The UK energy sector is on the brink of a historic transition. According to the think tank Ember, for the first time, renewable energy sources — wind, solar and hydropower — are projected to surpass fossil fuels in electricity generation, contributing 37% (103 TWh) of the power mix compared to fossil fuels' 35% (97 TWh).
This marks a bright spot for the UK amidst broader economic challenges, highlighting the government’s commitment to achieving a clean power grid by 2030. The Prime Minister defines this as a grid running on at least 95% low-carbon energy generation by the end of the decade. With such an ambitious target set from the top, consulting firms can position themselves as key partners in both strategy and implementation, helping establish the nation as a leader in the global energy transition.
Transition Strategies
Renewable integration faces challenges related to energy storage, grid resilience and managing demand with intermittent sources like wind and solar. Consulting firms can play a pivotal role in helping businesses and governments develop solutions to these issues, creating advanced storage systems, demand-response mechanisms and energy management frameworks. These innovations can reduce reliance on peak-time fossil fuel generation, saving costs for utilities and end-users while enhancing grid stability.
As highlighted by Recharge, gas appears to be the next fossil fuel on the proverbial cutting block. Therefore, we can expect consultancies will be increasingly engaged with for strategies to reduce reliance on the power source. This includes exploring alternative fuels like green hydrogen, expanding battery storage capacity and expediting the growth of onshore/offshore wind projects.
Technology and Innovation
As energy systems become more decentralised, their efficiency will rely on data-driven technologies. This shift opens avenues for consultancies to offer expertise in smart grid technology, IoT applications and AI-powered tools. For instance, a company may seek assistance in integrating a new AI application to improve forecasting for wind and solar output, ensuring better grid efficiency.
Consultancies can also help businesses navigate financial incentive opportunities, such as government grants or subsidies for renewable technologies. Similarly, as energy storage solutions improve, consultancies specialising in their technical implementation will find more opportunities to sell their services.
Risk Management and Resilience
The instability in energy prices following the Russia-Ukraine conflict has underscored the urgency of energy security. We have already seen how fluctuations in energy prices and availability have created a secondary need for financial and risk management consulting. As the UK pivots away from fossil fuels, ensuring a reliable and stable energy supply will be critical. Consulting firms can assist by advising on diversified energy sources, fostering collaboration with European allies and developing strategies to mitigate the impacts of extreme weather. As the make-up of the energy grid changes, so too will the demand for services by consulting firms.
Conclusion
The UK’s transition to a renewable-powered grid presents a unique opportunity for consulting firms to lead the charge. By offering strategic services, technical expertise and risk management solutions, consultancies can help pioneer a resilient, sustainable energy future. This is a pivotal moment for the energy sector, and we expect there to be plenty of opportunities for consulting firms moving forward.
- by John Barker