Why is renewable energy vital and how the Net-Zero goals can be achieved?

The burning of fossil fuels such as petrol, coal and gas is the main cause of climate change. The UK is highly dependent on these fuels to support their energy needs with an important number of them coming from non-EU economies, such as Russia and the United Arab Emirates. The dependence from these economies has been historically one basic reason from major energy crises. Therefore the investment in renewable energy sources is more than important for environmental, social, and economic reasons.

The Climate Change Committee reported in 2021 that in 2020, UK emissions were 48% below 1990 levels, with COVID-19 restrictions and lockdowns though having an important impact on these results. Furthermore, the UK met its carbon budgets for the first two four-year cycles (2008-2012 and 2013-2017). It is also most likely to meet its target for the 2018-2022 period. Despite these positive facts, there is a long way to go. There must be a strengthening of plans for the power sector, industrial decarbonisation, the North Sea, peat and energy from waste, as well as for the energy upgrade of the buildings that is both environmentally friendly and affordable for the consumers.

The energy transition will be mainly achieved by investment in renewable energy technologies. Renewables are mainly sourced by natural energy to make electricity, this includes fuel sources like wind, wave, marine, hydro, biomass and solar.

The energy transition will be mainly achieved by investment in renewable energy technologies. Renewables are mainly sourced by natural energy to make electricity, this includes fuel sources like wind, wave, marine, hydro, biomass and solar. Investments from both private and public sectors are needed to transform the energy needs to 100% renewable, especially in the UK, an economy with very high energy demands. According to forecasts made by Statista, in 2035 the electricity produced will increase more than 122% compared to 2017. Though these results are very encouraging, all the actors of the economy should realise that we are running out of time and the needs are extremely high.

Ten-Point plan: When the public sector commits.

The British Government has committed to achieving the Net-Zero goals by adopting and implementing the Ten-Point plan that constitutes the foundations for the Green Industrial Revolution.  We will start by supporting 90,000 jobs across the UK, and up to 250,000 by 2030, in multiple objectives that will be engaged in British science and technology to create and use clean energy and forge great new industries that export to new markets around the world. Points 1 to 3 specifically refer to renewable energy forms.

First vital pillar, point 1, is the advancement of offshore wind capacity. By 2030 is expected 40GW to be produced by offshore wind to support the energy needs of households and businesses nationwide. The UK is already a pioneer in offshore by having the first 2 floating offshore wind farms. The advancement of this energy source is expected to support up to 60,000 jobs by 2030 and save up to 21 MtCO2e between 2023 and 2032, or 5% of 2018 UK emissions. 

Point 2 is concentrated in low carbon hydrogen. Hydrogen is the lightest, simplest and most abundant chemical element in the universe. Private energy companies in the UK but also in the EU have already invested in hydrogen energy. The UK specifically aspires by the end of the decade to have their own Hydrogen Town. The government has also committed to a £240 million Net Zero Hydrogen Fund that aims to replace fossil fuels like natural gas with hydrogen and hydrogen blends.

The third pillar concerns investments in the disputable for its safety and sustainability nuclear power. The nuclear industry has been historically important for the UK and they aim to further support it by investment in Small Modular Reactors and Advanced Modular Reactors. This will result in extra 10,000 jobs and private investment up to £300 million. The most important part is that each GW produced by nuclear power will be enough to power 2 million homes with clean electricity. 

It can be concluded that the renewable energy market is highly prominent in the UK market. Due to the fact that energy demands are very high it is not only that they national actors will be benefited by this transition but there are also a lot of opportunities for international players to enter the market, especially countries who are pioneers in renewable energy like the U.S., Brazil, and the Netherlands.

Revolutionary technologies and investment towards sustainable energy. 

The Uk has been highly dependent on energy imports even in recent years, with non-EU partners playing an increasingly important role. As the figures from the Office for National Statistics show,  a great amount of both gas and refined oil is imported. Since the UK aspires to make a turn to sustainable energy, it would be evident that they will have to look for new energy sources and partners to achieve their goals or strengthen the relationships with partners that also have equal Net-Zero goal commitments. It is true that there are a lot of  prominent UK energy companies that are active in renewable energy, for example Tokamak Energy, First Light Fusion, Octopus and many more. Nonetheless, the energy needs to support such a big economy as the UK have to be met also by reliable third-parties that actively invest in renewable resources.

The UK electricity network is connected to systems in France, the Netherlands and Ireland through cables called interconnectors. The UK uses these to import or export electricity when it is most economical. The relationship with France and the Netherlands could be even more strengthened given that both countries highly invest in renewable energy, with France especially is taking a growing share in renewables’ mix, representing a target of 25.3% of France’s gross final energy consumption for 2022. Another critical partner in renewable energy is Germany. Being in third place in the Renewable Energy Country Attractiveness Index for 2022, Germany has proven its competitiveness especially in the hydrogen market. In 2021, both Germany and France were among the top renewable energy exporters.  The Dutch gas market is well-positioned for this global market, being highly interconnected with amongst others the UK-market and the presence of an operational LNG-terminal. Last year, the Netherlands generated 33 percent of its total electricity from renewable sources, up from 27% in 2020. Electricity production from renewable sources increased by 22%, while production from fossil fuels dropped 11%, Statistics Netherlands reported.

It is evident that the urgency for an energy transition as well as the needs of renewable energy on behalf of the UK economy to achieve Net-Zero is crucial. Though a total reform of the energy production and infrastructure internally would take place, forming strong partnerships with reliable third-party exporting parties would make this transition quicker and easier.