Energy is essential for your business to function, however the type of energy you buy and how you use it can impact your whole business. From bills, to sales, to employees and your brand image – energy matters more than you think!
In today’s increasingly environmentally conscious world, more and more businesses are adopting sustainability initiatives to reduce their impact on the environment and create a better planet for all.
This guide covers everything from definitions of the key terms, to benefits of using renewable energy and how to get a renewable energy tariff.
What is Renewable Energy?
In a nutshell, renewal energy comes from sustainable natural sources that won’t diminish over time, such as solar. The term ‘alternative energy’ has been thrown around in recent times, this is usually referring to renewal energy. However, there are more types of energy that are considered ‘alternative energy’ (more on that later).
What are fossil fuels?
Fossil fuels are non-renewable forms of energy, made from naturally occurring resources found in the earth. These are burnt to create energy, with the main three types being coal, natural gas and oil. Fossil fuels have been the main source of energy generation for decades.
But fossil fuels have one major flaw, they are finite and do not replenish, meaning that once they are used, they’re gone, and we can’t create more. They are also one of the major contributors to global warming, climate change and pollution meaning it’s in everyone’s best interest to begin to phase this out.
What is the difference between renewable, green and clean energy?
The terms ‘green’, ‘renewable’ and ‘clean’ energy are often used interchangeably. Whilst in some instances this is correct, there are a few distinct differences.
This is most seen in ‘green’ energy which in most cases is also classed as ‘renewable’, however ‘renewable’ energy is not always considered as ‘green’.
‘Renewable’ energy comes from sources that are constantly and naturally renewed, hence the name, such as solar or wind power.
‘Green’ energy is energy that can be produced using methods, and from a source, that causes no damage to the natural environment.
‘Clean’ energy is energy that, when used, creates little or no greenhouse gas emissions.
Now we know the meanings of each energy type, we can discuss why some may not be classified as ‘green’.
For example, the solar and wind power can be considered as both ‘clean’ and ‘renewable’ as when used they create little to no greenhouse emissions and use a source that is constantly naturally renewed.
However, the building of infrastructure for these types of energy, such as wind turbines and solar panels, will have some carbon emissions that are associated, therefore making it not ‘green’.
How much of the UK’s energy is renewable?
The latest renewable energy statistics show that renewable energy accounted for 40.6% of the UK’s overall energy production in April 2024. Of the renewable sources, Wind power created 29.7% of the UKs overall energy production meaning it is responsible for 73% of all renewable generation in the UK.
What Types of Renewable Energy Are Available for Businesses?
There is an ever-growing list of renewable energy sources that are becoming available, thanks to the investment in research and development as well as the advances in technology. Discover some of the most used renewable energy sources below:
Wind energy: Wind power is one of the fastest growing renewable energy sources in the world, in fact wind power accounted for just over 19% of the UK’s electricity generation in 2019. The generation of wind energy is the process of using kinetic energy from wind to produce electricity. This is done via wind turbines when the wind blows and turns the blades. The blades are connected to a generator with a gearbox, this in turn creates electricity.
Hydro energy: Hydro energy, or also commonly referred to as hydroelectric power, relates to the process of using flowing water to produce electricity. This is one of the oldest forms of renewable energy sources. The method is almost identical to wind power, except it is the flow of water that spins the turbine to generate electricity rather than wind.
Geothermal energy: Geothermal energy is created via heat that originates from the subsurface of the earth. The process includes digging well into these underground reservoirs to release steam and hot water. The steam that is released is used to drive the turbine, which powers a generator and produces electricity. Geothermal energy is used widely across Iceland, in fact 25% of Iceland’s energy is produced through geothermal power plants.
Solar power: It’s estimated that the sun emits around 3.86 x 1026 watts of energy at any given time. Most of this is lost to space, however, it’s estimated that 174 quadrillion watts hits the earth. That’s more than the total energy needs of the whole planet, many times over! Therefore, solar power is one of the most plentiful renewable energy resources available to us.
