All parties will move from passively absorbing information about energy efficiency and greener technologies, and instead actively look for solutions that will make changes in energy consumption.
