While businesses are still struggling to find relief from the energy crisis, from an environmental perspective, a silver lining has materialised.
As a consequence of Russia’s war against Ukraine and their cutting off Nord Stream 1 – the main European pipeline for Russian gas - the UK and Europe are relying on Liquified Natural Gas (LNG) imports to meet increased demand. The restriction on gas supply and the subsequent surge in energy costs have accelerated business focus toward cleaner energy technology, improving the probability of tackling the next big economic crisis - climate change.
Increase in renewable energy
The impending UK target to achieve net zero by 2050, has placed immense pressure on businesses to adopt more sustainable energy technology. The UK was falling short on these climate goals before the emergence of the energy crisis.
The outbreak of Covid-19, however, dramatically impacted fossil fuel usage in 2020. For the first time in UK history, renewables accounted for more than 43.1% of the total electricity generated.
Renewable projects more attractive
While renewable technology has traditionally been regarded a costly investment, onsite generation has become a much more attractive proposition over time due to greatly reduced timescales of return on investment (ROI) for renewable projects, partly as a result of the increase in energy prices, which more businesses are taking advantage of
In addition to the climate change benefit of switching to renewable energy, onsite generation gives businesses more control over their energy and their costs. It can also provide a source of revenue.
Net zero infrastructure
The crisis has enabled many businesses to consider implementing clean energy generation onsite, within old or existing buildings or the generation of new infrastructure entirely via net zero buildings.
These are buildings which have no net carbon emissions during their construction and operation and offer significant potential energy savings.
A brighter future
The energy crisis has caused seismic changes to the energy sector; however, it has been a catalyst for business transition to renewable alternatives and progress toward climate objectives.
Maximising efforts to increase the share of renewable energy will improve the UK’s energy autonomy and could lead to lower prices. It will also help the sector become more resistant to future price shocks.
The good news is that a choice doesn’t have to be made between prioritising the global energy crisis or the climate crisis: businesses can tackle both symbiotically.
You can download our free green eBook for guidance on green energy and starting your journey to net zero.