Britain’s energy supply is undergoing significant and rapid change driven by the dash for green energy and the maturing of the North Sea oil and gas reserves. Compared with the traditional energy industry around the North Sea, upon which Scotland has built its reputation, such opportunities present new challenges, more revenue uncertainty, and greater competition for capital from projects in a number of promising green energy technologies. Whilst net zero by 2050 developments are hungry for funds, the country is experiencing enormous financial pressure as a result of the pandemic. New projects need to be robust against changes to outside support, as some green technologies gain support and others fall out of favour. David Robottom is a director of Roott, a consultancy that serves the upstream and midstream energy chains and the emerging renewable power sector and advises on mergers and acquisitions, contract negotiation and crafting plus project and portfolio analytics. He says that until significant amounts of grid scale energy storage are constructed, we can expect more volatility in both gas and electricity prices in the wholesale market. He adds that it will make it harder for generators and for owners of conventional North Sea assets to estimate their future revenues and gauge the risk of new projects.
Scotsman 21st March 2021 read more »