iSupplyEnergy to Exit the Market and Applications for New Renewable Energy Projects hit 4-year high

Vattenfall, Sweden’s state-owned energy giant took over iSupplyEnergy two and half years ago ended its foray into the domestic UK energy market but had a rocky time of it after being fined £1.5 million by the energy regulator Ofgem for overcharging its customers.

Vattenfall’s chief executive Magnus Hall said that the UK market had proven to be very difficult due to strong competition and the government-imposed price cap.

The deal agreed with EDF Energy highlights the challenges energy suppliers can face, even with access to large balance sheets and wealthy backers. iSupplyEnergy struggled to gain traction and become financially viable.

Vattenfall says it took the decision to exit the UK domestic energy supply market in order to focus on developing its core UK renewable power generation, heating, B2B sales and distribution businesses. It has invested around £3.5bn in UK renewable generation and operates eleven onshore and offshore UK wind farms.

As news broke of the deal with EDF both companies released a joint communication to their customers assuring them that their energy supply won’t be interrupted and that prices will not see increases.

“EDF shares many of our values and has a proven ability to welcome large numbers of customers from other suppliers. We’re confident iSupplyEnergy customers will be very well looked after throughout the transition and will pay no more for energy supplied by EDF,” said Cindy Kroon of Vattenfall.

The deal comes into effect from April.

The number of planning applications for new renewable energy projects leapt to a 4-year high in 2019 according to PX Group.

The data shows that planning applications for clean energy projects climbed by from the 204 recorded in 2018 to 269 in 2019. In 2016 that number was just 154.

The most common projects applied for were offshore and onshore wind farm developments and biomass facilities.

“To see the number of renewable projects in the pipeline rise is extremely encouraging. It goes without saying that as more of these projects get off the ground, the faster the UK can get to a point where clean, green sources provide an even greater share of the UK’s energy. Of course, there is a lag time between submitting plans to councils and projects becoming fully operational, so more projects being in the pipeline is not a quick fix,” said PX Group chief executive Geoff Holmes.

Despite the increased figures recorded in 2019 the unprecedented response to the Coronavirus pandemic currently sweeping the world is forecast to dampen renewable energy projects.

With much of the world in or going into lockdown to prevent the virus’s spread and with many of the manufacturers that build wind turbines, electric vehicles and other key components shut down, the virus is likely to result in a slowdown over the course of 2020.

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