Since the Conservative government came to power in last May’s election, it has reset energy policy, shifting the focus away from wind and solar farms – which have benefited many landowners – and instead towards nuclear power, shale gas and energy efficiency.

Some of this change is driven by the need to control costs, while some of it recognises that the policies have been very successful in getting a significant amount of electricity from the wind and sun. There is also a focus on the harder step – which was always going to have to be taken – to reduce the energy used by buildings and businesses of all types across the country.

With the huge growth in renewable energy generation over the past five years, farmers have been ideally positioned to participate in this trend. Many farms have small-scale renewable generation such as wind turbines or roof-mounted solar panels, and some have also embraced renewable heat generation.

So what are the emerging trends we can see?

Energy storage

Looking ahead, the first trend will be a greater need for the storage and local generation of electricity. This will initially take the form of generators using diesel or gas to produce energy, and, in due course, battery systems to release stored energy or balance the grid when demand peaks.

Over the next couple of years, we will see battery storage technology become viable, and this will provide the opportunity to take power from the grid when it is not required and store it for later use. Developers of both these types of projects are already approaching farmers, as they are looking for sites of around one or two acres for generators, or barns in which to house batteries.

Offshore wind

The second trend that could affect landowners is offshore wind. Developers requiring cable-landing rights and routes to facilitate grid connections will often pay over and above statutory rates to secure cooperation.

Shale gas sourcing

Thirdly, there is a clear policy focus on developing a domestic shale gas industry in the UK. This will affect farmers and landowners in a number of ways. The government agreed to drilling taking place underneath English National Parks, nature sites and water sources, as long as any machinery and infrastructure is kept outside the park. Of course, there is huge concern about contaminating water sources.

Turning up the heat

There is also going to be further focus on encouraging and supporting the development of heat networks. As well as requiring it as part of new-build developments, policy will encourage retrofitting to clusters of buildings. This is particularly applicable to rural areas without mains gas, as heating oil is about one-and-a-half times more polluting than gas on an emissions basis.

This provides an opportunity to connect villages or hamlets together to produce heat more efficiently and cost-effectively for everyone. For example, we are in the process of completing a scheme in the Cotswolds that will provide heat to all the houses in one village, along with the pub, village shop and school.

Energy accountability

Lastly, there is a trend for recording energy use, as bigger businesses are being driven to understand the energy used in their supply chains. Producers can expect to see customers asking for more information about the energy used by their farm, which will get aggregated into carbon and energy reports. Farms are used to recording detail and providing it to regulatory bodies or customers, and energy is likely to become part of that recording process over the next couple of years.

Energy is not moving off the agenda in 2016, but the emphasis is changing as the challenge of meeting the UK’s energy needs continues to evolve.