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.
19 Oct 2017
The Future of Local Energy
Today’s proven technologies can generate sufficient electricity and heating to power neighbourhoods in an entirely decentralised way. Clean micro-generation technologies like wind, solar and biomass, combined with efficiency measures, can deliver clean energy to communities at lower cost. BHESCo has been established to finance the construction of self sufficient communities, generating their own power using efficient, sustainable technologies producing both heat and electricity, distributed via local networks.
Here’s what it might look like…
These communities are still connected to the national grid, however they only draw upon those resources when needed. The majority of electricity transmitted via the National Grid and most of the heat produced by centralised power stations is lost from the point of production to the point of consumption. We aspire to stop this wasteful network, providing better value for money to the taxpayer and the consumer.
There is a growing community of energy groups who are changing the way we think about our energy system and our relationship with it. Carbon Co-op in Manchester, Green Prosperity in Hull, Centre for Sustainable Energy in Bristol and Repowering London are brilliant examples of the community energy revolution in which BHESCo is a passionate member.
As part of our work providing energy advice we often meet residents who have electric storage heaters installed their homes. Regrettably, it is less often that we meet anyone who is happy with this system.
Storage heaters are notorious for releasing heat when its not needed, and then having no energy left when it gets cold. Thankfully, a new technology called the ‘VCharge Dynamo‘ is hoping to end to this dilemma, offering a reliable way of releasing heat when its needed the most.
Electric storage heating was invented as a way to make use of the surplus energy generated by nuclear power stations at night. The idea is to charge a storage heater using electricity that’s offered at a discounted rate from 12am-7am (called an ‘Economy 7’ tariff). The heater can then be set to release heat when its needed later in the day.
Unfortunately, the reality rarely matches the concept, and many residents complain that the system overheats first thing and then runs out by evening, leaving them freezing at night. However, with VCharge this unreliability will soon be a thing of the past.
Described as a ‘retrofit technology’, VCharge is fitted to existing storage heaters to allow accurate temperature control when needed. The automated system uses cloud-based control to maintain a level of comfort determined by the resident, which can be even be programmed by phone, tablet, or laptop.
And best of all, because the device is cloud-connected, it can intelligently make use of cheap daytime electricity prices that result from the increasing levels of renewable energy generation.
The manufacturer estimates that the VCharge Dynamo can reduce energy consumption and fuel bills by 20%, on top of providing reliable warm homes for residents.
The scheme has already been successfull piloted in Newcastle, and now BHESCo and Community Energy South will be trialing the technology in Sussex.
If you’re in Brighton & Hove and live in a large tower block that has storage heaters, we’d be intersted in hearing from you.
Give us a call on 01273 766 671 or complete our Contact Form.
23 Feb 2017
Since the start of the year, five ‘Big Six’ energy suppliers (EDF, Npower, E.On, SSE, and Scottish Power) have announced steep increases of between 8-10% in their standard tariff, leaving millions of households in the UK paying around £100 more for their gas and electricity bills.
The various reasons cited for these price hikes include the weakening of the pound compared to the US Dollar, an increase in wholesale costs, and the expense of delivering the national smart meter rollout (a government policy that energy suppliers are required to deliver by 2020).
And although other large energy suppliers have yet to announce price rises of their own, it’s a safe bet that it’ll just a matter of time until all standard tariffs go up. In the past few months we have noted an average increase of 10p per day on the standing charges of some energy suppliers, which will impact the poorest in society because it is charged regardless of much much energy is used. To compound matters, the Guardian recently reported that there are 77 fixed-price tariffs due to expire before the end of April, meaning thousands of UK households will automatically be moved onto an expensive standard tariff unless they take action.
This is why it is vitally important for people to switch, to make sure they are not paying over the odds on their energy bills. Last year, we collectively overpaid £2 billion too much to energy suppliers because 88% of us didn’t switch.
If someone is currently on a standard tariff, BHESCo would recommend that they sign up to a fixed tariff as soon as possible and lock in to a good price for 12 or 24 months. For households whose fixed tariff is due to expire soon, you can switch to a new fixed tariff up to 40 days in advance of your current contract ending, without having to pay an exit fee. Details of your tariff expiration date can be found on your bill.
There are various energy tariff comparison websites you can use, but BHESCo finds My Utility Genius the easiest.
If you would like free and reliable advice on finding the best energy tariff for your home, please contact BHESCo today:
phone: 0800 999 6671
22 Dec 2016
Smart Meters are the first step toward creating the UK’s smart-grid, and will pave the way for a more energy efficient future. Smart meters make is easier for us to identify the situations where we’re using a lot of energy and make changes to reduce it.
There will be no need for anyone to come and check your meter as energy consumption information is sent directly to your energy company. The data is sent via a secure national network which is solely for smart meters.
This works in the same way as other wireless systems like car remote keys or TVs, using radio waves. Though it is a wireless system, you don’t need Wi-Fi in your home for it to work. And it won’t use your Wi-Fi if you do have it.
Smart meters store data about energy usage but not any personal data about the residents of a property. This gives a better understanding of your energy usage, and will help to deal with power outages more efficiently, as well as facillitating more efficient management of Britain’s energy needs in the future.