Should Energy Cost Forecasts Mean a Rethink for Education Construction?

Energy costs are very much on everyone’s minds right now. Are the current price peaks a temporary blip or part of a longer-term trend? And how does this shape decisions about how we build new schools and education facilities?

Energy costs are a significant part of every school budget. This reflects the fact that maintaining a comfortable internal environment, where it’s warm in winter, not too hot in summer and with healthy fresh air circulation is good for learning and attainment.

If energy costs are likely to remain high it makes even more sense to carefully consider how we make new schools as energy efficient as possible. So what does the future for energy costs look like?

Prices are Forecast to Stay High

When average wholesale electricity prices reached £100/MWh in 2021 it was a record high. Historic average prices were about half that level. Since then, prices continued to rise to £250/MWh. Energy Analysts Cornwall Insight predict that prices won’t fall anywhere close to £100 at least until the end of the decade, and maybe not even then.

Meanwhile, gas prices are expected to fall gradually from the current heights and stabilise after 2024/5 at a level around five times higher than pre 2021.

High energy prices are here to stay. So putting energy efficiency at the top of the agenda is essential for every school, academy trust or local authority considering a school building programme – if they want to ensure that more resources can be directed towards teaching and learning.

Guaranteed Energy Efficiency Matters

And it isn’t promised energy efficiency that’s needed – it has to be delivered in practice. That’s why standardised construction systems and offsite methods will become even more desirable.

Offsite is built on precision and the ability to reproduce building elements with known and certified levels of energy-efficiency performance. It’s an ideal solution for anyone looking to bring greater certainty to future energy costs and save as much money as possible for the real business of education.

For more information about how Osborne applies MMC to deliver energy-efficient new school buildings contact Caroline Compton-James ([email protected]) or visit our resource centre.