Immediately is Power UK’s annual convention, the place main trade figures meet to debate the way forward for power.
It’s an essential occasion, a discussion board for the various voices pushing for progressive change, together with power suppliers, turbines, scientists, and MPs.
Our personal professional, Simon Pickett, Funding Director at Octopus Investments, is on the Finance panel with Sir Ed Davey (Mongoose Power), Tony Cocker (E.ON), and Alex Germanis (Pure Leapfrog).
Simon will clarify how investing in good, clear applied sciences won’t simply save us from the results of local weather change, however assist set up a versatile and responsive power system that enhances sustainability, affordability, and power safety.
I spoke with Simon to get a greater concept of what the convention means for purchasers, suppliers, and the trade as an entire. Learn on to seek out out extra.
Hello Simon. Might you inform us just a little about what you do?
I’m an Funding Director at Octopus Investments. I’ve been with the corporate for about six years, serving to construct a £2bn portfolio of distributed, clear electrical energy technology property – together with photo voltaic, onshore wind, biogas, biomass, landfill gasoline, and environment friendly gasoline peaking crops. As a passionate supporter of renewables, I believe loads about the place the power trade is as we speak, the way it may very well be improved, and the place the way forward for power actually lies. The query I at all times ask myself is: what appears visionary as we speak, however tomorrow may turn into unremarkable?
The power trade is at an inflection level. There’s a world momentum already figuring out our future, so my job is to spend money on a method that’s adaptable to a extra progressive and quickly evolving market. That features good, networked, renewable know-how that retains the lights on with out costing the earth.
Why is renewable funding so essential?
There are a number of solutions to this, however essentially it’s about assembly the wants of humanity while defending our planet for future generations. Everyone knows the planet is warming. We’ve seen the impacts of local weather change on climate methods, polar ice, animals and crops. If we don’t do one thing concerning the carbon ranges in our ambiance these results will worsen, and may be irreversible. The power trade produced over a 3rd of the UK’s carbon emissions in 2015 – so though we’re getting higher, we’re not practically the place we must be. It’s not about “going inexperienced” as we speak, it’s about driving the transition.
Sustainability apart, renewables for me can also be about power entry. Similar to local weather change, entry to electrical energy is a world drawback. Round 1.3 billion folks haven’t any entry to electrical energy in any respect. These communities are sometimes in rural areas with no grid connection – and connecting them through conventional grid extension is each costly and gradual. We may be on an evolutionary journey within the UK, however in growing markets there’s a chance to do it “good from the beginning” – establishing localised renewable technology and storage know-how to ship cheaper, greener, and sooner power entry.
Lastly, it’s essential to keep in mind that the world has already began to vary. As an investor, why pour cash right into a legacy system when there are higher, future-proof, tech-led options already in our palms? We don’t wish to be trailing behind essentially the most superior markets on the earth, equivalent to in components of the US, on the subject of power. We’re a nation of excellent innovators, so let’s not solely proceed to innovate, however grasp the chance to commercialise once we want it most.
What do you contemplate to be the principle monetary challenges going through the power trade?
The primary problem is uncertainty. I am not speaking concerning the uncertainty of precisely which new services and products will evolve – we are able to deal with that. I imply uncertainty across the adjustments happening within the political and regulatory atmosphere, and the extent to which coverage will assist rising know-how. Innovation is going on at a fast tempo, and to get essentially the most out of it we want a coverage atmosphere that encourages clever and scientific approaches to our power wants.
With the best coverage framework, we are able to deal confidently with the technical challenges equivalent to intermittency, demand forecasting, inertia on the grid, and so forth. Relatively than persevering with to throw extra money at pre-determined winners, we have to assault them with science.
What can funding firms like Octopus Investments do to assist us transfer to renewables sooner?
By investing in good, game-changing know-how that helps the transfer to renewables. One such instance is Reactive Applied sciences – they’re the primary firm on the earth to efficiently ship information over lengthy distances utilizing the electrical energy grid. This brings national-level communication from a community that already exists, permitting a lot smarter demand forecasting and extra environment friendly use of related units. It’s additionally less expensive than attempting to construct cell or wifi networks to do the identical job.
We assist know-how that is smart of the complete power system, reasonably than focussing on only one half. Since every little thing is linked, it’s this holistic method that may in the end profit the buyer – however we’ll want low-carbon, inexpensive, and future-proof know-how to do it. In time, we anticipate an clever power system to evolve that may be taught and optimise at each degree.
What function do you contemplate customers having within the transfer to renewables?
One other ardour at Octopus is offering all our prospects with service that’s second to none. This consists of serving to to know the implications of their shopping for choices. We’ve already seen client behaviour drive demand for renewables and good know-how; it’s time to swing with that momentum to empower customers to create optimistic change within the power trade.
As people, customers are like sand, however performing collectively, they’re an unstoppable drive. By way of motion then, we wish to empower prospects to change to suppliers who’ve real inexperienced targets, and the place potential, to inexperienced power. It’s now inexpensive and for a number of further kilos as we speak you’d drastically decrease your carbon footprint and pave the way in which for less expensive power within the very close to future.
How essential is the function of presidency within the transition to renewables?
The federal government is essential for creating the circumstances during which good, networked renewables can thrive, however it could actually’t resolve the issue alone. Innovation is accelerating at phenomenal pace and we want a coverage atmosphere that encourages and nurtures this progress, reasonably than singling out one know-how for assist. Let science and markets determine which is finest.
