Finding the balance on the route to renewable energy

Energy fuels our modern lives and is essential to heat homes, powering industries, and connecting communities. Yet, as we navigate the urgent transition to a low-carbon future, we must ask: what is the true cost of energy, and how do we find a balance on the journey to renewables?

Among renewables, wind power has become emblematic of the energy transition, praised for its cleanliness yet criticised for its perceived flaws.

The complexities of the energy transition

The energy transition is complex, full of trade-offs and unintended consequences. It’s easy to reduce the debate to polarised teams – those who resist change versus those who demand rapid decarbonisation. The reality is far more nuanced, and there is a need for a mature conversation that acknowledges competing priorities.

It’s about balancing short-term needs with long-term sustainability and ensuring a fair energy transition for all.

Are wind turbines a blight on the landscape?

Wind turbines are great example of where renewables divide opinions. To those who cherish natural beauty, they can seem intrusive, disrupting serene landscapes. As someone who spent formative years hiking mountains, I appreciate nature and understand this conflict.

But does their presence truly outweigh the scars left by the energy sources they aim to replace?

Consider the legacy of fossil fuels. The coal tips of Wales and abandoned oil rigs in Cromarty Firth are not exactly postcard material. Extraction leaves behind polluted land, industrial wastelands, and ongoing carbon emissions. In contrast, wind farms are temporary by design and can be decommissioned, returning land or sea to its natural state.

The hidden costs of renewables

Renewables promise a cleaner future, but they are not without environmental costs. Wind turbines, solar panels, and batteries require materials like steel, concrete and lithium. Resources often extracted in ecologically sensitive or geopolitically unstable regions. This raises ethical concerns about environmental degradation and labour exploitation.

This creates a moral maze. Are we solving one crisis by creating another? Are we simply offshoring the environmental and social costs of our energy transition?

The key difference lies in their lifecycle. Renewables may have higher upfront environmental costs, but they offer long-term emissions reductions. Fossil fuels, in contrast, impose a continual burden of extraction, combustion, and pollution. It’s accountability and innovation that will lead us towards a practical solution, and the ability to achieve a genuinely sustainable energy transition.

Are renewables making the UK uncompetitive?

A common criticism of renewables is their perceived impact on energy costs, with some arguing they make the UK less competitive internationally. It’s true that UK energy prices have been among the highest in Europe in recent years, but the root cause isn’t wind or solar. The real issue is the UK’s dependence on imported liquefied natural gas (LNG) and exposure to volatile spot markets.

In 2023, sky-high LNG prices reflected global turbulence rather than renewable inefficiencies.

Renewables, particularly wind, tell a more nuanced story. Under the UK’s Contracts for Difference (CfD) scheme, wind generators return excess profits when market prices exceed agreed thresholds. In 2023, this mechanism resulted in generators paying back into the system, effectively lowering costs. Scotland produces abundant wind energy, but due to grid constraints, much of it goes unused, with generators even being paid not to produce.

The outdated energy grid design works only for a bygone era, which is historically built around centralised coal and gas plants, distributing power outward. Today, most energy is generated offshore and in remote regions, requiring a fundamental rewiring to handle this new reality.

Modernising infrastructure is key to unlocking the full potential of renewables while ensuring affordability and competitiveness.

A system out of balance

The way we currently fund decarbonisation in the UK has its flaws. Electricity prices bear the bulk of levies, while natural gas remains relatively untouched. This creates unintended consequences. It discourages households and businesses from switching to electric solutions like heat pumps and EVs, while those who can’t afford to upgrade are left paying disproportionately high costs.

Delaying action will only compound the financial, environmental, and social costs. Who are we to decide who wins and loses in this process? Realigning levies to reflect climate goals is essential. Shifting some decarbonisation costs to natural gas would send clearer price signals while creating a more equitable system.

What should we do?

The energy transition is urgent, but it’s also complex. A sustainable future requires bold, coordinated action across several fronts:

• Rebalance energy levies: Align costs with carbon footprints to encourage electrification while ensuring affordability.
• Invest in infrastructure: Modernise the grid to handle decentralised, renewable-heavy generation.
• Scale up carbon removal: Develop advanced technologies to capture and store carbon, supplementing natural solutions like forests.
• Engage all stakeholders: From policymakers to businesses and consumers, everyone has a role in shaping a fairer, cleaner energy system.

The energy system of tomorrow will require trade-offs, collaboration, and creativity. By embracing nuance, we can create an energy future that is cleaner, fairer, and more resilient.

How can Amber help?

At Amber, we want to help businesses thrive in a low-carbon future. If you want your energy decisions and strategies to future-proof the success of your business, please get in touch.