Downloads / Energy policy

The role of utilities in enabling prosumers and flexible distributed energy resources

Daniel Quiggin, Chatham House This paper explores how utilities could transform as the electricity system undergoes a second phase of transformations and the business models they could develop. The main focus will be on the role existing power companies could play in enabling distributed energy resources (DERs) and prosumers to participate in an increasingly flexible electricity system, via energy service platforms. The electricity sector is experiencing a deep and profound disruptive shock, the effect is most obvious in Australia, the EU-28 and parts of North America, where once powerful utility companies are struggling in the current market and many are restructuring to survive. Three major factors define this phase of transformational changes: renewable deployment, slower than expected demand growth and in many jurisdictions, market reform. Whilst many utilities are now beginning to respond to the structural shifts embedded within the electricity systems they operate, it is becoming apparent that a second phase of transformational shifts is around the corner. This second phase is intimately linked to the first phase and is likely to have greater transformational impacts, amplifying the impacts Read more…

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Quiggin-The-role-of-utilities-in-enabling-prosumers-and-flexible-distributed-energy-resources.pptx 1.39 MBQuiggin-The-role-of-utilities-in-enabling-prosumers-and-flexible-distributed-energy-resources.pdf 809.02 KB
19th
Sep
2018

Continuity and Disruption in UK Energy System Change: Mapping Expert Differences – and Understanding their Implications

Mike Kattirtz, University of Edinburgh Energy systems globally are undergoing dramatic changes, and many observers anticipate accelerated changes in the years ahead. The changes are being driven by a combination of high-level national and international policy agreements, as well as more bottom-up, insurgent changes in the cost and performance of energy technologies (supply, storage and use) and also changing consumer behaviours and social practices. Less visibly, energy systems also exhibit strong elements of continuity, in terms of the renewal, extension and repurposing of existing technical infrastructures and institutions. This pattern of both disruptive and continuity-based change, which is particularly evident in the UK energy system, is reflected in energy experts’ varied prescriptions for energy system change. As a result, there are multiple working definitions of the energy system change and system integration, with many questions and uncertainties about future pathways such as the extent of system rescaling, the key public and private agents of change and the extent to which consumers and citizens are likely to play a significant role in driving change. In their review of energy scenarios, McDowall Read more…

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Kattirzi-Continuity-and-disruption-in-UK-energy-system-change.pptx 4.33 MBKattiritz-Continuity-and-disruption-in-UK-energy-sytem-change.pdf 973.16 KB
19th
Sep
2018

Unlocking the benefits to end consumers

Nicholas Rubin, ELEXON Ltd ELEXON recognises that how electricity is used is radically changing and that end consumers are being presented with more and more opportunities to actively manage their energy consumption and/or production. We recognise that the energy market (including central industry systems and processes) that facilitates this active participation will need to radically change too. A commitment to decarbonise the economy and developments in disrupting and decentralised technology, services and business models, amongst other things, is driving a great pace of change in the way electricity is produced and consumed. Whilst innovation in technology and service provision unlocks opportunities in the home, it is also unlocking opportunities that are making it a reality for smaller and smaller customers (including domestic customers) and businesses to actively participate at the heart of the electricity system, and provide services to each other and other actors across the system, in existing and new markets. On the one hand, these services might simply be based on the provision of smart meters to allow consumers to better manage their use, smart time of use Read more…

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Rubin-Unlocking-the-benefits-to-consumers-0918-v1.0.pptx 2.16 MBRubin-Unlocking-the-benefits-to-end-consumers1.pdf 319.46 KB
19th
Sep
2018

Energy cooperatives: a missing piece of the peer-to-peer energy regulation puzzle?

Alexandra Schneiders, UCL Energy Institute, University College London Peer-to-peer (P2P) energy trading, often facilitated through distributed ledgers (‘blockchains’), is emerging as a new mechanism for settling exchanges of energy between renewable energy generators and consumers, as well as matching local supply and demand. It is currently being tested in urban areas, where there are fewer renewable energy installations due to space constraints. The sharing of energy generated by a single installation (e.g. solar panels on the roof of a tower block) between residents, through a P2P blockchain-run energy trading platform, can tackle the disparity in renewable energy generation across the UK. Furthermore, grouping residents into a single legal entity, such as an energy cooperative, could resolve regulatory problems associated with P2P energy trading- such as the legal recognition of prosumers acting as consumers and entrepreneurs, as well as the validity of ‘smart contracts’ programmed to trade energy on the platform. Energy cooperatives are popular in European countries such as Denmark and Germany, where they benefit from government support. The situation is different in the United Kingdom, where energy cooperatives are Read more…

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Schneiders-Energy-Cooperatives-A-Missing-Piece-of-the-P2P-Energy-Regulation-Puzzle.pptx 1.44 MBSchneiders-Energy-cooperatives-a-missing-piece-of-the-peer-to-peer-energy-regulation-puzzle.pdf 460.95 KB
18th
Sep
2018

Spatio-temporal analysis of PV diffusion patterns: an integrated neural networks and agent-based model

Ali Alderete Peralta, Cranfield University Photovoltaic (PV) panels offer significant potentials for contributing to the UK’s energy policy goals relating to decarbonisation of the energy system, security of supply and affordability. The substantive drop in the cost of panels since 2007, coupled with the introduction of the Feed-in Tariff (FiT) Scheme in 2010, has resulted in a rapid increase in installation of PV panels in the UK from 16.1MW in 2010 January to 12.4GW by 2017 December. Yet, spatial and temporal diffusion of PVs show significant differences across the UK. By creating reverse flows on the networks, especially at low voltage distribution networks, domestic PVs present a key challenge for network operators to manage the grid such that there is enough capacity and voltage headroom available to accommodate these flows. That’s why understanding spatio-temporal diffusion of PVs can provide valuable insights to both network operators and policy makers with a view to predict and shape their future deployment. To date, different approaches have been used for analysing PV diffusion process, including (i) spatial regression, (ii) agent-based modelling (ABM) and (iii) Read more…

