Transition to smart energy systems is the only way forward

In September the UK’s last coal-fired power station, near Nottingham, was closed after more than 140 years, marking a significant moment in our energy history. Coal, which once powered our factories, homes and transport, has been the bedrock of our industrial growth and modern economy. Now, with this milestone, we can confidently say that we no longer need coal to fuel our society. However, as we move away from this historically dominant and dirty energy source, we face both challenges and opportunities that will shape the future of energy in the UK.

The incoming Labour government, in a move spearheaded by the new Energy Secretary, Ed Miliband, has already signalled an ambitious move with its decision to nationalise the National Grid and rebrand it as the National Energy Systems Operator (NESO). In theory, this could unlock key barriers that have historically stymied the development and adoption of renewable energy. By taking control of the energy system at a national level, the government can take a more holistic approach to grid management, removing constraints that previously favoured fossil fuel-based energy. The grid, now owned by the people, can be redesigned to prioritise clean energy sources such as solar, wind and hydro.
One of the key changes we are seeing is the transition to smart energy systems. The old reliance on coal and gas provided a simplistic, if dirty, solution to energy shortages: burn more fossil fuels. But this approach is no longer viable. The need to balance energy generation, particularly from renewables, has created volatility in the energy market which directly influences wholesale energy prices and, in turn, drives up costs for consumers.