It is good to see continued progress towards net zero. There has been increased adoption of low-carbon technologies, the electrification of transport and heating, and greater use of carbon capture and storage. Coupled with this, there has been enhanced corporate responsibility and transparency seen across industries.
Driven by both regulatory requirements and market demands, the energy industry has continued to transition the grid away from fossil fuels and towards a more sustainable future. The need to move towards renewables has come, in part, due to the additional electricity consumption requirements of the new breed of super-powered data centres needed to run complex artificial intelligence (AI) calculations. Such data centres have sky-high energy demands, meaning the energy industry has been forced to adapt quickly.
It is not a problem that is going to go away. In 2024, data centres consumed around 415 TWh of energy globally.1 However, this is expected to reach 945 TWh by 2030. To put this into perspective, this is around the amount of energy used by Japan – a country of 125 million people.2
To provide grid stability at a time of increased demand, the UK government has announced their intention to build multiple new nuclear power stations. The largest of these, Sizewell C, is hoped to provide decades of clean, reliable electricity for around 6 million homes and businesses.
The renewed interest in nuclear is something that goes somewhat against the recent tide. Nuclear power generation has fallen from 7.5 GW to 3.9 GW over the past decade. But, together with wind and solar, it will be instrumental in securing a greener energy system that can protect against rising gas prices in the future. Not least of which because, unlike solar and wind, nuclear energy is not weather dependent.
Of course, whilst a growing percentage of energy now comes from renewables, much still comes from traditional fossil fuels. There is a strong national security argument to be made to ensure that this continues to reduce, though. After all, the more a country relies upon fossil fuels, the more it becomes exposed to volatile global market dynamics. Oil and gas prices can swing sharply in response to geopolitical tensions, supply disruptions, and fluctuations in demand.
Heavy dependence on imported fuels can also heighten strategic vulnerability, as the country is competing with other nations for supply during periods of scarcity. Scaling up domestic renewable energy reduces exposure to these external factors, helping to stabilise prices, strengthen energy security, and support resilient economic growth.
A multifaceted approach to net zero is required to not only support sustainability goals, but to ensure enhanced energy supply stability in the future. Wind and solar will continue to play their part, but we need to look towards more flexible power sources to supplement the energy supply.
Work still needs to be done. Unfortunately, electricity use remains a lot more inefficient than it should be. Thankfully, times are changing and the increased data available through initiatives such as the Market-Wide Half-Hourly Settlement, will lead to increased intelligence and a reduction in wastage.
References
- ‘Energy demand from AI’, International Energy Agency, www.iea.org/reports/energy-and-ai/energy-demand-from-ai
- BARANIUK, C., ‘Electricity grids creak as AI demands soar’, BBC News, (21 May 2024), www.bbc.co.uk/news/articles/cj5ll89dy2mo
