An Analysis of Green Energy UK

Energy is the driving force behind all the work carried out. Our daily dependence on it to carry out work has led to overall consumption of nearly 1,40,668kWh. The primary source of this energy has traditionally been fuels and other non-renewable sources, that generate not only harmful by-products but also produce greenhouse gases. The three primary sectors which consume power are Industry, Transport, and Domestic. However, out of these three, Domestic Energy consumption is the highest. (Yao & Steemers, 2005). To Calculate the energy load profile of domestic buildings, a variety of physical and behavioural factors combined yield the required data. (Ozawa, et al., 2018).

The ever-growing demand for energy and the increased concern over the harmful effects of using fossil fuels had prompted the government and industries involved in this sector to focus on innovation and energy derivation from alternative sources. Resources that do not occupy an end in the foreseeable future and do not leave their carbon footprints when utilised to serve the purpose and meet the needs of the people. (Wüstenhagen, et al., 2007, pp.2683-2691). However, getting people to accept these sources of energy has not been a straightforward task. Since their inception and in their nascent stage, the cost of production and consumption has been on the higher side. There have been some sceptics who believe that generating energy from these resources will not be as efficient as that from traditional sources. (Wolsink, 2007, pp.2692-2704)

The UK has not ignored the sustained shift from non-renewable to renewable sources of energy. The changes have been put into effect with a significant push from the government to curb the climate change. Today the green energy industry works at lower costs with consistent technical upgradations to keep up with the demands. (Anon., 2012). However, with the latest government in place, there is a decline in the investment in this sector.

Environmental strategy refers to the extent of integration of environmental issues within a firm’s strategic plans. It is the source of most of the raw and used materials in every company today. Thus, putting it in a very strategic position in any company policy and strategic framework. (Omer, 2008) Every company is required therefore to evolve an environmental strategy that will be looking at their position regarding their environment. A policy about the ecological issues that impact them in one way or another. By considering an environmental plan in place, a company will be able to recognise the problems that their company is handling. Crop up with probable explanations to address those issues, and hence promote their development as a company while still ensuring sustainability. (Weybrecht, 2011)

In the recent years, the use of renewable energy and green energy have become increasingly adopted by most companies in providing they promote the sustainability of the environment. (Sharma, 2015) These two are very crucial as they have been proved to reduce direct environmental impact, reducing carbon emissions, and reducing the harm caused to the environment. For such to be adopted and implemented by a company, an excellent strategic in this area is required, both internally and externally. (Trutnevyte, et al., 2016).

Green Energy UK is an independent sustainable energy company which sells certified eco-friendly and renewable energy along with gas to households, industries, and establishments in England, Wales, and Scotland. As a firm that solely deals in green and renewable energy, it has resulted in several impacts in the promotion of environmental conservation and management but has also led to the price of power becoming increasingly unstable in the British market. As a firm, it operates in a setting of developed policies, plans, and programmes. Most of which have been instituted by the UK government to control and regulate the vast field of energy. (Foxon, et al., 2005, pp.2123-2137)

The entire electricity industry is regulated by OFGEM which requires all firms to comply with strict regulations. Since Ofgem’s 2014 laws, criteria have been for defining a green source product. Electricity suppliers are also required by rules to show additionality by contributing to more extensive environmental and low carbon funds. There are also international environmental laws and regulations that often come with a plan. They must be strictly adhered to by the firm hence modifying its strategic environment within which the firm operates. (Adams, et al., 2008)

All the firms that carry out their energy operations in the UK must ensure that all of their services ranging from raw materials sourcing, manufacturing processes, packaging, and selling of their products comply with the set standards and regulations. Such laws and regulations also act as a basis upon which a firm evolves its strategy of operation as an organisation. (Wüstenhagen & Menichetti, 2012, pp.1-10) One of the Government’s approach and policy that has constituted a basis for the strategic environment within which the Green Energy UK firm operates in is the Renewable Energy Strategy. According to the strategy, to confront the challenge of climate change, there is increasing ‘need to store carbon in all segments of the economy – this will necessitate a swift changeover to renewable energy.’ (Devine-Wright, 2005).

This approach demonstrates how the UK can accomplish its objective of 15% of power from renewables by 2020. Doing so will support the UK to spearhead the future businesses. According to the latest assessment, the renewable power segment could sponsor up to half a million jobs in the UK. (Uddin & Rahman, 2012). It outlines the route to attain the alteration. It will include manufacturing enough energy from sustainable sources to deliver the corresponding of nearly all homes in the UK with their existing power needs and all households with their current heating needs. (Yang, 2014)

(Wang & Wang, 2015) State that authority action is regulating the market to spearhead further progress in the energy sector. These actions incorporate activities like the obligation by the government on all the energy suppliers to acquire an increasing share of electricity from recoverable sources. Such events are meant to establish a route to an unpolluted environment, and an improved energy structure is hence making a very significant impact regarding tackling the issue of climate change (Webb, et al., 2016). Through the policies in this Strategy, the Government is establishing the markets and rules to encourage renewables investment and development, remove the hurdles to growth and pull forward new technologies. However, shaping this radical transformation a reality will involve all the stakeholders in the energy sector to play a part (MacKay, 2013). Green Energy UK is one of those stakeholders.

