Energy transition in the UK pool sector

Homepage > Opinion

This article looks at three key messages around the green energy transition in the UK public swimming pool sector. 

Macro-economic context to climate change and the leisure sector

Energy self-sufficiency is the largest business continuity threat to leisure operators. Over the next two decades, the following macroeconomic trends will drive up energy prices for leisure operators until at least 2040. 

• The cost of energy is expected to continue to rise until 2038. There will be peaks and troughs in energy prices, but the overall trend is expected to be one of growth until 2038
• The cost of sustainable energy from the grid is expected to rise roughly in line with the overall energy cost until around 2038.
• The cost of carbon offsets is expected to triple by 2040.
• The cost of installing sustainable energy sources is expected to increase above inflation between 2023 and 2035.

If our sector stays on the grid, it risks being on the grid and out of business.

• 60% of pool operators had less than 4% of turnover in 2021 to fund increased energy operating costs.
• Combined electricity and gas prices have risen to 59% of turnover, exceeding net cash availability.
• LGA has assessed that pool operators are the largest energy users per square meter in most local authorities, contributing around 40% of direct emissions in some local authorities.
• Energy is expected to continue to rise until 2038. The green transition in the grid is not expected to reach critical mass and bring prices down until at least 2038.
• Staying on the grid up to 2038 will require more and more investment to be redirected away from our products and services into an increasing cost base for operation.
• Digitization will further increase energy demand and consumption over the next decade.
• The cheapest time to get off the grid is the next five years.

The key conclusion is to adopt a crisis mentality towards energy self-sufficiency. It won’t pay to be late in the green transition.

Energy self-sufficiency will put money in your pocket

Pool operators are some of the worst-hit facility owners by energy price rises and interest rate hikes in the UK. Comparing 2015 to 2021, turnover has declined across 73% of pool operators, with the decline being greater than 30% in 38% of operators and greater than 40% in 26% of operators (WIRH, 2023).

Here are a few facts about the sector:

• The Water Incident Research Hub estimates that the UK pool sector emits 906,920 tCO2e per annum or around 2% of UK national emissions. Energy consumption accounts for 221,200 tCO2e, or 24% of sector emissions (WIRH, 2023).
• In 2023, pools are expected to use an estimated 1.1 billion kWh of electricity for £668m or an estimated 39% of sector turnover, an increase of 36% compared with 2021 rates.
• In 2023, pools are expected to use an estimated 3.5 billion kWh of gas for £494m or 20% of sector turnover, an increase of 17% compared with 2021 rates.
• Combined electricity and gas costs are expected to total 59% of sector turnover in 2023.

What the transition will look like?

• The Government includes the importance of decentralised energy generation within its net zero strategies, i.e., businesses generating their electricity and heat (BEIS, 2021; Carbon Trust, 2013).
• Energy self-sufficiency for pools consists of electricity from solar or wind and heat from heat pumps and/or biomass.
• Pool operators are facility operators with roof space available to install solar panels (Marcellin, 2022).
• A sample of 1,393 pools showed that the average swimming pool uses 1,200 kWh of electricity per m² of pool space. The average 25-metre by 12-metre pool is 300m² and therefore uses around 360,000 kWh of electricity annually. The equivalent roof space covered by solar panels would provide an estimated 438,000 kWh per annum for around a £60-80k investment.
• A biomass pellet boiler produces heat at an operating cost of £0.08 / kWh compared with the current commercial gas price of around £0.13 / kWh. A biomass pellet boiler for a 300m² pool may cost around £40-60k.
• The installation of solar and biomass at every pool in the UK is estimated to cost around £120,000 per site or £379m. It would reduce annual electricity costs to virtually zero and gas costs to around £282m, a reduction of £880m in annual sector energy costs.
• Put another way, £880m can be invested back into our products and services to improve the nation's health. Every £1 spent on sector energy self-sufficiency returns £1.70 in annual savings. Energy self-sufficiency will put money in your pocket.

Go green for a healthier world

Between 2030 and 2050, climate change is expected to cause approximately 250,000 additional annual deaths from malnutrition, malaria, diarrhoea, and heat stress.

Climate change will affect our health in many ways, including:

• Injury from extreme weather events, such as flooding and heat waves.
• Heat-related illness.
• Respiratory illness from poor air quality.
• An increase in water-borne diseases, pathogens transferred from animals, vector-borne diseases like malaria, food-borne diseases, non-communicable diseases and poorer mental and psychosocial health.

The health impacts of climate change will increase demand for services within our sector, as primary care services are likely to be under continuous strain from poorer societal health. But there is a catch. Our sector also contributes to making health poorer in several ways:

• The UK pool sector emits 2% of UK emissions of greenhouse gases, an estimated 906,920 tCO2e per annum.
• The sector contributes to land, air, and water pollution by using plastic and discharging waste and contaminated water, to name just a few.
• We expose customers and staff to physical and psychosocial risks when we don’t properly manage our facilities.

Key messages:

• Energy self-sufficiency will make our pools more financially resilient and increase our investment in front-line services.
• But Going Green and being more sustainable will do so much more. It will help our people, customers and community lead healthier, happier lives.
• To go for a run in polluted air is to improve health on one hand and damage health on the other.
• Treat reducing your carbon footprint as important to your health as your daily workout. Go green for a healthier world.

Citation: WIRH. 2023. Energy transition in the UK pool sector. Available at https://www.thewirh.com/blog/energy-transition accessed 6 June 2023.