Reflections on the Future of Utilities conference
This week, I had the privilege of joining thought leaders and industry experts at this year’s Future of Utilities Summit, where I was given the opportunity to speak on a subject which is at the core of SSE Energy Solutions as well the UK’s energy transition: Paving the Path to Industrial Decarbonisation.
This event came at a good time as I believe that our industry is at a critical point of change. Players like SSE Energy Solutions are no longer simply energy providers, we are becoming long-term strategic partners, working across sectors to develop and implement bespoke decarbonisation solutions. The questions put to me during my interview captured the complexity and urgency of this change, and through this blog I’m going to share some of the key themes and insights from the conversation.
From Service Providers to Strategic Partners
The traditional energy model is moving towards a more collaborative, integrated approach. Clients aren’t just looking for energy supply anymore, they need tailored solutions that align with their net zero goals and operational ambitions. At SSE Energy Solutions, we work closely with our customers to understand their requirements and ultimately help to design and deliver decarbonisation solutions that span solar, district heating and power. We believe that the future of our industry lies in these partnerships, especially when they are based on transparency and work towards shared goals.
Localised Renewables for Industrial Decarbonisation
Decentralised energy is quickly becoming a vital part of the energy transition. Local, low-cost renewable technologies, like those that we offer, provide industries with a way to reduce emissions whilst simultaneously boosting resilience. These solutions not only support net zero goals but also protect businesses from volatile wholesale markets. By situating renewables closer to the point of use, we also reduce transmission losses and help balance local networks, so it’s a win-win situation for our customers and the grid.
Decarbonising Heat
At SSE, we see decarbonising heat as one of the biggest challenges and opportunities that we face as an industry. In the UK, heating accounts for a huge amount of our emissions. City-wide district heating networks offer a tried and tested solution, particularly in busy urban areas and industrial clusters. Government estimates show that scaling up city-scale heat networks could provide up to 20% of heat demand and £100bn of investment potential by 2050. However, to unlock the potential of heat networks, we need strong local leadership, clear policy and a commitment to long-term investment. We are already working on projects, such as our work in Aire Valley, that will show the potential for interconnection and waste heat usage brought to life.
AI, Data Centres and the Growing Demand for Power
The growth of AI and data centres is changing the landscape of power demand. The assets used for AI are very energy-intensive, posing both a challenge and an opportunity. Energy companies like us must not only ensure a stable, clean power supply, but also work with our clients to integrate onsite renewables and flexible assets so that the infrastructure is as sustainable as it is powerful.
Whole Systems Approach
Industrial decarbonisation can’t be achieved by working in silos. We need to take a whole systems approach, aligning power, heat, transport and digital infrastructure in a way that works for the client. In order to achieve this, we need deeper collaboration between government, industry, regulators and energy providers. Ultimately, energy companies have a central role to play in helping industry meet net zero targets – not only by supplying clean energy, but by designing and implementing integrated, scalable and future-proofed solutions.
At SSE Energy Solutions, we’re already delivering our vision through innovative projects that bring together renewables, EV infrastructure and low-carbon heat. However, there is still lots of progress to be made, and we’re committed to working together through collaboration, innovation, and whole systems thinking, to deliver the cleaner, more resilient energy infrastructure that our industries, and our planet, so desperately need.
