Reflecting on 2022 we saw so many developments when it came to Net Zero and carbon reduction but what’s next in 2023? Take a look at our wish list.
Reflecting on 2022 we saw so many developments when it came to Net Zero and carbon reduction from new technologies, methodologies and even the developments of our solutions to our public sector customers. But what’s next? Andy Morgan, our Assistant Director Carbon & Energy Management, shares his thoughts on what he would like to see develop in this landscape for 2023.
Despite carbon reduction and net zero being at the forefront of many strategies and initiatives the areas of policy, direction and funding remain far from clear. This year we would love to see clarity on these areas.
Ideally a regime for supporting public sector investment for the next five years would be great to see. The ad-hoc PSDS funding (while beneficial and very welcome) plus shelving of SALIX loans have left public bodies with little certainty about future funding availability and what rules will apply.
What about a five year long scheme that would allow public bodies and their supply chains to properly plan and deliver sensible reductions? I’d also like the funding scheme to support both long payback tech like heat pumps with grants and the shorter payback opportunities such as solar and LED with interest free loans.
In 2023 it would be great to see clearer policies and regulation changes that will drive rapid upgrades to the national electricity transmission and distribution networks. As a country we have the technology, supply chains, public and industry demand, and a good financial case to massively ramp up installation of renewable energy and battery-based demand flexibility, as well as electrifying transport and heating. However, the big limiting factor is the network. It’s a massive and expensive undertaking to upgrade the network but without it, decarbonisation of heat and transport will stall.
Lastly, my ambition would be to see a hard stop to all new licensing for oil, gas and coal extraction. The severity of the global climate crises is clear and society is rapidly accepting that the future is renewable energy. When Govt licence new fossil fuels they risk leaving people with a view that the transition to renewables isn’t really happening. The message it sends is of greater significance than the small (in a global context) climate impact.
The high prices in the energy market have been unlike anything we’ve seen before. These prices are causing real harm to individuals; businesses and the public.
However, what has started is a conversation. We have seen a massive increase in people discussing how to reduce their energy usage in order to minimise the shock of huge bills. Everyone is learning, experimenting and becoming an expert at reducing their domestic energy usage. Demand for solar panels is ‘through the roof’, battery systems to shift demand from expensive tariff times to cheaper times are selling out, people are dressing warmer and turning down thermostats, learning how to properly set their boilers and heating systems and more. Our hope is that prices stabilise but also that the actions and habits people have learned continue to reduce our national demand for energy.
Some domestic energy suppliers (an example being Octopus) are rapidly innovating with new tariffs and products to support those trailblazers with solar panels, battery systems and electric vehicles. These tariffs reward people who can reduce their demand at peak times and shift loads, which in turn helps the national grid cope with peak demands on the network and deal with times when the wind isn’t blowing and so less generation is available. I’d like to see these suppliers continue to innovate, helping make solar, battery, heat pumps and Electric vehicles mainstream and that the large commercial electricity suppliers start to follow suit.
At risk of being utopian, stability and collaboration are key. We have seen the impact that the conflict in Ukraine has had on global energy pricing. And whilst it is overly optimistic to suggest the world joins together to solve Climate change, taking steps to collaborate, agree on initiatives, free up trade and supply chains, and support each other will help to drive a far more effective and efficient change.
This blog was written by Andy Morgan, Assistant Director Carbon & Energy Management. Andy is focused on supporting public bodies on their journey to net zero. If you would like to talk to Andy about your organisation and how we can help, get in touch – andy.morgan@laserenergy.org.uk
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