Shell has signed agreements to deploy more than 800 MW of solar power generation in the UK. The company signed a framework agreement with Green Power to develop 700 MW of utility-scale solar projects. This may include co-located battery storage. It has agreed on another arrangement with Clearstone Energy for 100 MW of utility-scale solar installation in the South-East of England, with the possibility of co-located battery storage.
In September 2021, Shell also planned to expand its network of electric vehicle charging points in the UK. As part of its global rollout, it aims to install 50,000 on-street posts in the UK by 2025. Ubitricity, an on-street charging point company acquired by Shell in February, would implement the project. At present, Ubitricity operates approximately 3,600 chargers in the UK. The scope of work under Shell’s ambit comprised installing and maintaining the charge points as well as supplying their power, which will be sourced only from renewable energy.
The UK has set a target to reduce carbon emissions to a net zero by 2050. The expansion is in line with this target and is part of a government-backed push to rapidly grow the UK’s electric vehicle fleet. The country also plans to ban the sale of new petrol and diesel cars by 2030.
REGlobal’s Views: The oil sector has frequently experienced instability in prices and is a fast depleting resource. Renewable energy sources are freely available in nature, have fixed tariffs for long periods and are more resilient to external shocks like the pandemic. Thus, for more sustainable strategies and complying with their green commitments, oil majors across the globe have been expanding their renewable energy portfolio through a mix of clean energy initiatives.