From clean bikes to electric dreams: UK's green economy grows on the back of Covid-19.

The lines were “absolutely crazy,” says Gavin Hudson, owner of bicycle repair startup Butternut Bikes. When lockdown came down, he began fixing old bicycles in the car park of a North London Methodist church, before moving his services to a leaf-covered pub in Crouch End. However, the increase in demand for cycle repairs meant that the pop-up soon got a permanent address.

“Some people come in and tell us they haven't ridden a bike in ten years,” says Hudson. “They are dragging all kinds of bikes, covered in cobwebs, out of the shed and back onto the roads. It's great. I think it's true that there are few problems in society today that cannot be improved by pushing people to walk and cycle more. ”

Butternut Bikes is one of a number of UK companies poised to cash in on a green economic boom in the wake of the coronavirus pandemic. As the government faces mounting pressure to unveil a climate-friendly post-pandemic economic stimulus package, Britain's economic struggles are already in the spotlight.

Steven Jennings, partner at global consultancy PwC, says the lockdown has sparked a paradigm shift for consumers and businesses that is already accelerating developments in sustainability – even without government prompts.

“One of the unintended consequences of the coronavirus crisis is the opportunity for companies to think about the future. If a company needs to rebuild, it makes sense to reconfigure how it works to be more sustainable,” says Jennings.

The challenge for the Treasury is to design a stimulus package that takes advantage of the opportunities emerging from the coronavirus crisis, which may also address large-scale climate challenges.

PwC includes low-carbon transport in its five-pillar plan to “recover better”, along with key stimulus plans to accelerate low-carbon electricity generation, reduce heavy industry emissions and help build a workforce green with the skills needed to execute the plans.

Those who don't have a broken bike in the shed struggle to buy a new one because of huge demand and supply chain hangovers from China's manufacturing lockdown earlier in the year. For many, the answer may be shared cycle schemes, electric scooter rentals or even the purchase of an electric vehicle.

Lime is one of the booming e-mobility companies. The company hopes to have attracted 20,000 new riders to its shared electric bike hire scheme by the time the lockdown is lifted, and plans to offer e-scooters in the UK soon too.

Alan Clarke, director of the company, says the number of new Lime users has increased every week since lockdown restrictions started to ease and that riders are taking longer trips than before. The growth comes despite increased competition from rivals in Mobike, Freebike and Uber's bike offering, Jump.

“Ultimately, the biggest reason people don't cycle, walk, or cycle is because, for the most part, city infrastructure doesn't prioritize these modes of transportation,” says Clarke. "As governments are now being forced to rethink how they approach urban travel, and organizations like TfL offer bold and transformative improvements, we anticipate an influx of new riders in the coming months as people look to alternative travel options."

The number of people considering purchasing an electric vehicle is also increasing; in part because the connection between Covid-19 deaths and air pollution has underscored the importance of clean transport. PwC estimates that government incentives could help the sector support 220,000 jobs.

Ian Johnston, chief executive of vehicle charging company Engenie, says there has been a huge increase in the number of retail parks preparing to install charging points. The company installs fast chargers on behalf of owners and retail councils at no upfront cost, in exchange for a share of charging point revenues.

“Owners are looking for new revenue streams and retail store owners need new ways to get back into their stores,” he says. "Economic pressure on both means people are taking a fresh look at vehicle charging."

A boom in electric transport has important implications for Britain's energy system, offering new opportunities for green technology companies. The drop in demand during the lockdown combined with record renewable energy generation has helped provide “a window into the future net zero carbon world,” according to Jennings.

“We had high renewable energy penetration and negative wholesale prices at certain times of the day,” he says. "With the right government policies and regulations, new business models will emerge, which could be a tipping point for companies like electric vehicle charging, battery and time-of-use energy tariffs."

Battery operators can help balance the system by recharging when there is more than enough renewable energy on the grid and discharging clean electricity when needed. Electric vehicles can play the same role when connected to a smart charger.

Steven Meersman, founder of battery operator Zenobe, says the company has been working hard during the lockdown to manage the "increased demand for our services".

Even power supply deals that offer to pay homes and businesses to use more energy when wind and solar power is plentiful could play a role in helping to make better use of a renewable energy boom.

Greg Jackson, founder and CEO of Octopus Energy, says that demand for the energy provider's Agile tariff has increased by 50% during the lockdown. The tariff offers half-hour prices for electricity and allows customers to benefit when costs are negative.

“It's a wake-up call for policymakers and regulators that making the small changes needed to enable a smart energy grid will be essential to the green recovery so many of us have been calling for,” says Jackson. "It can be done today and will open a revolution in clean, cheap electric heating, electric vehicles and a decentralized electric system."

The fifth pillar of PwC's plan for a green economic recovery is also at home. Jennings believes that a national design house upgrade will help extend the benefits of Britain's electric future, boost jobs and deliver a £3.20 benefit to UK GDP for every £1 invested.

It's a zero-risk approach to reducing carbon emissions and household bills while raising standards of living and health that have reportedly left Prime Minister Boris Johnson's top adviser Dominic Cummings cold. . However, he may have misjudged the audience's mood.

“One of the barriers to improving home isolation has been public apathy, but as people spend more time at home, that could change,” says Jennings. “Recent PwC research has shown that 60% are more involved with energy use than they were before the lockdown. If people are more interested in home improvements and paying attention to energy usage, it makes sense to prioritize home energy efficiency.”