Behavioural responses to photovoltaic systems in the UK domestic sector

Microgeneration—the generation of electricity and/or heat within the home—has recently become a notable addition to UK energy policy debates. Specifically research has suggested that, as well as providing renewable energy, these technologies might encourage changes in household energy consumption. The research presented here investigates this ‘double-dividend’ effect using PV households in the UK. It is shown that the installation of PV encouraged households to reduce their overall electricity consumption by approximately 6% and shift demand to times of peak generation. From a household perspective, system performance monitors had the most notable influence on these behavioural responses; however evolving industry arrangements for metering and microgeneration tariffs will be central in determining the future role of consumers. The paper therefore concludes that the full benefits of microgeneration can only be realised if informed households are integrated within supportive industry and government frameworks.     

Consumer awareness in the adoption of microgeneration technologies: An empirical investigation in the Republic of Ireland

Despite major policy and marketing efforts, the uptake of microgeneration technologies in most European countries remains low. Whereas most academic studies and policy reports aim to identify the underlying reasons why people buy these new technologies, they often fail to assess the general level of consumer awareness. The process of adopting an innovation, however, shows that awareness is a prerequisite which needs to be understood before adoption can be addressed. This paper takes a closer look at awareness of microgeneration and presents the results from a nationally representative study conducted in the Republic of Ireland. Findings from logistic regressions clearly indicate that awareness varies significantly between the individual technologies and customer segments. The paper concludes with implications for policy makers and marketers aiming to promote microgeneration technologies in consumer markets.     

What role for microgeneration in a shift to a low carbon domestic energy sector in the UK?

Domestic energy use accounts for more than a quarter of CO₂ emissions in the UK. Traditional approaches to energy reduction look at direct emissions savings, and recommend insulation and efficiency as more cost-effective than microgeneration. However, microgeneration has indirect, ‘soft’ benefits and could play a significant role in emissions reduction. Current uptake of microgeneration in the UK is low, with various barriers—economic, technical, cultural, behavioural and institutional—both to uptake and to maximising energy and emissions savings once installed. Subsidies and spreading information alone do not guarantee maximising uptake, and even if successful, this is not enough to maximise savings. The industry focuses on maximising sales, with no incentives to ensure best installations and use; householders do not have access to the best information, and user behaviour does not maximise energy and emission savings. This is related to a broader state of socio-technical ‘lock-in’ in domestic energy use; there’s a lack of connection between personal behaviour and energy consumption, let alone global climate change. This suggests that a major cultural–behavioural shift is needed to reduce energy/emissions in the home. Transition theory and strategic niche management provide insights into possible systemic change and a suitable framework for future policies, such as supporting a variety of radically innovative niches, both technological and social. Microgeneration, properly employed, has the potential to play a part in such a transition by increasing awareness and energy literacy and empowering people to seriously engage in energy debates as producers, as well as consumers, of energy. This deeper understanding and heightened responsibility are crucial in a shift toward bottom-up emission-reducing behaviour change and better acceptance of top-down energy-saving policy measures, as part of a new domestic energy paradigm. The implications for policy are that, as well as supporting the technologies, it needs to support existing niches and to develop new niche experiments. Policy needs to consider how to promote empowerment and responsibility and support or even develop new energy sector models; this will involve a range of stakeholders and multiple governance levels, not just national incentive schemes.     

A bright future

“I'm very encouraged to see the current level of interest in renewables and hope that the firm policy directives that are increasingly coming from Government will translate into funding and local action,” says Dr Mary Archer, current president of the UK section of ISES. She explained to Nina Morgan how she believes that growing public awareness combined with government environmental targets will help promote the use and development of renewable energy sources in the UK.     

Domestic micro-generation: Economic,regulatory and policy issues for the UK

Micro-generation in individual homes has been the subject of increasing policy and industry attention in recent years. Whilst it has been estimated that micro-generation could meet 30–40% of UK electricity demand by 2050, deployment to date has been slow. In its Micro-generation Strategy the UK government has started to outline how deployment could be increased. Various technical, economic, behavioural and institutional changes are needed to establish a UK market for micro-generation. This article discusses how different deployment models for domestic micro-generation might attract investments in these technologies. It considers not only investments by individual households but also by energy companies. Starting from an economic analysis of payback times for three different technologies (micro-CHP, micro-wind and solar PV) it identifies policy and regulatory recommendations. It argues for technology-specific support policies in the short term. It also suggests that a ‘level playing field’ for micro-generation technologies as a result of fiscal and market reforms could considerably increase the attractiveness of micro-generation technologies.     

