Our parent company, Statkraft, have released their annual energy report for the ninth year in a row, this time renaming their ‘Low Emissions Scenario’ report the ‘Green Transition Scenarios’ report. 

As an industry leader in renewable energy with over 125 years of history, Statkraft’s report has researched and outlined three possible scenarios for the global journey to net zero. These three scenarios include: 

  • The Green Transition Scenario, in which global collaboration helps accelerate and reduce the cost of the net zero energy transition. 
  • The Clean Tech Rivalry Scenario, which sees global superpowers in competition to reach net zero, therefore raising costs. 
  • The Delayed Transition Scenario, where geopolitical tensions and concerns on energy security disrupt the progression of the energy transition. 

The report demonstrates the fact that collective action and communication across nations is necessary in order to navigate and achieve a future powered by renewables. Despite the varying pace of the energy transition across the three scenarios, Statkraft has found that renewables replace fossil fuels in all scenarios, with wind and solar power especially thriving: both wind and solar power output increases by 13 times by 2050 in the Green scenario and grows by 6 times in the Delayed scenario. 

Here are some of the report’s key findings: 

  • There have been substantial reductions in emissions from the energy supply and industry sectors from 2005-2023. 
  • Global investments in renewable electricity are now ten times higher than fossil fuels. 
  • Electrification is the most significant decarbonisation solution for the industry sector, while green hydrogen also plays an important role in supporting hard-to-decarbonise sectors. 
  • Solar power is emerging as a cost-effective and quick-to-build renewable energy option, making it a great pacesetter for renewable energy. 
  • The cost of onshore wind power is decreasing, despite a period where costs temporarily increased, while the cost of offshore wind power is more expensive than was anticipated in early 2023. This is due to the impact of inflation, supply shortages, high commodity prices and interest rates. 
  • Geopolitical tensions will have a big impact on the energy transition. Factors like the US-China relationship and the recent US election are likely to affect the rate of progress towards net zero, as they may impact the level of competitiveness, hostility and unpredictability between the countries. This will impact how challenging and costly the energy transition becomes. 
  • Nevertheless, Statkraft notes that climate policies in major economies have generally remained strong, despite political tensions, and have even strengthened in some cases. 
  • Electricity demand is projected to double by 2050 in the Green scenario, largely influenced by the dramatic increase of electricity use in transport and heating, as they decarbonise, and the production green hydrogen. Consumption of electricity also increases by 50% even in the Delayed scenario.  
  • By 2050, renewable energy sources supply the majority of global energy demand in all scenarios: 84% in the Green scenario, 79% in the Clean Tech Rivalry scenario, and 65% in the Delayed scenario. 
  • Oil consumption is projected to continue in some capacity in aviation and long-haul transport, but by 2050 in the Green scenario, consumption is projected to decrease by 50%. 
  • The share of electricity in transport rises from 2% today to 70% in the Green scenario, as the transport sector continues to electrify and decarbonise. 
  • Electrification falls behind in the Clean Tech Rivalry scenario, compared to the Green scenario, due to geopolitical tensions that cause issues in relocating supply chains, leading to more expensive low-carbon technologies. 

The report lists seven decarbonisation solutions that can separate a Green scenario future from a Delayed scenario future. 

These include: 

  1. Accelerating the construction and deployment of renewable energy. 
  2. Increasing the electrification of end-user sectors, such as in buildings, industry and transport. 
  3. Encouraging energy efficiency through changes in behaviour. 
  4. Evolving the green and blue hydrogen market in Europe. 
  5. Developing the carbon capture and storage industry in Europe. 
  6. Phasing out the use of fossil fuels and simultaneously maintaining energy security. 
  7. Balancing the future energy system through sustainable flexibility methods. 

“The message is clear: the path to a sustainable energy future is neither straightforward nor easy, but it is achievable with decisive action and collective effort,” says Birgitte Ringstad Vartdal, CEO of Statkraft. 

To find out more about Statkraft’s Green Transition Scenarios 2024 report, you can visit their website and register to view the full report, here.

If you like to stay on top of any future energy cost changes that could affect your business, you’ll no doubt already be aware of Ofgem’s Targeted Charging Review (TCR). Having been in effect since April 2022, the TCR established a new system by which network owners charge energy customers for the use of the electricity networks in the UK.

Here’s a recap of the main things your business needs to know about TCR…

WHAT HAPPENED AND WHY?

The TCR is an Ofgem-led project that assessed how network charges are set and recovered. Launched in August 2017, the intention behind the TCR was to decide whether the system needed to be reformed to make it fairer. It addressed the concern that the current mechanisms used to recover Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges could lead to inefficient use of the network and create an adverse effect on consumers. The Triad system used up until then saw half hourly (HH) metered customers charged for electricity transmission costs according to their consumption during the three half-hour periods in Winter when overall demand on the grid is at its peak. Ofgem was concerned that this system distorted the market by encouraging some businesses to shift their consumption to avoid Triad periods and not pay their share towards maintaining the grid year-round.

TNUoS

Based on the findings of the TCR, Ofgem decided to supplement the Triad consumption-based system for TNUoS with a banding-based daily charging system that should ensure all businesses pay their share towards the upkeep of the grid.

DUoS

DUoS tariffs have always had a fixed daily charge component. But as part of TCR, Ofgem directed that the way DNOs (Distribution Network Officers) set this charge should also change – moving some of the cost recovery that previously came through the volume-based rates into the fixed daily charge.

The banding for each meter on businesses’ site(s) is now based on their agreed supply capacity (if there has been one agreed) or their Estimated Annual Consumption (EAC) if an agreed supply capacity is not in place. Changes to DUoS tariffs went live in April 2022 and changes to the TNUoS charges came into effect in April 2023.

HOW BUSINESSES ARE AFFECTED

For larger businesses able to reduce or shift energy volumes, winter Triad periods previously provided an opportunity to make savings through flexibility by reducing consumption during peak periods. Even those who weren’t able to be flexible in their usage could mitigate the impact of Triads by increasing their energy efficiency. Since the new system, Triad avoidance is no longer possible for many and, where it remains, the benefits are significantly reduced. This means that businesses who used this method to reduce their TNUoS costs might have found their annual energy bills have increased. For businesses previously able to boost generation revenue by exporting energy to the grid at peak times, the reduction of Triads could have affected their bottom line and reduced the benefits of having on-site generation. While businesses who participate in grid-balancing Demand Side Response schemes are still able to benefit from doing so, they will have lost out on the additional revenue available during Triad periods.

For some, the TCR has meant a bigger energy bill and a need to rebalance the budget in other ways. But large energy users who had previously been unable to consume energy flexibly and had therefore been hit with excessive Triad costs could have seen a reduction in non-commodity costs.

TOTAL TRANSPARENCY FOR OUR CUSTOMERS

Each year, National Grid ESO publishes the fixed TNUoS charges, which take effect from 1st April for the following 12 months. To see the latest TNUoS charges, daily and volume-based, please visit here.

At Bryt Energy, we’ve clearly stated the TCR banded charges in our new contracts since September 2020, in order to give our customers as much visibility of their costs as possible.

And because our operations are built to be agile, our prices will always reflect Ofgem’s latest position and advice, if there are any future changes.

MAKE THE MOST OF YOUR FLEXIBLE SOLUTIONS

Whilst the opportunities of Triad avoidance have been significantly reduced, now is the time to consider how you can optimise your electricity usage more continuously across the year and boost your revenue in other ways. For example, organisations can save money or access new revenue streams by adjusting their consumption (within agreed limits) in line with the grid’s needs, without impacting their operations. You can learn more about the benefits of optimising your electricity supply, here.

If you have any questions around TCR or how we’re supporting our customers through the changes, please get in touch with our team at heretohelp@brytenergy.co.uk.

As businesses see greater demand for sustainable options from their customers, renewables have increasingly become a focal point, with a greater variety of procurement options required to suit their needs. Corporate Power Purchase Agreements (CPPAs) are one such option, as they can help organisations reach their sustainability goals and assist wider decarbonisation. 

So we sat down with Rob Haddow, Strategic Account Manager at Bryt Energy, to answer some questions you might have about the benefits and considerations of CPPAs. 

1. WHAT IS A CPPA AND HOW DOES IT WORK?

Corporate Power Purchase Agreements (CPPAs) are long-term energy procurement agreements between a customer and an energy generator, such as a wind or solar farm. Through a CPPA, generators commit to provide long-term renewable power (and REGOs) to businesses. They typically last between 5-15 years and provide the option of either a ‘New to Earth’ project or existing asset. CPPAs can give businesses access to longer-term prices and greater budget certainty than they would receive under a regular electricity supply contract.

2. WHAT TYPES OF CPPAS EXIST AND WHAT DO THESE MEAN FOR BUSINESSES?

There are many different types of CPPAs to choose from, ranging from the type of asset to the type of contract, and it is important to understand which one best fits your business’ needs.

New to Earth

New assets, also known as ‘New to Earth’ CPPAs, are agreements with a new renewable electricity generation project that can only proceed as a result of the business’ investment. This means that the agreement is directly increasing the amount of renewables on the grid, and through this, businesses can display a strong commitment to sustainability.

New to Earth CPPAs do also come with some considerations. There can be challenges associated with the development of the project, such as obtaining planning permission and grid consent, meeting the agreed timeframes of the project, and producing the anticipated amount of renewable generation. Many of these risks can be mitigated through the terms of a CPPA, protecting customers financially, though they would need to consider their supply procurement options, should delays occur.

Existing

CPPAs with already existing electricity generation assets can provide long-term price certainty. Whilst existing CPPAs don’t enable the completion of a new renewable project, they do avoid any potential development challenges that can be associated with a New to Earth CPPA.

Other variations

CPPAs also vary by contract and agreement. A ‘Pay as Produced’ CPPA would involve agreeing to buy a percentage of the electricity produced by the generator, with payment varying based on the amount produced. In contrast, ‘Pay as Forecast’ CPPAs involve the customer purchasing energy based on the day-ahead forecasted generation, rather than the actual generation. ‘Shaped” or “Firmed” CPPAs have the intermittency of the generation profile turned into baseload blocks or an agreed profile, making it simpler to manage within a procurement strategy or an accompanying electricity supply contract.

3. WHAT ARE THE BUSINESS BENEFITS IN CHOOSING CPPAS?

Many consumers value environmental consciousness in companies, and there can be significant benefits to businesses choosing renewable options1. Should you wish to go a step further than a traditional renewable electricity supply contract, CPPAs can offer longer-term commitments to renewable generation projects and sustainability plans. Choosing a CPPA can demonstrate a direct link to a specific renewable asset or, through a New to Earth CPPA, be an essential part of enabling projects to complete, adding more renewable electricity to the grid.

CPPAs can also provide some budget certainty. These long-term agreements may include fixed prices for Renewable Energy Guarantees of Origin (REGO) certificates and power, so will be unaffected by increasing market prices movement, providing a hedge that could be helpful for long-term strategies and stability.

4. HOW DO YOU KNOW IF A CPPA IS RIGHT FOR YOUR BUSINESS?

CPPAs are not for everyone, and that’s okay! Whilst CPPAs can be a key part of a sustainability strategy, it can be difficult to align the needs of your business with the right renewable generation project. For organisations who are thinking about a CPPA, thorough consideration and preparation early on can make a real difference in successfully agreeing one. Here are some things to consider if you’re thinking about a CPPA for your business.

  • Credit ratings

A CPPA provides a long-term revenue stream for the generation project, so the financial strength of the business is key. To agree one, you will need either an investment grade credit rating, subject to the provider’s thresholds, and/or the ability to post collateral (such as a bank guarantee). It’s also important to consider the credit standing of the project and the business managing the agreement between the generator and customer to ensure success.

  • Annual electricity consumption

CPPAs can be offered to a range of customers. They may suit businesses that have an annual electricity consumption of at least 20GWh+, and should typically provide you with approximately 50% of your required volume, to ensure you retain the ability to hedge against any usage change and market movements.

It may be possible to arrange CPPAs for businesses with smaller energy consumption through ‘baskets’, especially if they are looking to be contracted with an existing asset. ‘Basket’ CPPAs contain multiple smaller organisations contracted with one renewable energy generator and can allow smaller businesses to successfully establish a CPPA, collectively.

  • Internal engagement

There are a few things to consider within your organisation when looking into a CPPA. You’ll need to consider how a CPPA may align with your wider energy and decarbonisation strategies, and how this may fit into any existing electricity supply contracts you have. Additionally, choosing a CPPA should ideally be agreed at a decision-maker, even board level, as early as possible, to ensure a smooth procurement process.

5. HOW CAN BRYT ENERGY AND STATKRAFT HELP WITH CPPA SOLUTIONS?

Bryt Energy is part of the Statkraft Group – Statkraft is Europe’s largest renewable energy producer and a leading international hydropower company. Spanning 20+ countries, and with an A credit rating2, Statkraft develops and operates renewable energy assets, buys and sells energy, and invests 100% of growth into renewables.

Statkraft has invested over £1.4 billion in the UK’s renewable energy infrastructure since 2006 and is a leading provider of Power Purchase Agreements (PPAs), having facilitated over 4.3GW of new-build renewable energy generation through PPAs, and have signed a number of CPPAs both here in the UK and across the globe. Statkraft also offers a Firming service for CPPAs. Through this service, Statkraft manages the intermittency of the generation profile, converting it into baseload blocks or an agreed profile, making it simpler to manage within a procurement strategy or an accompanying electricity supply contract.

As part of the Statkraft Group, we and our customers benefit from their 125+ years of renewables expertise, and their access to a range of renewable projects. As such, we work closely with Statkraft to integrate your CPPA seamlessly with your Bryt Energy supply contract, for a smoother process.

FIND OUT MORE

To find out more about CPPA options, and how this can work alongside a zero carbon, 100% renewable electricity* supply contract, get in touch with our team of experts here.

Sources
  1. According to a report from last year, 84% of customers have sustainability as a very important factor in deciding what to purchase. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-world-of-ands-consumers-set-the-tone
  2. Based on Standard & Poor’s long-term credit rating. You can find out more on Statkraft’s credit ratings, here: https://www.statkraft.com/IR/credit-rating-and-analysis/

*Visit www.brytenergy.co.uk for more information on our products and services.

Many businesses are switching to renewable electricity because they believe that decarbonising their operations wherever possible is simply the right thing to do. Here at Bryt Energy, we wholeheartedly agree!

