Energy Solutions was recently asked to feature in an article by McGinley Support Services, who are recruitment experts in the energy industry. The article Energy 2016: predictions for the industry rounds up what has happened in the energy industry so far in 2015 and looks to 2016 with opinions from industry experts.
Energy Solutions’ Nick Grogan was asked to contribute to the piece, appearing alongside representatives from NIA UK, the Nuclear AMRC, McGinley and more. Nick provided a summary of what he thinks the energy industry will be characterised by in 2016. From his perspective as a broker, he discussed what businesses looking to save money need to consider in 2016.
2015 saw a big year of change in the energy industry, with energy production heavily leaning towards renewables and away from UK dependency on imports. Plans by the government show that the future they envision will involve support for fracking and nuclear, with renewable energy ready to “stand on its own two feet” according to Secretary of State for Energy and Climate Change, Amber Rudd. Nick predicts that the new government focus away from renewables and towards gas won’t change much in 2016 in terms of production, but will have an effect in later years.
Nick’s full quote reads, “Energy producers will face many challenges in 2016. The ever-increasing supply of Green energy from solar, wind and tidal sources will mean that the utilisation rates for traditional coal and natural gas power plants will fall; driving up the average cost of generation. This means that many natural gas-fired power plants will not be able to operate profitably despite their high efficiency. This, combined with the potential volatility of gas prices, suggests continued hard times in the traditional generation sector.
“For businesses looking to save money in 2016, the continued pressure of rising electricity prices driven by green levies and the increasing cost of network upgrades means that energy efficiency remains at the top of many facilities managers’ agendas. We are also expecting the use of demand management to increase further, especially among mid-market clients. Any 2016 renewals should be looked at early in the year for the best prices.”