A computational tool for evaluating the economics of solar and wind microgeneration of electricity

This paper presents a method, implemented as a freely available computer programme, which is used to estimate the economics of renewable microgeneration of electricity from wind and solar energy sources. A variety of commercial small wind turbines and photovoltaic (PV) panels are considered and combined with raw energy data gathered from a variety of locations. Both residential and holiday home user profiles are available and options are selectable concerning feed-in tariffs (if available), government incentive schemes and the cost of capital borrowing. The configuration of the generation setup, which can consist of wind, PV and combination of wind/PV, is fully selectable by the user, with a range of appropriate default data provided. A numerical example, based on Irish data, is presented, which suggests that payback periods for solar and wind microgeneration systems can vary greatly (2.5–500 years), depending on the location, installation and economic variables.     

Decentralised systems and fuel poverty: Are there any links or risks?

This paper considers the possible links between the development of decentralised or distributed energy systems and the problem of fuel poverty in the UK. The discussion takes on board that decentralised energy systems can take many different forms, in the range of potential technologies that can be used for the local microgeneration of electricity and heat and in the range of ways in which the installation, ownership, operation, networking and maintenance of these technologies can be organised [Walker, G., Cass, N., 2007. Carbon reduction, ‘the public’ and renewable energy: engaging with sociotechnical configurations. Area 39(4), 458–469; Watson, J., Sauter, R., Bahaj, B., James, A., Myers, L., Wing, R., 2006. Unlocking the Power House: Policy and System Change for Domestic Microgeneration in the UK. SPRU, Brighton]. The focus is on housing and, in particular, on those forms of housing occupied by social groups vulnerable to fuel poverty. Both potential negative links (or risks) and positive links between decentralised generation and fuel poverty are considered. As this is a new area, there is comparatively little literature to draw on and there are significant gaps in knowledge, so some of the discussion is necessarily rather speculative.     

Liberalisation of the UK energy market: An opportunity for green energy

1998 is a year of considerable change and opportunity for the energy sector in the UK, with government policy reviews of generation, renewables, utility regulation and climate change. In addition, the UK electricity market and gas markets will be opened up to full competition. This could boost renewable energy and the formation of Energy Services Companies as environmentally-aware consumers become able to choose ‘green’ energy from more progressive suppliers. Friends of the Earth has researched the environmental performance of the main electricity suppliers in the UK and the potential for consumer pressure. However, competition must exist within a framework of government regulation and additional support mechanisms if environmental and social objectives for the energy sector are to be met     

Consumer–supplier–government triangular relations: Rethinking the UK policy path for carbon emissions reduction from the UK residential sector

The UK residential (household) sector is responsible for approximately 30% of total carbon dioxide emissions and is often seen as the most promising in terms of early reductions. As most direct household emissions come from only two fuel sources, this paper critically examines how existing emissions reduction policies for the sector shape – and are shaped by – relations between the three main groups of actor in this policy domain: central government, gas and electricity suppliers, and energy users. Focusing on relations between three dyads (government–suppliers, suppliers–consumers and consumers–government) enables us to examine aspects of demand reduction that have often been overlooked to date. By ‘relations’ we refer to services, power relationships and flows of capital and information, as well as less easily defined elements such as loyalty, trust and accountability. The paper argues that the chosen government policy path to deliver demand reduction, which heavily emphasises the suppliers’ role, suffers from principal-agent problems, fails to align consumers and supplier interests toward emissions reduction, and does not yet portray a lower-carbon future in positive terms. It suggests that more attention should be paid to government–consumer relations, recognising that energy consumers are also citizens.     