With the energy supply sector contributing to over 24.8% of the UK’s overall carbon emissions in 20221, opting for a zero carbon, fully renewable electricity supply is a simple and effective step that businesses can take to reduce their carbon footprint*. What organisations may not realise, however, is that switching to zero carbon electricity can also bring a whole host of other sustainable and reputational benefits to their business.

Let’s take a look at some of the other business benefits associated with a zero carbon supply:

DO YOU WANT TO EXPAND YOUR CUSTOMER BASE?

In 2024, customers actively want brands to embrace sustainable and people first-practices; last year, a report found that 84% of consumers consider sustainability as a very important factor in their purchasing decisions2 – so, if your business isn’t focused on reducing its carbon footprint, you could risk losing people along the way.

Customers are also increasingly savvy when it comes to ‘greenwashing’3 – where companies claim to have ‘green’ credentials in their marketing, but don’t take real action to reduce their impact on the environment. Greenwashing could seriously harm your business’ reputation, so it’s crucial to support any sustainability claims you make and to be transparent.

Switching to a zero carbon electricity supply can be a great way to show that you’re committed to reducing your emissions. Plus, with more and more companies obliged to report on their carbon emissions through schemes such as the Streamlined Energy and Carbon Reporting (SECR) scheme, it can be an important first step.

DO YOU WANT TO ATTRACT THE BEST CANDIDATES TO YOUR ORGANISATION?

Placing a strong emphasis on sustainability is crucial in attracting and retaining bright, young talent in your organisation. With the younger generations of the workforce becoming more value-driven, sustainability concerns undoubtedly influence the types of roles and companies they choose to work for. In fact, last year, 55% of Gen Zs and 54% of millennials said they research a brand’s environmental impact and policies before accepting a job from them4.

With the number of Gen Z and millennials in the workforce continuing to grow, you need to ensure you can demonstrate your commitment to sustainability – and switching to zero carbon electricity is a great starting point.

ARE YOU SEEKING INVESTMENT?

If your business is seeking funding from investors, then switching to a zero carbon electricity supply could be a great way to boost your business’ investment appeal. Investors are increasingly using Environmental, Social and Governance (ESG) criteria when considering whether to invest in a business – examining how a business impacts the environment and the wider society it operates within.

The Morgan Stanley Institute for Sustainable Investing found that over 70% of investors believe that strong ESG practices can lead to higher returns, while over half of those surveyed plan to increase their allocations to sustainable investments in 20245. By showing your commitment to your sustainability values by switching to zero carbon electricity, you’ll put your business in the best possible position to secure investment and progress towards your financial goals, all while making an important contribution to the UK’s wider net zero energy transition.

DO YOU FIT INTO A SUSTAINABLE SUPPLY CHAIN?

With businesses increasingly realising the value of sustainability, those at the top of the supply chain aren’t just looking to reduce the carbon emissions they create directly. Many are now also focusing on their Scope 3 emissions, which cover all the indirect emissions that occur within an organisation’s supply chain.

So, if you’re looking to stand out from the competition when buyers are seeking suppliers, then you need to focus on reducing your own emissions as much as possible. Not only can this make your business more appealing to potential customers, but many of them will be committed to various emissions reporting frameworks for their supply chains, and may ask you to disclose your emissions under these. Simple and proactive changes, such as considering a switch to a renewable electricity supply, can open new doors, helping your business to embrace new opportunities with those who hold values similar to your own.

MAKE THE SWITCH TODAY

At Bryt Energy, we only supply zero carbon, 100% renewable electricity, sourced solely from solar, wind, and hydro power*. This means that our customers are able to report zero carbon emissions for their electricity consumption in Scope 2 under the Greenhouse Gas (GHG) Protocol market-based method* – which could make a substantial difference to your carbon footprint and help you to access all of the benefits we’ve mentioned above.

Wondering how much difference zero carbon, 100% renewable electricity* could make to your business? Get in touch with our team of experts to learn more, and take the next step on your sustainability journey.

Sources
  1. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1147372/2022_Provisional_emissions_statistics_report.pdf
  2. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-world-of-ands-consumers-set-the-tone
  3. https://hbr.org/2022/07/how-greenwashing-affects-the-bottom-line
  4. https://www.deloitte.com/global/en/issues/work/content/genzmillennialsurvey.html
  5. https://www.morganstanley.com/ideas/sustainable-investing-on-the-rise#:~:text=More%20than%20half%20of%20individual,can%20lead%20to%20higher%20returns

*Bryt Energy’s supply product has been audited and verified by an independent third party, EcoAct, to guarantee that our products are backed by Renewable Energy Guarantee of Origin certificates (REGOs). Bryt Energy manages these certificates to ensure that we have a sufficient amount in order to supply renewable power to all of our customers across a year, and therefore allow our customers to report zero carbon emissions under the Greenhouse Gas (GHG) Protocol Scope 2 Guidance. All source certification meets GHG Protocol Scope 2 Guidance Quality Criteria for market-based reporting method.

Certificates are held by energy suppliers for Fuel Mix Disclosure (FMD) purposes and Bryt Energy’s FMD represents the total amount of electricity purchased from the wholesale market to cover our portfolio of customers’ supply in given FMD year. 100% of the total amount of electricity purchased for supply by Bryt Energy during the period 2023/24 was from renewable sources. Bryt Energy purchases all electricity through our parent company, Statkraft, who procure the electricity volume to match our customers’ contracted amount from the wholesale electricity market.

Please note, all electricity to your properties is supplied via National Grid’s transmission network and local distribution networks (not directly from a renewable generator), so you will be provided with electricity from a mix of sources that the grid is being supplied with at that time from all generators – this may include fossil fuel sources.

Our full Fuel Mix Disclosure and FAQs on our products are available here. You can find our verification assurance statement here.

When businesses choose a renewable electricity contract, they usually do so because they are sustainability-minded, and they want their organisation to play their part in driving forward solutions to tackling the climate crisis.

That’s why at Bryt Energy, we’re passionate about our fuel mix – we only supply zero carbon, 100% renewable electricity, sourced solely from solar, wind and hydro power. Our fuel mix is audited and verified by an independent third party, EcoAct, every year and allows our customers to report their Scope 2 electricity consumption as zero carbon, under the Greenhouse Gas (GHG) Protocol market-based method.

Like the weather, our fuel mix ratio changes year-on-year, but you can always be sure that we only ever source our electricity from solar, wind and hydro power. Unlike fossil fuels, these sources are all zero carbon and 100% renewable forms of electricity at the point of generation, meaning they don’t create any carbon emissions or harmful air pollution, and are naturally replenishing.

All sources of electricity generation have their own unique considerations when it comes to their impact. We want to be totally transparent about why we’ve chosen our fuel mix and acknowledge that constructing, operating, and generating electricity comes with the need to manage sustainability challenges. Like all electricity generation, there are considerations such as human rights, supply chain vulnerabilities, and the embodied carbon of concrete that are crucial to manage and improve. We’re proud that our parent company, Statkraft, the largest renewable energy generator in Europe, has a long history of working to reduce the impact of different renewable electricity generation projects.

We have created this blog to take a deeper look into our fuel mix, to explain the benefits and considerations, and reiterate that by choosing solar, wind and hydro, we can help lead Britain towards a net zero, sustainable energy future.

SOLAR

Solar panels, also known as photovoltaics (PV), capture energy from the Sun and convert its light into electricity. So, at the point of generation, solar power produces zero emissions and is 100% renewable (for as long as the Sun keeps shining!).

In addition to being a zero carbon source of electricity, solar technology has seen consistent year-on-year improvements in efficiency. Since 2010, solar PV has become nearly 60% more efficient, meaning the size of panels can be kept the same, with higher capacity for electricity generation1. Well-managed solar farms have also been found to support biodiversity and bird species that are in decline2. In fact, Statkraft is developing a solar site in Cambridgeshire that will include measures to enhance biodiversity at the site by 141%3.

To reach net zero emissions, the UK Government announced targets to increase the capacity of solar generation from the 15 gigawatts (GW) currently installed4, to 70GW by 20355. Whilst increasing the deployment of solar power has led to debates in political circles around land use, research has shown that upscaling solar in line with net zero targets would only take up roughly half of the space currently used for golf courses6. Despite this, it remains important to optimise the area used for solar generation – with a recent study finding that utilising rooftops and car parks has the potential to provide at least 40GW of electricity generation capacity in England by 20357.

Looking at the lifecycle of solar panels, there is still a challenge with global supply chains, due to the ethical considerations of manufacturing being located in areas where there are significant human rights concerns8. There is a global consensus that if the supply chains of solar PV are concentrated in one area, then the industry could become vulnerable. The IEA suggests that diversifying the supply capacity would reduce the associated risks and potentially lead to economic and environmental benefits. Additionally, industry initiatives to improve the end-of-life recycling of solar panels will also reduce the environmental pressure that is placed on raw material demand, encouraging circular solutions9.

For the UK to achieve net zero, solar power will need to rapidly increase its contribution to the UK’s energy mix – a big challenge, but one we believe, together with our customers and the wider energy industry, is achievable.

WIND

Wind turbines, which sees rotating blades connected to a generator, harness energy from the wind by converting the kinetic energy into electricity. Wind energy makes up a significant proportion of our fuel mix and is particularly abundant in the UK, due to naturally windy conditions and the national ambition to be world leaders in wind generation10.

In the first quarter of 2023, wind farms in the UK generated more electricity than gas for the first time11, with record breaking wind generation set to continue as more capacity is installed. Whilst wind turbine infrastructure has presented challenges when it comes to end-of-life recycling12, a recent breakthrough in chemical technology means that it is possible for new epoxy-based blades to be broken down, reused and crucially, avoid landfill.

Some concerns have also been raised over the impacts of wind turbines on wildlife. However, the Royal Society for the Protection of Birds (RSPB) stated that it supports the growth in offshore and onshore wind projects, with the knowledge that continued research on placement can minimise impacts on bird migration13. Moreover, some studies have shown offshore wind turbines can positively affect biodiversity, with algae, mussels and oysters growing on the foundation, providing them, and other marine species, with protected habitats14.

Both wind and solar are referred to as “intermittent” renewable energies, they cannot be turned on like traditional fossil fuel generation when there is demand. However, these energy sources can be co-located alongside battery storage to ensure renewable electricity is stored for when it’s needed, regardless of the weather. The reliability of wind generation here in the UK also hits its peak out at sea, where offshore wind farms are exposed to higher and almost constant wind speeds – ideal conditions for electricity generation.

Statkraft has ambitions to “accelerate growth in solar, onshore wind, and battery storage…reaching an annual development rate of 4GW by 2030”15. This rapid upscaling in renewable energy capabilities will support the UK’s target of increasing wind generation capacity and decarbonising the power system by 203516.

HYDRO

Hydro power stations take advantage of water flows by harnessing its kinetic energy and turning it into electricity. Despite being only a small part of the UK’s electricity mix17, hydro power is a mature technology with a history of more than 2,000 years, and globally, produces more electricity than all other renewable sources combined18. Hydro power stations can also be multipurpose, providing clean water and irrigation for agriculture, as well as providing flood and drought protection in some areas19. Research suggests the use of this technology in the last 50 years alone has helped to avoid more than 100 billion tonnes of carbon dioxide (CO2) that would have been released from fossil fuel combustion20.

However, the development of hydro power can lead to socio-economic and environmental impacts during both the construction and the ongoing operation of projects. For example, hydro power developments have been criticised for displacing local communities, disrupting the surrounding water flows, and impacting local natural habitats21. Statkraft, the largest producer of hydro power in Europe, ensure they conduct impact assessments of new projects and work to mitigate the impacts22. At several of their sites, including at Rheidol hydro power station in Wales, Statkraft control water flow and install fish ladders to create better conditions for fish, protecting biodiversity23.

Hydro power is a reliable source of electricity, as water flow is predictable and controllable. This means hydro power stations have the ability to be turned on and off quickly, providing a stable source of generation during periods of fluctuating electricity demand, when the sun doesn’t shine, or the wind doesn’t blow. Hydro power is expected to remain the largest source of renewable electricity generation globally into the 2030s, providing much needed system flexibility24.

BIOMASS AND NUCLEAR

Both biomass and nuclear energy have been considered important sources of low carbon electricity generation that will help the UK transition to a net zero energy system. This is due to biomass being dispatchable on demand, while nuclear can provide a continuous stable baseload. Whilst we are strongly in favour of moving away from fossil fuels and the energy sector using all tools available to do this, we believe it is still important to critically assess all sources of electricity generation.

Biomass is derived from recently living organic materials (typically wood pellets in the UK) that is combusted to generate electricity. Although it is abundant and naturally replenishing, biomass does create carbon emissions when burned. There can, therefore, be a discrepancy between the CO2 released when combusted, and the time it takes for the same amount of carbon to be absorbed again by new biomass25. Because of this, there are ongoing debates whether biomass can be classed as a source of zero carbon electricity.

Nuclear energy creates electricity by splitting atoms apart, which creates heat. This heat is then turned into electricity by transforming water into steam, which spins a turbine26. Although nuclear can be classed as ‘zero carbon’ at the point of generation, it cannot be classed as renewable. This is because it requires uranium, a finite radioactive resource. Nuclear power is also controversial due to the environmental and health risks27 associated with the use of uranium and the accompanying radioactive waste it creates.

At Bryt Energy, we therefore chose to only supply our customers with zero carbon, 100% renewable electricity sourced solely from solar, wind and hydro.

WHAT DOES THIS MEAN FOR OUR CUSTOMERS?

Here at Bryt Energy, we’re passionate about the sources we have chosen to include in our fuel mix and the reasons why. While solar, wind and hydro power each have their own unique benefits and considerations, we believe that, together, they offer a resilient fuel mix that powers British businesses and leads the way towards a net zero, sustainable energy future.

So, if you’re a Bryt Energy customer, you can benefit from total peace of mind that our fuel mix has been comprehensively thought out to accommodate our sustainability values. You can also be assured that our fuel mix is matched with renewable energy guarantees of origin certificates (REGOs) which have been audited and verified by an independent third party, EcoAct. This means our customers can report zero carbon emissions on their Scope 2 under the GHG Protocol market-based method. For more information about our fuel mix and what you can report, read our thorough FAQs here.