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AlderetePeralta_SPATIO-TEMPORAL_ANALYSIS_OF_PV_DIFFUSION_PATTERNS.pptx 1.79 MBPeralta-Spatio-temporal-analysis-of-PV-diffusion-patterns.pdf 503.89 KB
18th
Sep
2018

Attitudes, preferences and intentions to participate in peer-to-peer electricity trading: The case of Southwest German households

André Hackbarth, Reutlingen University Overview The share of electricity produced   from renewable resources in Germany increased to almost 32% in 2015,   opening perspectives for new products and services especially for   private households, who own nearly one-third of the renewable production   capacities (Trendresearch, 2017). Moreover, the rapidly increasing   degree of digitalization enables innovative business models and   stimulates the market entry of competitors from other sectors   challenging the incumbent utilities. For example, virtual and decentral   market places for peer-to-peer energy trading are currently emerging  and  have the potential to disrupt the energy market (Löbbe and  Hackbarth,  2017). The objective of this paper is, hence, to examine the  motivators  of private households’ willingness to participate in  peer-to-peer energy  trading. Relevance to the Conference Our   analysis of the determinants of the intention to adopt energy  community  products perfectly fits one of the aims of the conference,  i.e. the  assessment of consumer opinions and preferences regarding new  approaches  to energy. Further, based on the rich body of literature on  the  adoption intention for related energy technologies, such as PV  systems  (e.g. Woersdorfer and Kaus, 2011; Read more…

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Hackbarth_Loebbe_Attitudes_P2P_electricity_trading_German_households_BIEE_2018.pptx 891.64 KBHackbarth-Attitudes-preferences-and-intentions-to-participate-inpeer-to-peer-electricity-trading.pdf 320.85 KB
18th
Sep
2018

Leveraging Private Household investment in energy efficient retrofit: a systematic evidence review of the policy options

Niall Kerr, University of Edinburgh Home energy retrofit is distinctive as a low carbon policy option due to its requirement for collaboration between private households and public policy in the deeply personal environment of home. While there is an irrefutable case for public investment in retrofit, there is also a strong private case and as a result there is often a joint contribution to the cost of retrofit. This paper presents a systematic evidence review of policy effectiveness with respect to private household investment in retrofit. The review considered how policy can be used to efficiently leverage private household investment in energy efficient retrofit across three key areas: demand-side, supply-side and the overall ‘policy mix’. On the demand-side, while private funding levels range from well below 100% of public funding to several multiples of available public funds, levels of policy additionality, positive spill-over and market effects complicate leverage calculations. While subsidised loans offer the greatest example of private to public leverage they are much less widely implemented and are perceived to be less attractive to households than one-off payment grants Read more…

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Kerr-Leveraging-private-household-investment-in-energy-efficient-retrofit.pptx 2.34 MBKerr-Leveraging-private-household-investment-in-energy-efficient-retrofit.pdf 926.53 KB
18th
Sep
2018

Technological change and innovation in UK energy market – how might it be impacted by the price cap?

Philip O’Donnell; Which? Background With the publication of the Domestic Gas & Electricity (Tariff Cap) Bill, the UK Government is committed to introducing a temporary price cap on Standard Variable Tariffs (SVTs) and other default tariffs. There are a wide range of views about what this could mean for both consumers and energy companies. As the largest consumer organisation in the UK, Which? is concerned that the energy market is not delivering good outcomes for the majority of consumers. We understand the reasoning behind the introduction of a price cap in the energy market, but are concerned about the potential unintended consequences which may result from its implementation. There is a great deal of anticipation – within Government, Ofgem and industry – around the potential for technological change to transform the energy market in the near future. We believe that facilitating innovation, within a truly competitive market framework, can help to realise the best outcomes for consumers. The longer-term objective for the price cap must be a successful transition to an energy market where consumers fully benefit from innovation and Read more…

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ODonnell-innovation-and-price-cap-final-29.08.2018.pptx 1.19 MBoDonnell-Tecgnological-change-and-innovation-in-UK-energy-market.pdf 116.33 KB
18th
Sep
2018

Modelling Take-Up of Residential Solar PV in the UK

Sophie Heald, Cambridge Econometrics In February 2016, the solar PV tariff rate in the UK was reduced from 12.47 p/kWh to 4.39 p/kWh. Since that date, growth in small-scale residential solar PV in the UK has slowed dramatically (see Figure 1). In a recent study for the European Commission[1], we develop a new methodology to model prosumers’ investment decisions. We developed baseline projections and a series of scenarios to assess how take-up of residential Solar PV in the UK (and the wider EU) may be affected by future changes in policy and technology. Our method takes account of the fact that households weigh up a multitude of both financial and non-financial factors when deciding whether to invest in solar PV. In relation to these financial and non-financial drivers of investment, there is considerable heterogeneity among households. We derive distributions for the cost-effectiveness and overall attractiveness of investment among households in the UK and use this to develop projections of take-up of solar PV. For each year up to 2030, under specific assumptions about CAPEX and OPEX costs, policy support, future Read more…

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Heald-Modelling-take-up-of-residential-solar-PV-in-th-UK.pptx 1.63 MBHeald-Modelling-take-up-of-residential-solar-PV-in-th-UK.pdf 548.94 KB
18th
Sep
2018

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