Ever developing technologies have allowed us to harness the sun’s energy using solar photovoltaic systems (PV) or more commonly known to users as solar panels. This converts the sunlight into electricity, which can be used to power appliances and heating, or alternatively can be stored in batteries to use at a later time.
Tidal energy: Tidal energy or also referred to as tidal power is a form of hydroelectric energy, is generated by harnessing the kinetic energy created by tides, waves, or flowing waters such as rivers. Tidal energy uses large turbines which are under the surface of the water, these are connected to generators to produce energy with incoming and outgoing tides.
The world’s first dedicated testing facility for marine energy was established in Orkney, Scotland in 2003. This facility has aided the development of more wave or tidal energy technologies than any other facility like this in the world.
What Are the Benefits of Using Renewable Energy for Your Business?
More stable pricing
One of the key benefits of renewable energy is its potential for more stable energy pricing. Traditional fossil fuel energy generation has volatile pricing due to oil & gas prices being affected by external factors such as international politics as well as the ranging costs of obtaining, transporting and then storing this energy. As renewable energy is usually generated and used within the same country, this method can provide a more stable pricing structure.
Reducing Carbon Footprint & Meeting CSR Goals
The most obvious benefit of using renewable energy is reducing your carbon footprint. Energy usage is the largest contributor to a businesses carbon footprint and even a slight change in the way you power your business can make a significant difference.
All businesses have a responsibility to reduce their carbon footprint to improve the planet for all, with one of the quickest and easiest ways to achieve this is by powering your business with renewable energy.
Improvement of brand image and customer perception
This is an often-overlooked benefit of using renewable energy for your business. As previously discussed above, consumers are now actively selecting companies with strong sustainability practices over others than don’t.
By switching to renewable energy for your business, you are not only doing your part in improving our planet, but you are also demonstrating and appealing to a large sustainability led demographic.
Future proofing business
It’s no secret that fossil fuels stores are depleting, and the threat of climate change is growing. To counter this many governments across the world are implementing net-zero emission targets, whilst simultaneously encouraging business and domestic users to consider renewable energy.
By switching to renewable energy, you’re getting ahead of the game and securing the long-term future of your business.
No energy bills
Probably the best benefits of renewable energy if you have the funds available and are willing to invest them, you could generate renewable energy onsite. Although it does rely on an initial investment to get the infrastructure in place, the money you could potentially save on your energy bills moving forwards could repay this over time.
There is also an opportunity to open up a new revenue stream, but this is only achievable if you generate excess energy. For example, this excess energy could be used to power EV chargers that you then charge people to use, or you could even sell your excess back to the grid for a nice profit.
While this may be an attractive option, it’s not available to all. Setting up your own renewable energy generators can be costly and will depend on a variety of external factors such as geographical location, building position, space & weather. So, before you head down this route it is always advised that you conduct extensive research and employ the service of experts in the field.
Is Renewable Energy Reliable?
This is a regular concern we hear when it comes to renewable energy.
Renewable energy works in the same way traditional fossil fuel generated energy when it comes to reliability. It uses the same distribution networks; it’s just sourced differently.
So, when it comes to getting energy to your business don’t worry you won’t be without, however renewable energy generation is not as stable.
As renewable energy sources tend to be dependent on factors such as weather, location, seasonality etc, there is no guarantee on the amount of energy that each source will generate. This is similar to energy demand fluctuations e.g. in summer months with longer and warmer days, lighting and heating needs decrease. For energy generation, in summer months where there are less storms, wind generation is likely to be lower.
However, to counter these fluctuations in demand and generation, renewable energy generators will store any excess energy that has been made during periods of low demand and then use the reserves when demand is higher than the rate of generation. It is also common for renewable energy sources to cross over, so that if one falters, others can pick up the slack.
Whilst at the moment renewable energy cannot meet the full demands of the UK and still requires back up from traditional sources, the UK is showing a steady increase in the amount of energy produced from renewable sources.
