Energy Industry News & Blog
To celebrate amber energy turning ten we turn back the clocks to see what we’ve achieved during our time.
Our trading team looks at one of the biggest issues to influence the price of oil - the conflict in the Strait of Hormuz, one of the world’s most important shipping routes, which has the potential to cause significant economic impact around the world.
To celebrate 10 years of being in business, Nick has put together his 10 top tips to help you start a successful business.
Dan Clegg went to the International Energy Agency’s Global Energy Efficiency Conference and came away with some interesting thinking points.
Our team takes a look at Britain’s 2050 net zero emissions target, looking at what it means for you and how your business can help make this goal a reality.
As of the 28th May 2019, there are now more EV charging locations in the UK than there are petrol stations. Thanks to new data published by Zap-Map, we now know there are over 8,500 public charging locations across the UK with more than 13,600 charging points, compared to the 8,400 petrol stations seen at the end of April 2019.
The Evolving Energy Landscape: From Fossil Fuels to Renewables
The energy industry is undergoing one of the most significant transformations in its history. For decades, the global economy has been powered predominantly by fossil fuels—coal, oil, and natural gas—which have driven industrial growth, transportation, and electricity generation. However, concerns over climate change, energy security, and resource depletion have accelerated a shift towards cleaner, more sustainable sources. This transition is not merely a technological change; it is reshaping markets, policies, and consumer behaviour. As businesses and households become more energy-conscious, the demand for transparency, efficiency, and renewable integration has never been higher. Understanding this broader context is essential for anyone navigating today's energy landscape, whether as a consumer, a business owner, or an industry professional.
Renewable energy sources such as wind, solar, hydro, and biomass are now cost-competitive with traditional fuels in many regions. The falling cost of solar panels and wind turbines, combined with government incentives and corporate sustainability goals, has led to record installations worldwide. In the UK, offshore wind has become a particular success story, with the country now hosting some of the largest wind farms on the planet. This growth is supported by a robust policy framework, including Contracts for Difference (CfD) auctions, which provide revenue stability for developers and drive down costs for consumers. As a result, renewables are no longer a niche alternative but a central pillar of the energy mix.
At the same time, the role of natural gas as a 'transition fuel' remains a topic of debate. While it emits less carbon dioxide than coal when burned, methane leakage during extraction and transport can undermine its climate benefits. Nevertheless, gas-fired power stations provide essential flexibility to balance the intermittency of wind and solar, ensuring grid stability. The challenge for policymakers and industry is to manage this transition in a way that maintains reliability while steadily reducing overall emissions. This balancing act will define the energy sector for years to come.
How Businesses Can Navigate Energy Procurement and Management
For businesses, energy is not just an operational cost; it is a strategic asset that can influence competitiveness, reputation, and resilience. Effective energy procurement involves more than simply choosing the cheapest tariff. It requires a deep understanding of market dynamics, contract structures, and risk management. Wholesale energy prices are influenced by a multitude of factors, including geopolitical events, weather patterns, supply disruptions, and currency fluctuations. The conflict in the Strait of Hormuz, for example, highlighted how quickly oil prices can spike due to threats to a critical shipping route. Businesses that fail to hedge against such volatility can face significant budget overruns.
One approach to managing this risk is through flexible purchasing strategies, where energy is bought in tranches over time rather than all at once. This allows businesses to average out price fluctuations and avoid locking in at unfavourable rates. Another option is to enter into fixed-price contracts for budget certainty, though this may come at a premium. Increasingly, companies are also exploring power purchase agreements (PPAs) with renewable generators, which provide long-term price stability and support sustainability goals. These agreements can be structured in various ways, including physical delivery or virtual PPAs, depending on the regulatory environment and the buyer's needs.
Beyond procurement, energy management is about optimising consumption. Conducting regular energy audits can identify areas of waste, from inefficient lighting and HVAC systems to poorly insulated buildings. Implementing energy management systems (EMS) allows real-time monitoring and control of energy use, enabling data-driven decisions. Simple behavioural changes, such as encouraging employees to switch off equipment when not in use, can also yield significant savings. For larger organisations, investing in on-site generation like solar panels or combined heat and power (CHP) units can reduce reliance on the grid and provide additional revenue through export tariffs.
