With 2024 confirmed as the warmest year on record¹, and the United States withdrawing from the Paris Agreement for the second time, it has never been more important for businesses and Governments across the world to take action in the transition to net zero.

That’s why this month’s edition of Bryt Insight highlights some of the positive initiatives being taken to reach net zero, such as the UK Government providing support for businesses that aim to cut carbon emissions. We also highlight recent updates in the Government’s plans for Artificial Intelligence (AI), as well as some significant milestones achieved in renewable energy.

Here’s what you need to know this month:

January started with a small decrease in long-term wholesale electricity prices, on the back of mild and windy forecasts, which meant more renewable energy generation. However, prices then increased to new highs, due to risks of supply disruption, following reports that Ukrainian forces had attacked Russian gas export infrastructure. This tapered off slightly into the middle of the month, as supplies were not affected.

The first half of January saw electricity prices fluctuate slightly, however, towards the end of the month, prices climbed above those seen at the start of the month. This increase was driven by:

• a shift in the weather forecast, towards colder weather with less wind
• rising gas prices, as electricity prices are still largely affected by gas prices,
• more infrastructure outages – nuclear generation was down from 20% of Great Britain’s demand, to 12%, and there were also further interconnector outages.

Wholesale electricity prices were also affected by the carbon market for the first time in a while. This is a mechanism that makes large CO₂ emitters report on and pay for their emissions by purchasing allowances. For the past 18 months, prices in the carbon market have been low and stable. However, the carbon market is affecting wholesale electricity prices again because the UK Government is now looking to mirror UK carbon pricing with the higher EU carbon prices, as part of the UK-EU trade deal.

This move would mean that the UK will avoid being negatively impacted by the Carbon Border Adjustment Mechanism (CBAM) that the EU is looking to implement. The CBAM is designed to help EU companies compete with competitors from outside of the EU that produce low-cost, higher-emission imports. The announcement has added almost 40% to carbon prices which, along with the other drivers, added around 10% to the forward annual UK electricity prices.

Short-term prices this month have been driven by the volatility of the wind generation. At one point, average day-ahead prices had reached a two year high, as wind generation dropped below 1GW average for the day. Within a couple of days, prices were back to normal levels, as wind output increased. Unplanned nuclear outages, as mentioned above, also played into the volatility of this month’s markets.

It’s expected that short-term prices will remain volatile and follow the weather, with wind generation and any outages of the nuclear generation or the interconnectors causing extra volatility.

As the Government is looking to mirror the EU carbon prices in order to avoid being impacted by the Carbon Border Adjustment Mechanism, this will keep forward-looking electricity prices high.

European gas storage levels are lower than expected, and are already below the level seen at the end of March 2024, which is typically the time of the year when storage levels are at their lowest. This means that storage will be filled back up frequently throughout the summer, in order to make sure that the storage is at the mandated 90% level by the 1^st November. Whilst this is likely to keep gas prices high, Liquified Natural Gas (LNG) prices in Asia have dropped below the European price, meaning that more LNG cargoes should reach Europe in the coming months. Overall, as gas prices seem likely to remain high, and are still a main driver of the electricity prices in the UK and Europe, the possibility of market prices declining much in the next month or two is very low.

REGO prices have continued the downward trend that we have seen over the last few months, with all compliance years falling.

Plans to ‘turbocharge’ the use of Artificial Intelligence (AI) have been announced by the UK Government. In their AI Opportunities Action Plan, they have outlined plans to create more jobs and investment in the AI sector, including establishing dedicated AI Growth Zones. These are areas of the country that are designed to speed up the growth of data centres (which work to deliver AI) and provide them with better access to the grid. In executing these plans, the Government aims to ensure that the UK maintains a leadership position in AI.

AI tools can be used to assist in the energy transition by more accurately predicting energy demand and weather patterns to forecast renewable energy generation. However, AI also requires significant amounts of energy – for example, with each search query requiring an estimated ten times the amount energy used in a traditional Google search². With the electrification of sectors like heating and transport, concerns have been raised over how this increasing energy demand will be met – and whether AI will hamper the journey to net zero if renewables and other low-carbon sources cannot supply the UK’s requirements³.

The Government is responding to concerns by setting up an AI Energy Council, which will collaborate with energy companies to better understand the energy demands and challenges associated with AI. The council aims to make sure that AI contributes towards the Government’s net zero goals, rather than detract from it, to create a stable, decarbonised grid.

To read more about the Government’s AI plans, visit here⁴.