The economic effects of a natural resource discovery: A theoretical and simulation exercise

The economic effect of a natural resource discovery is an important and contentious issue, and clearly of particular relevance to economies such as Australia and the UK with booming mineral sectors. Such a discovery may have adverse or beneficial effects on other sectors of the economy such as manufacturing, and on the economy as a whole, which would require an appropriate macroeconomic policy response by the government. The paper explores such issues. The conceptual framework adopted is that developed by Dornbusch (1976), which specifically analysed the macroeconomic effects of changes in the money supply. In this model financial markets are efficient and forward looking, but nonfinancial markets are inefficient and backward looking. The extensions to this framework, to capture the economic effects of natural resource production, are identified, as well as the conflicting economic and policy conclusions derivable from alternative amendments and assumptions of the model. Dutch disease effects can be observed from this conceptual framework, a phenomenon which has been observed in energy abundant economies such as Australia, Holland, and the UK. A simulation of the conceptual framework identifies both in more detail and quantitatively, the possible adjustment processes following a natural resource discovery. The major conclusions to be derived from this paper are that except in unrealistic circumstances; specifically where there is no lag in the demand for nonenergy output arising from revenue generated in the energy sector, and energy production does not directly affect the demand for money, or where domestic prices are perfectly flexible, there will be a period of time during the adjustment process where non-oil output would decline below its full employment level. Hence the general situation is one where energy production will require an appropriate macroeconomic policy response by the government, if minimising its adverse effects on other sectors of the economy and of maintaining non-oil output at, or close to, its full employment level is an important priority.     

Personal carbon trading: A policy ahead of its time?

In 2008, the UK government undertook a review of personal carbon trading (PCT) and declared that it was ‘an idea currently ahead of its time’. PCT is a radical policy proposal which would entail all adults receiving an equal, tradable carbon allowance to cover emissions from household energy and/or personal travel. The allowance would reduce over time, in line with national emissions reduction goals. The government’s key concerns about PCT were its social unacceptability and high cost. This paper reviews the literature and identifies knowledge gaps, and then discusses whether these concerns are justified. Contrary to the government’s conclusions, most research shows PCT to be at least as socially acceptable as an alternative taxation policy. People think it could be both fair and effective. Set-up and running costs for PCT will undoubtedly be higher than for alternative taxation policies. However, PCT could deliver benefits from individual and social change motivated by non-economic aspects of the policy. These potential benefits are outlined here. The conclusion is that PCT is a promising and timely policy idea.     

Financing the UK power sector: Is the money available?

The UK power generation sector faces a major new round of investment: the coincidence of asset retiring and ambitious goals for decarbonisation is not unique, but is particularly acute in the UK. The UK government has put in place a raft of new policies that seek to promote new, low carbon investment and ensure security of supply. The traditional channel for financing the sector has been through large utility companies, but this now looks challenging for various reasons. The UK therefore offers an interesting case study on several counts; the scale of the challenge, effectiveness of new policies, and the availability of alternative finance. We find that the link between the finance sector and the electricity sector is not ‘broken’, but the flow of money to the sector is threatened by the current weakness of the utilities’ business model. This paper compares estimates of the scale of investment required in the UK with historical investment rates. It summarises contemporary finance industry views of conditions and trends, and potential policy interventions that might be needed to bridge the investment gap. The potential for channelling institutional investor funds directly into energy assets is reviewed.     

Conditional inevitability: Expert perceptions of carbon capture and storage uncertainties in the UK context

This paper presents findings on expert perceptions of uncertainty in carbon capture and storage (CCS) technology and policy in the UK, through survey data and semi-structured interviews with 19 individual participants. Experts were interviewed in industry, research, and non-governmental organisations (NGOs) in the summer of 2009 and were asked to comment on a range of technical processes as well as policy concerns. The survey revealed that perceptions of the technology conform to a ‘certainty trough’ with users expressing the lowest level of uncertainty, and outsiders expressing the highest level of uncertainty. The interviews revealed that experts express certitude in the prospects for deploying large-scale CCS technology in the UK, all the while questioning several underlying technical and policy premises that are necessary to ensure this goal.     

A review of the oil and gas sector in Kazakhstan

Kazakhstan is endowed with significant oil and gas resources and is expected to become one of the world's top 10 oil producers within the next decade. The high cost of doing business in the country, however, means that Kazakhstan will need to improve its institutional framework to successfully compete for Western investment. A large degree of risk and uncertainty continues to plague the oil and gas sector as the government makes significant changes to the petroleum tax legislation and takes an aggressive approach in “rebalancing” contractual arrangements with industry. High levels of bureaucracy, regulatory burden, and corruption persist, and economic factors appear to be subordinated increasingly to geopolitical objectives aimed to strengthen relationships with China and Russia. The rapid pace of change and the high degree of uncertainty present significant challenges and risk to foreign investment. The purpose of this paper is to review the oil and gas sector in Kazakhstan and highlight recent developments in the petroleum legislation, business climate and government policy.     

