Shell Energy Europe has announced plans to supply electricity to industrial customers in the UK. The move meets the multinational’s strategy to boost its position in Europe’s electricity market and is in response to global demand for clean energy.
Shell also plans to manage the power supply of its 600 UK sites – signalling a new, cleaner era of self-generating electricity.
The Anglo-Dutch firm will go head-to-head with some of Europe’s major electricity suppliers such as Npower and EDF. Confirmation from Shell came days after the government launched an independent review into soaring energy bills, triggered by British Gas’s electricity price hike of 12.5% for 3.1 million customers.
Derek Bunn, Professor of Decision Sciences, Management Science and Operations at London Business School, expects a more “balanced, reliable and cleaner energy mix” emerge as the UK attempts to meet its ambitious 2030 renewable energy targets of cutting emissions by 57% compared to 1990 levels.
Professor Bunn also expects a shake-up to the notion of traditional supply and demand. For example, he sees significant changes being made to business models “from passive distribution network operators to the creation of new operators”.
“New rules will make it easier for people to generate their own power with solar panels, store it in batteries and sell it to the National Grid,” he said.
“We are seeing the dawn of an age where energy ceases to be less of a commodity and more of a set of technology, service and infrastructure propositions.