There are few industries changing as quickly and as dramatically as the energy industry. The movement from centralised to decentralised energy networks is well underway.
An ever depleting supply of fossil fuels and a growing global commitment to tackle the climate crisis has set the stage for a revolution in the way we buy, use, generate and store energy.
Recent years have witnessed an explosion of renewable energy supply, the slow death of coal and improvements in the digitisation of energy management in the workplace and the household. So what trends can we expect over the next twelve months and how will these impact UK consumers?
The Big Picture
One trend that’s sure to continue is the tumbling cost of renewables. The price of solar power has plumetted by 80% in ten years and is expected to halve again by 2020. Offshore wind has witnessed an even greater fall in price, with costs decreasing by an amazing 50% in just 24 months as knowledge and technology improve.
Speaking at a recent conference on sustainability, the Director General of the International Renewable Energy Agency (IRENA) Mr Adnan Amin, said:
“the scale and pace of the transformation has accelerated, and this is leading to very significant structural changes to the energy system around the world”.
As costs continue to fall, the economics of renewables become increasingly appealing. Some experts predict global oil demand to peak as soon as 2020 and to decline thereafter, in part due to a rising uptake of electric vehicles.
The Rise and Rise of EVs
Perhaps the greatest shift in energy consumption will come with electric vehicles.
As with other renewable technologies, the costs decline as production ramps up and economies of scale take hold. The number of electric cars on UK roads has risen from 3,500 in 2013 to 125,000 today. This trend is not just because of improved affordability.
A shift in the public’s perception of ‘EV’s,’ plus better consumer choice, an improved network of charge points and reductions in charging time has made them an increasingly appealing alternative to petrol.
In 2018 we can expect to see ever more electric vehicles on our roads, which in turn will stimulate a greater demand for electricity and the further advance of renewables ; a perfect feedback loop!
During 2018, there will be greater exploration of the benefits that EVs can bring to local energy networks in helping balance supply and demand in our communities.
In our next energy trends blog, we’ll take a look at the impacts we can expect from the Government’s smart meter rollout, as well as the game-changing role that battery storage will soon play in the energy industry.
The World Bank has decided to support the climate pledges made in the Paris Agreement and take radical steps to decarbonise the world by halting funding for fossil fuel industries after 2019.
This is a significant gesture that will not only help in the mitigation process to limit global warming to 2°C by the end of the century, it also gives a green light for more investment in renewable energy around the world. It might be the breakthrough we have been waiting for as it presents big opportunities to develop promising clean technologies that have suffered from a lack of investment.
This will hopefully mean an acceleration of renewable energy projects around the globe, and the creation of many new job opportunities for communities that desperately need them. Furthermore, we will all be able to enjoy such benefits as decreased levels of pollution, cleaner air, and a healthier climate!
Another benefit of this decision is that it could help exciting new technologies become available for everyday use, such as solar panel-integrated windows or efficient energy storage systems.
We must remember that fazing out fossil fuels will not happen overnight. Polluting power stations will continue to operate for as long as they are financially viable and as long as they are supported by tax-breaks and subsidies from governments.
However, the fact that action is being taken by the World Bank, a major influential institution, brings hope that change is coming. This announcement not only sends a clear message that the days are numbered for the fossil fuel industry, but it simultaneously encourages governments and other institutions to follow suit.
Gyorgy Dallos, Greenpeace International climate campaigner, told The Guardian:
“The world’s financial institutions now need to take note and decide whether their financing is going to be part of the problem or the solution.” (2017, 12th Dec)
While there is still uncertainty ahead and a need to keep up the pressure, this news is a positive step and brings fresh wind into the energy sector. Please support BHESCo in creating our clean energy future by becoming a member.
27 Oct 2017
Thousands of beautiful homes in Sussex are quite old and can lose a lot of heat through their walls, ceilings, and windows. With energy prices expected to rise for the foreseeable future, there’s no better time to improve the energy efficiency of your home.
If you think about it, when heat is lost it’s not only a waste of money but also our natural resources. UK households waste a staggering amount of heat and electricity each year, which pushes up bills and accelerates climate change.
Knowing how to improve your home is now straightforward and surprisingly economical, as our local energy services co-op is making it easy for homeowners to take action.
Brighton & Hove Energy Services Co-op (BHESCo) is an award winning social enterprise who work with homeowners and businesses across Sussex to improve the energy efficiency of their properties, achieving significant financial savings while greatly enhancing comfort.
We offer a unique ‘Pay As You Save’ loan which allows homeowners to make improvements without any upfront cost, a scheme that is already working for many property owners and businesses. We take care of the whole process from start to finish, so there’s no hassle involved for you.
Typical energy saving measures can include LED lighting, loft and wall insulation and double-glazing for windows. You can even get help with solar panels and wood burners if that was something you always wanted but didn’t know how to go about.
