This article is based on an interview between Energy Business Review Europe and Lateef Faiyaz.NOVEMBER 202419Could you walk us through the prominent trends and challenges of energy space?The solar sector has experienced a consistent upward trend, marked by declining costs and a growing rate of adoption. However, global supply chain issues have caused component prices to increase, leading to higher solar prices. Despite this setback, solar power has come incredibly close to achieving grid parity in the UK, eliminating the need for subsidies. Looking ahead, the trend indicates a growing demand for solar panels across various sectors, including among industrial and commercial users, and for larger developers and investors willing to create solar sites. Regarding the number of solar projects, the sector is experiencing a drought as many companies secure long-term PPAs, leaving fewer operational assets available. However, the thirst for new construction persists, with eager buyers awaiting. The bottleneck lies in the time-consuming process of building new projects. Nevertheless, the trend is unstoppable, and the momentum of progress shows no signs of relenting.Please give our readers insights on the current state of solar projects in the UK.In my conversations with multiple clients of Northern Gas and Power, the central theme often centers around the significant influence of solar energy on their facilities. As they embrace solar power, the primary concern lies in managing their changing on-site demand and energy-buying behavior. The shift is significant, as solar panels gradually eliminate the need to purchase energy, even leading to exporting surplus power during summertime. This dominates the conversations, reflecting the transformative potential of solar energy.The path to progress, however, encounters hurdles that I have mentioned before--primarily the government's planning loopholes and grid constraints. These obstacles also persist across all customers. Land ownership adds another layer of concern, as uncertain tenants hesitate to commit to long-term solar investments.How do you envision the future of the solar industry?It's been interesting for me to see coal make its return. But this was necessary for replacing gas. Because of the slow adoption of renewable energy sources like solar and wind, reliance on traditional energy forms became mandatory. We are also seeing unforeseen energy players from nations like Azerbaijan and Uzbekistan stepping onto Europe's stage. Central Asian regions, brimming with gas reserves, are prepared to provide Europe with gas, replacing reliance on Russian gas. In the short term, their participation will shape the trend until renewables like solar and wind energy can shoulder a substantial portion of the UK's energy demand, forging a path toward sustainable power.In terms of the future energy mix, all stakeholders are actively engaging to lower consumption and enhance energy efficiency. They are exploring options like battery integration with on-site solar and potential hydrogen adoption, however realizing it may take multiple years and the economic viability of these options remains uncertain.The road ahead remains unclear, often necessitating a slight retreat or two before advancing further towards progress. I believe the advancement will rely on emerging technologies becoming more economically viable and prominent. What will be your advice to peers in the solar energy space?To navigate the ever-changing energy landscape, one must become a versatile expert. Grasping the drivers of price volatility is crucial. The shift towards a global market has transformed energy trading, demanding a broader understanding beyond the simplicity of UK and European supply and demand. This evolution necessitates adapting to a more complex and interconnected landscape of energy. For example, energy traders must have a comprehensive view of the interconnected factors like how Chinese energy needs and French nuclear developments influence the UK's energy prices.In essence, traders must have a comprehensive understanding of every aspect, from the composition of energy prices to the factors influencing them. They must also understand aspects like the energy efficiency side of renewables, understand the drivers of solar prices, and the changing regulations. They just need to be immersed in the field like never before. To navigate the ever-changing energy landscape, one must become a versatile expert
< Page 9 | Page 11 >