The UK domestic photovoltaics industry and the role of central government

Microgeneration technologies, such as solar photovoltaics, are an increasingly popular alternative for policy makers looking to address security of supply, fuel poverty, and environmental concerns. In the UK, this industry has benefited from government support in the form of grants but there is uncertainty about how microgeneration policy will evolve in the coming years. This paper uses interviews with stakeholders from across the UK PV industry to describe the current business and policy environment before exploring microgeneration policy as a question of joined-up government. Using a policy ‘streams’ framework, it is shown that microgeneration policy in the UK remains largely the domain of one ministry and while there is potential for cross-government promotion of microgeneration, departments must be convinced that microgeneration is a solution to “their” problems before policy coordination and consistency can be improved. While the paper focuses primarily on central government, the increasingly important role of local government in microgeneration policy is also briefly discussed.     

The diffusion of microgeneration technologies – assessing the influence of perceived product characteristics on home owners' willingness to pay

This study presents empirical insight into willingness to pay (WTP) for microgeneration technologies and the relative influence of subjective consumer perceptions. First, we apply a double-bounded contingent valuation method to elicit Irish home owners' WTP for micro wind turbines, wood pellet boilers, solar panels and solar water heaters. Utilizing findings from the adoption of innovation literature, in a second step we assess the influence of antecedents on WTP for each of the four technologies, including (1) home owners' perception of product characteristics, (2) normative influences and (3) sociodemographic characteristics. Our results show that WTP varies significantly among the four technologies. More importantly, however, home owners hold different beliefs about the respective technologies, which significantly influence their WTP. The results provide valuable information for marketers and policy makers aiming to promote microgeneration technologies more effectively in consumer markets.     

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.     

A public perspective on the adoption of microgeneration technologies in New Zealand: A multivariate probit approach

The growing demand for electricity in New Zealand has led to the construction of new hydro-dams or power stations that have had environmental, social and cultural effects. These effects may drive increases in electricity prices, as such prices reflect the cost of running existing power stations as well as building new ones. This study uses Canterbury and Central Otago as case studies because both regions face similar issues in building new hydro-dams and ever-increasing electricity prices that will eventually prompt households to buy power at higher prices. One way for households to respond to these price changes is to generate their own electricity through microgeneration technologies (MGT). The objective of this study is to investigate public perception and preferences regarding MGT and to analyze the factors that influence people’s decision to adopt such new technologies in New Zealand. The study uses a multivariate probit approach to examine households’ willingness to adopt any one MGT system or a combination of the MGT systems. Our findings provide valuable information for policy makers and marketers who wish to promote effective microgeneration technologies.     

The impact of microgeneration upon the Dutch balancing market

The share of microgeneration (power generation at the level of households and small businesses) in the Dutch electricity system continues to grow. Over time, this development may pose a threat to the reliability and efficiency of the Dutch electricity balancing market. We investigated possible changes to the design of the Dutch balancing market that can maintain or even improve upon its current operational performance level. The first step of the research was an analysis of the existing Dutch balancing market. It consists of three main instruments: programme responsibility, the single buyer market for regulating and reserve power (RRP), and imbalance settlement. The balancing market currently functions satisfactorily. Subsequently, the effects of large-scale development of microgeneration in the Netherlands were evaluated with a qualitative scenario analysis. Four microgeneration scenarios and two methods for allocating the household electricity consumption and generation were considered. The four scenarios concerned large-scale penetration of PV, heat-led micro CHP, electricity-led micro CHP operated by the household consumer, and electricity-led micro CHP operated by the supply company. The last scenario was found to have the strongest positive net effect. Finally, six design options were identified for improving the Dutch balancing market design in case the share of microgeneration would increase substantially. Of these six options, adjusting the profile methodology and the regulation of smart meters are no-regret options that can be implemented immediately. The attractiveness of the other options depends upon the microgeneration portfolio that emerges, the manageability of large metering data flows, and the nature of the technical effects of large-scale microgeneration penetration.     

