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.
In Summer 2017, the people of Lewes celebrated the tenth anniversary of their local energy co-op Ovesco by honouring them on the latest Lewes Pound note.
Ovesco was born out of the Transition Town movement and has gone on to develop many high profile community energy projects in the area, including huge solar installations at Harveys Brewery, Brickyard Farm, and several schools and colleges.
Being commemorated on the Lewes Pound is a brilliant visual demonstration of the way that Ovesco keeps money within the local economy, and adds value to the community far beyond the energy systems they install.
Research on spending shows that for every £1 spent with a small or medium-sized business 63p stayed in the local economy, compared to 40p with a larger business.
In contrast to the Big Six energy companies (only two of which are UK owned), community energy groups are rooted in their localities and understand the concerns of residents and stakeholders. You would never find BHESCo or Ovesco, for example, embarking on a project that was opposed by local people, such is the case with fracking plans in Lancashire or oil pipelines in North Dakota.
By embracing the community, and employing local traders and installers to carry out projects, community energy groups are able to support local business and stimulate the local economy. Not only does this benefit domestic job creation, but it has a positive impact on business rates too.
Because community energy groups are owned by local residents, any profits made can be reinvested in developing more locally owned energy projects, instead of being paid out as interest to shareholders. It is also common for community energy groups to channel some of their revenue towards tackling fuel poverty and improving the energy efficiency of cold homes in the area. As well as benefiting individual households, this can also alleviate pressures on local health services as physical and mental wellbeing improve.
In fact, even generating and using energy locally has intrinsic advantages, because it cuts down on transmission losses and is a much more efficient use of the energy produced. In addition, creating a local supply network (such as residents of the Brooklyn Microgrid have recently achieved), insulates a community against external price increases and even possible power cuts.
In all of these ways, whether its creating jobs, reducing bills, or improving health, it is very clear that keeping it local has tremendous benefits for creating an independent and resilient community. When services and insitutions are owned by and run by the people they serve, they will inevitably be responsible, democratic, and sustainable.
Our advice? Act local, join your community energy co-op ASAP.
26 Apr 2017
The energy efficiency of a building is how it uses gas and electricity, with special attention on how much gets wasted. Simple improvements such as roof and wall insulation, low energy lighting, double glazed windows, and draught exclusion can greatly improve energy efficiency, meaning the building needs much less energy to heat and maintain.
The most obvious benefit is that monthly gas and electric bills go down, which can be very important for a family’s budget or a business’ profit margin. But there are many other less tangible benefits to energy efficiency that are just as important as saving money.
For example, using less energy means creating less carbon emissions, which is great for our planet and the environment. Investing in energy saving means that the UK can work towards its carbon reduction targets while still pursuing policies of economic growth. In addition, by using less energy we can improve our energy security, because we do not need to buy as much power from overseas. This can also help to keep prices down.
In fact, studies have shown that investing in energy efficiency is a great way of promoting economic growth. Not only is work provided for thousands of installers and traders, but the money saved by efficiency measures frees up more disposable income that can be channeled back into local goods and services. Moreover, the Government can expect greater tax receipts that would come from higher levels of trade and employment.
Adding energy efficiency measures to a property will also increase its value, especially if this results in an improved Energy Performance Certificate (EPC). A person’s health and wellbeing (physical and mental) is improved by living in a warmer home, which can lead to a reduced demand on the NHS and further savings to the taxpayer.
As we can see, there are so many reasons for investing in better energy efficiency it is a scandal that this is not a national infrstructure priority. It is therefore up to us to take matters into our own hands to improve the quality of the UK’s outdated and inefficient old housing stock. Not only will this improve our lives and the prosperity of our country, but it will be our legacy to future generations. Contact BHESCo to see how we can start your energy efficiency journey at no upfront cost.
Communities should take power into their own hands to build an abundant local clean energy supply to secure our future energy on a national scale, claims Kayla Ente, founder of community energy service co-operative BHESCo……
Consumers have not benefitted from liberalisation of the energy markets. Instead liberalisation has created the current oligopoly of energy suppliers that control 99% of the market and play a dominant role in policymaking.
In an oligopoly, switching is only a temporary fix as all suppliers will basically offer the same price. Switching will not stop the tide of energy prices increases at 8 – 10% every year. Such increases are not sustainable, especially in a recessionary economy where our incomes on the whole have declined. Because we are dependent on energy in every aspect of our lives, energy has become a right, not a privilege.