Upgrading the energy saving potential of your home can improve quality of life and increase the value of your property. What’s more, you can take comfort in knowing you’re taking an active role in reducing climate change.
Book an energy survey today to discover how much you can save on your energy bills – you may be pleasantly surprised!
On Thursday 1st June 2017, US President Donald Trump proceeded to do what everybody knew he was going to do and announced that he was pulling the USA out of the Paris Climate Agreement.
The agreement was made in December 2015 and brought together 195 nations from around the world to create a united response to the threat of global warming. Given his history of describing climate change as a hoax created by and for the Chinese, it was widely expected that the Trump administration would reverse the sustainability actions put in place by Barack Obama in favour of policies promoting fracking, coal, and oil, industries in which he has considerable investments.
And that’s exactly what he did.
However, what at first may appear to be a catastrophe for the climate movement may in fact prove to be a catalyst.
There has been magnificent response from America’s states, defying their President’s agenda and declaring their intention to build a sustainable future despite Trump’s decree.
As the Mayor of Pittsburgh, I can assure you that we will follow the guidelines of the Paris Agreement for our people, our economy & future. https://t.co/3znXGTcd8C
— Bill Peduto (@billpeduto) June 1, 2017
In the days following Trump’s announcement, over 246 city mayors signed a joint statement pledging to “honour and uphold the commitments to the goals enshrined in the Paris Agreement”. Together, city and state officials have committed to reduce emissions by more than one gigatonne of carbon-dioxide by 2030 — the same amount pledged by the US in the Paris Agreement. Commenting on these developments, former mayor of New York Michael Bloomberg said:
“The fact of the matter is, Americans don’t need Washington to meet our Paris commitment, and Americans are not going to let Washington stand in the way of fulfilling it”.
It seems that Trump has misjudged the mood of his people, and unwillingly ushered in an newly invigorated spirit of environmental determinism. As one reporter from CNBC writes:
“The Trump presidency marks a new era. As citizens and business leaders, it is now up to us to take the future into our own hands and create the change we want to see”.
And it’s not just Americans who have beeen vocal about a renewed fever of climate activism. The day after Trump’s retraction, China, India and Europe repeated their commitment to save the future of our planet. German Chancellor Angela Merkel said:
“To everyone for whom the future of our planet is important, I say let’s continue going down this path so we’re successful for our Mother Earth.”
In fact, one of the only global leaders not to decry the actions of the U.S. president was the UK Prime Minister Theresa May. Very little was said about the threat of climate change during the recent election campaign, the topic receiving minimal attention from mainstream politicians and media alike.
That’s why we must follow the example of American environmentalists and unite locally to set our own emissions targets and carve our own path to a sustainable future. We cannot rely on leadership from above.
There are many examples of community energy projects across the UK, with at least five thousand community groups undertaking energy initiatives in the last five years, all motivated by a desire to develop locally owned low carbon energy solutions.
We’re in the middle of a seismic shift in the way we produce and consume energy, with the impetus coming from grassroots communities. The change is unstoppable, whatever President Donald Trump and other backwards looking politicians think.
Be a part of the energy revolution. Find your nearest communtiy energy group and get involved today.
15 May 2017
In the face of catastrophic climate change, we need to encourage energy efficiency and cleaner, renewable energy production, more than ever before. Unfortunately, our current government seems to be indifferent, if not intentionally hostile, to promoting this constructive, job-creating transition to a cleaner, income-generating and robust energy bill saving economy. This government is promoting funding of the destructive fossil fuel and nuclear industries. Our MPs own pension scheme invests in the fossil fuel industry for starters. While a significant minority recently backed divestment from fossil fuels, sadly the majority of MPs in government did not1.
Then there’s the promotion of the hugely unpopular hydraulic fracturing industry against the democratic will of the people2 and the attacks on onshore wind3 and solar energy4, both very popular renewable energy technologies5. These renewables, given the chance to flourish, as it did before the government started taxing and wrapping the renewable industry in red tape, can transform the UK’s energy security fears, reduce fuel poverty and meet our vital climate targets. We could have an economy that works for local, small to medium-sized businesses and domestic consumers alike, rather than an economy that benefits only the large energy corporations which still dominate over 80% of the UK’s energy market. The constant drain on the public’s finances by the UK’s large, enormously profit taking energy companies, duping the customer with over-priced energy tariffs, have serious consequences for people’s livelihoods and wellbeing.
One significant step to reducing energy bills for both domestic customers and businesses is to improve energy efficiency. According to the Office of National Statistics’ 2011 census, Brighton & Hove had the highest proportion of residents privately renting out of any town or city in England and Wales; more than 30% of households. Around 26,000 people are on the council housing waiting list and 1 in 69 people in Brighton & Hove are homeless6.