The Role of Technology in the Energy Transition
Technology is a key enabler of the energy transition, driving efficiency, decentralisation, and digitalisation. Smart meters, for instance, provide consumers and businesses with detailed insights into their energy usage, helping them identify savings opportunities and shift consumption to off-peak periods. The rollout of smart meters across the UK has been a major infrastructure project, with millions of devices now installed. These meters communicate usage data directly to suppliers, eliminating estimated bills and enabling more accurate forecasting.
The rise of the Internet of Things (IoT) is further transforming energy management. Connected sensors and devices can optimise heating, lighting, and cooling in real time, responding to occupancy and external conditions. In industrial settings, IoT-enabled predictive maintenance can prevent equipment failures that lead to energy waste. Artificial intelligence (AI) and machine learning are being applied to energy trading, grid management, and demand response, allowing for more efficient allocation of resources. For example, AI algorithms can predict renewable generation output based on weather forecasts and adjust grid operations accordingly.
Electric vehicles (EVs) are another technological disruptor. As noted, the number of EV charging locations in the UK has surpassed petrol stations, signalling a shift in transportation energy demand. This growth presents both challenges and opportunities for the grid. On one hand, increased EV adoption will add significant load, particularly during evening peak hours. On the other hand, smart charging and vehicle-to-grid (V2G) technologies can turn EVs into distributed storage assets, helping to balance supply and demand. Businesses that install workplace charging can attract and retain employees while contributing to their sustainability credentials.
Policy, Regulation, and the Path to Net Zero
The UK's commitment to achieving net zero greenhouse gas emissions by 2050 is one of the most ambitious climate targets in the world. This legally binding goal, enshrined in the Climate Change Act, requires a fundamental overhaul of the energy system. It means decarbonising not only electricity generation but also heating, transport, and industry. The government's Ten Point Plan for a Green Industrial Revolution outlines key areas of focus, including offshore wind, hydrogen, nuclear, and carbon capture. However, achieving these targets will require sustained investment, innovation, and public engagement.
For businesses, the net zero transition presents both risks and opportunities. Regulatory pressures, such as carbon pricing and energy efficiency standards, will increase costs for high emitters. Conversely, companies that proactively reduce their carbon footprint can gain a competitive advantage, enhance their brand, and attract environmentally conscious customers and investors. Many organisations are setting science-based targets aligned with the Paris Agreement, and some are going further by committing to net zero well before 2050. The financial sector is also responding, with lenders and investors increasingly scrutinising climate-related risks in their portfolios.
Energy suppliers play a crucial role in this transition. By offering green tariffs, supporting renewable generation, and providing energy efficiency advice, suppliers can help their customers reduce emissions. amber energy, for example, has been actively involved in helping businesses navigate these changes, offering tailored solutions that balance cost, reliability, and sustainability. As the policy landscape evolves, staying informed and adaptable will be key to success.
Practical Steps for Businesses to Reduce Energy Costs and Carbon
Reducing energy consumption and carbon emissions often go hand in hand, and there are many practical steps businesses can take. Here are some actionable strategies:
- Conduct an energy audit: Identify where and how energy is used, and pinpoint areas of waste. This can be done internally or with the help of a professional.
- Upgrade to energy-efficient equipment: Replace old lighting with LEDs, install high-efficiency motors, and upgrade HVAC systems. These investments often pay for themselves through reduced energy bills.
- Implement smart controls: Use programmable thermostats, occupancy sensors, and timers to ensure energy is only used when needed.
- Engage employees: Foster a culture of energy awareness through training, incentives, and regular communication. Simple actions like turning off lights and computers can add up.
- Consider on-site generation: Solar panels, wind turbines, or CHP systems can reduce grid dependence and provide long-term savings.
- Purchase green energy: Choose a renewable energy tariff or enter into a PPA to support clean power and reduce scope 2 emissions.
- Monitor and report: Track energy performance over time using software tools, and set targets for continuous improvement.
By taking these steps, businesses can not only lower their energy bills but also contribute to the broader goal of a sustainable energy future. The transition to a low-carbon economy is not just a challenge; it is an opportunity for innovation, growth, and leadership.