Tapping into the shale gas reserves using extreme extraction methods has dire consequences on our water supply. Hydraulic fracturing creates millions of litres of waste water, containing hazardous levels of hydrochloric acid. This chemical contaminant must be stored in specially lined ponds. At best, fracking is a five year feed of our fossil fuel addiction before we wake up and realise that we have seriously damaged our environment, like the realisation of bad behaviour after a debauched night out. Increasing worldwide demand will still tenaciously drive prices ever upward over the long term.
Our centralised power stations lose 65% – 75% of the energy generated from unsustainable sources like fossil fuels and uranium in transmission and distribution. Although heat represents about 41% of energy consumed, most of the heat generated by the large stream engines in centralised power stations is wasted in the air.
Unfortunately, unsuspecting taxpayers end up paying for the lack of vision and sound economics in our energy policy. The new Energy Bill including Electricity Market Reform (EMR) means that subsidies will be transferred to the shareholders of large corporate power generators in the form of a guaranteed price for electricity production, regardless of whether that electricity is consumed or not.
Fracking corporations will receive larger tax breaks in the coming years. There is a real danger that the current energy policy will create a continuation of the culture of waste in our society, due to an irrational fear that the lights will go out.
There is little innovation in our nation’s energy strategy because there is painfully little movement in important areas like upgrades to distribution and transmission networks to create smart grids. Investment in energy storage pales in comparison to the money that will be invested in nuclear power and Carbon Capture and Storage technologies. Investment in a smart grid was supposed to be addressed in EMR, however, this has been conspicuously omitted, calling the National Grid “a natural monopoly”. This may have been ok when the grid was nationalised, not now.
Naturally, the current suppliers want to maintain the status quo of centralised systems where the consumer is kept enslaved to the supplier. And naturally, these powerful forces influence policy decision-making and the media. There is a light at the end of this tunnel: community energy suppliers can stimulate investment by creating micro-generation points and then investing in their own micro-grids for local energy distribution, all connected to transmission stations run by the National Grid.
In 2011, there were 19 Community energy co-operatives generating 19.6MW of renewable energy, powering approximately 16,000 homes. Shareholders in these co-operatives are making a steady return on their investment in tangible local energy generation assets. As we transition into our new sustainable way of living, during this ‘Time of the Great Turning’ (as Joanna Macy has named it), a post industrial evolutionary movement, a ‘small is beautiful principle should be applied to local energy generation. Consumption near the source minimises efficiency losses. Combining natural renewable energy sources, like sun, wind and biomass to power our needs, making our buildings more efficient by sealing the leaks coming through the fabric, becoming more conscious of how we use energy in our environment will all contribute to our long term energy security.
According to the Department of Energy and Climate Change, community groups are involved in four main activities: Reduce, Manage, Generate, Purchase. In Brighton, Brighton & Hove Energy Services Co-operative has been launched to stop the tide of rising energy prices. It is a not for profit co-operative dedicated to help people reduce their energy costs now and forever. We do it now, by organising a collective buying initiative where one price is negotiated for our members, like a large corporation would for its energy supply. We can do this by offering thousands of customers, worth about £120 in profit each, to one supplier. Energy suppliers pay millions in marketing costs to encourage the public to switch to their service. We can save these large suppliers money by reducing their marketing spend and pass that savings onto our members.
BHESCo is working with neighbourhood groups and our local council to map out neighbourhood energy plans, offering a way to implement low cost energy savings and local renewable energy programmes. We are a link between the large energy suppliers and the local consumer. Suppliers are required by the government to identify super priority customers, people living in hard to treat properties that leak massive amounts of heat through their walls, ceilings and floors. The path to these people, many of them vulnerable, is arduous as they are difficult to find, do not trust the large suppliers and do not want to enter into any loan commitment with them at a high cost.
BHESCo is launching a programme of low energy, durable lighting retrofits to small and medium sized businesses in Brighton & Hove which presents a way to quickly reduce electricity consumption as many office buildings have old fluorescent lighting that is hard on the eye and on the pocket. We can go some way to helping these businesses reduce their operating costs and lower their carbon footprint, just by upgrading their lighting to longer lasting LED (low emission diode) lights. These are mercury free, unlike other low energy lighting that is for sale in some supermarkets.
We believe in that by working together, we can continually create wins for members of our community. We invite all people who want to make a difference in their community within the Sussex area to contact us. Together we can help bring about the Great Turning.
Kayla Ente is founder of BHESCo, a community energy service co-operative. She is a qualified accountant, MBA and environmental economist. Kayla lives and works in Brighton, UK.