The Energy Sector In 2023: What To Expect
Posted on Jan 10, 2023
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.
What is P272? P27what? You aren’t alone in the dark about P272. P272 is regarded as one of the biggest shakeups to the business electricity market since deregulation. Sounds more like a character out of star wars, but here are some facts on P272, which we have put together hopefully jargon free. If you unsure on how P272 affects your business please do not hesitate to contact us for free on 0800 781 7626, we will be delighted to help you further. You may also like to view our infographic and visit our support page dedicated to the P272 OFGEM legislation.
The Facts – What Is P272
P272 is a new regulation which has been implemented by OFGEM. It affects the way suppliers settle electricity consumption for businesses with a specified energy use. Resulting in sites being changed to half hourly.
Remember, remember the 5th November… “Guy Fawkes?”. No, no… this is when the P272 migration began! The deadline for all sites to be settled to Half-Hourly is 1st April 2017. Don’t be fooled by the date, it really is 1st April! Also, don’t be put off by the 2017 threat – it’ll be here before you know it!
The settlement is being put in place in order for suppliers to balance the amount of energy being purchased from the Generators. The aim for P272 is to make the readings more accurate via the half hourly consumption. This will provide distributors with more understanding on electricity use. This results in networks ensuring they are sufficiently developed and maintained.
Ultimately, P272 helps you and your business manage and also use the energy smartly. It gives you the opportunity to see where and when you are consuming energy. Also, a more accurate settlement which could lead to better tariff rates… something nobody would say no to, agreed?
Now you (hopefully) have a little more understanding of P272 here is how to prepare:
Learn if your portfolio is affected.
Speak to your supplier, they will be more than happy to explore your options with you.
Select your Half-Hourly Meter and Data Collector.
If your business has a maximum demand electricity supply categorised by profile classes:
05 06 07 08
And you have an Automated Meter Reading meter of which is capable of HH data collection and remote programming. Just to let you know… 160,000 sites are affected so it is definitely worth double, maybe even triple checking!
“How do I check?!” I hear you say? Simple… you just check the S number at the top of your electricity bill to find out your sites profile class.
Believe it or not, P272 can be very beneficial for you and here’s why:
You receive accurate billing
It offers you the ability to avoid peak times of electricity use
It gives you an insight on your energy usage
It allows you to make room for an opportunity of improvement and efficiency
This is an OFGEM regulation affecting ALL maximum demand meters and ALL electricity suppliers equally. If you’re being advised P272 does not affect your business, please let us double check this for you.
A Russian rocket blasted into space this month to investigate whether any methane gas is present on Mars, as part of the joint ExoMars project created by the European and Russian space agencies.
Methane is a gas created by living microbes, and if it were to be detected it would be a revelation in the space industry as it could prove that life exists or existed on the red planet, some 225 million kilometres away from the Earth (which is itself something of a shock, given that in 2003 Mars was a mere 56 million kms away).
We already know there is life-giving water on Mars. Just like the Earth it has ice caps, although the water they contain is more elusive. The American space agency NASA made a huge discovery in 2006 when it found there was water flowing through the planet in even the hottest months of the year, and that the ‘lines’ that appear on our satellite images of Mars are streaks of flowing salt water.
That’s when the questions ‘did life exist on Mars, and can we find out?’ really started to arise.
The ExoMars project involves sending up a Trace Gas Orbiter to sniff the Martian atmosphere for methane, and if the results are positive then this would establish that methane has been generated via geology or a biological process.
As part of the same mission, a stationary lander called Schiaparelli will test the technology for a subsequent mission – ExoMars 2018 – which will see a UK-built rover collect soil samples filled with water particles and drill below the planet’s surface to look for other signs of life. That’s when the search for Martian life will start in earnest.
These two projects combined will cost an eye-watering £900 million but isn’t it worth it for the chance to make one of the biggest discoveries of all time? What a time to be alive!
Planetary scientist Dr Peter Grindrod, from Birkbeck, University of London, who is funded by the UK Space Agency, certainly thinks so. “It’s incredibly exciting,” he enthused. “This is a series of missions that’s trying to address one of the fundamental questions in science: is there life anywhere else besides the Earth? Finding that life exists elsewhere in the solar system would be a huge discovery, so the evidence has to be strong. As they say, extraordinary claims require extraordinary evidence.”
Wouldn’t it be amazing to find out if there really is Life On Mars, or if there has been in the past. It’s astonishing to think there could be more than just us Earthlings in our solar system!