The UK Government has awarded a total of £51.9 million to businesses to assist them in establishing innovative projects to cut carbon emissions, as part of the Government’s Plan for Change initiative to drive economic growth and support the creation of a net zero energy system. Across England, Wales and Northern Ireland, 25 businesses have been awarded grants, which will help them deliver projects to reduce emissions, through technology like heat pumps, the electrification of production processes, and new recycling facilities. These businesses include those from the food sector, farming industries, and the cement industry.

Businesses of all sizes have benefitted from these funds, helping them to deliver emissions-cutting technology, and supporting the establishment of new jobs through construction and operations. It is hoped that this support will boost local economies and inspire similar sustainability projects from other businesses.

To find out more about the Government’s grants, visit here⁵.

New research from Mitie highlights some key challenges for businesses on their sustainability journeys, including difficulties securing the money to fund transformation projects (78%), as well as concerns around the intermittent and less controllable nature of renewable energy (27%). On the other hand, the report also found that four out of five business leaders believe that they will be able to align with the UK’s net zero goals.

Positively, 99% of businesses surveyed have already successfully incorporated ‘quick wins’, and are aspiring towards more extensive measures in their sustainability journey. To help these businesses reach their sustainability goals, Mitie suggested some key tips to reducing carbon emissions. These include:

• Using smart data and technology solutions, such as AI, to create a tailored energy plan and a strategy for the future.
• Investing in emerging decarbonisation technologies, such as on-site battery storage and electric vehicle (EV) charging, in order to stay ahead of future legislative changes.
• Prioritising climate resilience for buildings to protect from extreme weather caused by climate change.
• Moving away from short-term, ‘quick win’ strategic thinking, and more towards long-term, holistic strategies, in order to create more significant impacts.
• Broadening ownership of carbon data across the business and increasing the accessibility of data, in order to make progress quicker and more actionable.

As we continue on our own sustainability journey, it’s encouraging to see guidance shared with likeminded businesses – helping to align UK organisations in their sustainability efforts and assist them in navigating the energy transition. We can’t reach net zero alone, so by working together and sharing our learnings, we can all help achieve this future, faster.

To find out more, you can access Mitie’s full report, here⁶.

Those with Radio Teleswitch Service (RTS) electricity meters are urged to switch to newer meters

A taskforce consisting of Ofgem and trade association Energy UK have launched a campaign⁷, encouraging those with Radio Teleswitch Service (RTS) electricity meters to upgrade their meter. This campaign was launched due to the crucial need for RTS meter upgrades before the signal is turned off in Great Britain, from 30^th June 2025.

Without the technology that supports RTS meters, from this point they will stop functioning properly and will no longer be fit for purpose. If action is not taken, the consumer’s heating and/or hot water may be continually left on or off, electric storage heaters may charge at the wrong time of day, and suppliers will be unable confirm customers’ electricity usage during peak or off-peak times, all of which may lead to higher bills.

You can check if your meter uses RTS by looking for a Radio Teleswitch Service label on either your meter or a separate box next to your meter.

To read more about these changes, visit our FAQs, or to find out more about smart meters and how we can help you upgrade your meter, you can visit here.

Over half of businesses plan to increase sustainability spending in 2025

According to a recent survey of 2,500 businesses⁸, 62% have goals to increase their sustainability spending this year, by an average of 10.5%. This is a 10% increase from last year. Other findings show that 77% of business leaders believe that the benefits of sustainability initiatives outweighed the costs, and 72% are growing their investment in low-carbon technologies.

More than six out of ten of the businesses plan to increase investment in nature protection, restoration initiatives, and/or water stewardship (i.e. using water responsibly), acknowledging the long-term risks of depletion in these areas. Only 15% have said that they will be decreasing their investment in those areas, with 20-30% planning on maintaining their level of investment.

Despite the various challenges facing many businesses, it’s encouraging to see that the majority still recognise the benefits and importance of sustainability, and are ambitious in their future plans to further these initiatives.

Study finds that the UK Government’s Clean Power 2030 plan can also cut electricity bills

Modelling from E3G, an independent climate change think-tank, has found that the Government’s recent Clean Power 2030 plan is not only achievable, but can also assist in reducing costs for consumers. E3G states that the Government’s plan could create lower electricity bills through the intensive expansion of renewable energy, particularly offshore wind, which will enable long-term stability of electricity prices.

