The big move: how finance and tech is enabling change in the energy space

It's becoming ever more popular now for businesses to look at financing as an enabler for funding outcomes in the energy market. Pay-per-use performance models give customers access to real-time data where they can see long-term cost savings.    I've been eagerly anticipating the UK Government's 'phase-out' plan for coal fired power generation for some time now and I know there's been criticism in the press recently about coal operators continuing to receive subsidies. Most coal plants will be shut down by 2022 and certainly by 2025. This will bring about a much needed change in the industry.    Exciting change is happening with movement into new spaces ; gas peaking plants, energy storage, renewable and electic vehicle charging to name a few. Funding for these areas is a challenge, as funders need to have an understanding of the market. They need to be able to provide financing for sustainable growth.    I read that the UK's largest power facility, Drax, has begun plans to build a new gas plant - a step away from the coal-fired electricity era. As plans to decommission coal progresses, these big companies are re-using land with power generation capability. It's likely we'll continue to see a rise in planning permission applications being made in the coming months, as most will try to diversify in a similar way.    Technological advancements have been a huge enabler for our movement into new markets and it's economical to do so, as these changes are creating huge saving costs compared with traditional energy storage. Siemens is also an enabler to this movement - offering a great opportunity for organisations to deliver the equipment, operate and maitain their sites and provide tailored financing for these large-scale projects by working with our Energy Management colleagues.    Experts across Siemens divisons are able to join forces to help businesses across a vast range of sectors improve their energy performance - savings such as lowering costs, being more energy efficient and reducing carbon footprint to name a few. By designing and installing tailor-made Distributed Energy Systems - DES - a range of technology and business models combine to provide an optimal solution for the customer.    A further technological enhancement, Mindsphere, has also been devised by our Siemens colleagues. It operates a cloud-based system which connects products, plants, systems and machines together enabling you to capture the breadth of data generated by the Internet of Things. This enables technology owners, operators and funders to make better informed decisions and calculate risks. In my opinion, we have no crystal ball, but we can certainly be more confident in the risks that we take.    The combined expertise of the energy sector enables us at Siemens Financial Services to gain a unique advantage of knowledge in the energy market. Delivering energy solutions as one with tailored financing to match by working wiht Siemens colleagues across the energy sector gives this customer specialist financial solutions for their needs. By working with these colleagues, we're able to provide seamless solutions that speed up the implementation of projects and reduce delivery risk.    I hope you have found this blog an interesting read and welcome you to share any comments or thoughts it might have sparked. If you're interested in discussing a specific project, please get in touch with our team below.    Gary Thompson, Head of Sales for Energy Finance, Siemens Financial Services