Energy Security and Net Zero: A New Approach for the Public Sector
The twin challenges of energy security and decarbonisation represent a critical inflection point for the UK's public sector. For the Ministry of Defence, these challenges are particularly acute – the imperative to maintain operational readiness while transitioning to net zero requires innovative thinking and new approaches to energy management.
I spoke recently at the MoD’s Energy Conference, ‘Energy Transition by Design’, in Bristol and it was a fascinating insight into a world that’s unfamiliar to me. It’s so important to understand the challenges your customers face which, in the MoD’s case, are unique. We can take this understanding and ensure we’re delivering the best possible outcomes for them.
To give them credit, the MoD’s estate's CO2 emissions have decreased significantly in recent years, dropping from 1.26 million tonnes in 2017-18 to 0.85 million tonnes in 2023-24. That represents a 33% reduction against the baseline figure and means they’ve already met their 2025 target of a 30% reduction.
But as the UK's electricity demand is projected to double over the next decade, the pressure on our electricity grid infrastructure will intensify. For defence establishments, where operational resilience is paramount, this creates both challenges and opportunities.
Long-term energy partnerships offer a transformative approach to decarbonisation, bringing sustained investment and expertise to work alongside the public sector, delivering comprehensive energy solutions through collaborative frameworks that align private sector innovation with public sector goals.
Crucially, at a time when the public purse is not exactly bulging, there are significant cost savings to be made too. For example, working with Monmouthshire County Council we have reduced carbon emissions from more than 20 council-owned buildings, with offices, schools and leisure centres being retrofitted with smart energy, heating and lighting systems. In just one of those buildings, Chepstow Comprehensive School and Leisure Centre, the LED lighting, high efficiency boilers, new air handling unit and solar car port combined has saved over £100,000 of energy costs and 226 tonnes of carbon every year.
Behind-the-meter energy generation projects represent a compelling solution to this challenge. By generating and managing energy on-site, public sector bodies can enhance their energy security while reducing their reliance on grid infrastructure. This approach delivers multiple benefits: it improves energy security and reduces strain on the existing electricity grid, helping to contain costs by deferring the need for expensive grid reinforcement projects.
The path forward requires a fundamental shift in public sector energy strategy. Instead of directly procuring infrastructure components, the focus should be on selecting energy partners with both the capital and expertise to invest in and maintain green energy assets. The public sector's role then becomes simple: procuring the clean energy produced by these partner-owned and operated facilities. This approach combines strategic oversight with efficient private sector delivery through long-term agreements
For the public sector, this represents an opportunity to lead by example. As we progress toward the legally binding target of net zero by 2050, many public sector organisations are already demonstrating leadership, but this isn't just about meeting environmental targets – it's about showing how innovative approaches to energy infrastructure can enhance operational capabilities while delivering better value for money.
Private sector expertise and capital have a crucial role to play in this transition. By adopting new commercial models that facilitate long-term partnerships, public sector organisations can access expertise and investment . This approach allows them to focus their resources on core operations while still achieving their sustainability and security objectives.
The time for incremental changes has passed. As global events highlight the importance of energy security, and the climate crisis demands urgent action, we need bold approaches that can deliver multiple benefits simultaneously. By embracing innovative procurement and partnership models, the public sector can work with integrated energy companies to deliver, operate and maintain critical infrastructure - from renewable generation and electricity networks to heat networks and EV charging - creating solutions that are more secure, sustainable and cost-effective.
This isn't just about buying green energy or infrastructure – it's about fundamentally redesigning how we power our nation. The solutions exist; now we need the vision and commitment to implement them at scale.
