Understanding government policy

There are two main drivers in this sector, climate change and energy prices.

To tackle climate change, the Government has committed the UK to a reduction in greenhouse gas emissions of 34% by 2020 and at least an 80% cut in greenhouse gas emissions by 2050, compared to a 1990 baseline. To achieve these targets the Government has taken powers to implement a series of measures including information, economic incentives and new regulation. Recent initiatives include the Carbon Reduction Commitment, Feed-In Tariffs, a Renewable Heat Incentive, and requirements for zero-carbon new homes and buildings.

Whether you personally believe the climate science or not, carbon is now a commodity, with a market price, and it’s price will impact your bottom line. On one project we are working on, Renewable Heat Incentive has turned a 5 year payback for a biomass boiler, into a 2.5 year payback. The project will save more than £500,000 over its lifetime.

Fossil fuels & energy prices

Fossil fuels are a finite resource on our planet. With increasing industrialisation across the globe demand is outstripping new sources of supply, which are harder or more expensive access. At the same time, there is a huge amount of volatility in energy prices. In the UK, we have a particular problem in that insufficient new power generating capacity has been built since privatisation in 1989. In the next few years we could face power shortages and higher prices. OFGEM, the energy regulator, has said that prices could rise by 30% or more over and above inflation, in the next decade. Business leaders, including Sir Richard Branson, have criticised ministers for not doing enough to avoid a potential oil crunch and are calling on the next government to take action.

These drivers are both a threat and an opportunity that need to be understood in developing the best package of solutions for any given customer.

Our Approach

Susenco provides services to a wide range of customers from small farms to large corporate organisations.

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