The UK government has scrapped subsidies for mature renewable and low carbon generation technologies, including on-shore windfarms, larger solar energy installations and biomass energy. So energy companies now have to rethink any new investments in these areas.
We worked with a Big-6 energy developer, to review its options in the renewable space. Together with their energy experts we analysed the market to find new opportunities to develop renewable and low-carbon energy projects in a financially viable way. We looked at policy, regulation and subsidies, as well as technology cost, customer segments, potential new business models and hybridisation of projects, using Battery Energy Storage Systems (BESS).
We showed that the company could install renewable energy equipment for businesses and households and supply them with power directly, reducing the amount they consume from the grid. This would alleviate the non-energy costs that make up as much as 55 per cent of customers’ bills. In short, we found a way customers could save on energy costs without having to pay for the equipment, and our client would get a return on investment.
Among other things, our work broke down customer segments, commercial models and the potential value of targeting both business and residential customers. Armed with this evidence the client team received board approval to develop their proposition. And ultimately our work means the business can benefit from the opportunity presented by the change in market conditions.