Energy and utilities : Future trends

Energy and environmental legislation, cost savings and desire for public environmental credentials are a driving force in the industry. According to current projections, there is sufficient oil supply for another 50 years, and gas for another 100-200 years. However, with demand for oil and gas increasing, the cost of extraction rising, and greater care being taken of our natural resources, the industry faces a challenging future.

The renewable energy industry has expanded rapidly during the last three to four years, and despite the economic recession which stalled rather than stopped production, the industry continues to grow.

Photovoltaic production has been increasing by an average of some 20% each year since 2002, making it the world’s fastest-growing energy technology. Renewable energy use tends to be more labour-intensive than fossil fuels, and so a transition towards renewable energy promises employment gains.

Impending legislation

UK energy legislation has changed greatly over the last few years to reflect the country’s necessity to meet projected energy demands as well as carbon emission reduction targets.

With the UK Energy Act 2008, the Climate Change Act 2008 and the Planning Act 2008 all now published, these important legislative changes indicate the country’s commitment to the UK’s climate change programme.

The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is the UK's mandatory climate change and energy saving scheme. The scheme started in April 2010 and is administered by the Environment Agency.

Impact of technology

Within the last decade, technology advances have made it possible to unlock more oil from old fields, and, at the same time, higher oil prices have made it economical for companies to go after reserves that are harder to reach.

In addition technological advances continue to improve the way energy is generated, particularly through alternative energy solutions that harness energy from natural resources.

Demographic changes

Population growth is the key demographic change that will affect this industry, with predictions showing that by 2050 there will be half as many people again on the planet as there are now, placing increasing demand on our oil and gas resources.

Growth and reduction

Growth areas include corporate social responsibility (CSR) and research and development (R&D) as the search for new and better ways to optimise energy production and finding new renewable energy sources.

The Government has set a target of getting 15% of total energy consumed from renewable sources by 2020, of which electricity will be a large share.

Biofuels, wind and solar are continuing to grow rapidly as sources of energy, but in the UK its wind energy that is quickly becoming a thriving industry. The new Gunfleet Sands wind farm, five miles offshore from the Essex coastline is one of the biggest offshore wind farms ever built, and pushes Britain’s offshore wind power capacity past 1 gigawatt - enough to power 700,000 homes.