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Demand Policies: Can Energy Services companies deliver low carbon new build homes?

Sharad Saxena, Oxford University Centre for the Environment The UK has set for itself an ambitious target of reducing carbon dioxide emissions by 60% by 2050. To achieve this target, carbon reductions would need to be made by all sectors including the residential sector which presently accounts for 28% of CO2 emissions. Energy Services Companies (ESCOs) could address the barriers to energy efficiency and microgeneration through design build, finance, operation and maintenance provision (DBFO). Energy services contracting will only be chosen where the reduction in cost of supplying energy services can more than offset the additional transaction cost compared to conventional supply. Previous work has identified three broad models of energy services: the Facilities Management or performance contract model for business commercial and public sector customers; the Community Model where decisions are taken on behalf of a group of customers (predominantly householders) in the same location; and the Supplier model  where existing energy suppliers could evolve their offer to domestic customers. The Community model in new build has particular interest, in that it offers a viable route for the development Read more…

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Can_Energy_services_companies_deliver_low_carbon_homes_2006_pres.pdf 59.63 KB
20th
Sep
2006

Demand Policies: Energy Consumption Takes Time

John Dimitropoulos, University of Sussex Although time has been recognised as an important factor determining patterns of consumption, its importance for energy use has only recently been appreciated. Time scarcity can drive consumption decisions and therefore influence energy consumption in many ways. Using elements of household production theory, as developed by Gary Becker, this paper explores the implications for household energy consumption under constrained time. Demand for energy is derived from demand for energy services that are produced within the household. Household production is then optimised subject to inequality constraints that reveal three insightful cases for potential allocation of time and income. Under assumptions, the non-linear optimisation problem is then aggregated across consumers and stretched over stages of economic development. Becker’s framework depicts successfully the well-documented historical path of employment, leisure and consumption as capital accumulates in a growing economy. In addition, a characteristics model, as suggested by Lancaster (1971), is implemented for an energy service. Analysis followed by an illustrative example in characteristics space exhibits that time scarcity can impose preferences that oppose the traditional income-driven choice in energy Read more…

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Energy_consumption_takes_time_2006_pres.pdf 235.28 KB
20th
Sep
2006

Energy Policies in a Global Context

Paul Chambers, Defra Forecast global carbon reductions from 2002 to 2030 are reviewed, indicating that energy efficiency is expected to account for over 50% of emission reductions and renewable energy technologies for 20%. UK policy levers are reviewed together with options across the sectors of transport, industry, business/public sector and households. Policies to address the carbon intensity of supply, energy efficiency, demand reduction and R&D are discussed across these sectors. International policies to address the carbon reduction options of supply, energy efficiency and demand are reviewed.

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Energy_Policies_in_a_Global_Context_2006_pres.pdf 289.19 KB
20th
Sep
2006

Japanese Energy Policy and Asian Energy Challenges

Tatsuo Masuda, Tokyo Institute of Technology Sets out the context for the development of Japan’s energy policy from 1945 to present, covering six phases, from economic recovery and readjustment of energy policies in 1945 to the start of the globalization of energy market and the commitment to the Kyoto Protocol in 1997. The three key pillars of Japans energy policy are: assurance of stable supply; usage of market mechanisms; and harmony with the environment. This is discussed in the wider context of energy within Asia, drawing on data for total energy demand, demand by fuel, prices, emissions and population growth. Key challenges for Asia include: energy vulnerability; energy poverty and the environment; energy strength and energy needs.

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Japanese Energy Policy and Asian Energy Challenges.pdf 986.99 KB
6th
Mar
2006

Oil Markets into 2006

Peter Davies, BP Sets out the context for oil and energy today in respect to: oil and gas prices; shares of world primary energy consumption; and drivers for high oil prices (OPEC behaviour post 1999, strong demand growth in 2004, low spare capacity, geopolitics and energy as a financial commodity). The reasons why prices rose, even though market fundamentals weakened are examined and the prospects for 2006 are set out, in relation to: the call on OPEC being less than current OPEC production levels; and the risks relating to economic growth, supply delays and outages, and geopolitical uncertainties. Into the medium term it is anticipated that: spare capacity will build back to historic levels through to 2010; that oil prices will remain over $40 a barrel; and that although market forces are expected to respond, it could take a long time to reassert.

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Oil Markets into 2006.pdf 644.22 KB
24th
Jan
2006

UK Gas and Electricity Supplies: A review of the winter 2003-04

John Greasley and Simon Griew, National Grid Transco Sets out the pre-winter view from Grid; in respect to gas covering: transportation requirements; gas forecasts; plant mothballing status; changes to market rules; gas/electricity interactions; CCGT interruptions; and proposals to mitigate negative impacts. Consideration is also given to electricity covering: plant margins; market signals; and the positive and negative key uncertainties going into winter including generation and interconnector availability. This is considered against winter demand based on temperature profile and average weekly ACS demand. The interactions between gas and electricity are discussed in respect to: GB gas-fired power stations; interruptible arrangements; and the potential for firm CCGTs to arbitrage. What happened to gas is also considered, covering Beach and Interconnector deliveries and firm demand-side management. A range of issues looking forward for winter gas and electricity supply are discussed.

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UK Gas and Electricity Supplies a review of the Winter 2003.pdf 396.55 KB
30th
Apr
2004

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