The trajectory of the UK’s energy landscape for 2024 presents pivotal shifts and essential developments.
These developments will be shaping the path for businesses striving towards sustainability and energy efficiency. Timothy Holman, Head of Consultancy at TEAM Energy, highlights five crucial actions that demand attention as the year unfolds.
ESOS Evolution: Compliance and Energy Savings
The Energy Savings Opportunity Scheme (ESOS) sees significant enhancements in Phase 3, necessitating a closer focus on energy-saving measures. With new mandatory elements like submitting an annual ESOS Action Plan and reporting efficiency savings, businesses must gear up for compliance. Aligning with the Streamlined Energy and Carbon Reporting (SECR) framework, these reports are notably detailed, urging organisations to incorporate ESOS as a continuous aspect of operations.
COP28 Impact on Climate Policies
Following COP28, where countries were urged to shift away from fossil fuels rather than phase them out, the UK’s trajectory towards the 2050 net-zero target remains under scrutiny. Agreements to accelerate energy efficiency, triple renewables by 2030, and set hydrogen trade standards are key highlights. Yet, recent oil and gas extraction licences cast doubt on the nation’s alignment with the net-zero goal.
Heightened Energy Costs and Financial Impact
Rising energy prices, as evident in the 5% hike in the domestic energy price cap for the first quarter, elevate financial strain for both consumers and businesses. With no substantial price reductions foreseen, proactively managing energy consumption becomes pivotal for financial resilience.
Evolution of Carbon Reduction Strategies and GHG Reporting
Alongside ESOS, carbon reduction strategies and GHG reporting are evolving. The consultation on increased Scope 3 greenhouse gas emissions reporting could alter how organisations approach SECR. Strengthening carbon reduction strategies not only facilitates smoother supply chain integration but also prepares businesses for upcoming regulations.
Election Year Anticipation and Regulatory Expectations
Amidst uncertainties in energy legislation, the forthcoming general election is anticipated to influence energy regulations. The pledge for an ambitious environmental agenda from the Prime Minister seems amid discussions. Businesses are advised to leverage available data and insights within their operational strategies to navigate uncertainties effectively.
Strategic Energy Management: A Catalyst for Sustainability
In 2024, energy management transcends business practice; it emerges as a fundamental driver for sustainability and resilience amid global challenges. Informed decisions concerning legislation, energy cost mitigation through efficiency, and fortified carbon reduction strategies will position organisations for success in a progressively sustainable world. Embracing responsible energy management aligns with environmental goals and secures long-term business prosperity amidst evolving landscapes.