What energy trends can you expect to see in 2023?

With 2022 behind us, it’s time to look ahead at the renewable energy trends and developments we’re likely to see in 2023.

What are the UK government’s plans for 2023?

There is enormous political and policy uncertainty currently affecting all aspects of renewable energy generation. But, as of the time of writing, the UK government’s policy goals include the following:

• Decarbonising electricity generation
• Increasing offshore wind deployment
• Improving carbon capture, storage and utilisation
• Investment in nuclear and hydrogen power

In fact, the government announced in 2022 that it would invest £700m in the Sizewell C nuclear power plant currently being developed by EDF energy. However, it’s likely to take many years before any benefits of this investment are widely seen.

Wind and solar power to take giant leaps

Wind and solar investment and usage are expected to grow as governments, business owners, and household consumers seek cheaper alternatives to the spiralling gas and electricity costs.

Onshore wind farms may also see more investment following a backlash to Rishi Sunak’s decision to reverse the decision to revive them (an announcement made by Liz Truss during her brief tenure as PM). A backpack that has led to the Department for Levelling Up, Housing and Communities announcing that it’s looking into ways of constructing onshore wind farms that won’t have a negative impact on communities.

Considering the economy is expected to remain weak until at least the summer, the push by the government to seek ways of increasing renewable energy generation is a bold step during an extremely difficult time.

Energy-efficiency technologies expected to benefit businesses

New technologies will emerge, with two key areas expected to be battery energy storage systems (BESS) and hydrogen:

BESS

Battery Energy Storage Systems store energy from various sources and discharge it when needed.

The current capacity of UK BESS projects stands at less than 2GW. On a positive note, however, 10GW worth of projects have already been given planning approval, and future projects being discussed will boost that capacity to 32GW.

Hydrogen

Thanks to the UK’s Hydrogen Strategy (announced in 2021), hydrogen will continue to play a major role in decarbonising the UK’s energy network.

There are currently a significant number of projects underway, and the UK’s Net Zero Innovation Portfolio has put together a £105 funding package so businesses and developers trial and switch from fossil fuels to hydrogen.

Energy subsidies for UK businesses will be cut

On Tuesday 10th January 2023, the government announced it is changing the current energy bill support scheme for businesses. After spending around £18 billion within six months, from 1st April 2023 to 31st March 2024, discounts will be lowered to align with the new cost cap of £5.5 billion.

According to a statement by the government, this is to reduce the taxpayer’s exposure to the volatility of energy markets.

What regulatory changes are likely to be introduced in 2023?

Over the coming year, several regulatory changes are set to take effect, so let’s take a closer look:

MEES & EPCs

As of 1st April 2023, landlords will no longer be able to “continue to let” a substandard property unless they have made all cost-effective energy efficiency improvements.

Landlords granting a new lease for commercial premises must hold an energy performance certificate (EPC) with a rating of E or above unless they‘ve registered a valid exemption. Commercial properties with an EPC rating of F or G are considered “substandard”.

The intention is for all rented non-domestic buildings to achieve an EPC rating of C by 2027 before attaining a B by 2030. Currently, only 12% of registered commercial properties meet these criteria.

ESOS

The Energy Savings Opportunity Scheme (ESOS) is a mandatory scheme requiring large UK businesses to report their energy use and identify ways to use less. If your business qualifies, you must comply with the scheme’s requirements, or you could face possible penalties.

The data you use as the basis for ESOS Phase 3 reporting is based on a 12-month period that includes the qualification date (31st December 2022) and ends before the compliance date (5th December 2023). The earliest it should start is 1st January 2022, and the latest end date is 4th December 2023.

See our article, Getting your business ready for ESOS Phase 3, for more details.

Heat Network Regulations

The deadlines for submitting Heat Network Regulation notifications have already passed. So, if you qualify, you need to submit your information ASAP.

For more information, visit our dedicated Heat Network Regulations page.

The Targeted Charging Review (TCR)

TCR was set up to modernise the electricity network and ensure fair allocation of Transmission and Distribution charges for businesses and household consumers.

These changes were introduced in April 2022, so your organisation might be affected by the upcoming charges in April 2023.

Environment Improvement Plan

Under the Environment Act, the UK government announced targets to protect the environment on the 16th December 2022.

The targets include:

• Halting the decline in species populations by 2030 and increasing populations by at least 10% by 2042
• Restore waterways to their natural state by reducing harmful pollution from sewers and abandoned mines
• Increase tree and woodland cover to 16.5% of total land area in England by 2050
• Halve waste per person sent to residual treatment by 2042
• Cut human exposure to harmful PM2.5 air pollution
• Restore 70% of designated features to Marine Protected Areas by 2042

The government has committed to publishing its Environmental Improvement Plan by the end of January 2023, setting out in more detail how to reach these targets.

Want to prepare your business for changes in the energy industry?

Then Inteb can help.

By working with Inteb, we can help your business:

• React to fast-changing changes in the energy industry
• Stay up-to-date with the latest developments
• Take advantage of new energy technologies and incentives
• Adapt to any regulatory changes

We’re experienced in net-zero strategy and energy efficiency, which means we can also help you stay compliant, lower carbon emissions, reduce energy waste, and save you money on your energy bills.

All of which makes Inteb the best partner to help you navigate the uncertain weeks and months ahead.

Need the help of an energy expert?

Call us now on 0151 601 3476 or email [email protected]