By choosing zero carbon, renewable electricity* from Bryt Energy, you are also indirectly supporting renewable generation because we are part of the Statkraft Group. Statkraft has invested over £1.3 billion in the UK’s renewable energy infrastructure since 2006, and with their vision to “renew the way the world is powered”, we’re working to deliver this, together.

Join Bryt Energy today:

If you’re interested in securing zero carbon, 100% renewable electricity* for your business, find out more about becoming a Bryt Energy customer today by calling us on 0330 053 8620 or email heretohelp@brytenergy.co.uk.

Or if your business is looking to take the next step on its sustainable energy journey, you can access our series of guides on ‘Navigating the net zero energy transition’, here: https://www.brytenergy.co.uk/navigating-the-energy-transition/.

*Bryt Energy’s supply product has been audited and verified by an independent third party, EcoAct, to guarantee that our products are backed by Renewable Energy Guarantee of Origin certificates (REGOs). Bryt Energy manages these certificates to ensure that we have a sufficient amount in order to supply renewable power to all of our customers across a year, and therefore allow our customers to report zero carbon emissions under the Greenhouse Gas (GHG) Protocol Scope 2 Guidance. All source certification meets GHG Protocol Scope 2 Guidance Quality Criteria for market-based reporting method.

Certificates are held by energy suppliers for Fuel Mix Disclosure (FMD) purposes and Bryt Energy’s FMD represents the total amount of electricity purchased from the wholesale market to cover our portfolio of customers’ supply in given FMD year. 100% of the total amount of electricity purchased for supply by Bryt Energy during the period 2023/24 was from renewable sources. Bryt Energy purchases all electricity through our parent company, Statkraft, who procure the electricity volume to match our customers’ contracted amount from the wholesale electricity market.

Please note, all electricity to your properties is supplied via National Grid’s transmission network and local distribution networks (not directly from a renewable generator), so you will be provided with electricity from a mix of sources that the grid is being supplied with at that time from all generators – this may include fossil fuel sources.

Our full Fuel Mix Disclosure and FAQs on our products are available here. You can find our verification assurance statement here.

Sources
  1. https://www.iea.org/reports/solar-pv-global-supply-chains/executive-summary
  2. https://www.solarpowerportal.co.uk/news/national_survey_finds_that_well_managed_solar_farms_can_address_loss_of_bio
  3. https://www.statkraft.co.uk/about-statkraft-uk/where-we-operate/Locations/stargoosesolar/
  4. https://www.solarpowerportal.co.uk/news/government_figures_show_a_6.7_increase_in_the_uks_solar_capacity_in_last_ye
  5. https://www.gov.uk/government/publications/independent-review-of-net-zero-government-response/responding-to-the-independent-review-of-net-zeros-recommendations
  6. https://www.carbonbrief.org/factcheck-is-solar-power-a-threat-to-uk-farmland/
  7. https://www.cpre.org.uk/news/rooftops-can-provide-over-half-our-solar-energy-targets-report-shows/
  8. https://www.statkraft.co.uk/lowemissions/
  9. https://www.iea.org/reports/solar-pv-global-supply-chains/executive-summary
  10. https://www.ukri.org/news-and-events/responding-to-climate-change/topical-stories/harnessing-offshore-wind/
  11. https://www.reuters.com/world/uk/british-wind-power-overtakes-gas-first-time-q1-2023-report-2023-05-10/
  12. https://www.vestas.com/en/media/company-news/2023/vestas-unveils-circularity-solution-to-end-landfill-for-c3710818
  13. https://community.rspb.org.uk/ourwork/b/science/posts/the-rspb-and-offshore-wind
  14. https://www.nature.com/articles/s44183-022-00003-5
  15. https://www.statkraft.co.uk/about-statkraft-uk/strategy/
  16. https://www.gov.uk/government/publications/powering-up-britain/powering-up-britain
  17. https://www.congletonhydro.co.uk/about-dane-valley-community-energy-dvce-benefit-society/hydroelectricenergy/#:~:text=Hydroelectric%20Power%20in%20the%20UK,1.8%25%20of%20our%20national%20capacity
  18. https://www.irena.org/Publications/2023/Feb/The-changing-role-of-hydropower-Challenges-and-opportunities
  19. https://www.hydropower.org/iha/discover-facts-about-hydropower
  20. https://www.hydropower.org/factsheets/greenhouse-gas-emissions#:~:text=Independent%20research%20suggests%20that%20use,United%20States%20for%2020%20years
  21. https://www.ucsusa.org/resources/environmental-impacts-hydroelectric-power#:~:text=Flooding%20land%20for%20a%20hydroelectric,way%20for%20reservoirs%20%5B3%5D
  22. https://www.statkraft.co.uk/sustainability/our-commitments/environment/
  23. https://www.statkraft.co.uk/about-statkraft-uk/where-we-operate/Locations/rheidol-hydropower-plant/
  24. https://www.iea.org/energy-system/renewables/hydroelectricity
  25. https://community.rspb.org.uk/ourwork/b/nature-s-advocates/posts/biomass–_2d00_–a-burning-issue
  26. https://education.nationalgeographic.org/resource/nuclear-energy/
  27. https://www.lse.ac.uk/granthaminstitute/explainers/role-nuclear-power-energy-mix-reducing-greenhouse-gas-emissions/ 

For many years, the energy transition and the idea of a net zero world has felt like something for the future. Obstacles such as poor availability, uncertain cost effectiveness and a lack of widespread knowledge or proven case studies have prevented businesses from embracing key energy transition-enabling technologies and taking action. Now, as these technologies become increasingly affordable and familiar, businesses are in the perfect position to act.

In this blog, we look at four technologies that will be key in the net zero energy transition and what they could mean for your business’s sustainable energy journey.

1. Storage: Maximise your self-generated electricity

Investing in energy storage is one of the simplest and most-effective ways to take advantage of the opportunities within the net zero energy transition. Able to store self-generated electricity as well as intelligently collect energy from the grid at times when it’s cheapest, batteries can help businesses avoid costly peak charges whilst also providing resilience. Batteries can also import energy from the grid when it’s at lower carbon intensity to help support a net zero system.

Battery energy storage also enables your business to maximise the use of other low-carbon technologies such as photovoltaic (PV) solar panels. Solar panels are a great choice for business looking to generate renewable electricity on-site because they can help you make use of otherwise largely unused space, such as rooftops.

Pairing technologies such as PV and battery storage can form the basis of an effective, wider energy strategy as storage enables your self-generated electricity to be used when the sun isn’t shining, instead of going to waste. Businesses could also choose to trade back to the grid at a time when others need it more, providing a new stream of revenue whilst supporting a net zero system.

2. Electric vehicles: Adopt a sustainable transportation strategy

Electric vehicles (EVs) are another way businesses can take their next steps in the net zero energy transition. And best of all, with the right strategy in place, there are multiple benefits to electrifying a business fleet. Having EV chargers on-site could boost footfall as EV cars become more popular among the public. Additionally, they could provide an extra revenue source if businesses rent out charging spaces to the community or other companies outside of office hours. And, if paired with a renewable electricity supply or on-site generation, a fleet of electric company cars can help a business reduce its carbon footprint straight away.

3. Heat pumps: Electrify your heating

With non-domestic buildings accounting for nearly 1/5 of the UK’s carbon emissions1, electrifying and decarbonising heating is becoming an increasing priority for businesses. Heat pumps have a key role to play in this and, as they become better understood, more affordable and accessible, how can businesses take advantage of them?

Air source or ground source heat pumps can be installed on the outside of commercial buildings and are powered by electricity. They work by extracting heat from air or water and using it to heat a building. This electrification of heating can help businesses reduce both their energy bills and, especially if powered by renewable electricity, their carbon emissions. Whilst a relatively new technology, businesses adopting heat pumps now can enhance their reputations as leaders in the energy transition.

4. Green hydrogen: Prepare for alternative fuels

As well as taking advantage of existing low-carbon technologies, businesses can also be aware of innovations that are – although in their early development stages – likely to play a major part in the future energy system. Green hydrogen is an example of this – a sustainable alternative to fossil fuel gas that can be produced using renewable energy sources. Extremely versatile, it can be used to power a variety of applications, and can be used as a fuel, to generate heat and electricity, as well as a raw material in industrial processes and products. As such, it’s likely to have a key role in decarbonising heat and transport, and for existing energy-using assets that cannot be electrified, such as high-temperature processes.

Optimisation: Take your energy transition to the next level

Through optimising their electricity use, businesses can maximise the benefits of these low-carbon technologies and reduce their electricity costs. Optimisation involves using data analytics and machine learning to analyse electricity consumption patterns and identify areas where usage can be adjusted for greater efficiency and in response to the grid’s needs.

For example, here at Bryt Energy, we use integrating technologies to harmonise customers’ electricity consumption (in operations such as industrial machinery, refrigeration or HVAC) with periods of high renewable generation and system needs. This enables businesses to be more intelligent and sustainable with their electricity usage, to earn revenue and reduce costs by making use of what they’ve already got – all while business activities remain unimpacted.

Get started, today

Low-carbon technologies are becoming more widely available, and increasingly more cost-effective. By considering storage technologies, on-site generation, electric vehicles, heat pumps and being aware of green hydrogen, businesses can embrace the cost saving, revenue and reputational opportunities these technologies offer. And, by bringing it all together with optimisation and a holistic energy strategy, businesses of any size can gain all the benefits and take this vital next step in their net zero energy transition journeys. And they can do it now.

Read the third guide in our Navigating The Net Zero Energy Transition And What It Means For Your Business series to find out more: https://www.brytenergy.co.uk/navigating-the-energy-transition/.

Sources
  1. https://adveco.co/the-future-of-fossil-fuels-in-uk-commercial-buildings/

Businesses are facing a difficult balancing act. On the one hand, the challenges presented by high energy prices and a volatile market require immediate attention. On the other, the need to decarbonise and prepare for a net zero energy transition remains important. However, we believe that these challenges can all be tackled together, and that there are actions businesses can be taking right now to do so.  

That’s why we’ve created a series of guides to help companies navigate the net zero energy transition.

Part 2, ‘Take control of your energy, now’, shows what businesses can do to confidently take control of their energy usage while navigating the current landscape. Discover how you can adopt a new energy mindset, use good quality data to make informed usage decisions, talk to your electricity suppliers and rethink procurement strategies – and use all this to get ahead.

The guide also shows how optimisation technologies can help businesses become smarter and more responsible with their electricity usage, ready to support and benefit from a net zero system. 

To download the second e-guide in our series and start preparing your business for the net zero energy transition, today, visit: https://www.brytenergy.co.uk/navigating-the-energy-transition/.

In 2022, the Government announced that from April 1st 2023, the UK will no longer recognise EU Guarantees of Origin (GoO) certificates. As a result, it may be a good time for your business to understand the type of renewable energy certificates associated with your supply contract, and consider what potential impacts this change may bring going forward.

What are GoOs?

European GoOs (Guarantees of Origin) are certificates purchased by electricity suppliers as proof that the electricity supplied to their customers has been matched with verified, renewable sources. One GoO is issued for every MWh of renewable electricity generated.

Under current rules, when UK electricity suppliers source electricity from mainland Europe via interconnectors, they are also able to import GoO certificates and use them in the same way as the UK’s Renewable Energy Guarantees of Origin (REGO) certificates. However, following a consultation in 2022, the Government confirmed UK recognition of GoOs will cease on April 1st, 20231. This means UK electricity suppliers will no longer be able to source your renewable electricity certificates from Europe. Specifically, they will no longer be eligible to use within suppliers’ Fuel Mix Disclosures (i.e. the mix of energy sources used to generate your electricity) or for Feed in Tariff (FiT) and Contracts for Difference (CfD) scheme payment reductions2.

The move follows the UK’s withdrawal from the EU and the end of the Brexit transition period on 31st December 2020. At that point, the EU stopped recognising UK REGOs for use in Europe, but the UK continued to recognise GoOs for the uses mentioned above. The UK Government had continued to review this policy but following the 2022 consultation, confirmed its decision to withdraw the use of GoOs in the UK.

What does the removal of GoOs mean for your business?

With demand for renewable electricity continuing to grow, and GoOs soon no longer eligible as proof of renewable supply, it’s expected that demand for REGOs will rise. Suppliers will look to replace around 42TWh of the renewable energy that was imported in 2021/224, which is around 28% of total UK renewables supply, potentially causing a demand shock that could cause prices to rise.

Looking to the future: Protecting our customers’ interests

Bryt Energy is committed to providing British businesses with zero carbon, 100% renewable electricity and it’s something that’s essential to our vision of a net zero future. Therefore, we’ve been prepared for the withdrawal of GoOs and done what we can to support our customers.

Sally Masters, Commercial Director at Bryt Energy, explains: “We have processes and hedging strategies in place to ensure we will match our customers’ supply with UK REGOs from April 2023 onwards. So those businesses that are already in contract with us can be assured that we’ve considered and covered this, and they won’t be adversely affected by price rises associated with increased REGO costs during their contract period.

Having a Norwegian parent company, Statkraft, with their vision to renew the way the world is powered, we at Bryt Energy believe that climate change has no border and, as such, GoOs have traditionally formed part of our fuel mix. Whilst we still believe this, we are prepared for the changes brought about by the consultation, already using a far greater proportion of UK REGOs to continue to support our customers.”

 

If you have any questions about the above changes, please speak to our friendly team of experts by calling us on 0330 053 8620 or email at heretohelp@brytenergy.co.uk. We also have a dedicated FAQ section on our Fuel Mix Disclosure page, where we cover our own zero carbon, 100% renewable electricity supply, guarantee of origin certificates, and the broader energy industry.

Sources
  1. https://www.ofgem.gov.uk/publications/ofgems-response-consultation-removal-scheme-cost-exemptions-green-imported-electricity-and-recognition-eu-guarantees-origin

 

  1. https://www.gov.uk/government/consultations/feed-in-tariffs-and-contracts-for-difference-proposals-relating-to-guarantees-of-origin

 

  1. https://www.thecrownestate.co.uk/media/4095/2021-offshore-wind-report.pdf

 

  1. https://www.argusmedia.com/en/news/2359425-uks-goo-imports-drop-39pc-in-202122?backToResults=true

 

  1. https://www.ofgem.gov.uk/publications/details-guarantees-origin-recognised-ofgem-2022

If you like to stay on top of any future energy cost changes that could affect your business, you’ll no doubt already be aware of Ofgem’s Targeted Charging Review (TCR). Having been in effect since April 2022, the TCR has established a new system by which network owners charge energy customers for the use of the electricity networks in the UK.

