Energy Resource Management

Why Energy Management Matters

Every economy runs on energy. The challenge for governments is to keep supply secure, affordable and clean enough to avoid catastrophic climate change. The Edexcel A specification asks you to know how energy resources are classified, how the UK’s energy mix compares with other countries, why demand has changed, and how managers can make energy use more sustainable through both top-down and bottom-up strategies.

Renewable and Non-Renewable Energy Resources

Energy resources fall into two families. Renewable sources include hydroelectric power (HEP), wind, solar, geothermal and tidal. Non-renewable sources include coal, oil, natural gas and uranium (used in nuclear fission). Each has trade-offs. Coal is cheap and abundant but produces around 0.95 kg of CO₂ per kWh of electricity — roughly twice that of natural gas and far more than wind or solar. Wind power is clean but variable; solar is clean and falling fast in cost (around an 89% drop since 2010) but doesn’t work at night; nuclear delivers steady low-carbon power but creates radioactive waste that needs storing for thousands of years.

The UK’s Energy Mix in Detail

The UK has decarbonised faster than most large economies. In 1990, coal generated around 65% of UK electricity; in 2023, less than 2%. The last UK coal-fired power station, Ratcliffe-on-Soar, closed in September 2024, ending more than a century of coal generation. Natural gas has filled some of the gap, and offshore wind has expanded enormously: Hornsea 2 off the Yorkshire coast, completed 2022, is currently the world’s largest operating offshore wind farm at 1.32 GW. Nuclear capacity has fallen as older stations close, but Hinkley Point C in Somerset is set to add 3.2 GW, with the first reactor now expected between 2029 and 2031. Solar farms are growing on lower-quality farmland in the south. Biomass at Drax in Yorkshire burns wood pellets imported mainly from North America.

Why Global Energy Mixes Differ

No two countries share the same mix. Norway runs on around 92% hydroelectric power thanks to high mountains and heavy rainfall. France generates around 65% of electricity from nuclear, a deliberate post-1970s policy. China still relies on coal for around 60% of electricity, despite leading the world in solar manufacturing. Saudi Arabia burns oil and gas because it has plenty of both. Three factors shape the mix: population (size of total demand), wealth (capacity to invest in costly infrastructure) and the natural availability of resources. Policy choices matter too — Germany shut its nuclear plants after the Fukushima accident in 2011, while the UK kept its open.

Impacts of Energy Production

Both renewable and non-renewable production has impacts. Coal mining scars landscapes, releases methane and pollutes water; the Aberfan tip disaster (1966) killed 144 people, mostly children, when coal-mining waste collapsed onto a school. Oil drilling carries spill risks — the Deepwater Horizon spill (2010) released 4.9 million barrels of oil into the Gulf of Mexico. Natural-gas fracking can resolve shortages but has been linked to small earthquakes and groundwater pollution; UK fracking near Blackpool was paused in 2019 after a 2.9 magnitude tremor. Renewables have impacts too: hydroelectric dams flood valleys (Three Gorges displaced 1.3 million people in China); wind farms can disrupt bird flight paths and concern coastal residents about views; solar farms occupy farmland; biomass at Drax has been criticised for the carbon footprint of shipping wood pellets across the Atlantic.

Stakeholders and Their Views

Energy decisions involve many stakeholders. Individuals weigh up cost, comfort and the environment when choosing a heating system. Businesses lobby for stable energy prices — the chemicals and steel sectors face huge gas bills. Local authorities campaign about visual impact and air quality. Governments balance energy security, jobs, climate targets and consumer bills. NGOs like Greenpeace push for faster decarbonisation, while organisations like the Confederation of British Industry lobby for cheaper power. The result is rarely consensus — but the UK’s legally binding 2050 net-zero target (passed by Parliament in June 2019) gives a clear long-term direction even when short-term arguments rage.

Sustainable Energy in a Developed and Emerging Country

The UK’s strategy combines several elements. Top-down: contracts that guarantee renewable producers a price (Contracts for Difference) have driven down offshore wind costs by around 70% since 2014. Hinkley Point C, the first new UK nuclear station in a generation, is under construction. The government plans to ban new petrol and diesel cars from 2030, with some hybrids allowed until 2035. Bottom-up: the Boiler Upgrade Scheme grants £7,500 toward heat pumps, the Smart Export Guarantee pays households for surplus solar power, and community energy co-operatives like Bath & West Community Energy own and run local solar farms. Compare with India: the Bhadla Solar Park in Rajasthan covers 14,000 acres and produces 2.25 GW of solar power; the Indian government’s target is 500 GW of renewable capacity by 2030; villages without grid electricity are leapfrogging straight to solar mini-grids supported by SELCO and other social enterprises. Both countries combine megaprojects with smaller community schemes, but India is electrifying for the first time, while the UK is replacing existing infrastructure.