The impact of Covid-19 has led large parts of the energy sector down a tunnel of decline. Oil, gas and coal are amongst those that have paid the price to the difficulties of the pandemic. While others have struggled, renewable energy has continued to show healthy growth. The International Energy Agency (IEA) reports that in both China and the United States, wind and solar additions are on track to jump by 30% as developers chase the rewards of expiring incentives. With renewable energy setting fresh records in 2020, it is now on course to do the same in 2021. .
Following this trajectory renewables will become the largest source of electricity generation worldwide by 2025. For over five decades, coal has destructively reigned as the top power provider, it is therefore crucial that its heir is an energy industry that is significantly different. Within the UK, renewables capacity has grown five-fold since 2010. HM Government’s Energy White Paper released at the end of last year, commits to ending coal in the electricity mix no later than 2025. Alongside the shock impact of Covid-19 on the energy system, there is a window of opportunity to steer the energy sector onto a more resilient, secure and sustainable path.
With great power comes great opportunity
With the UN Climate Change Conference (COP26) fast approaching, and following an increasing amount of countries committing to net-zero targets; the deployment of renewables is set to accelerate. This acceleration could have momentous effects on the global markets. Mobilising the financial markets is critical to supporting the transition to net-zero, and with this need, comes an opportunity. Mark Carney, finance adviser to the UK prime minister for COP26, told Bloomberg that this posed the “greatest commercial opportunity of our age.” With pressure mounting on firms to implement their own net-zero strategies, a connected and balanced approach is key to an effective transition.
Seeing that we are at a unique time in the evolution of the energy industry, Chris Smith, Managing Director at Meld Energy, shares his vision of the year ahead. “The old way cannot be the way of the future so we are seeing innovation on a scale and breadth that would have been scarcely imaginable even ten years ago. Everyone has to play a part: From the way citizens access the energy system, communities gather together to be cleaner, local authorities leverage their land, position and access to finance to deliver net zero and corporates retrain and realign their skills and investments. Renewables are growing fast but we cannot and should not forget nuclear. Hydrogen is seen as the next big thing – but we have to focus on how it is produced. We will see young economies thriving from the energy revolution, and it’s going to be fun being part of the ride.”
Getting the right solution
Here at Meld Energy we are renowned industry experts who are deeply passionate about accelerating the delivery of net-zero and saving our planet. We work closely with our project partners and client organisations who face urgent, complex challenges on their journeys to achieving net-zero. These transitions require a strategic approach, that is why we offer end to end, complete delivery, to ensure you get the right solution.