The Energy Sector In 2023: What To Expect

With 2022 behind us, 2023 is here and there’s no doubt everyone will be curious as to what this year has in store. It’s been 3 years since the Covid-19 pandemic shut down the world in an unprecedented way, followed by an energy crisis and the ongoing Russian invasion of Ukraine. It certainly may not feel like it has been that long since the following few years of unexpected twists and turns were written into the global history books, but here we are.

As an energy provider, our focus is on the current energy crisis and the rising cost of living. For customers and businesses alike the hope is that 2023 will see a positive change. So, in this new article, we are talking about some of the predictions and forecasts that have come out of the sector for the next 12 months.

Support for low carbon energy is likely to increase 

Reaching net zero continues to become a focal point for governments, businesses and individuals across the globe. With the UK government being one of the first to lay out a timeline for achieving such targets, 2023 will play a focal role in the government taking actions in order to prepare the country for the changes required to achieve these goals.

Investment into natural resources

Thanks to a strong 2022 for renewables, with steady growth over the past 12 months, it is projected that interest from investors into renewable energy sources from natural resources may increase. However, the volatility of the market is currently the hurdle that could put a stop to this growth in 2023. There are several factors which cause challenges within the renewables sector, including the following:

• A lack of policies in place to support the renewables sector
• A lack of Infrastructure and installation is expensive
• Solar, wind, and other renewable sources of energy have to battle with the strong and historical fossil fuel industry, which does all it can to remain in the favour of governments.

New technologies in the energy sector

It’s not surprising that as we move further into the technological age, new technologies will be introduced to the energy sector. Two key areas predicted to be at the forefront of evolving technologies are hydrogen and battery energy storage systems (BESS).

The use of hydrogen is being looked at in new ways, with the UK’s Hydrogen Strategy, which was launched in 2021, the government sees the use of hydrogen as one of the key ways to achieve decarbonisation in the country. With this strategy the government is providing lots of funding to financially support hydrogen projects. This is set to continue into 2023 and beyond, in conjunction with other projects and plans for achieving net zero emissions by 2050.

Renewed interest in the nuclear sector 

Following the impact the previous year has had on the energy sector, the UK government has expressed a renewed interest in the use of nuclear energy. The government has committed to an expansion of nuclear power in the UK with plans to reach 24 GW of installed nuclear power capacity by 2050. This means over the course of 2023 and onwards we will see the development of projects such as the introduction of a new governing body, Great British Nuclear and investment into nuclear plants.

As these many points suggest, there is no doubt that 2023 will continue to be a challenging year for the energy sector. While prices continue to fluctuate, we are not out of the woods just yet, all the while the government will begin to push further for projects and innovations to move the country away from fossil fuel reliance.