With changes to TNUoS (Transmission Network Use of System) charges coming from April 2023, we take a look what this could mean for your business. Here are the main things you need to know…

WHAT’S HAPPENING AND WHY?

The TCR is an Ofgem-led project that assesses how network charges are set and recovered. Launched in August 2017, the intention behind the TCR was to decide whether the system needed to be reformed to make it fairer. It addressed the concern that the current mechanisms used to recover Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges could lead to inefficient use of the network and create an adverse effect on consumers. The Triad system used up until now saw half hourly (HH) metered customers charged for electricity transmission costs according to their consumption during the three half-hour periods in Winter when overall demand on the grid is at its peak. Ofgem was concerned that this system distorted the market by encouraging some businesses to shift their consumption to avoid Triad periods and not pay their share towards maintaining the grid year-round.

Based on the findings of the TCR, Ofgem decided to supplement the Triad consumption-based system for TNUoS with a banding-based daily charging system that should ensure all businesses pay their share towards the upkeep of the grid. DUoS tariffs have always had a fixed daily charge component. But as part of TCR, Ofgem has directed that the way DNOs (Distribution Network Officers) set this charge should also change – moving some of the cost recovery that currently comes through the volume-based rates into the fixed daily charge.

The banding for each meter on businesses’ site(s) is now based on their agreed supply capacity (if there has been one agreed) or their Estimated Annual Consumption (EAC) if an agreed supply capacity is not in place. Changes to DUoS tariffs went live in April 2022 and, following some delays, changes to the TNUoS charges will come into effect from April 2023.

HOW BUSINESSES WILL BE AFFECTED 

For larger businesses able to reduce or shift energy volumes, winter Triad periods have historically provided an opportunity to make savings through flexibility by reducing consumption during peak periods. Even those who aren’t able to be flexible in their usage can mitigate the impact of Triads by increasing their energy efficiency. Under the new system, Triad avoidance will no longer be possible for many and, where it remains, the benefits will be significantly reduced. This means that businesses who used this method to reduce their TNUoS costs might find their annual energy bills could be significantly increased. For businesses previously able to boost generation revenue by exporting energy to the grid at peak times, the reduction of Triads could affect their bottom line and reduce the benefits of having on-site generation. While businesses who participate in grid-balancing Demand Side Response schemes will still be able to benefit from doing so, they will lose out on the additional revenue available during Triad periods.

Another consideration for some businesses whose contracts begun in the winter is that the new daily TNUoS charges, coming into effect from April 2023, will overlap with the Winter 2022 Triad recovery costs, which are typically spread across bills over 12 months. Businesses should therefore work these costs into their budgets now.

For some, the TCR will mean a bigger energy bill and a need to rebalance the budget in other ways. But large energy users who have previously been unable to consume energy flexibly and have therefore been hit with excessive Triad costs could actually see a reduction in non-commodity costs – and it’s these businesses that must think most carefully before they choose their next contract.

TOTAL TRANSPARENCY FOR OUR CUSTOMERS

National Grid ESO has now published the TNUoS charges that will be fixed from April 2023 for 12 months. To view the daily charges by band, please visit here.

At Bryt Energy, we’ve clearly stated the TCR banded charges in our new contracts since September 2020, in order to give our customers as much visibility of their costs as possible. For some contracts signed before September 2020, we have recalculated the TNUoS costs in line with the latest published tariffs, and this will be reflected on those customers’ bills during May. For our customers on a Pure Control or Pure Flex contract, you will see a new daily cost line on the TNUoS charges section of your bill, also from May.

And because our operations are built to be agile, our prices will always reflect Ofgem’s latest position and advice, if there are any future changes.

Make the most of your flexible solutions

If you’re currently using technology or solutions to avoid Triad periods and expensive time of use charges, the benefits might be reduced slightly with fixed-rate charge, but they won’t disappear. Now is the time to consider how you use these solutions to optimise your usage more continuously and boost your revenue in other ways. For example, organisations opting for our optimisation solutions are able to offset 20% of their energy spend by allowing us to subtly tweak their consumption (within agreed limits) in line with system needs, without impacting their operations. You can learn more about the benefits of optimisation in our blog, here.

If you have any questions around TCR or how we’re supporting our customers through the changes, please get in touch with our team at heretohelp@brytenergy.co.uk.

Smart meters allow businesses to closely track their energy usage and minimise wastage, saving money and creating a more sustainable energy grid.

Energy prices are at the top of everyone’s agenda at the moment, including businesses. In the current climate it’s understandable that energy managers, procurement teams and facilities professionals want as much clarity as possible on how much they spend on energy, and where they spend it.

According to thinktank Green Alliance, “wasted energy”, i.e. excess energy consumed through a lack of efficiency, could be costing UK businesses around £60m each year1. Wasted energy in the City of London alone could power over 65,000 homes, emitting the same amount of carbon annually as 46,000 cars2.

Smart meters can be a helpful way for businesses to keep track of their energy usage, saving both time and money by removing the need for manual meter readings and avoiding estimated invoices.

As part of the UK Government’s smart meter roll out, we’re on a mission to get eligible customers switched on to second-generation (SMETS2) smart meters, ensuring they can keep a close eye on what they’re using, minimise energy spend, and create a more sustainable approach to energy usage in the UK. SMETS2 meters in particular are designed to be universal and work across the industry, allowing you to easily to switch providers and keep the same smart meter.

What benefits can smart meters offer businesses?

Smart meters track energy usage down to the unit, making billing more accurate and helping consumers keep a tight control of their spend, by ensuring they only pay for the electricity they actually use. A smart meter records your usage in near real-time and, when paired with a data visualisation tool*, provides a view of your previous usage so you can take swift action to avoid energy wastage.

Data visualisation tools* linked to your smart meters make it far easier to gain a clear understanding of how and when your business consumes energy, and to spot trends or anomalies. It also helps businesses make informed decisions around where consumption can be reduced and energy efficiency measures improved. That data then enables a more accurate prediction of your energy usage, which suppliers can use to draw up the most suitable contract options for your business.

That deeper understanding of your energy consumption can help you make behavioural changes to reduce unnecessary usage, keep track of the impact your changes have, and communicate this to your teams more effectively – all without causing any disruption to your business or your people.

Beyond cost management, businesses can better work towards Environmental Social Governance (ESG) goals by using the usage data provided by smart meters to implement – and report on – energy efficiency targets. At a wider level, businesses also stand to better support the transition of the UK’s smart grid.

Make a change for the better with a smart grid

Assessments by the Intergovernmental Panel on Climate Change (IPCC) show that global temperatures will rise to catastrophic levels unless we take action3. The IPCC believes that if we all do our bit to reduce greenhouse gas emissions through the decarbonisation of energy, we can still stabilise global temperatures.

In the UK, energy supply is one of the biggest sources of emissions, with the energy supply sector contributing more than 23.6% of the UK’s overall carbon emissions in 2021. Thankfully businesses nationwide are making the switch to renewable electricity to help reach net zero by 2050, and smart meters – and ‘smart grids’ – play a fundamental role in this.

You might have heard the phrase ‘smart grid’ before, but if you haven’t, a smart grid is an alternative to a traditional energy network that enables two-way digital dialogue between a supplier and consumer. Smart grids allow for better monitoring and analysis of energy usage on both your side and ours, and this two-way conversation is important as the UK transitions to a net zero system.

As part of the energy transition, industries such as heat and transport will need to decarbonise and electrify, which will cause demand for electricity to rise. As that increases, today’s infrastructure of cables, pylons, and substations may struggle to cope. By getting to grips with the usage data and generation data across the network, the UK will be in a far better position to match supply with demand and operate an efficient energy system – one which actively supports renewable electricity sources whilst providing reliable and affordable electricity for everyone. Taking a smarter approach to electricity usage can help everyone get the most out of the existing infrastructure, reducing the need for expensive upgrades.

With a smart meter tracking your business’s energy usage, you’ll be better equipped to make targeted efficiency improvements, minimising the electricity you use and reducing wastage whilst supporting the transition to a smart grid and net zero.

What is the process for installing a business smart meter?

Some people may worry that getting a smart meter installed could be disruptive to their day, but the process couldn’t be simpler. We can install your smart meter for free between 08:00 and 17:00, Monday to Friday**. Your power will typically be down for only around 30-40 minutes and our engineers will try their hardest to minimise any disruption.

Did you know? If you are a rental tenant, you can still get a smart meter as long as you pay the energy bill. And if your landlord pays, you will just need to seek their permission first.

If you have any other questions around smart meters, you view our full list of FAQs, here.

Why choose a business smart meter from Bryt Energy?

A better approach to energy is within our collective grasp and it’s up to all of us to make it a reality. From the start, Bryt Energy has been providing British businesses with zero carbon, 100% renewable electricity, sourced solely from Solar, Wind and Hydro power.

Every organisation’s journey in reducing carbon emissions is unique, and the best place to start is by switching to a trusted supplier of renewable electricity. Our range of tools, including second-generation smart meters, can take your business’s energy awareness and management to entirely new levels, enabling you to play your part in a net zero future.

 

If you’re looking to have a smart meter installed, or have any questions at all, please speak to our friendly team of experts by either filling in our web form or emailing us at smart@brytenergy.co.uk.

 

*Please speak to our smart metering team to discuss suitable options available to your business.

**If you require an appointment outside of these times, please discuss this when arranging your installation, as there may be an Out of Hours charge dependent on the time and day of your booking.

Sources
  1. https://green-alliance.org.uk/publication/a-smarter-way-to-save-energy-using-digital-technology-to-increase-business-energy-efficiency/
  2. https://green-alliance.org.uk/wp-content/uploads/2021/11/A_smarter_way_to_save_energy_methodology.pdf
  3. https://www.ipcc.ch/

For the seventh year in a row, our parent company, Statkraft, has released its Low Emissions Scenario. A leading international hydropower company and Europe’s largest generator of renewable energy, Statkraft’s latest report is a comprehensive analysis of the global energy market towards 2050.

 

This year’s Low Emissions Scenario looks at the need to reduce dependence on Russian gas and the increased ambitions around renewable energy. In the report, Statkraft predicts that Europe will have significantly more solar power by 2030 than expected before the war in Ukraine and, along with wind power, will be the crucial renewable technology in reducing the European Union’s dependence on Russian gas and cutting emissions.

Statkraft’s Low Emissions Scenario demonstrates that we don’t have to choose between solving the ongoing energy crisis or the climate crisis. The solution to both crises is the same: more renewable energy and more efficient energy use.

Christian Rynning-Tønnesen, President and CEO of Statkraft, continues: “In the Low Emissions Scenario, the best measures to solve the ongoing energy crisis are the same measures that are crucial to fighting the climate crisis. A greater focus on energy security and energy self-sufficiency will also drive the green energy transition”.

 

Some of the key findings from the report include:

  • Statkraft’s Low Emissions Scenario is an optimistic yet realistic scenario, where global energy-related CO2 emissions are reduced by 60% from today until 2050. The scenario will be within emission levels that can limit global warming to 2°C. An even faster transition is necessary to reach the 1.5°C target.
  • It will be challenging, but possible for the EU to become independent of Russian Gas by 2030.
  • Along with wind power, solar power will be key to making this independence happen.
  • Solar power will be the global winner in the energy transition. It will become the world’s largest source of power generation around 2035 and by 2050, will produce 26 times more power than today.
  • The use of fossil fuels will fall sharply. In the power mix, coal will drop by 75% and gas will drop by 23%.
  • Renewable energy will account for almost 80% of the world’s total power generation in 2050.
  • Increased use of renewable energy, combined with technological solutions available to ensure greater flexibility, are cornerstones of the energy transition.
  • Hydropower and hydrogen will continue to grow in importance as emission-free and flexible resources.
  • Energy storage solutions, such as batteries, will be essential to keep balance in a more intermittent, weather-dependent energy system.

 

“Energy security, demand for affordable energy, and the climate crisis all indicate that we should now accelerate the global energy transition. Electrification based on renewable power, and energy efficiency are key pillars,” says Christian Rynning-Tønnesen.

 

If you’d like to learn more about Statkraft’s Low Emissions Scenario, visit their website, here. You can also read the full report by clicking here.

If you like to stay on top of any future energy cost changes that could affect your business, you’ll no doubt already be aware of Ofgem’s Targeted Charging Review (TCR). With the new rules starting to come into effect this April, the TCR will establish a new system by which network owners charge energy customers for the use of the electricity networks in the UK.

 

The changes brought about by the TCR will impact every business differently, so it’s vital for every business to understand how the TCR will affect their bills before they enter into their next electricity contract. Here are the main things you need to know…

WHAT’S HAPPENING AND WHY?

The TCR is an Ofgem-led project that assesses how network charges are set and recovered. Launched in August 2017, the intention behind the TCR was to decide whether the system needed to be reformed to make it fairer. It addressed the concern that the current mechanisms used to recover Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges could lead to inefficient use of the network and create an adverse effect on consumers. The current Triad system sees half hourly (HH) metered customers charged for electricity transmission costs according to their consumption during the three half-hour periods in Winter when overall demand on the grid is at its peak. Ofgem is concerned that this system distorts the market by encouraging some businesses to shift their consumption to avoid Triad periods and not pay their share towards maintaining the grid year-round.

 

Based on the findings of the TCR, Ofgem has decided to supplement the existing Triad consumption-based system for TNUoS with a banding-based daily charging system that should encourage businesses to manage their demand all year round – not just in winter. DUoS tariffs have always had a fixed daily charge component. But as part of TCR, Ofgem has directed that the way DNOs (Distribution Network Officers) set this charge should also change – moving some of the cost recovery that currently comes through the volume-based rates into the fixed daily charge.

 

The banding for each meter on businesses’ site(s) will be based on their agreed supply capacity (if there has been one agreed) or their Estimated Annual Consumption (EAC) if an agreed supply capacity is not in place. These changes were intended to roll out this April, however Ofgem has proposed a delay in the TNUoS changes until April 2023. A consultation on this is currently awaiting a decision by Ofgem and we’ll be sure to keep you up to date on any developments. The changes to DUoS tariffs are still expected to go live this April.