The future of renewable energy
Although renewable energy is still a relatively new term, the advancements in technology and infrastructure is growing rapidly. Latest statistics show that 30% of the worlds electricity is now generated via a renewable source.
Now the global target of being 100% renewable by 2025 is still up for debate but there is no denying that renewable isn’t going anywhere and will only continue to grow over the coming years.
This is most evident by some of the testing being done by countries across the globe, check them out below.
Alternative energy sources you probably haven’t heard of
Businesses, consumers and governments across the globe are constantly looking for new energy sources and ideas to assist them in making smart energy decisions. What will be central to this is the discovery, development and ultimately investment in alternative sources of energy. This process has already begun, with some new fascinating and ingenious methods of creating energy being tested across the globe (and in some cases even outside it!).
Solar Wind
Scientists at Washington State University have been working on ambitious plans to harness solar winds in space, which if successful could generate 1 billion gigawatts of electricity. To put this in context, the 100 billion more watts than the planet currently consumes making this a potential game changer. Now this is still in the research phase, however the technology to harness solar wind has already been developed and deployed by IKAROS – A Japanese spacecraft that is solely powered by solar winds.
Algal Biofuels
Algae has huge commercial potential as a possible alternative to liquid fossil fuels. Algae is seen as a viable alternative to fossil fuels as the process to turn it into fuel has a minimal carbon impact and the growth of algae doesn’t require vast amounts of land like cereal farming. Although this is not yet being used on the mass markets, some smaller levels of production are already taking place across the globe.
Body Heat
Sweden is renowned for its investment, research & development of alternative and renewable energy sources, with their latest experiment being Swedish people. Engineers in Stockholm have created a system that harnesses the body heat of up to 250,000 commuters who crowd into its central station every day. The body heat is captured and funnelled through the station’s ventilation system, which leads to a water tank that the body heat will warm. This is then pumped into the office building close by – conveniently owned by the same company. This state of the art technology is up and running, with construction only costing £30,000.
Dancefloors
This isn’t just smart tech, and it’s fun, too. Energy floors that have been implemented in Rotterdam harness the kinetic energy produced by revellers on the dancefloor. This is converted to electricity which is powering the lights on the dancefloor itself. With the average human taking roughly 150 million steps in a lifetime, there is no reason to believe this is a form of technology that cannot find wider commercial applications, think of shopping centres, busy high streets, anywhere with high footfall, these are all potential goldmines. Pavegen, a London based firm, are pushing ahead with this technology by developing the energy harvesting ‘smart street’.
Jellyfish
Back to the geniuses in Sweden and at Gothenburg’s Chalmers University of Technology. One of the teams at the university are developing a biological fuel cell which derives from the fluorescent protein cells of a Aequorea Victoria jellyfish, or more commonly known as the crystal jellyfish. Now the research and development of this new innovative method of producing energy is still in its infancy, however the team so far have been able to show proof of concept by using a prototype of the device to power a clock. As much as it may seem like a pipe dream right now, one day, we could be seeing these bio cells floating in the oceans, generating cheaper power with minimal environmental impact.
Confiscated alcohol
The Swedes are at it again with this ingenious idea that fell into their laps. In 2007, 185,000 gallons of alcohol were confiscated at the Swedish border. Instead of pouring it down the drain, like most nations would, authorities decided to combine it with other fuel sources, like animal remains from slaughterhouses and human waste products in anaerobic digesters, where it was converted into a biofuel for public transport. Now it may sound disgusting, but by replacing 5 million litres of fossil fuels with 5 million litres of biogas, Sweden is able to reduce its carbon emissions by 12,000 metric tons in one city alone.
Use a Renewable Business Energy Provider Like Dyce Energy
At Dyce Energy, we offer 100% renewable electricity. If you are not in a position to start generating your own energy, our green electricity tariffs are a great alternative, allowing your business to reap the benefits of renewable energy.
