Post #73: Going green in the UK - Heptagon Capital – Production

As the clock strikes midnight tonight, it will have been two months since the UK last burned coal to generate power. The country has come a long way.

Post #73: Going green in the UK

As the clock strikes midnight tonight, it will have been two months since the UK last burned coal to generate power. The country has come a long way. Just a decade ago, coal was responsible for ~40% of Britain’s electricity. While the current pandemic has clearly played a role (in reducing overall energy demand), the bigger story is about the transformation of the UK’s energy system over the last ten years.

Back in 2010 only 3% of the country’s electricity came from wind and solar. On a year-to-date basis, renewables are now responsible for a bigger share of electricity generation than fossil fuels. The former accounts for 37% versus 35% for the latter (the remainder comprises nuclear and energy imports, per data from Carbon Brief, cited here). This has been a function of conscious policy choices and sustained investment. The UK can now also boast ownership of the world’s largest offshore wind farm. Located 120km off the coast of Yorkshire, the project spans an area larger than Malta. Each of its 174 turbines are ~100m tall with their blades covering an area bigger than the London Eye observation wheel can turn. Upon completion later this year, the project will be capable of powering up to 1m homes.

As exciting as these data points are, there is still a lot further to go. Many hope that the current pandemic will bring about an energy policy reassessment by governments globally. The UK has already committed to fully decommission its remaining three coal plants by the end of 2025 at the latest. Experts predict that the world could move from two-thirds of its energy generated by fossil fuels in 2018 to two-thirds coming from zero-carbon sources by 2050 (per BNEF). Even if the sun is currently absent from the UK’s skies, the wind is still blowing.

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital's prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital's prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Related Insights

Featured Insights
Featured Insights08 April 2021

Season 3, Post 14: Fake steak and test-tube tomatoes

Next week marks the reopening of London’s restaurants – at least for outdoor dining – for the first time since December 2020. Menus will likely be full of the joys of spring; perhaps an asparagus starter followed by some young lamb. Needless to say, your author already has several reservations in his diary. While not […]

Learn more
Featured Insights
Featured Insights01 April 2021

Season 3, Post 13: Life on Mars

Plans are afoot to build the first human city on Mars. Yes, you did read that sentence correctly; it is not an April Fool’s Day spoof. Spanish design firm and think-tank ABIBOO released plans last week for a conceptual city on the red planet that would see construction commence in 2054 with the intention for […]

Learn more
Featured Insights
Featured Insights25 March 2021

Season 3, Post 12: At the nexus of innovation

Your author has spent his last two afternoons virtually in New York. It’s obviously nowhere near as exciting as being in the city itself, but the NEXUS:ISRAEL Dealmakers’ Summit was arguably the most interesting online event I have attended in the last year. Organised in conjunction by Landmark Ventures and the Hebrew University of Jerusalem, […]

Learn more

Get The Updates

Separated they live in Bookmarks right at the coast of the famous Semantics, large language ocean Separated they live in Bookmarks right