However, the incentive for private landlords to increase the energy efficiency of their properties just isn’t there. The government’s weak legislation requiring landlords to improve their properties’ energy efficiency, by achieving a minimum energy performance rating of E on an Energy Performance Certificate (EPC) by April 2018, isn’t helping at all. Yes, there are other regulations, which came into effect from 1st April, where a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties7 under the provisions of the Energy Efficiency (Private Rented Property) Regulations 2015. However, in the current climate of retaliatory evictions for tenants who merely ask for simple repairs, let alone applying for consent to carry out improvements, it makes this legislation appear a greenwash exercise, with no meaningful support for those threatened with homelessness8 or suffering in fuel poverty.
To make UK households truly energy efficient the government needs the EPC rating of landlords’ properties to be at least a D. This is overdue for the huge numbers of residents living in sub-standard, enormously expensive, energy inefficient properties across the country. The government could help landlords achieve warmer, more comfortable homes with incentives. With the new round of Energy Company Obligation 2 Transition (ECO2t) funding for efficient heating and insulation grants, there should be more focus on offering all those landlords’ properties with EPC band ratings below a D, more fully funded grant access9.
BHESCo is an award winning not-for-profit community energy co-operative offering an innovative PAYS (pay-as-you-save scheme) for those domestic and business customers who can’t afford to pay for the energy efficiency improvement measures up-front. The savings from their energy bills are used to pay for the installations over a period of time and the occupants or tenants feel more comfortable in a warmer home, helping to reduce their energy bills. However, to encourage uptake there needs to be more of an incentive and active promotion in all sections of our community.
Another reason for requiring a D rating, is those landlords who wish to invest in solar energy generation can do so, thus helping to stimulate the UK’s wounded solar PV industry10 and make it economically viable for landlords. To obtain the maximum Feed-In Tariff (FIT) for solar PV installations, a household must attain a minimum EPC band D rating11. However, the government also needs to realise that renewable energy is going to be the cheapest form of energy production in the near future. Onshore wind is already our cheapest source of electricity. Not to mention the benefits of secure, locally-produced energy and the dire consequences from global climate change if we don’t act now. The government’s own Department for Business, Energy and Industrial Strategy (BEIS) published a report saying a solar project commissioned next year was predicted to cost between £62 and £84 per megawatt hour (MWh) with onshore wind coming in at £49 to £79/MWh. Compare this to the cheapest form of gas costing between £60 and £62 and £154 to £166 for a more expensive gas system12.
We need active, forward-thinking local councillors and MPs to lobby Westminster and help promote energy efficiency and renewable technology in their constituencies, especially coming up to this general election in June. The technology and capability is already here, but we need the political will to make it happen now and not when it is too late.
- Holder, May 2017: 50 MPs back fight to divest parliament pension fund of fossil fuels, Guardian, 08/05/2017, https://www.theguardian.com/environment/2017/may/08/5o-mps-back-fight-divest-parliament-pension-fund-fossil-fuels?CMP=share_btn_link.
- Simple Switch, October 2016: Government Overrules Council to Allow Fracking in Lancashire, https://www.simplyswitch.com/government-overrules-council-to-allow-fracking-in-lancashire/
- 10:10, April 2017: Stop the government wrapping wind turbines in red tape, https://1010uk.org/articles/blownaway-planning
- Johnston, March 2017: Budget 2017: Solar industry facing devastating 800% tax increase, Independent, 08/03/2017, http://www.independent.co.uk/environment/solar-industry-budget-2017-800-per-cent-tax-increase-green-renewable-energy-a7618191.html
- BEIS, May 2017: Energy & Climate Change Public Attitude Tracker – Wave 21, https://www.gov.uk/government/statistics/energy-and-climate-change-public-attitude-tracking-survey-wave-21
- MAIS, May 2017: Housing Crisis: Community Solutions 2017, 11/05/2017, https://maisnetwork.net/2017/05/11/housing-crisis-community-solutions-2017/
- Residential Landlord’s Association, 2017: MINIMUM ENERGY EFFICIENCY STANDARDS, https://www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml
- Whitworth, February 2017: Revenge eviction law ‘not working’, 09/02/2017, http://www.bbc.co.uk/newsbeat/article/38795177/revenge-eviction-law-not-working
- NEA, Feb 2017: IN FROM THE COLD: The funding gap for non-gas fuel poor homes under ECO and a proposal to fill it.
- Solar Trade Association, August 2016: 2017 Business Rates Revaluation: Rooftop Solar PV.
- Ofgem, 2017: Feed-In Tariff (FIT) rates, https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates
- Johnston, February 2017: Government accused of trying to kill off UK solar industry before it can become cheapest form of electricity, Independent, 08/02/2017, http://www.independent.co.uk/environment/solar-energy-uk-government-accused-trying-to-kill-off-climate-change-theresa-may-a7570161.html.