UK government controls and the electricity supply industry since 1980

This article considers the main non-statutory controls applied by the UK government to the electricity supply industry since 1980, namely financial targets and external financing limits (EFLs). The effects of these controls are examined and it is argued that, in general, energt policy objective embodied in the industry's financial targets have been overridden by macroeconomic policy objectives incorporated in the industry's EFLs. Future prospects for achieving energy policy objectives in the electricity sector are reviewed.     

Boosting UK renewables: The market way

Why, after all these years of grants, subsidies and central government planning does Britain still have only 3% of electricity from renewable sources? Could it be that government policy is not working? Are there better market driven ways to do it? Dan Lewis provides his perspective on the current UK situation.     

Variability and phasing of tidal current energy around the United Kingdom

Tidal energy has the potential to play a key role in meeting renewable energy targets set out by the United Kingdom (UK) government and devolved administrations. Attention has been drawn to this resource as a number of locations with high tidal current velocity have recently been leased by the Crown Estate for commercial development. Although tides are periodic and predictable, there are times when the current velocity is too low for any power generation. However, it has been proposed that a portfolio of diverse sites located around the UK will deliver a firm aggregate output due to the relative phasing of the tidal signal around the coast. This paper analyses whether firm tidal power is feasible with ‘first generation’ tidal current generators suitable for relatively shallow water, high velocity sites. This is achieved through development of realistic scenarios of tidal current energy industry development. These scenarios incorporate constraints relating to assessment of the economically harvestable resource, tidal technology potential and the practical limits to energy extraction dictated by environmental response and spatial availability of resource. The final scenario is capable of generating 17 TWh/year with an effective installed capacity of 7.8 GW, at an average capacity factor of 29.9% from 7 major locations. However, it is concluded that there is insufficient diversity between sites suitable for first generation tidal current energy schemes for a portfolio approach to deliver firm power generation.     

Technologies to achieve demand reduction and microgeneration in buildings

Buildings account for almost half of UK carbon dioxide emissions, and energy demand in buildings continues to grow. In the context of economic growth, population growth, increasing demand for homes and commercial floor space, and increasing demand for energy services, energy use and probably carbon emissions look set to continue to increase unless there is significant change. This paper outlines enabling technologies that may permit a step-change reduction in energy demand from buildings through the application of next-generation information metering and control, energy-efficiency products and microgeneration. It covers both residential and non-residential buildings. This wide approach has been adopted because technologies and trends tend to migrate from one building sector to another, as, for example, IT has moved from offices into homes and lighting trends from offices and retail into homes. It covers technologies that can be used in new build or major refurbishment. Much of the need for change involves the better use of known technology, and some involves changing behaviour. Some behaviour depends on new technologies such as metering. Understanding how technological innovations are taken up (e.g. stock turnover issues, as well as how technical change occurs) and the economics of new technologies is as important as the technologies themselves.     

Depletion policy and the de-industrialization of the UK economy

With the present policy stance of the UK government, the rate of extraction of North Sea oil becames one of the more important instruments for managing the economy in the 1980s. In this paper the effects of different depletion policies are examined, ranging from rapid early extraction to a low profile long-term conservation policy. The author explains how the depletion policy should be seen in the context of the UK economy and present government policies. He describes four possible depletion policies for the 1980s, together with the assumptions which are made in analysing their effects. The macroeconomic results of putting each policy in the Cambridge multisectoral dynamic model are presented and show the severe short-term costs of unrestrained production. Finally relations between depletion policy and de-industrialization are examined.     

New accountabilities in utilities: fifty years of legal accountability in the gas industry

Privatisation was to have released the nationalised industries from the ‘dead hand of government’. Regulation with a ‘light hand’ was imposed to curb abuse of monopoly power. But as the industries have matured in the private sector we have seen regulation extended to cover a wider area, both in theory and in practice. This paper examines the change in responsibilities and the way they are divided between industry, regulator and government, tracing the legal accountability of the UK gas industry through nationalisation, privatisation and more recent regulation reform as an example. It concludes by questioning the appropriateness of the ‘vertical separation’, instituted by the privatisation and competition legislation, of responsibilities for the public interest and for organisational operations.