   

HOW BUSINESSES WILL BE AFFECTED 

For larger businesses able to reduce or shift energy volumes, winter Triad periods have historically provided an opportunity to make savings through flexibility, by reducing consumption during peak periods. Even those who aren’t able to be flexible in their usage can mitigate the impact of Triads by increasing their energy efficiency. Under the new system, Triad avoidance will no longer be possible for many and, where it remains, the benefits will be significantly reduced. This means that businesses who used this method to reduce their TNUos costs might find their annual energy bills could be significantly increased. For businesses previously able to boost generation revenue by exporting energy to the grid at peak times, the reduction of Triads could affect their bottom line and reduce the benefits of having on-site generation. While businesses who participate in grid-balancing Demand Side Response schemes will still be able to benefit from doing so, they will lose out on the additional revenue available during Triad periods.

 

Another consideration is that the cost of Triads is typically spread across bills over 12 months, until the next Triad period. However, for those businesses whose contracts start in the October before the TCR cost mechanism comes into effect, Triad costs will have to be recovered in half the time. Businesses should therefore work these costs into their budgets now.

 

For some, the TCR will mean a bigger energy bill and a need to rebalance the budget in other ways. But large energy users who have previously been unable to consume energy flexibly and have therefore been hit with excessive Triad costs could actually see a reduction in non-commodity costs – and it’s these businesses that must think most carefully before they choose their next contract.

TOTAL TRANSPARENCY FOR OUR CUSTOMERS

Although the TCR deadline has been pushed back for TNUoS, we know that our customers want to prepare for the changes now, so we’re striving to provide certainty where we can (and total transparency where we can’t). DNOs have published their DUoS charges for 2022, including TCR, and TNUoS charges for next April won’t be confirmed until February 2023.

 

At Bryt Energy, we’re trusted by nature, so we’ve come up with a transparent way to accurately price according to what we know now, to provide our customers with as much certainty as we can while recognising that prices may still change slightly. From September 2020 we’ve clearly stated the TCR banded charges into our new contracts in order to give our customers as much visibility of their costs as possible. And because our operations are built to be agile, our prices will always reflect Ofgem’s latest position and advice.

GETTING READY FOR THE TCR

Every business will be affected by the TCR changes differently, so it’s important to identify and prepare for how these changes will impact your organisation. You can do this by:

 

1. Speaking to your electricity supplier

Ask your supplier the following questions to find out how they will account for the TCR changes and how they will affect your bill if you stay with that supplier:

 

  1. Have you included TNUoS costs in my contract or are they passed-through?
  2. What band has been applied to each of my meters?
  3. In what circumstances would you amend TCR rates?
  4. How are you accounting for unknown costs?

 

2. Making the most of your flexible solutions

If you’re currently using technology or solutions to avoid Triad periods and expensive time of use charges, the benefits might be reduced slightly once we switch to a fixed-rate charge, but they won’t disappear. Now is the time to consider how you use these solutions to optimise your usage more continuously and boost your revenue in other ways. For example, organisations opting for our optimisation solutions are able to offset 20% of their energy spend by allowing us to subtly tweak their consumption (within agreed limits) in line with system needs, without impacting their operations. You can learn more about the benefits of optimisation in our blog, here.

 

If you have any questions around TCR or how we’re supporting our customers through the changes, please get in touch with our team at heretohelp@brytenergy.co.uk.

Please note that Bryt Energy is no longer a carbon neutral organisation. Instead we have decided to focus on robust carbon emissions reduction targets, which have been validated by the globally recognised Science Based Target initiative (SBTi). By setting our targets using the most up-to-date climate science, we are ensuring we are playing our part in global action to tackle climate change and are accountable for reducing our emissions alongside a verifiable pathway. To learn more about our targets, you can visit page 16 of our 2023 Bryt by Nature report, here.

_________________________________________________

Here at Bryt Energy, we’re proud to announce that we were the fastest growing business electricity supplier in Britain in 2020*! 

We saw impressive organic growth in electricity volume in 2020 compared to 2019*, suggesting that carbon reduction remains a priority for businesses, despite recent COVID challenges. This is an encouraging sign that businesses are getting behind the UK’s commitment to a green recovery.   

BUSINESSES COMMITTED TO DECARBONISATION 

With business decarbonisation critical to meeting the UK’s goal to reach net zero emissions by 2050, organisations are increasingly choosing energy partners that can help them to meet their carbon reduction targets.   

 

Our Managing Director, Ian Brothwell, said: “Making the switch to renewable electricity is now seen as the first step for businesses looking to reduce their carbon footprint, and Bryt Energy’s growth demonstrates the increasing demand for electricity from zero carbon, 100% natural sources, such as solar, wind and hydro power. At a time when many businesses are facing increased pressure due to COVID-19, supporting their sustainability claims with credible action (such as making the switch to a renewable supply) demonstrates a clear commitment to a low carbon future.  

 

“It’s been a challenging year and I’m proud of how the Bryt Energy Team has adapted to working from home to achieve such a fantastic result. Our growth over the last 12 months has really been a testament to the passion of the Team, who have gone above and beyond to support both new and existing customers throughout the pandemic. This is reflected by our average customer satisfaction rating of 4.9/5 during this time+.”  

SUSTAINABLE BY NATURE 

As part of our own sustainability plans, we became a carbon neutral^ business in 2020 and have committed to achieving net zero emissions by 2025 through our ‘Bryt By Nature’ programme. We’ve also committed to several of the UN’s Sustainable Development Goals (SDGs) as part of this.   

 

Ian Brothwell continues: “We pride ourselves on practicing what we preach – we know that sustainability is about more than just the environment – it’s about ensuring a positive impact on our whole sphere of influence. With the government setting ambitious targets for UK generation of renewable electricity, this year will be a crucial one for businesses to put in place strong sustainability strategies. That is why we are looking forward to working with more like-minded customers to help turn their ambitions into actions.”  

GET SUPPORT WITH YOUR SUSTAINABILITY JOURNEY 

If you’d like to talk with one of our friendly experts about your own sustainability journey, please call us on 0330 053 8620 or email  heretohelp@brytenergy.co.uk.

 

*Organic growth only, based on Bryt Energy’s 2020 share of national settled electricity volumes in Great Britain compared to 2019 share, versus other business-only suppliers.

 

+based upon all customer responses to all routine satisfaction surveys undertaken by Bryt Energy between April 2020 – May 2021. 

 

^Carbon neutral is defined by Bryt Energy as Scope 1, 2 & 3 for the categories of gas, electricity, water, waste and business travel. The scope 1, 2 & 3 carbon emissions for 2016-2019 were 106.64 tonnes and therefore 110 tonnes of carbon credits from the Bokhol Solar project were retired on behalf of Bryt Energy by EcoAct in August 2020.  

WHY WE’RE VOLUNTARILY REPORTING UNDER SECR

Bryt Energy isn’t one of the almost 12,000 companies legally required to report under the Streamlined Energy and Carbon Reporting (SECR) scheme – but we have just published a voluntary report anyway. And we think more businesses could benefit from voluntarily reporting, too.

 

When you’re working within a busy organisation, choosing to report under an energy reporting scheme like SECR when you’re not required to may seem like extra work. But if your organisation is serious about improving its sustainability, voluntary reporting can help you to get the most out of your efforts.

 

If you’re looking at reporting under SECR, here’s what you need to know:

WHAT IS SECR?

The Streamlined Energy and Carbon Reporting scheme, also known as SECR, is a relatively new energy efficiency reporting scheme that first came into force in April 2019. It was designed to replace the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which many businesses found complex, with a simpler reporting process. SECR also extends energy reporting obligations to far more businesses than the CRC did – around 11,900 businesses must now report under SECR, whereas only 4,000 reported under the CRC.

 

By expanding the number of businesses required to comply with SECR, the Government is striving to encourage more companies to calculate their carbon footprint. Companies must submit their SECR report within their annual Director’s Report, which means that their sustainability progress can be analysed by their stakeholders, staff and customers. This is intended to encourage them to not only understand their carbon emissions, but also take action to reduce them.

WHO’S AFFECTED BY SECR?

SECR applies to all UK quoted companies, as well as UK registered businesses that meet two or more* of the following criteria within the financial year that they are reporting:

 

a) 250 employees or more

b) £36m turnover or more

c) Balance sheet total of £18m or more

 

*There are some exemptions to this, and you can read the full government guidance, here.

REPORTING REQUIREMENTS

Every company must report their Scope 1 and 2 emissions, whilst unquoted companies are also required to report on their emissions from business travel in Scope 3. These are:

 

Scope 1 – includes emissions from activities owned or controlled by your company that directly release emissions into the atmosphere, e.g. the gas used to heat your building.

 

Scope 2 – covers your indirect emissions from the generation of purchased electricity.

 

Scope 3 – includes emissions which you do not have direct control over, but that you can influence, for instance through your supply chain or the stakeholders you work with. An example of Scope 3 would be the emissions associated with your employees commuting to work.

 

Your SECR report must also include commentary on the energy efficiency measures you have implemented within the reporting period, as well as your methodology for calculating your emissions.

CHOOSING AN INTENSITY RATIO

You will also need to provide at least one intensity ratio, which expresses your annual emissions in relation to a standard business metric, such as your turnover or number of full time employees. At Bryt, we chose four intensity ratios to track our performance as we grow, and we’ve explained why below. We report in kilograms of carbon dioxide equivalent emitted per year (kgCO2e):

  • GWh of electricity supplied to our customers – an industry specific measure that is most relevant to our business output.
  • M2 of office space that we occupy – allows us to compare our performance to other companies in the service sector.
  • Million pounds of turnover – will show how we’re decoupling our carbon emissions from our economic growth; a key principle of decarbonising our economy.
  • Full Time Employees – allows us to compare our performance with a wider number of companies beyond the energy sector.
BENEFITS OF REPORTING

By reporting under SECR, your company could benefit in the following ways:

1. Identify areas for improvement

If you can’t measure it, you can’t improve it. You can only begin to effectively reduce your emissions once you are accurately tracking your carbon emissions. At Bryt, for example, we learnt that Scope 3 business travel is our largest area of emissions – and now we’re taking actions to address that.

 

2. Focus on energy efficiency

SECR compliance requires you to report on the actions your organisation has taken to improve its energy efficiency, year-on-year. This should encourage you to take action to ensure you’re making continual progress towards greater sustainability.

 

3. Engage your team in your sustainability efforts

Your SECR report must include an intensity ratio that’s appropriate for your industry – this makes your report much easier for stakeholders, staff and customers to understand and engage with, and creates benchmarks to compare to other businesses’ efforts to reduce their carbon emissions.

WHY WE’RE LEADING THE WAY

While SECR gives companies a simpler approach to energy reporting, it still involves time and resources, so you might be wondering why Bryt has chosen to undertake this additional work voluntarily?

 

Well, we want to be more than just a supplier – we want to be able to help our customers along their sustainability journeys. It wasn’t easy for us to produce our SECR report. For example, it was difficult for us to get some of the key data we needed because we share our offices with other businesses. But by going through the exercise of producing and publishing our report voluntarily, we can better understand the challenges involved and provide better support to our customers that are required to report under SECR.

 

We’re also producing our report because we simply believe it’s the right thing to do. SECR provides businesses of all shapes, sizes and sectors with a universal template for transparently reporting their progress, making it easier to compare organisations’ efforts to reduce their carbon emissions.

 

As this is our first SECR report, we have used the template provided by the Department of Business, Energy and Industrial Strategy (BEIS). We’re keen to learn along the way, so we’re looking forward to seeing more companies’ reports and getting to grips with what best practice will look like.

READ OUR SECR REPORT

Interested in reporting under SECR, or just curious about what’s involved? We’ve already done all the hard work – and now our report is complete! So if you’re wondering what a final SECR report looks like, you can check out our first one here.

 

We always welcome feedback, so if you have any thoughts on our first SECR report, get in touch with us at marketing@brytenergy.co.uk.

Sources

https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance

Health and beauty giant, A.S. Watson, owner of Superdrug, The Perfume Shop and Savers, have recently confirmed they will be extending their zero carbon, 100% renewable electricity supply contract by 12 months, after celebrating a year and a half since switching to us.

Since 1st April 2019, all 1400 retail sites nationwide have been supplied with zero carbon, 100% renewable electricity, sourced solely from Wind, Hydro and Solar power. In the first 12 months on supply, A.S. Watson saved over 19,000 tonnes of CO2, the equivalent of filling Wembley Stadium with CO2 almost three times! In addition, the 12-month contract extension strengthens our growing partnership with A.S. Watson.

 

A.S. Watson had been looking to gain an understanding of their energy usage across their retail portfolio, as well as reduce their carbon footprint as part of their sustainability and corporate social responsibility programme. Offering them a unique package of renewable electricity, with the opportunity to install solar and storage technology, optimisation controls and smart data portfolio analytics, we became the ideal choice of partner. Having the trust in our ability to take on and manage the entire site portfolio in a complex and dynamic market was a key factor in the final decision making for A.S. Watson.

 

Our Managing Director, Ian Brothwell, said: “We are continuing to develop a long-term partnership with A.S. Watson to provide retail portfolio solutions that allow them to understand, monitor and reduce their consumption, work more sustainably and future-proof their energy supply. The switch demonstrates their confidence in Bryt Energy and, more broadly, the market’s move to purchasing from renewable sources.”

 

Nigel Duxbury, Property Director at A.S. Watson UK, said: “Being a responsible retailer is vitally important for us and our customers, and we are pleased to use renewable energy in our stores. This is a change which has a positive impact on the environment, being made across our business to be more sustainable.”

 

 

For more information on how we can support your business on its carbon-reducing journey, get in touch at heretohelp@brytenergy.co.uk or on 0330 053 8620. You can also follow us at:

 

LinkedIn – https://www.linkedin.com/company/bryt-energy/

Twitter – https://twitter.com/BrytEnergy

Facebook – https://www.facebook.com/brytenergy/

With more choices than ever, car owners are increasingly choosing the sustainable option and going Electric. However, despite their critical role in reducing emissions and reaching net zero, electric vehicles (EV) numbers are still relatively low compared to those fuelled with petrol or diesel1.

 

We know that during the height of the current pandemic, human activity slowed to reduce the spread of coronavirus, emissions dropped, and nature bounced back2. Inevitably these effects are likely to be temporary when the world returns to the new normal, and EV’s may offer a realistic way to rebuild whilst reducing travel emissions more permanently.

