UKWA was responding to the Government’s recent consultation on the proposed review of the electricity market arrangements.
The Review of Electricity Market Arrangements (REMA) consultation, which closed on October 10, sought views on a wide range of options to address the combined challenges of responding to higher global energy costs, the need to further boost energy security and move the UK to a cleaner energy system.
And while agreeing with the Government’s broad priorities, UKWA points out that as the sector weans itself off fossil fuels, it is witnessing a growing demand for electricity.
Thanks to significant developments in lift power and battery technology, forklift trucks are increasingly operating on electricity as opposed to gas. Meanwhile, automation is taking hold – driven in part, by labour shortages – with electrically-powered conveyors, cranes and robots more widely deployed than ever before.
In logistics more generally, the demand for electricity is predicted to rise even further due to the changing nature of road and rail freight. UKWA points out that solar panels on warehouse rooftops – a largely untapped resource, close to centres of demand – have the potential to double the UK’s solar capacity and secure supply, to meet this increased demand.
UKWA CEO Clare Bottle said: “Our research shows that only about 5% of warehouses have any solar panels on the roof; and where they do have such panels, these usually only cover 10-25% of the available space.”
The opportunity for doubling the UK’s solar capacity is explored in UKWA’s Walking on Sunshine report which illustrates the benefits of solar PV on warehouse roofs.
In order to tackle market failures, the Government must take an “ambitious approach to planning and infrastructure development”. One suggestion made by UKWA is the extension of solar panels’ exemption from business rates rises across the UK to Scotland, Wales and Northern Ireland.
The report also stresses the need for Ofgem reform to change how businesses are charged by District Network Operators when increasing the supply into the grid, as a consequence of deploying renewable generation.
Clare concluded: “To encourage and incentivise the installation of renewable energy domestically and commercially, the government must remove these barriers. Our response to this consultation makes the case on behalf of our members.”