Bulb, the UK’s fastest-growing renewable energy supplier, has warned that demand for green energy could outstrip supply in the country within five years as consumers seek less polluting energy sources. Amit Gudka and Hayden Wood, who founded the start-up green power and gas provider that has signed up 700,000 UK customers in the past year, said demand from consumers for renewable energy could cause substantial market tightness in the coming years. “There are a couple of scenarios where I think in 2023 we start getting to the point where demand for renewables could outstrip the generation of it,” Mr Gudka said. The warning from the privately held company, whose recent £60m fundraising valued it at £400m, is another sign that consumer-led demand for green energy has outstripped expectations. Costs for renewable energy have fallen and start-up providers have been given greater freedom to challenge the Big Six UK energy suppliers. The company buys one unit of green electricity – solar, hydro or wind – for every unit of electricity it sells. It also buys one unit of green gas – methane produced from animal waste – for every ten it sells. The company buys more than 30 per cent of the green gas available on the UK market, which is still in its infan cy, and is pushing to increase this proportion. It now employs 230 people and has ambitions to increase this to 600 over the next five years as it strives to compete with household names such as Centrica-owned British Gas.
FT 9th Sept 2018 read more »