Skip to main content

Smart Energy Marketplace 2017

The energy market is changing. Although, when I say changing, what I really mean it is moving back to how it was in the beginning, in a manner of speaking. When electricity was first brought to the UK, the generators were placed close to loads to reduce transmission losses. We then moved to a more centralised grid, with a smaller number of large power stations, and energy shipped all over the country through a high voltage transmission network. With the more recent increase in renewable penetration, roof-top solar, small- and large-scale storage, all of which is distributed across the country, we are shifting back to the distributed generation paradigm. Power is not only flowing from the centralised generation facilities, but also from traditional consumers as well. This creates a large number of new problems to solve.

This year’s Smart Energy Marketplace, organised by Regen, discussed this shift from centralised to distributed generation, with panellists and delegates from large industry, technology start-ups, consultancies, national and local government and academia. I was really interested in finding out how local generation was being utilised, what barriers were felt to exist restraining the move to a fully distributed grid and how policies, charging regimes and attitudes in industry were changing and developing.

There were several major barriers that came up during the discussions:
  •  How to balance supply and demand, both of which could potentially be highly volatile, along with the integration of storage;
  • Grid capacity constraints and need for reinforcement when adding distributed generation which can lead to disproportionately high costs for small generators;
  • The roll-out of smart meters to enable variable electricity tariffs for domestic consumers;
  • Automation technology in homes to allow devices to be switched on and off remotely or automatically dependent on energy price;
  • Consumer engagement issues, not willing to move suppliers or change behaviour to save money.

These barriers were identified through a number of different case studies presented, such as the Sunshine Tariff pilot study in Wadebridge, Cornwall. Here consumers were incentivised by reduced energy prices to use power during the day. This local and regional balancing of supply and demand seems to be one of the key ways to reduce energy cost, and prevent the need to reinforce the grid further.

Cornwall seemed to be a real hub for energy market innovation, which may be due to the grid constraint in the county, along with the massive renewable generation opportunities that have continue to be exploited. (The UK’s first wind farm at Delabole has recently celebrated its 25th birthday!) Cornwall County Council together with Regen are developing ideas to improve the local energy market, improving access to local energy, working with community energy groups, housing stock improvements and using the geothermal potential to supply heating needs. All this will support the population living in energy poverty, whilst still maintaining a low carbon future for the county and keeping money within the local economy. The Eden Project has also trialled a peer-to-peer trading platform called Piclo, developed by Open Utility, where it could choose where to buy its electricity from depending on price and availability.

Energy Local presented two of their projects, SWELL and Bethesda, where they developed local energy clubs to buy power from local renewable energy suppliers at lower cost, with the consumers working on a time-of-use tariff to reduce bills. This enables the supplier to earn more from their generation, and consumers to keep their money in the local area. Other local energy groups, such as Plymouth Energy Community, looked at creating their own energy supply, by creating their own customer base and buying the aggregated power from an existing electricity supplier, known as white labelling. This is able to develop local tariffs for the community, and again keep profits in the local economy.

During the day, many presenters and delegates were discussing local energy platforms, in relation to local balancing through micro-aggregation of supplies and loads, private or virtual private wire systems, peer-to-peer trading, and how to engage energy consumers with the benefits of these new technologies – a problem when it may only save them around £150 a year. A major barrier to these ideas were policy, with the current trading market unable to deal with this flexibility. However, through funding being delivered through the Department of Business, Energy and Industrial Strategy, this is beginning to be addressed.

The event concluded with a presentation from a panel of investors and renewable operators, talking about the current market and business opportunities within it. As the UK government has cut back on the feed-in tariff and the renewables obligation, there were many concerns that future renewable installations would collapse. However, there was some cautious optimism from those involved with many thinking that large scale solar has nearly reached grid parity, especially where the grid connection is geographically near, with grid storage parity also possible in the next few years.

What have I taken away from the day? I think there are three main points:
  • There is huge opportunity in local supply and consumption to reduce costs and remove strain from the grid – a real win-win for all involved. Using tools such as peer-to-peer electricity trading and 30 minute electricity pricing tariffs can allow consumers to be fully empowered to control and reduce their spending, and decide when to use power.
  • Policy needs to move forward quickly to catch up with the new market to allow these opportunities to really take off.
  • Consumers must be engaged and empowered into this new energy future to ensure its success. Technology will be required to allow many choices to be carried out automatically, but some users will still want to be interacting with the process.

The full conference presentations from the day can be found here, and those from the talks can be found here.

Blog by Dr Sam Williamson, Faculty of Engineering. Sam is a Lecturer in Electrical Engineering, in the Electrical Energy Management Group, interested in how energy can be provided sustainably and appropriately, both to existing users and those without access.

Popular posts from this blog

Powering the economy through the engine of Smart Local Energy Systems

How can the Government best retain key skills and re-skill and up-skill the UK workforce to support the recovery and sustainable growth? This summer the UK’s Department for Business, Energy and Industrial Strategy (BEIS) requested submission of inputs on Post-Pandemic Economic Growth. The below thoughts were submitted to the BEIS inquiry as part of input under the EnergyREV project . However, there are points raised here that, in the editing and summing up process of the submission, were cut out, hence, this blog on how the UK could power economic recovery through Smart Local Energy Systems (SLES). 1. Introduction: Factors, principles, and implications In order to transition to a sustainable and flourishing economy from our (post-)COVID reality, we must acknowledge and address the factors that shape the current economic conditions. I suggest to state the impact of such factors through a set of driving principles for the UK’s post-COVID strategy. These factors are briefly explained belo

Farming in the Páramos of Boyacá: industrialisation and delimitation in Aquitania

Labourers harvest ‘cebolla larga’ onion in Aquitania. Image credit: Lauren Blake. In October and November 2019 Caboteer  Dr Lauren Blake  spent time in Boyacá, Colombia, on a six-week fieldtrip to find out about key socio-environmental conflicts and the impacts on the inhabitants of the páramos, as part of the historical and cultural component of her research project, POR EL Páramo . Background information about the research can be found in the earlier blog on the project website . Descending down the hill in the bus from El Crucero, the pungent smell of cebolla larga onion begins to invade my nose. The surrounding land transforms into plots of uniform rows of onion tops at various stages of growth, some mostly brown soil with shoots poking out along the ridges, others long, bushy and green. Sandwiched between the cloud settled atop the mountainous páramos and the vast, dark blue-green Lake Tota, all I can see and all I can smell is onion production. Sprinklers are scattered around, dr

IncrEdible! How to save money and reduce waste

The new academic year is a chance to get to grips with managing your student loan and kitchen cupboards. Over lockdown the UK wasted a third less food than we usually would. This is brilliant, as normally over 4.5 million tonnes of edible food is wasted from UK homes every year. For students, it’s even higher. The average cost of food waste per student per week is approximately £5.25 - that's about £273 per year !  It’s not just our bank accounts that are affected by food waste – it’s our planet too. The process of growing, making, distributing, storing and cooking our food uses masses of energy, fuel and water. It generates 30% of the world’s CO₂ greenhouse gas emissions. The same amount of CO₂ as 4.6 million return flights from London to Perth, Australia! So it makes sense to keep as much food out of the bin as possible, start wasting less and saving more.  Start the new term with some food waste busting, budget cutting, environment loving habits! Here’s five easy ways to reduce