 

As we, thankfully, see a return to normality we can begin to review current behaviours and look to the future. Could a boost to EV’s be part of the sustainable road to recovery following COVID-19?

 

To find out more, we caught up with our colleagues at Grønn Kontakt (also part of the Statkraft family) to see what an EV future might look like. Anthony Hinde is Managing Director at Grønn Kontakt.

 

So Anthony, what led you to choose an EV? And what do you think an EV future would look like?

“EV’s are a key part of a more sustainable and healthier future. The WHO estimates that pollution is responsible for an estimated 4.2 million deaths globally per year3, with up to 36,000 of these within the UK alone4, and vehicle emissions are a significant part of this. In fact, the UK transport sector is responsible for 28% of UK CO2 emissions5. Provided EV’s are charged using a renewable electricity supply, they can dramatically reduce pollution, particularly for urban areas.

 

For me, this is just so incredibly important. You may be familiar with the case of 9-year-old Ella Kissi-Debrah in 2013? She died, potentially as a result of unlawful levels of air pollution along her walk to school6. And this isn’t an isolated incident – Unicef’s Toxic School Run report really highlights the particular risks posed to children, with an estimated 11,000 new daily child-asthma cases worldwide7. If we can prevent this, surely, we must?

 

It’s also important to remember that emissions pose threats beyond the immediate impact on human health; the links between emissions, increasing global temperatures and climate change are well known. Climate change may already be responsible for 150,000 deaths a year alongside increasing biodiversity loss8. With ethical sourcing and a Circular Economy approach, EV’s can reduce pollution across the whole supply chain. And, with reduced fossil fuel use, chances of damaging leaks or spills are also lessened9.

 

One other benefit that has been particularly highlighted recently is the potential reduction in noise pollution, as EV’s are quieter than petrol and diesel cars. With the recent reduction in traffic due to COVID-19, the world has been quieter – I’ve heard more birdsong in the last few months than in several years! With more EV’s, less traffic noise from vehicles could become the norm.”

 

As an EV owner, what can you tell us about the experience of driving one?

“For me, the biggest part of the experience is that my driving feels guilt-free. Driving is now a pleasure without a caveat and recharging without carcinogenic fumes and traces on pump nozzles is a much more pleasant experience than traditional re-fuelling!

 

Otherwise, EV’s are quiet and they accelerate quicker. Unless on a racetrack, it doesn’t realistically matter how fast your car can go, but how quickly it can get there really affects the driving experience – no more moving up gears! On average, an EV would only need to be charged once a week. Mine charges from 0% to 80% in about 40 minutes with a regular rapid 50kw DC charger, and I’ve found that I can easily do this whilst out shopping!”

 

So how might EV’s and charging points affect businesses? Are there any revenue opportunities?

“EV’s and charging points offer a great opportunity for businesses! With the right renewable electricity supply, converting your fleet to electric can immediately reduce your carbon footprint. Not only would this make your business more compliant with emissions regulations, but being sustainable is good for revenue, operational efficiency, and even stock value10.

 

Having an EV charge point on-site can really boost footfall and how long customers stay, meaning more shopping, more meals, more entertainment, and increased revenue. It’s also a great way to create added value for your customers. Charging points can be a real draw for desirable clients, offering a chance for them to charge their cars or fleets whilst on-site – a potential advantage over competitors.

 

Charge points are also likely to affect employee retention. Increasingly, employees are finding they like to work for organisations they feel are doing the right thing and, as EV’s become more popular, more employees may expect charging facilities. Offering this is a great chance to attract and retain motivated and high-performing individuals.”

 

There are clearly many benefits to EV’s, but the uptake has so far been slow. What do you feel are the main barriers?

“In my opinion, the biggest barriers to EV uptake seems to be the existing misconceptions around their cost and convenience, and the, very human, reluctance to change. However, these misconceptions are increasingly being recognised as no longer accurate.

 

Misconception 1: They’re inconvenient and difficult to charge.

As I said (and despite widespread belief), charging is not required every day and, for average users, is likely to only be once a week. Whilst there are some areas with less charging points such as Wales and the North East, new points are frequently added and plans for more charge-points were outlined in this year’s budget11. And, as popularity increases, so will pressure upon businesses to offer these facilities to visitors and employees.

 

For any businesses interested in installing a charge point, understanding your users’ needs and optimising for their convenience will be key to getting the full benefits. With 3 primary types of charger, rapid, fast and slow available, providers will need to understand whether a faster charger for shorter client visits, or a slower one for employees (whose cars can be charged across the day), is most suitable.

 

And there is grant support available to encourage charge-point installation and make EV’s more accessible, including:

 

Misconception 2: They’re expensive

Undeniably, many EV’s are currently on the pricier side initially and this can, understandably, deter many. However, to really understand their cost compared to a petrol or diesel car you need to look at the total cost of ownership (TCO). This includes initial purchase, repairs and maintenance, insurance, and energy (fuel or electricity), and when all of these are taken into account, even with the higher purchase price, the TCO of EVs is extremely competitive to that of petrol or diesel vehicles.

 

Miles Per Pound (MPP) for EV’s can be up to 3 times cheaper than that of regular cars, and pure EV’s are exempt from road tax costs12. And further savings are now possible with changes to the Business In Kind (BIK) tax applicable for company cars. This rewards EV use but penalises more polluting cars13.

 

Other costs can also be less. Whilst insurers are wary of more expensive parts (primarily the batteries) with fewer moving parts (20 compared to 2000), EV services are cheaper and less frequent.

 

And EV’s retain their value well, with batteries capable of being reused for Solar PV14 alongside generation projects. This successful implementation of a Circular Economy keeps EV value high as well as maximising resources.

 

It is also important to remember that there will be new restrictions for petrol, diesel, and hybrid cars due by 203515. This is likely to make EV’s a much more economical option over the next few years, avoiding potential financial penalties.”

 

SUMMARY

“With the country looking to boost the economy post Covid-19, I really believe that EV’s will play a key part in ‘rebuilding better’ and creating a more sustainable, healthier future. They offer a great opportunity for businesses to become more resilient and stand out from competition in an increasingly difficult marketplace. And, when combined with the right renewable electricity supply, they offer a real chance to reduce air pollution and meet those net zero carbon targets, meaning you can boost your business whilst doing the right thing for the future.”

 

 

Bryt Energy and Grønn Kontakt are both part of the Statkraft Group, a leading international hydropower company and Europe’s largest generator of renewable energy.

 

Bryt Energy, part of the Statkraft Group, is a passionate, future-focused electricity company, on a mission to take their community on a carbon-reducing journey.  Bryt Energy’s power is zero carbon and 100% renewable, using only Wind, Hydro and Solar energy sources to power British businesses. Whether it be on-site generation, battery storage or optimisation controls, Bryt Energy are at the forefront of the clean energy technology revolution with solutions that maximise value from customers’ electricity supply contracts.

 

Grønn Kontakt is an electric vehicle charging company that offer public and workplace EV charging. From the end of April 2021, Gronn Kontakt will become Mer. Mer is the consolidation of Statkraft’s EV charging companies across Europe under one new identity which will reflect their vision and sustainable background.

 

To find out how we could help your business, get in touch at 0330 053 8620 or heretohelp@brytenergy.co.uk.

Sources

1. https://www.independent.co.uk/news/uk/electric-car-sales-sales-diesel-brexit-business-a9271041.html

2. https://www.brytenergy.co.uk/knowledge-hub/learnings-from-covid-19-a-glimpse-into-a-low-carbon-future/

3. https://www.who.int/health-topics/air-pollution#tab=tab_1

4. https://www.gov.uk/government/news/public-health-england-publishes-air-pollution-evidence-review

5. https://eandt.theiet.org/content/articles/2020/02/uk-emissions-fall-as-coal-power-shut-off-date-brought-forward/

6. https://www.bbc.co.uk/news/uk-england-london-48132490

7. https://www.theguardian.com/environment/2019/apr/10/vehicle-pollution-results-in-4m-child-asthma-cases-a-year

8. https://www.who.int/heli/risks/climate/climatechange/en/

9. https://www.bbc.co.uk/news/world-africa-53831687

10. https://www.brytenergy.co.uk/knowledge-hub/how-zero-carbon-electricity-can-help-you-win-more-business/

11. https://www.brytenergy.co.uk/knowledge-hub/uk-budget-2020-looking-to-a-more-sustainable-future-in-an-uncertain-present/

12. https://www.motoringresearch.com/car-news/electric-cars-cheaper-to-run/

13. https://www.whatcar.com/advice/owning/company-car-tax-bands/n1255

14. https://www.pv-magazine.com/2020/05/25/used-ev-batteries-for-large-scale-solar-energy-storage/

15. https://www.bbc.co.uk/news/science-environment-51366123

Over the past few months, we’ve all experienced the effects of Covid-19 in different ways. We recently discussed how changes to daily life have impacted the environment around us, but how has the pandemic affected the grid mix, in particular, renewable energy?
RENEWABLES AND LOW CARBON POWER INCREASE IN 2020

Renewable energy has been the only energy source to grow globally this year, as the pandemic has caused demand to reduce on a scale not seen since WW2! In fact, industry electricity demand in the UK has fallen by 5%, whilst domestic demand is down 1.5%1. On a global level, electricity consumption is expected to fall by 5% in 2020, although the impact on demand will be heavily dependent on the duration and speed of recovery following the lockdown measures taken in each country2.

 

The continued growth seen in renewable generation during this period is set to have a long term influence over our energy future. Proving their resilience, wind generation increased by 40% compared to the same period last year and in total, low carbon energy made up 60% of the UK’s generation in the first quarter of 20201.

FOSSIL FUELS DECLINE

In contrast, there have been major reductions in electricity generated from oil, coal and natural gas. Generation from coal fell by a massive 24% last year and now contributes less than half of what it did in 20073. In fact, the UK went 67 days without coal generation, with help from carbon pricing and national coal phase-out policies4.

 

In addition, gas production is down by almost 30% in the last quarter, bringing an end to a decade of uninterrupted global growth1.

IMPACT ON EMISSIONS

Coal’s decline has had a dramatic impact on pollution. EU power sector emissions have fallen by nearly 30% in the last six years. Last year they fell by 12%, the largest single year reduction since 19901.

 

The more recent collapse in fossil fuel demand is predicted to lead to a further reduction of 3 billion tonnes in carbon emissions, equivalent to 8% of the global total1. This is broadly in line with the reduction required every year, if the net zero emissions target is be achieved by 20501.

 

 

The resilience of renewables and their growth during this period is an important milestone as we work towards a low carbon future. However, many caution that the government’s funds for the UK’s economic recovery should also be linked to the Paris Agreement. This is crucial to avoid a resurgence in emissions, like those which followed the Credit Crunch 2, and to ensure we rebuild in a better, more sustainable way.

 

If you’d like to understand how we can support your business on its sustainability journey, get in touch with our friendly team at heretohelp@brytenergy.co.uk or on 0330 053 8620.

Sources

1. Energy Trends

2. International Energy Agency

3. Ember Climate

4. The Guardian

As the UK looks to rebuild its economy following the effects of Covid-19, there is a question of whether the pandemic, with all its social, health and welfare implications, will propel businesses faster down the sustainability route. Or will the best of intentions get overlooked in a rush to return to economic growth at any cost?

EARLY SIGNS ARE ENCOURAGING

Many agree that the pandemic recovery plan should put us on a path to a cleaner, greener future. Early signs are encouraging, at least for the UK and Europe. Our Prime Minister talks about creating a fairer, greener, and more resilient economy, whilst the EU is in the process of spelling out its green recovery programme.

 

However, there is much scope for progress for both. Before the pandemic, Britain ranked a moderate 12th in the international league table for meeting the UN’s target of achieving the 17 Sustainable Development Goals (SDGs) by 20301. These are integrated goals that balance social, economic, and environmental objectives, including ‘Climate Action’, ‘Sustainable Cities and Communities’, ‘Reduced Inequality’ and ‘No Poverty’2.

CALLS TO EMBRACE SUSTAINABLE DEVELOPMENT

The Government has been encouraged to embrace the SDGs in its recovery programme. In this way, we can achieve a recovery that balances the economy with the environment. Many businesses, academia and charities have united to call on the PM for a ‘Green, Fair and Healthy Recovery’ and their recommendations include:

  • Use the SDGs in the recovery programme to unite all sectors behind a plan to build a stronger and more resilient economy3
  • Prioritise the most vulnerable in our society and level-up regional and societal inequalities3
  • Build coherent policies for a healthy planet and aid the transition to net zero3
  • Make climate risk disclosures mandatory for businesses4
  • Ensure financial support for business is conditional on their plans and action to align with the UK’s net zero target and the 1.5°C goal4
  • Strengthen the UK’s economic competitiveness and productivity through investment in the sectors and technologies of the future5
  • Deliver critical public goods, including clean air, better health, and improved financial resilience to future environmental shocks5
  • Enable UK businesses to be competitive providers of low carbon goods and services, ahead of G7 and COP26 summits5

 

It’s clear that industry groups and businesses are acknowledging how important it is for the recovery programme to benefit the economy, society, and the environment, equally.

TAKEAWAYS FOR YOUR BUSINESS

The lockdown has shown what clean air can mean for city dwellers and returning to old habits built around ‘take, make and waste’ now appear to make little social, as well as environmental, sense.

 

So, what thoughts can we draw together at this early stage in terms of what these may mean for your business in the future? And how can your business become more sustainable during the recovery?

 

   1. Demonstrate your credentials

The ability to prove your company’s sustainability credentials is becoming more important, as businesses look for competitive advantage whilst satisfying consumer demand. A good place to start in becoming more sustainable is adopting the ‘circular economy’ approach – addressing your business’ processes and looking at how to optimise them. Based on the principles of re-use, repair and recycle, the EU already has a Circular Economy Action Plan6. Products to be sold on the EU market in the future will need to last longer and use recycled materials as much as possible.

 

So, if you have operations in the EU or simply sell into the area, then you will need to find out what the implications of the Circular Economy Action Plan could mean for your business. Good places to look include the EU’s website6 and the Ellen MacArthur Foundation website7. Adopting circular economy practices will form an essential part of achieving net zero, and you can calculate how well your business is transitioning towards more sustainable behaviours, here.

