Independent Energy Generators: Key to UK’s Clean Power Future

Hello, Champions of Net Zero!

As the UK embarks on an ambitious journey towards enhancing its renewable energy capacity, the significance of independent energy generators cannot be overstated. These stalwart organisations, which include those with on-site energy assets, are emerging as vital contributors to the nation’s energy generation landscape. Offering a dependable and secure power supply, they stand resilient against the unpredictable nature of wholesale energy markets, ensuring that homes and businesses across the UK have access to clean energy.

The UK government’s bold plans for renewable energy expansion by 2030 have sent ripples of optimism throughout the independent generation sector. A recent report titled Clean Power 2030: Harnessing the Power of the UK’s Independent Energy Generators sheds light on this pivotal role. The report surveyed over 350 independent generators from across the nation to gather insights on various issues, including their perspectives on current policies and the support they require to contribute effectively towards a sustainable energy future.

Findings from the survey reveal a mixed bag of sentiments. While one-third (33%) of independent generators express confidence in government policies supporting the development of renewable assets, nearly a quarter (23%) feel these initiatives fall short of what is necessary. Alarmingly, almost half (45%) of those surveyed remain undecided, indicating a pressing need for clarity and commitment from policymakers.

Among the key challenges identified by generators are stringent planning restrictions, difficulties in securing investment, lengthy development timelines, and addressing community concerns. In response, a significant majority—nearly two-thirds (63%)—are advocating for a reduction in bureaucratic obstacles. Additionally, more than half (56%) are calling for enhanced financial support through packages, grants, and incentives for investments in energy generation assets. Furthermore, approximately one-third (31%) believe that fostering a robust Power Purchase Agreement (PPA) market is essential for their growth.

Additional suggestions from the survey include establishing a stable and predictable tax regime, facilitating expedited grid connections, reinstating or extending the Feed-in Tariff (FiT) scheme, guaranteeing fair energy pricing, and increasing support for innovative technologies such as agricultural photovoltaics. These voices must be amplified and heard at the highest echelons of decision-making to ensure the independent generation sector can thrive and help meet the UK’s clean energy ambitions.

The Importance of Listening to Independent Generators

It is imperative that the government acknowledges the pivotal role independent generators play in the clean power landscape. Their perspectives can provide invaluable insights that will help shape effective policies. Here are three compelling reasons why the voices of independent generators need to be prioritised:

1. Growing Demand for Energy from Independent Sources

Businesses in the UK are increasingly seeking energy from independent sources. According to the survey, two-thirds (67%) of independent generators reported a rise in demand from businesses for power from their installations over the past two years, with 30% noting a significant increase. Remarkably, one in five (21%) are already exporting their power to commercial customers through fixed or flexible Power Purchase Agreements (PPAs).

The advantages for businesses procuring energy in this manner are extensive. They benefit from stable pricing, a guaranteed supply of clean energy, and enhanced energy security, making independent generators an attractive option for companies looking to bolster their sustainability credentials.

2. Contributing to Net Zero and Energy Security Goals

Independent energy generators are not only meeting the demand for clean power; they are also positioned as key players in the UK’s net zero and energy security objectives. A staggering 80% of those surveyed believe that independent generators will play a crucial role in advancing the low-carbon transition. By catering to the growing appetite for clean energy, these generators can significantly contribute to the UK’s overarching low-carbon strategy.

3. Reliable Long-term Clean Power Supply

For those independent generators currently exporting power, the majority (58%) do so via fixed PPAs, while 20% employ flexible PPAs. These agreements are perceived as the best route to market and a vital source of additional revenue. Notably, independent generators recognise that PPAs instil long-term investor confidence, thereby facilitating the development of new projects. For businesses seeking a secure, reliable power source, independent generation assets can deliver the necessary energy without the complexities often associated with wholesale markets.

A Call to Action for Supporting Independent Energy Generators

The message from the independent generation sector is unequivocal. While recent efforts by the government to accelerate the deployment of renewable energy are commendable, there remains a substantial gap between policy ambitions and implementation. As we inch closer to the 2030 clean power target and the long-term aspiration of achieving net zero by 2050, it is essential for government policies to align with these objectives.

Listening to the voices of independent energy generators is not just beneficial; it is critical for the UK’s clean energy landscape. Their insights can help shape a more conducive environment for growth, ensuring that the nation can fulfil its renewable energy commitments.

As we navigate this complex and evolving energy landscape, let us champion the cause of independent energy generators. Their contributions are indispensable to achieving a sustainable and secure energy future for the UK, and it is time for their needs and perspectives to be prioritised in the policy-making process.

In conclusion, the independent energy sector stands as a beacon of hope and innovation in the UK’s journey towards a greener future. By fostering collaboration and providing the necessary support, we can unlock the full potential of these generators, paving the way for a cleaner, more sustainable energy landscape for generations to come.

This article first appeared in the Jan/Feb 2025 issue of Energy Manager magazine. For more insightful content, subscribe here.