Enspec’s Tony Jefferson has more than three decades of experience in the energy industry, working as a former global head of sales for various Siemens business divisions in different countries around the world. Here, TJ explores the lay of the land for energy in 2025

Clean and reliable power is inherently coupled to human development and quality of life. Sometimes it is easy for us to take this for granted.  A clean, affordable, and secure Energy system is the end game for everyone. We cannot settle for less. It is widely understood that most regions are not on track to meet their energy transition plans. Everyone has an opinion and a report to back it up. My situation analysis of our clean energy journey so far has three measuring sticks so to speak; Is it affordable? Is it reliable? Is it secure?

Can we afford it?

To hit the 2030 targets for a flexible, clean energy system in the UK, we will require twice as much investment in half the time – four times the investment that’s been put in over the last decade.  This has been outlined most recently in the UK’s Clean Power 2030 Action Plan, and it is a stark reminder of the work ahead of us.

One of the biggest challenges in getting renewable resources financed and installed over the next five years the cost of capital is increasing. Companies in the investment business are finding that business models and expectations don’t fit as a result. Investors need a clear prospectus of opportunities. More collaborative models to secure sub-investment grade opportunities.

I see it as more of an implementation challenge, not a policy challenge and de-risking to encourage private investment is key to a more bankable pipeline of successfully installed renewables. Balance sheet resiliency will be an important catalyst. We are moving in the right direction by using more renewable energy and adopting a more circular economy.

However, the current renewable energy sources aren’t always cheap. There are often hidden costs that are overlooked. For example, there have been recent articles in the UK regarding the cost of curtailing wind energy due to grid constraints. When there’s too much wind, and the grid can’t handle it, wind generators must be turned off. The cost of this in the UK over the past five years has been estimated to be around £6 billion.

Simply installing onshore and offshore wind generators doesn’t mean we can use them. The lack of grid infrastructure, such as cables and wires, is a major problem. We simply can’t connect all these renewables to the grid and ignore what needs to be done to our grid to accommodate the new mix of renewables. I believe that an objective evaluation of real costs across the complete value chain will help us to navigate the hybrid mix of energy solutions. Clean energy and cheap energy are not always going to be in the same category.

The Reliability Challenge

The intermittent nature of renewable energy sources like solar and wind means that relying on a consistent power supply from them is not always feasible.   We need them, and renewables will form the backbone of modern energy systems, but we will always need a mix of variable generation that is renewable and firm generation assets to meet base load demand.

Effective digital planning and controlling of the energy mix is key to managing volatility in prices and sustainable supply. The installation and connection of large renewables is the next frontier of the Energy revolution.

In the UK, when we talk about adding 23 GW of Offshore Wind Power by 2030 or 20 GW Battery Energy Storage, there will be amazing benefits and some significant engineering challenges due to the changing topology of our Energy Grid and the need to ensure the optimum energy mix.

Geopolitics and Security

Volatile energy prices are often spurred by geopolitical policies and pressures. These challenges usually drive shifting priorities and reactions. Following the invasion of Ukraine, we saw the electricity price cap in the UK increase by over £1300 in one year, peaking at £2000.

I have recently moved from Germany, back to the UK. I love being here but quickly became aware of how much more expensive my household energy charges are compared to Germany.  I realise there are many factors to consider, but the current (Jan 2025) energy price cap of £1738 is already high, and further increases are expected later in the year.

When we think about how the process of electrification is expected to double energy demand by 2050, our reliance on energy will be even more important to us. Electrical and Gas utilities can share a common playing field in serving our energy demand. Yet, many don’t understand each other’s business models or work together on infrastructure.In many countries, open competition between providers isn’t encouraged either.

Looking at the horizon, there are countries laying the groundwork to manage their own energy security. Many of these go against collaborative net-zero goals and targets. Recent changes in the USA have seen decisions on increased export restrictions.  There have been reactions from China with export restrictions on battery and chip technology, as well as critical minerals. We do need to ensure resilient and diversified supply chains if we are to do the work that is required.

Exciting times at Enspec

There’s no doubt in my mind that Enspec is well-positioned to do work that helps shape global power networks for the future. We leverage product development and rapid prototyping. It is an interesting challenge, and we focus on those elements that we can control and influence. Our full range of in-house power system studies provide the modelling and simulation transparency required to understand where problems exist and evaluate solutions.

Our 25+ years of expertise in manufacturing keep us rooted in building, installing, and maintaining critical energy infrastructure. We are improving power quality and reliability while designing systems that meet today’s needs and prepare the grid for future technologies….it doesn’t get any more exciting than that!