 

   2. Check your reporting requirements

As we’ve seen from examples earlier, further reporting requirements seem only a matter of time. These are likely to require more extensive reporting on your energy consumption and emissions, financial and environmental risks, and your net zero commitments and progress. Your organisation could be one of the 11,000 covered by BEIS’ Streamlined Energy and Carbon Reporting (SECR) scheme8. If not, you may well be included in the future as consumption thresholds are expected to reduce. The scope of emissions covered could be extended and plans remain to create a publicly accessed portal at some point, where reputational performance comparisons could be made. To learn more about how reporting requirements could affect your business, there’s a useful guide to SECR on Carbon Trust’s website8.

 

Public pressure is also mounting for companies to declare how they intend to achieve net zero. Now is the time for your business to consider adopting science-based targets to achieve net zero, especially if you are looking to qualify for future financial support. A useful introduction to what’s involved can be found on the Science Based Targets website9.

 

   3. Create boardroom action

UN Global Compact maintains that whilst commitment to sustainability is high in businesses, more needs to be done if SDG goals are to be achieved by 2030.

 

A survey of Chief Sustainability Officers conducted between February and May 2020 found that, whilst 84% of companies are taking action to advance the SDGs, only 46% are currently embedding them into their core business10. Plus, whilst 39% say they believe their targets are sufficiently ambitious to achieve the 2030 deadline, only 15% have targets approved by the Science Based Targets initiative.

 

A good starting point for understanding how sustainability can truly be embedded in your organisation is to look at the report ‘Uniting Business in the Decade of Action‘ from UN Global Compact10.

 

 4. Make the most of a unique opportunity

The next 18 months are set to be high profile for sustainability and climate action, both in businesses and across the public at large. Not only will there be the pandemic recovery measures to digest in terms of what opportunities and incentives it may bring, but there’s also the UN’s World Energy Summit, COP26. Rescheduled for November 2021, the delay means that it can now take on an even greater significance, providing a platform for governments to showcase the green steps to recovery that they are taking, as well as their progress on the Paris Agreement.

 

In the meantime, there are many things your business can do during the recovery to ensure you become a more sustainable, resilient, and competitive business on the other side.

 

Here at Bryt Energy, we can support your business on its sustainability journey, providing you with zero carbon, 100% renewable electricity, sourced solely from wind, hydro and solar power. If you have any questions on how we can help you towards a low carbon, sustainable future, please speak to our friendly team at heretohelp@brytenergy.co.uk or on 0330 053 8620. Let’s make a difference, together.

Sources

1.  Institute for European Environmental Policy

2.  United Nations

3.  United Nations Global Compact

4.  The Climate Coalition

5.  The Aldersgate Group

6.  European Commission

7.  Ellen MacArthur Foundation

8.  The Carbon Trust

9.  Science Based Targets

10. United Nations Global Compact

The University of Sheffield has recently made the switch to our zero carbon, 100% renewable electricity!

The signed contracts will ensure the entire University’s estate will be supplied with our zero carbon, 100% renewable electricity, sourced solely from Wind, Hydro and Solar power. This covers all the University’s buildings, including their central campus, accommodation, and all other facilities.

 

With electricity being the largest component of the University’s on-campus carbon emissions, their switch to renewables will have a dramatic impact on their carbon footprint and shows the University’s commitment to sustainable development.

 

Our Managing Director, Ian Brothwell, said: “We are looking forward to developing a long-term partnership with The University of Sheffield to support them on their low carbon, sustainability journey. The switch highlights their confidence in Bryt Energy and sets a positive example to the rest of the higher education sector.”

 

Professor Koen Lamberts, Vice-Chancellor of the University of Sheffield, said: “We are absolutely committed to addressing climate change via our research, our education and our institutional actions.
“Switching to a 100% renewable electricity contract is an important step in our sustainability work and follows our work to completely divest from fossil fuels and incorporate sustainable development into our education.

 

“We look forward to working closely with our students and staff on the next phase of our sustainable development.”

 

 

For more information on how we can support your business on its carbon-reducing journey, get in touch at heretohelp@brytenergy.co.uk or on 0330 053 8620. You can also follow us at:

 

LinkedIn – https://www.linkedin.com/company/bryt-energy/

Twitter – https://twitter.com/BrytEnergy

Facebook – https://www.facebook.com/brytenergy/

As every area of the globe feels the effects of coronavirus, daily life has changed dramatically. Now several months into this crisis, the world has been given a view into how the environment reacts in the absence of normal daily human activity.

 

As keen as we are to return to normality, what can we learn from this crisis and how can we use this insight to build a healthier, more sustainable future?

HOPE FOR A LOW CARBON FUTURE

As our daily lives and behaviours have adapted dramatically for coronavirus, the world is noticeably quieter, cleaner, and wilder. Reports show that human activity is at its lowest on record1, and demand across industries has plummeted2. This lower demand, with greater proportion of renewables in use3, has resulted in lower emissions and thriving nature. Through this, we’ve had an unprecedented glimpse into what our world could look like. It’s demonstrated that radical behavioural change can rapidly reduce emissions.

 

Reduced emissions

Worldwide reductions in travel have resulted in a fall in emissions. There was an estimated 5% global CO2 reduction for Q1 20203.

 

Figure 1: Global energy-related CO2 emissions, 1900-2020 – International Energy Association

 

During their virus peak, it’s estimated that China’s carbon emissions dropped by 25%4 whilst carbon monoxide emissions fell by 50% during one week in New York5. Similarly, methane and nitrogen dioxide levels have fallen in Italy6 and the UK7. Clearly, rapid emission reduction is possible, but we will need extensive, worldwide changes if we are to see this going forwards.

 

Nature bounces back

There have also been widespread reports of nature flourishing. Deer in Haridwar, wild boar in Barcelona and the Llandudno goats8, all show wildlife extending into quieter cities. Bees are thriving on the wildflowers of uncut verges9 and, with less traffic noise, bird song can be heard.

RISK FALLING BEHIND IN SUSTAINABILITY ACTION

Whilst offering a hopeful glimpse into a more sustainable future, such news shows that action is needed now more than ever.

 

The changes are temporary

It is neither desirable nor realistic for recent behaviour changes to be a method for reducing emissions and they will inevitably rise as we return to normality. China is showing an increase in emissions as restrictions have been lifted4 and it is likely that we will begin seeing the same in Italy and France.

 

Sustainability on pause

Understandably, attention has been pulled away from sustainability action during the crisis, but this poses long-term risks for climate change. Over a third of sustainability professionals in the UK have reported a pause on projects and investments10 and the postponement of COP26 may mean a pause on global policies with far-reaching consequences.

 

For biodiversity, an important aspect of preventing climate change and reducing emissions, there is a serious risk of future loss. Fire prevention work in the Amazon has been negatively affected11 and many ecological initiatives reliant upon tourist revenue now face failure12. With such uncontrollable factors affecting our efforts, it is particularly important to consider the sustainability actions within our control.

 

Risks from new habits

Behavioural changes have created new habits, some with increased emissions. Predictions from 2019 showed an 80% increase in data centre traffic by 202213, with data use expected to account for 14% of global emissions by 204014. With remote working being effective for many companies during the crisis and employees seeing work-life balance benefits, this is only likely to increase. As new practices develop it is important to consider any impacts and ensure that efficiency and sustainable options are considered.

HOW CAN WE LEARN TO ACHIEVE A SUSTAINABLE FUTURE?

So, how can we continue our efforts and achieve the sustainable future we now know is possible?

 

1) Mindset change

In the last few months, the world has moved together to put people before profit. This is a monumental mindset change that highlights how, when needed, we can ‘be the change’. The current situation and its damage to our wellbeing and economy cannot continue, but nor can unethical business growth without thought for the long-term impacts. We must balance people, planet, and profit, for the sake of each.

 

2) Be smarter about our consumption

Recent reduced consumption will not continue, but we now have a unique opportunity to reflect, learn and change. Societies have been forced to think about their consumption on global, industrial, and personal scales15. Many are considering working from home as a longer-term option, whilst reduced accessibility has made us more aware of how we consume products, what we need and potentially how much we waste.

 

Energy use accounts for a substantial proportion of global emissions. With populations expected to grow16, this is likely to increase. Being more aware of our consumption, more efficient and less wasteful would be a big step towards reducing emissions and preventing climate change.

 

3) Rebuild in the right way

Whilst the International Energy Association (IEA) have proposed that this may be the end of coal power3, there is a risk of a move back to traditional investments in fossil fuels as countries rebuild. Instead, a continuation of last year’s sustainable investment movement17 would offer an economic boost in a way that helps everyone. Choosing sustainable products and services will be more important than ever, and there is both opportunity and responsibility for businesses within this.

 

4) We can do it together

The one overwhelming message from Covid-19 has been that we can do more when we are united. We have seen this in the collaborative efforts of governments, international organisations, businesses, and individuals world-wide in response to this crisis – together we really can make a difference.

 

Let’s do this

We have all faced loss and disruption over the last few months, and it will take time to recover. But let’s not forget this glimpse into what could be. Let’s rebuild to a healthier, happier future. Together, we’ve already proven we can make a difference, so let’s do this.

 

To understand more about our commitment to helping British businesses achieve a low carbon future, get in touch with our friendly team at heretohelp@brytenergy.co.uk or on 0330 053 8620.

Sources:

1. BBC

2. Financial Times

3. International Energy Agency

4. Carbon Brief

5. BBC

6. BBC

7. ESA

8. Newsflare

9. The Guardian

10. Edie

11. The Guardian

12. The Guardian

13. IEA

14. The Guardian

15. Bryt Energy

16. The UN

17. Bryt Energy

Images:

Figure 1: 2020 Global Energy Review: International Energy Association

Given the current Covid-19 outbreak, we understand that many businesses will be adapting their usual routines to navigate through these unprecedented challenges. The government’s intervention and support will go some way to assisting you but what can you do lessen the impact on your business from an energy perspective?

 

As your day-to-day routine changes and some of your buildings are temporarily vacated or even closed, there are several simple actions you can take to optimise your electricity usage, avoid unnecessary costs and ensure valuable renewable energy is not wasted. These changes could be adopted at any time to help your business all year round but really could have a significant impact right now.

 

We’ve put together 5 top tips to get you started:

Know Your Usage
  • We encourage you to regularly provide meter reads to your supplier so that you receive accurate billing during this time. This is particularly important if your business is making changes to your normal operations, as standard estimates could easily overstate (or understate if your operations have increased) consumption.
  • If you are currently experiencing unpredictable cash flow, ensuring that bills are accurate could help your business manage accounts more effectively.

 

Switch it Off

  • If your business is temporarily vacating sites or reducing operational hours, is there anything that isn’t being used that could be switched off?
  • Heating, lighting, computers, fridges and freezers are just some examples of appliances that may temporarily not be required and could be switched off.
  • An air compressor will only run at or near full capacity between 60-100 hours in a full working week. As businesses’ routines change, reducing your compressors usage or turning it off completely during evenings and weekends could reduce your energy bills by up to 20%.1
  • Most buildings will have a fridge or freezer, especially in the hospitality sector, and these can be difficult to moderate as they’re running 24 hours a day making up a large proportion of your electricity bill. Your freezer works most efficiently when packed as full as possible, whilst a refrigerator needs air circulation to keep food at an even temperature. Prioritising freezing for food storage will allow you to turn off some of your fridges, reducing costs and helping energy efficiency.2

 

Turn it Down

  • If there are appliances you can’t switch off, are there any you can turn down?
  • Reducing your room temperature by 1°c can save you between 8-10% on your heating bill, minimising your energy wastage and therefore reducing your energy bills.3
  • Likewise, any machinery that will be running in your absence should be reviewed. Can it be turned down or run for a shorter period of time? Even a small reduction in your energy consumption could have a notable reduction on your electricity bills.

 

Get your Staff Engaged

  • As your business changes its routine and employees begin to work remotely, it’s likely some of your business’ electricity consumption will now take place at their home. So how can your employees avoid an unnecessary increase to their electricity bills?
  • Even the smallest changes to electricity usage can have a noticeable effect on bills. For example, by replacing all bulbs at home with LED alternatives, could save about £35 a year on electricity bills.4
  • Encouraging your employees to be more energy efficient, such as switching lights off when they’re not in the room or turning off devices when not in use, could contribute to a reduction in their electricity costs. These could also become practices you can apply to your business when work is back to normal.

 

Look to the Future

As businesses and individuals navigate through the challenges of this outbreak, the need to be innovative and make changes to our daily routines has been paramount.

  • In a short amount of time businesses and their employees have adapted, becoming more energy efficient, reducing consumption to decrease unnecessary costs and prioritising appliances that need to be used.
  • These changes, whilst necessary presently, can continue to have positive effects when business is back to usual, helping your business become more energy efficient, reduce costs and help the environment.

 

Here at Bryt Energy, our zero carbon, 100% renewable electricity helps business reduce their carbon emissions all year long. A few simple changes to how you use your energy could make a positive impact to your business, your energy costs and the environment.

Sources:
  1. 1.https://www.cagi.org/working-with-compressed-air/benefits/10-steps-to-savings.aspx
  2. 2.https://carbontrack.com.au/blog/reduce-fridge-running-cost/
  3. 3.http://documents.manchester.ac.uk/display.aspx?DocID=33442
  4. 4.https://energysavingtrust.org.uk/home-energy-efficiency/lighting

Covid-19 has affected individuals, businesses, and industries in an unprecedented way across the world. Now many governments, including our own, expect Covid-19 to be with us for many months, if not years, ahead. So what impact is the virus having on the business electricity market and what do we need to look out for?  

 

From the signals by the government on its energy policy, to the impact we have already seen in the market, here is a quick run through of the effects we’ve seen so far and the implications for you and your business. 

Effects on policy

Industry sources estimate that electricity demand has fallen by between 15-19% since the lockdown compared to a similar period last year when there were no restrictions1. A drop in demand on this scale was unprecedented and could have long term effects for all. Not the least for the government, which has been forced to delay the flagship UN Climate Summit, COP26, scheduled for Glasgow in November. It must now work even harder in pursuit of its net zero emissions programme to regain the momentum and achieve results in time for when the Summit reconvenes next year. 

