Economy Seven Article – Regen SW

From a sustainable energy perspective, there’s never been a better business case for going green.
 
The UK’s transition to a low carbon economy is under way. As we strive to attain our European target of 15 per cent renewables by 2020, we will see a huge shift in the industrial landscape, the sustainable energy supply chain and the opportunities that arise from it.
 
Those organisations whose core business is sustainable energy will see increased opportunities and demand.
 
Our research, carried out in 2009, showed that in the past 12 months south west sustainable energy businesses had increased turnover by an average of 86 per cent. And from 100 sustainable energy businesses interviewed, 600 new jobs were created, employment grew by 40 per cent and turnover per employee increased from £71,000 to £95,000.
 
Going green isn’t just a growth opportunity for sustainable energy businesses. There will be substantial opportunities for other companies to pick up new work, diversify, save money through energy efficiency measures and lower their energy bills.
 
The recent Government announcement of a renewable heat incentive and feed in tariff for anyone generating their own renewable energy, gave businesses the chance to take control of their own destinies.
 
The feed in tariff starts in April this year, paying a fixed amount for every unit of renewable electricity generated. With current, volatile energy prices, this is particularly appealing. By generating your own renewable energy you gain control over potential future price rises and guarantee lower energy bills - a good return on investment.
 
Ample opportunities exist for any business that can supply into the sector. With so much up for grabs, any business involved in the supply chain – component manufacturers, consultancies and many other businesses – will have the opportunity to stake their claim.
 
Diversification could see many supply chain businesses making the most of the green revolution.
 
Regen SW’s bioheat programme, for example, is seeing farmers with woodland diversify into supplying wood fuel for biomass boilers. Electricians are turning their skills to installing photovoltaic panels and plumbers are installing ground source heat pumps and similar technologies.
 
The South West‘s marine energy sector is also starting to realise the benefits. Last year, the region was designated a ‘low carbon economic area’ for marine renewables, bringing in a £100 million investment for the sector and official go-ahead for the Wave Hub. The region is now at the forefront of this emerging global industry. South West ship building companies and those with offshore expertise are already starting to diversify to support marine renewables.
 
In the current climate, businesses have a unique opportunity to save money, diversify and generate new revenue streams. If they don’t grasp it now, they may lose out in the race to make the most of the economic opportunities.