Should The Big Energy Firms Be Worried by The Growth Of The Renewable Energy Industry

Recently the UK’s position in regards to energy being produced from renewable sources such as wind, Biomass and solar power has been regularly lambasted for under performing compared to our fellow EU counterparts it does appear that the recent increases in uptake has not been ignored by all. With the Reuters quick to point out that the growing popularity of the market in particular wind and solar panels market has got the big six within the UK hot under the collar has the appetite for renewable energy continues to grow.

big six energy providers

Why Has solar And Wind Uptake Consistently Grown in the UK

While there are a multiple of factors driving the market with the obvious reasons firstly being the price of energy and it’s incessant rise year on year with many energy analysts expecting an energy price rise of up to 40% within the next 5-8 years such news stories have only built an appetite for change amongst UK residents. Also when you couple this with the complex nature of the energy pricing structure which forced Ofgem to get involved to make the market more transparent for UK residents as well as the fact that wholesale energy prices have fallen but yet the big six’s prices continue to rise and as such there appears to be serious trust issues between the bill payers and providers.

The Renewable Industry Only Accounts For 5% Of Generated Electricity

This was the figure that was quoted by energy watchdogs at the end of 2013 which while alarming and forcing many to castigate the government for not doing enough also failed to highlight the substantial growth the industry had gone through in this year alone. Further reading of the figures would have discovered that gross profits within the sector were up over 130% and as such the big energy providers within the UK may be right to feel a little bit apprehensive about the turning tide within the domestic energy market.

Along Way To Go

This is definitely the feeling amongst the majority of energy analysts who believe that any thought of the UK turning into a haven of renewable energy are very wide of the mark given the current standing within the EU renewable charts alone. The UK is acknowledged with a huge task in reaching it’s 2020 objectives alone before the binding renewable targets come into effect there after. While we have repeatedly reported on efforts of the big six energy providers to alter the incentives and subsidies that the renewable energy industry retain and to some extent they have succeeded i.e. the recent green energy tax attributed to UK bills is now under review. As such these actions do seem to be rather aggressive given that the conventional energy market still controls over 90% of energy production within the UK.

renewable energy projects

How Is The Government Reacting

The government is keen to make a stand for the disgruntled hard pressed bill payer who have been forced into excessive rises to their energy bills year after year. Further to Ofgem now handing over the findings of their recent review of the energy providers to the Competition and Markets Authority (CMA) who are set to make a raft of measures the big six energy providers are under scrutiny like never before and as such the government with the newly released Solar PV strategy are looking to increase renewable uptake further.

How Are Small Energy Firms Capitalizing On This

With such a ill feeling being left with many customers regarding conventional energy more and more have been turning to smaller energy providers to take over their energy bills and as such there have been a substantial rise in the number of uptakes with smaller companies offering conventional electricity, gas and solar PV energy and wind services. With many in the small energy market now having uptake rates far higher than the conventional providers increasing their numbers from consumers looking to switch between services. although not adopted yet such a championing of smaller providers by the government could look to make the energy market further more competitive which is outlined as one of their key objectives.

Some previous related articles of interest:
Wildlife can actually flourish in solar areas
Why solar panel installations in the UK are still behing Germany
What Scottish law changes could mean to the renewable industry

Should The Big Energy Firms Be Worried by The Growth Of The Renewable Energy Industry
How energy firms could be effected by the continuing growth of solar panels

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April 10, 2014
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