 

The push to reduce emissions is unlikely to be affected in the long-term, beyond the inevitable delay caused by the virus. We are told we can soon expect the government’s keynote Energy White Paper, sketching out its strategy for the 2020s2. A new Transport Decarbonisation Plan will also appear later in the year and progress is planned for Carbon Capture & Storage and decarbonising heat; it seems that achieving net zero by 2050 is still a key priority for the government. 

 

We may also be expected to follow the EU’s lead in putting clean energy investments and sustainability at the heart of the UK’s industrial and business recovery from the virus3. Consequently, you would be well advised to ensure your organisation’s net zero aspirations remain in focus as recovery plans get underway. 

 

EFFECTS ON THE MARKET

Whilst the government is to provide financial relief for domestic customers that are most in need during Covid-19, the same cannot be said for business users4. Therefore, we have summarised the two main changes to the electricity market triggered by Covid-19 so far, to help your business navigate through these changing times: 

 

1. Wholesale energy prices have taken a dive. Prices were already on a downward trend at the end of 2019, with price competition in the oil market feeding through to gas and electricity. The recent reductions in national demand have compounded this, forcing market participants into selling back volumes their customers no longer require and weighing the price down further. The positive news is that renewable energy generation now accounts for a larger share of the reduced market, leading to a less carbon-intensive grid mix and more volatile short-term prices (including more frequent negative prices). The challenges this poses in keeping the system in balance5 means that any flexibility you have, either in the ability to adjust your demand to pricing signals or provide demand response services to the National Grid, should be more valuable. 

 

2. In contrast, the non–energy elements of your bill can be expected to rise. They cover delivery and balancing costs, as well as several government schemes encouraging low carbon generation. Nowadays, non–energy charges are likely to make up the greater proportion of your bill and your supplier is obliged to settle these and will include them in your rates or pass them through to you. If energy demand does not meet expectation, non-energy charges will need to go up so that industry costs and revenues can still be recovered across a lower overall level of consumption. This principle has been embedded in the workings of the power market since its inception and is something you need to understand if you are expecting changes in your delivered prices to match those in the wholesale market. 

 

IMPLICATIONS FOR BUSINESSES

Finally, it is worth noting that business closures, cut–backs, and cash strains from Covid-19 are affecting businesses from all industries, as well as their energy contracts. You will need to review your energy demand projections, which may well differ from those in your contract. Seeking new contracts or hedging volumes further ahead may also prove difficult, as demand appears more unpredictable over the coming months. Above all, working with your supplier as a team to address what lies ahead is more important today than ever before. 

 

 

We will be keeping you posted on future developments in the electricity market through our monthly newsletter, Bryt Insight.  

 

If you are a customer of ours, you can read our full statement on how we are supporting you during this time, here. Alternatively, if you have any questions, you can speak to our friendly customer service team at heretohelp@brytenergy.co.uk or on 0330 053 8620. And if you’re not a customer but would like to know how we can help you on your sustainability journey, please get in touch with us, here.

Sources:

1. https://www.elexon.co.uk/article/coronavirus-temporary-derogations-to-improve-settlement-accuracy/

2. https://www.current-news.co.uk/news/beis-aiming-to-publish-energy-white-paper-in-spring-despite-covid-19

3. https://www.europarl.europa.eu/news/en/press-room/20200419IPR77407/eu-covid-19-recovery-plan-must-be-green-and-ambitious-say-meps

4. https://www.gov.uk/government/news/government-agrees-measures-with-energy-industry-to-support-vulnerable-people-through-covid-19

5. https://www.current-news.co.uk/news/summer-outlook-covid-19-could-cause-20-demand-drop-resulting-in-different-set-of-challenges

Amidst emergency budget responses to COVID-19, climate change and the net zero challenge still hold a key place within the 2020 Budget.

 

Understandably, the immediate thoughts of businesses over the last few weeks have centred on the challenges posed by COVID-19. As this seems likely to continue over the next few months, some have been concerned that, amongst this, the sustainability movement from the last year might lose momentum1. However, it is positive to see that climate change, addressing prevention, impact and achieving net zero, still feature prominently within the 2020 Budget.

Preventing climate change

Biodiversity has an important role in preventing climate change. Encouragingly, the Budget announced the Nature for Climate Fund which builds on the existing 25 Year Environment Plan2, promising £640 million to plant trees covering an area larger than Birmingham. Alongside this, the Nature Recovery Network Fund and The Natural Environment Fund aim to encourage more partnership work.

 

Waste and the role of circular economies were also included in this year’s budget. In support of the ongoing Plastic Packaging Tax consultation3, £7.2 million will be invested in a system to track and reduce waste across the economy. Meanwhile, an Extended Producer Responsibility scheme aims to encourage responsibility within IT waste.

MITIGATING THE IMPACTS OF CLIMATE CHANGE

Funding for flood prevention was expected following the February storms, but the mitigation of climate change impacts alongside their prevention reflects wider business approaches. Committing £120 million to repair the damage done by the storms, the Government also plans to invest £5.2 billion in flood defences over six years, to reduce flood risk across the UK by 11%. Alongside this, £200 million is available for further initiatives to prevent flooding and coastal erosion in high-risk areas.

 

In the face of future climate change impacts, the government has also committed to investing £39 million in water supply assets to maintain resilience.

 

As some level of climate change now seems unavoidable4, businesses are increasingly expected to risk assess the impacts of climate change5, and it seems the government is too.

CREATING A SUSTAINABLE FUTURE

An additional £10 million of funding for net zero policy support indicates that this remains a key objective for the Government, with infrastructure and accessibility as the key targets. With strategies for improving energy, heat and transport and an emphasis on innovation and digital connection, it seems likely that businesses will be encouraged to be more future-focused and data-driven in their sustainability journeys.

 

Energy

To enable the decarbonisation of energy, the Government has committed to doubling the Energy Innovation Programme and investing £900 million in new technology, including fusion and electric vehicles. With Carbon Price support frozen to encourage decarbonisation within the energy industry, there is also a commitment to prevent the potential intermittency caused by increased renewables through further development of nuclear, hydrogen and carbon capture and storage (CCS). The new CCS Infrastructure Fund indicates that, at least initially, CCS might be expected to be key amongst these.

 

Both business and domestic supply are being incentivised towards more sustainable choices. The Climate Change Levy is to be raised on gas whilst being frozen on electricity, and the Climate Change Agreement scheme is to be extended by 2 years, supporting large energy users in their sustainability efforts. In addition, the Green Gas Levy aims to encourage more biomethane on the grid.

 

Heat

Strategies regarding heat focus primarily on domestic and small businesses, with schemes to help invest in heat pumps and biomass boilers. However, the Non-Domestic Renewable Heat Initiative received some support, aiming to protect larger projects.

 

Public transport

Decarbonisation of transport is also tackled, as the Budget outlines several ways local transport connections are to be improved whilst achieving net zero. Continued investment in the Midlands Rail Hub, as well as the allocation of funds from the Transforming Cities Funds, aims to see new and redeveloped cycle freeways, bus routes and metro systems across the country. With £50 million dedicated to improving accessibility at railway stations, increased travel via public transport seems to be important in reducing emissions.

 

Electric vehicles

Alongside a boost to public transport, the Budget aims to incentivise low emission vehicles, making them more accessible. With the ultimate aim of a fast-charging station within 30 minutes of every UK driver, the Office for Low Emissions Vehicles will be undertaking a review and development of current infrastructure. To encourage the uptake of these opportunities, the Rapid Charging Fund will offer financial support to businesses, whilst Plug-in Grants are being extended for vans, taxis and motorcycles to 2023. Altogether, this aims to make electric vehicles a more accessible and reliable option and therefore encourage their uptake.

 

 

Climate change and sustainability have clearly been recognised within the 2020 Budget and have remained important despite other current challenges. With sustainable development apparently likely to continue, and clear links between net zero, innovation and growth, there is huge potential for businesses willing to take advantage of the opportunities that will appear over the next few years.

 

To find out more about how Bryt Energy can support your sustainability journey, get in touch with our friendly team at heretohelp@brytenergy.co.uk or on 0330 053 8620.

 

You can read the 2020 Budget in full, here.

Sources:

1. https://news.sky.com/story/sir-david-attenborough-hopes-coronavirus-crisis-will-not-hinder-uk-climate-change-summit-11955590

2. https://www.gov.uk/government/publications/25-year-environment-plan

3. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871368/Plastic_packaging_tax_condoc_template_final_1.0.pdf

4. https://climate.nasa.gov/faq/16/is-it-too-late-to-prevent-climate-change/

5. https://www.iso.org/standard/68507.html

Statkraft, our parent company and Europe’s largest generator of renewable energy, have just released their annual report for 2019. From a strong financial performance to their reinvestment into renewables, we’ve summarised the key findings and what they mean for your business.  

A SAFE, SECURE AND SUSTAINABLE COMPANY

Statkraft achieved record-high earnings in 2019 of 17.6 billion NOK (£1.5 billion) before interest and taxes (EBIT), the highest result in its history. Their net profit ended at an impressive 11.3 billion NOK (£930 million), all whilst retaining their A- credit rating1. 

 

Other highlights in 2019 include selling their first data centre site to Google, ensuring energy-intensive industries are powered by renewable energy. Statkraft have also confirmed their position as leaders in the European power purchase agreement market by signing several new long-term power contracts in 2019. 

 

INVESTING IN A RENEWABLE FUTURE

Statkraft have continued to reinvest in renewable energy generation and technology. They invested 3.7 billion NOK in 2019 (£300 million), developing new renewable energy production in Norway, Europe, South America and India.

 

As part of this, over the year they maintained, upgraded and expanded around 140 hydropower projects in the Nordic region. Combined, they create Europe’s largest reservoir capacity and a fleet of flexible power plants that can be optimised to meet demand.

 

Statkraft have also continued to grow their solar and wind generation, acquiring nine Irish solar projects as well as UK onshore wind developer Airvolution Clean Energy. Three more wind farms have opened in Norway whilst another three will be in full production during 2020, helping to complete the largest onshore wind project in Europe! Together, they help Statkraft towards their target of 6 GW of onshore wind and 2 GW of solar power by 2025.

 

In addition to renewable energy, Statkraft have expanded their electric vehicle charging business, acquiring German EV charging company E-Wald and increasing their ownership of Grønn Kontakt, a Norwegian EV charging company.

SUSTAINABILITY IS IN OUR DNA

Statkraft are a member of the UN Global Compact and have committed to several UN Sustainable Development Goals (SDGs), to ensure their work has a positive impact on the world around them. Their particular focus is on providing affordable renewable energy (Goal 7) and taking Climate Action to reduce greenhouse gas emissions (Goal 13), however their activities impact a variety of the 17 connected goals.

 

As well as the SDGs, Statkraft are continually working to reduce the negative impacts renewable generation can have on biodiversity & ecosystems. Whilst renewable energy is crucial for reducing C02 emissions, Statkraft are working to understand, manage and reduce any of their impact on land, marine and aviation life.

 

HOW DOES THIS BENEFIT YOUR BUSINESS?

Statkraft’s recent developments and financial performance reinforces our parent company as a secure and growing business, with sustainability at its heart. As a customer of Bryt Energy, backed by Statkraft, you can have the peace of mind that you’re with a safe and trusted zero carbon electricity supplier.

 

You can also be confident that you’re working with a company who are continually reinvesting in renewable energy generation. These investments help to tackle climate change, reduce emissions and work towards the UK’s net zero by 2050 target.

 

By being a customer of Bryt Energy, you are part of a much bigger picture, helping the move towards a low carbon, sustainable future.

 

To read Statkraft’s full report, visit here.

Sources:

Standard & Poor’s credit rating

THE WINDS OF CHANGE ARE BLOWING THROUGH PUBLIC AND PRIVATE FINANCES

With low carbon sources surpassing fossil fuels in the UK generation mix, mentioned in one of our most recent blogs, things are moving fast in the world of finance. Supporting coal, oil and gas projects is fast going out of fashion. Coming into favour are projects aligned to the Paris Agreement of keeping global warming to 1.5 °C.

 

Leading the charge is the European Investment Bank, which says it is going to make available €1Trillion during the 2020s for clean energy innovation, energy efficiency and investment in renewables1. The new lending policy will see an end to supporting fossil fuel-based projects by the end of next year. There will also be an increase in funds available for decentralised energy production and innovative energy storage and e-mobility, as well as for low or zero carbon generation and grid investments to support.

 

Offshore wind could well be one of the major beneficiaries for these investments. The European Commission is looking for between 230 and 450GW of wind generation by 2050, scaling up from the current 20GW today. A new report from Wind Europe, representing the turbine manufacturers and suppliers, confirms the feasibility of achieving 450GW – the level considered necessary to reach Net Zero Carbon in Europe by 20502.

 

The Net Zero Asset Owners Alliance is another ground-breaking development which will shape the direction of future finance for energy projects. Launched at the UN Climate Change Summit in New York in September, the Alliance is made up of pension fund and investment company members, such as Aviva, Axa and Allianz. Alliance members have nearly $4 trillion in assets under management and will now be transitioning their investment portfolios to be aligned with achieving Net Zero Carbon by 20503.

THE VALUE OF SUSTAINABILITY

The direct impact climate change will make on future company asset values has been underlined in a new report prepared for Principles for Responsible Investment, an independent organisation representing over two thousand assets owners, investment managers and service providers. The report concludes that the most carbon-intense companies could lose over 40% of their value whilst the least carbon-intense businesses could increase in value by 1/34.

 

Meanwhile the UK as a potential home for these investments has risen according to the latest survey from Ernst and Young’s Renewable Energy Country Attractiveness Index5. We’re up one place in the overall global ranking to seventh behind China, USA, India, France, Australia and Germany, scoring particularly well in offshore wind, marine energy and onshore wind.

 

BUSINESSES TAKE NOTE! 

Looking after your personal investments is increasingly aligned with looking after the planet. As a business, make sure you consider:

  • Where and what your pension, stocks, or shares invest in.
  • Do the funds and organisations you invest in have good green credentials?
  • Are these organisations adapting to a sustainable future or are they slow to change? The future success of your investments could depend on their speed.

With the world of finance moving towards a more sustainable future, your business can’t afford to be left behind.

Sources:
  1. 1. European Investment Bank
  2. 2. Wind Europe
  3. 3. Net-Zero-Alliance
  4. 4. Principles for Responsible Investment
  5. 5. Ernst and Young