(MacKay, 2009) States that with such a strategic environment to operate in, the Green Energy UK, which deals in green and renewable energy can structure their operations in a way that ensures their compliance to the rules and regulations predetermined in the government strategy. There are also international regulations and procedures in the energy sector that forms part of the external strategic environment for the Green energy UK. These involve International Energy agency, a foreign body that deals with climate change policies and measures, and the reduction of greenhouse gas emissions (Yang & Ma, 2013). Green Energy UK must ensure that as a firm, it did not violate any of the international and local policies, but instead should put mechanisms and evolve internal strategies that will ensure compliance. Such a strategic environment seems to be one that is conducive enough to promote the operations of the Green Energy UK firm positively towards accomplishing its set goals of providing renewable, green, and clean energy. (Vazquez-Brust & Sarkis, 2014)

Green Energy UK sustains an Environmental policy which outlines several commitments that the firm always works to achieve promptly (Lorek & Spangenberg, 2014, pp.33-44). These commitments include: (Viitanen & Kingston, 2014)

• Ensure all the firm’s operations comply with or exceed the current legislation and other relevant requirements

• Extend the use of green electricity. (Dercon, 2014)

• Regulate the pursuits of the firm to minimise the risk of pollution to the environment.

• Bring in every attempt to guarantee to recycle excess materials or goods; they are reprocessed in a naturally accountable way to safeguard the environment.

• Minimize the production of waste where possible, and if any waste produced, dumping will be carried out with appropriate care for the environment. (Smulders, et al., 2014, pp.423-446).

According to (Boyle, 2012), the Energy sector in the UK is affected by political factors as the UK government single-handedly does not have extensive domination. The lack of rule is because its policies are dictated to an extent by World and European level politics. The United Nations have some advisory boards to determine “sustainable energy for all” with the primary focus being on providing energy for all to access, but at the same time promoting sustainable energy sources such as renewables with emphasising the environmental impact (Peeters & Schomerus, 2014). These rules generate more political pressure to achieve the stability of the world’s energy. Some of the international organisations providing political influence on a world level include the International Energy Association (IEA) and the International Renewable Energy Agency (IRENA) which frequent both intergovernmental agencies focusing on ‘supporting countries to a sustainable energy future.’ (Solorio & Jörgens, 2017)

(Delbeke & Vis, 2015) States that strategy refers to the pattern or standard thread related to deriving the organisation’s activities from its policies, objectives and goals. Strategic Management is an emerging discipline that constitutes the theoretical framework for business policy. Through the process of strategic management, strategic decision-making is carried out. Strategic management is a set of activities related to the formulation and implementation of strategies to attain organisational objectives. It involves organisations having to learn from their internal and external environment and evolve strategies to promote them bring in the set goals. The conceptual framework for strategic management includes conducting a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats. This structural framework is essential in measuring the effectiveness of the organisational strategy (Carter, et al., 2011).

(Johnson, et al., 2017) State that the best corporate structure depends on the specific organisation and the changing market conditions. Each organisation changes in response to several factors that may be from the internal or external environment such as underperformance. Green Energy UK has employed the use of a matrix structure of strategic management where two structures are combined. (Porter, 2015). Splitting the business into several divisions according to their functions such as production, management, and marketing, and organising the divisions according to the products they produce or the various projects of their specialisation (Ekins, 2002). These division exist because the company deals with the sourcing and selling of renewable electricity, and sells gas to homes, institutions, and organisations in England, Wales, and Scotland. Their business coverage environment is quite broad. Hence, they need to have specific divisions in the company that handle particular projects.

The company should adopt the combinational structure of strategic management which has been noted to work well in companies with operations in multiple nations. Since the Green Energy UK carries its operations in three different countries of England, Wales, and Scotland, this strategy would benefit them immensely. Firms using this strategy try to gain the advantages of both local responsiveness and global efficiency (Green, 2001). Therefore, a combinational structure would benefit the company in that it will add the benefits of managing multiple geographic divisions in cooperation with the divisional product structure.

Benign and sustainable chemical technologies (2004) states that digital technology is a concept that has developed over the years and is widely used in this modern era. There have been increased technological advancements that every company should not ignore; instead, they should find a way to integrate such digital technological advancements into their strategic management policies (Boons, et al., 2013). These policies will ensure that the companies can operate and survive in a highly competitive environment and market. Technology supports the competitive dimension of strategy by providing chances for improved products or facilities to customers, by empowering organisations to answer more swiftly to environmental alteration and by enhancing customer relations (Adams, 2008).

It also supports the internal dimension of strategy by providing opportunities for increased volume, accuracy and reliability of data for planning and operations control, operational cost reduction, and enhancing regulatory compliance. Therefore, any strategy development process in a company should always take into consideration the available digital technologies, and possibly integrate them into their strategies and policies (Balcombe, et al., 2013).

(Elliott, 2011) State that strategic change might include shifts in an organisation’s policies, target market, mission, or organisational structure. The strategic move allows companies to make changes carefully and responsibly to meet the goals, objectives and set targets for the organisation. Green Energy UK has a management strategic management that ensures that the commitments in their environmental policy are always in line with the company’s goals and objectives and that they are revised from periodically to guarantee that they meet the changing needs of the consumers and the regulating agencies. These revisions also ensure that the company remains in compliance with the set regulations and standards of operation.

Strategic management is one of the core areas that a company should put its focus on to ensure success in its operations. Developing a good strategy that is cognizant of factors both in the internal and external environments should be the aim of every organisation. The management ensures that they can stay relevant and survive in a competitive market (Bhowmik, et al., 2017, pp796-813).

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