The energy transition – a task for more than just government policy

Although the energy transition will be a key priority for the new UK government – their role will be instrumental to set the stage for a flexible energy market – responsibility does not fall solely on its shoulders, writes Siobahn Meikle, vice president for Northern Europe at Eaton.

Driving the energy transition has proven to be high on the agenda for the new government. After lifting restrictions on onshore wind, The King’s Speech further reinforced the agenda to deliver changes and upgrades to the energy grid. This was followed by news of Great British Energy partnering with The Crown Estate. Now, as policy focus turns towards COP29, the government is set to further compound its commitment to delivering net zero.

An environmentally-minded government is both important and welcomed. But for real progress to be seen, it’s ambition must support, and be paired with, business action. Still in the nascent stages of its term, the Government has a significant opportunity to strengthen its chances of success by incentivising businesses to participate in the energy transition.

Through encouraging a flexible and adaptable energy market with demand-side flexibility, grid improvements can open up opportunities for businesses to effectively play a part in the country’s energy transition.

Ultimately, as instrumental as the government’s role is in setting the stage for a flexible energy market, responsibility does not fall solely on its shoulders. The industry must collaborate and engage with the government, and help design the frameworks which will encourage the necessary investment and innovation.

Onboarding a new type of energy

The government’s vision for grid transformation is undeniably important: decarbonisation of the grid is essential to the UK achieving its net-zero targets. However, this can only happen if the grid and its users are able to fully manage the inherent intermittency of renewable energy generation.

In the UK we cannot always guarantee the sunshine, and while wind is more reliable, it is not a certainty either. This means delivering infrastructure that allows for the generation and storage of renewable energy, as well as promoting demand-side flexibility.

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One solution lies in enhancing the grid’s capacity to balance intermittency through advanced forecasting and demand response technologies. In buildings, energy storage systems can store excess energy generated during peak production times and release it when renewable energy production is low. Moreover, integrating demand response programmes allows for more flexible energy consumption, aligning usage patterns with renewable energy availability.

Modernising the grid to handle increased renewable energy capacity is a cornerstone of our clean energy future. Demand-side flexibility will play a vital role in bringing it to fruition.

The power of commercial buildings

Commercial buildings are one of the most important areas requiring a focus for delivering progress. As they represent a third of the UK’s energy consumption, ensuring such buildings can leverage innovative solutions to foster a more resilient and adaptable energy system will make a significant contribution to the UK’s net zero ambitions.

To encourage commercial buildings owners to invest in the flexible energy capabilities of their premises is important. When encouraging owners to do so, it must be made clear that their investments will ultimately benefit them, by providing a degree of independence from the grid, and access to net zero energy that can be self-generated.

Smart energy management systems, on-site renewable energy generation, EV charging infrastructure and energy storage solutions are all part of this equation. In combination, these technologies could transform the way commercial buildings use their energy.

For example, this might be via the deployment of advanced energy management systems to optimise energy use in real-time, and thus enable businesses to respond dynamically to fluctuations in energy supply and demand.

More simply, it could be a matter of encouraging businesses to use any onsite renewable generation capacity they may have – solar panels, for example – together with energy storage solutions to take advantage of weather conditions, such as a sunny day. Therefore, by adopting flexible technologies, businesses can contribute to the overall stability of the grid.

A profitable change for business

Beyond the operational efficiencies that demand-side flexibility offers, it also presents commercial buildings with the opportunity to unlock new revenue streams and enhance property value. By participating in demand response programs, where buildings are compensated for adjusting their energy usage during peak demand periods, businesses can generate additional income while supporting grid stability.

The strategic deployment of energy storage solutions not only allows buildings to shift energy use to times when electricity is cheaper, but it also creates the potential for selling excess stored energy back to the grid. This capability can turn energy management into a profit centre rather than just a cost-saving measure.

Moreover, as the demand for EVs continues to grow, commercial properties with on-site EV charging infrastructure can attract tenants and customers who also prioritise sustainability. This can enhance the marketability of these properties, setting them apart in a competitive real estate market.

In a rapidly evolving energy landscape, embracing demand-side flexibility enables commercial buildings to play a more proactive role in the energy transition, turning sustainability initiatives into tangible, incentivising economic benefits. This approach not only aligns with the UK’s broader net-zero goals but also ensures that businesses are well-positioned to thrive in a future where energy flexibility and sustainability are paramount.

The road to a clean energy superpower

For Britain to become a clean energy superpower, effective use of renewable energy is a key. But only when updates to the grid are made will we see this become a reality. By adopting flexible energy technologies and integrating renewable energy solutions, businesses can not only contribute to grid stability, but also unlock new revenue streams and enhance property value.

As the energy landscape evolves, those who embrace these changes will be better positioned to thrive, turning sustainability into a competitive advantage.

Ultimately, achieving the UK’s net-zero targets will require a concerted effort from both government and industry, working together to build a more resilient, adaptable, and sustainable energy system.

About the author
Siobahn Meikle is accountable for the Northen European businesses of Eaton. This involves overseeing all sales, marketing, project management and delivery teams for complex projects. A significant focus for her is spearheading transformation driven by a digital agenda and a changing energy infrastructure.