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What is renewable energy and why is it an important first step?
Aug 31, 2021

Using renewable energy is one of the easiest and most affordable ways for a business to cut its carbon footprint and reach larger sustainability goals like net zero. As renewable technologies have improved and tariffs have become cheaper, more SMEs have joined larger firms in supporting the fight against climate change. For businesses that want to do their bit, but aren’t sure where to start, choosing renewables is a purposeful step on the pathway to sustainability.

The way we generate energy is changing

In the first half of the 21st century, the energy system will undergo a major shift away from fossil fuels.

Traditionally, we have created electricity by burning fossil fuels like coal and natural gas to generate energy. These fuels are not replenished quickly enough to be sustainable. At current rates, it is estimated that the world’s supply of fossil fuels will be used up by 2060.


The main problem with fossil fuels is that they damage the planet and human health. Fossil fuels release carbon dioxide and other greenhouse gases when they’re burned. These greenhouse gases trap heat in the atmosphere, contributing to global warming and climate change.


Most of the UK’s air pollution is also caused by fossil fuels, which release a number of harmful gases and chemicals when they’re burned. Coal is the most carbon-intensive fossil fuel that we can burn and is the biggest single source of global temperature increases in the post-industrial era. 


In recent decades, the amount of coal used in UK power stations has dropped significantly and is now approaching zero. Natural gas, which is still damaging but produces fewer harmful emissions than coal, has picked up some of the slack. The most positive recent change, however, is the rapid expansion of renewable energy sources like wind and solar.

Source: Department for Business, Energy and Industrial Strategy. Historical Electricity Data: 1920 to 2019.

What is renewable energy?

Renewable energy is energy that’s created from sustainable sources.

While fossil fuels are all finite resources, renewable power generators use natural resources like wind, solar and tidal energy to produce energy. Green gases like biogas - which can be produced from organic waste - can also be used to produce low carbon heat.


Compared to fossil fuels, the key advantage of renewable energy is that it has a much lower impact on the environment and on human health. There is, however, an important distinction between being renewable and zero carbon.


Wind and solar power can be created without producing any greenhouse gases. But renewable fuels like biomass and biogas do emit harmful gases when they’re burned. These fuels are still thought to be cleaner than fossil fuels, because they are made using carbon dioxide-absorbing organic matter.


Nuclear power is an example of a technology that is zero carbon but not renewable, because nuclear fuel is not sustainable.

Get help to act on climate change

When shaping your energy approach, you can make the most of your investment by aligning business energy with your broader business objectives. For this, you need a partner with knowledge of the changing energy supply landscape, a strong service record and flexible energy supply options – with a focus on renewables. That’s British Gas. With our British Gas experts we are uniquely positioned to provide an end to- end service, making business supply an integral part of your overall solution. Whether you’re looking for transition to renewables or just a better deal, we can shape an integrated energy solution that balances cost and environmental impact.

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06 Jul, 2022
Balancing planet and profit during unprecedented market volatility
By Vander Caceres 14 Jun, 2022
Wholesale energy prices have experienced unprecedented levels of volatility since the end of summer 2021, with both day ahead/spot and future contracts surging to all-time highs. In the last couple of months, prices have decreased but still remain high compared to a year ago. This period of high energy prices is expected to continue for the foreseeable future (see next section). Energy prices have surged for a number of reasons: A global increase in gas demand following the ease or end of Covid-related restrictions throughout 2021. After the pandemic, economies across the world started to recover. Asian countries like China saw their imports of Liquified Natural Gas (LNG) increase. This resulted in lower LNG shipments to the UK and Europe. On the supply side, the Covid-19 lockdowns pushed some maintenance work from 2020 into 2021 at a time when demand was recovering. In 2021, gas production hit a record low of 363TWh, 47TWh below the previous record low in 2013. Low production was the result of an extensive summer maintenance schedule which saw shutdowns at several major terminals, as well as the Forties Pipeline System which serves a significant proportion of UK gas and oil production. A lack of wind in the summer resulted in higher demand for conventional power. European gas storage in 2021 and Q1’22 remained far below previous years and it’s unclear how these are going to be replenished in the summer given the concerns around supply including the potential suspension of Russian gas flows due to sanctions. The 1,234km offshore Nord Stream 2 gas pipeline, which was designed to double the flow of gas between Russia and Germany (and by extension the rest of Europe) has been abandoned following the invasion of Ukraine. Gas storage in the UK is extremely minimal with capacity at less than 2% of the UK’s annual demand, compared with 22% for other European countries. Whilst the UK is not heavily reliant on gas coming from Russia, it sources almost half it’s gas supply from Europe. Hence, wholesale gas and power prices in the UK are now subject to knock-on-effects from the conflict in Ukraine.
20 May, 2022
Amidst rising energy costs, digitalisation, growing pressure from stakeholders and increasing regulation, organisations may struggle to define their pathway to a low-carbon future. What can you do to protect your business’ net zero plans from the challenges of volatility? Disruption and volatility are putting organisations under pressure. Digitalisation and new technology developments continue to challenge existing business models. Its increasing dependence on energy and encouraging businesses to drive change to secure competitive advantage. And as customers, employees and shareholders look to engage with companies who understand the importance of decarbonisation, pressure is mounting to prioritise sustainability.
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