A decarbonised grid could protect consumers from volatile gas prices and its impact on electricity prices. A recent example of this was in 2022, after Russia’s invasion of Ukraine, when the UK Government provided £44 billion to support households and businesses with their rising energy costs.

The study suggests that the Government reform the Contracts for Difference (CfD) scheme in the future, prioritise investment in green hydrogen, and work collaboratively with the EU to strengthen energy security, in order to ensure that they succeed in implementing the Clean Power 2030 plan, whilst also benefitting consumers.

To learn more, you can access the full report, here⁹.

UK Government launches new ‘skills passport’ to support skills training for the renewable energy sector

In order to address the gap in skills between oil and gas industry careers and jobs in the renewable energy sector, the UK Government has launched a new ‘skills passport’¹⁰. This will give fossil fuel workers access to an online portal that helps them identify where their current qualifications can be utilised in the renewable energy sector – with a particular focus on the offshore wind industry.

Throughout 2025, the UK and Scottish Governments plan to expand this tool to include other avenues from the fossil fuel industry towards various renewable energy careers. This will include training programmes and funding for local partners, to be used for new training centres, courses or career advisers. Aberdeen, Cheshire, Lincolnshire and Pembrokeshire have been identified as key areas for growth in this sector.

As the UK moves towards a fully decarbonised grid, it’s important that we ensure that workers affected by the energy transition are fully supported with all they need to take advantage of the growing renewable energy sector. It’s positive to see this type of action plan being put into place to establish a ‘just transition’ for workers, ensuring that the decarbonisation of the energy system will benefit everyone.

Solar-powered electricity surpassed coal in the EU across 2024

Last year, more electricity was generated from solar than from coal in the EU, according to a recent study¹¹. Solar power contributed 11% of the EU’s electricity, while coal generated 10%. Other forms of renewable energy also had an impressive year – wind provided 17%, hydro power supplied 13%, and renewables collectively contributed 47% of the EU’s electricity.

Following the closure of the UK’s last coal-fired power plant at the end of September last year, we are encouraged to see decreased reliance on coal in the EU too. This marks another significant milestone for renewable energy, indicating a positive trend away from fossil fuel-powered electricity.

Small-scale rooftop solar and heat pump installations broke records in 2024

Installations of small-scale rooftop solar and heat pumps have increased 7% year-on-year, compared to 2023, according to Microgeneration Certification Scheme (MCS), who provides quality assurance in the renewable energy and technology sector. This means that over 260,000 on-site low-carbon technologies were installed into UK businesses and homes in 2024, and over two million MCS-certified installations have taken place in total, since the MCS launched in 2008. This is in addition to all the larger scale installations that are beyond the scope of the MCS scheme.

Solar was the most popular of these technologies in 2024, but heat pump deployment grew the most rapidly – reaching almost 60,000 installations, which is a 43% year-on-year increase from 2023.

As we move towards a decentralised energy system, it’s encouraging to see that on-site renewable energy technologies are becoming increasing accessible, with UK businesses and public growing more confident in using them. You can find MCS’s full report, here¹².

New employment opportunities of Statkraft’s Loch na Cathrach pumped storage hydro scheme

In partnership with the University of the Highlands and Islands (UHI), Statkraft have released a report¹³, highlighting the employment opportunities that Statkraft’s Loch na Cathrach Pumped Storage Hydro scheme presents. The scheme consists of a 450MW long-duration energy storage project, located near to Inverness, and is presently in the pre-construction period.

According to the report, in the peak of the development period, as many as 500 jobs will be created. The project will require significant skills training for local workers, due to the fact that 60% of the on-site jobs will be skilled or semi-skilled jobs. In other non-construction roles, such as health and safety and accountancy, a minimum of 120 jobs will need to be filled.

The project previously received an award for ‘Best Engagement’ at the Scottish Green Energy Awards, so it’s great to see Statkraft continuing their positive work, investing in this project and the surrounding community. The report is intended to help education providers, such as UHI, gain an idea of the scope and variety of jobs required for the construction of the scheme, and it will also assist local students as they decide on their education pathways.

Statkraft launches webinar on PPAs

Statkraft’s pan-European webinar, ‘The Benefits of a 365 PPA’, is now available to watch on demand. With a panel of energy experts from Germany, Iberia and the UK, Statkraft’s webinar addresses common challenges that are faced by industrial and commercial energy-intensive businesses, and explains how Statkraft’s PPAs can assist businesses in tackling these obstacles and reaching their sustainability goals.

To find out more about the PPA landscape, you can access Statkraft’s webinar, here¹⁴.

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.