Posted on: 18/04/2018
Last year saw continued growth in the independent renewable sector despite significant changes. Iain Robertson, Vice President Renewables, provides a sneak preview of the Energy Entrepreneurs Report 2018 and explains how SmartestEnergy is evolving to ensure we do what we can to help generators take advantage of the new energy system.
2017 saw the closure of the Renewable Obligation Scheme to new projects, which has provided the subsidy needed to enable over 10GW of new generation over 15 years. Last year’s Autumn statement confirmed that there will be no new support until at least 2025, with the Feed in Tariff scheme also due to close in March 2019, and for which no review date has been set.
Only the Contracts for Difference support mechanism remains set to continue providing support for new generation, with the next auction scheduled for 2019.
This year’s Energy Entrepreneurs Report illustrates some of the impacts these factors have had on the independent generation sector. It will be launched exclusively at the All Energy Exhibition and Conference in Glasgow on the 2nd and 3rd of May.
The report shows that despite the withdrawal of subsidy, renewable projects are still growing, with 400 new projects commissioned in 2017 compared to 1000 in 2016.
There is still huge potential and whilst the lack of support may cause growth to slow initially, it is expected to pick up again in the near future.
A recent report from Aurora predicted that there is an enormous 18GW of subsidy free projects likely to be built by 2030. This year’s Energy Entrepreneurs report looks at the increasing number of viable options for a future without subsidy.
Revenues tighten for existing generators
We see that revenue streams for generators are becoming tighter. We have previously talked about changes to embedded benefits, such as the Triad and Capacity Market benefit reductions, which you can read about here.
The business case to optimise flexibility and take advantage of additional revenue streams has never been more important in this new energy landscape. As the market has evolved so has our range of PPA options.
We offer a range of PPAs to cover all risk strategies and expertise and to help you decide the right PPA for your project. We are also launching our latest guide, ‘choosing the right PPA for your project’ at All Energy.
Fixed and flexible arrangements are still widely-used and successful for many generators, but there are new commercial structures being developed to suit changing business models and requirements.
To discuss these or any other points of interest, you can book an appointment with one of our Business Development Managers at All Energy to help better understand your needs. Please email email@example.com to book a session.
Alternatively, if you are looking for something less formal, join us from 3-4pm on the first day (2nd May) at our drinks reception on stand J65 for a drink and a chat.
About the author
Iain joined SmartestEnergy in 2008 as a Business Development Manager before becoming Generation Sales Manager and then taking up his current position in March 2017. Iain also established the company’s Glasgow office in 2011. He leads SmartestEnergy’s Renewables Group, which is responsible for the end-to-end PPA journey of our generation customers as well as working with other stakeholders. Iain’s previous industry experience includes roles in Energy Trading, Technical Services and Metering Services with ScottishPower. He has also served on the board of Scottish Renewables. Iain has a BEng (Hons) in Environmental Engineering and a Postgraduate Diploma in Energy Systems & the Environment from the University of Strathclyde.