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.     

Calculating the price trajectory of adoption of fuel cell vehicles

How do you model consumer behaviour for disruptive technologies? Technologies that potentially have no antecedents and that, by their very definition, change consumer behaviour patterns?This paper outlines a methodology and results employed during a study to model the consumer willingness to pay for fuel cell vehicles, a potential disruptive innovation (DI).The first part of the study provides a short overview on DI highlighting why the fuel cell family of technologies may represent an upcoming DI.From the post ante study of successful historical disruptive innovations a number of initial `rules of adoption' can be sketched. Further narrowing of the focus on economic reasons for adoption provides a framework for which the willingness to pay for the new disruptive technology, such as, here, fuel cell vehicles, can be analysed during different phases of the market.This economic framework is then applied to the potential future market of fuel cell vehicles using information from a model that was built from vehicles during the build years 1994–2002 in the subcompact, compact and luxury class. The results presented in this paper concentrate on the subcompact and compact class of vehicle and supersede the initial results previously published. Finally, there is a short discussion on different pathways that this can be taken forward and used to help in policy decisions.     

A systematic literature review of societal acceptance and stakeholders’ perception of hydrogen technologies

This paper presents the results of a systematic review that analysed the literature on factors influencing societal acceptance and stakeholders’ perceptions of hydrogen related technologies. This study found that the most influencing factors include prior knowledge, perceived cost/risks, environmental knowledge, higher education and income, personal and distributive benefits, infrastructure availability and close proximity to hydrogen facilities. There was low hydrogen awareness in more than 60% of the countries analysed in the reviewed studies. Although stakeholders had diverse perceptions, there was agreement that infrastructure availability, affordability, local community engagement, regional skill capability development, preservation of biodiversity, and safety and distributive benefits to the community were essential for a successful hydrogen industry. Future research could examine consumer acceptance at different geographical scales, analyse pre-and post-hydrogen project implementation, and social impact of hydrogen infrastructure on local communities. We also recommend diversifying hydrogen research projects and investigating the policy and regulatory arrangements for community-owned hydrogen projects.     

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.     

Energy efficiency versus gains in consumer amenities—An example from new cars sold in Sweden

Technological developments that increase energy efficiency result in net energy-saving benefits, provided the increased efficiency is not offset by enhanced consumer amenities. This paper analyzes the technology development/consumer amenities trade-off for new cars sold in Sweden between 1975 and 2010. We combine lessons learned from the policies in place and interviews with key actors in the car-purchasing process with statistical modeling of trends in vehicle attributes and technological development. Until 2007, consumer amenities were continuously enhanced, offsetting most of the efficiency gains of technological development; there was no strong policy push toward energy efficiency. In recent years, two major shifts have occurred. First, there has been a shift in the majority of new cars sold, from gasoline-powered engines to diesel engines. Flex-fuel vehicles have also contributed to a decline in the sales-share of pure gasoline engines. The observed shift of fuels, especially to flex-fuels, has been encouraged by policies. Second, after 2007 there have been major technological improvements, while attributes related to consumer amenities have remained flat, reversing the trends so that 77% of the technological development resulted in actual reduction of specific fuel consumption. EU targets, tax reforms, and consumer awareness have contributed to this trend change.     

建立我国能效信息标识制度的有关问题

国际经验表明,对家用电器和设备实施能效信息标识制度能有效的遏制能源消耗增长势头。鉴于能源安全和环境保护的双重压力,我国将建立和实施适应市场经济体制的能效标识制度。本文对建立能效标识制度的相关问题进行了探讨,并提出建议,即针对量大面广、节能潜力的大的产品,以发布目录的形式,实施强制性的“可比较的”能效等级标识;实施模式为“企业自我说明+强化市场监管”;产品能效等级的划分即要考虑市场上产品能效的分布情况,也要考虑实施监管和消费者的甄别能力等因素;标识样式应反映文化因素和消费者的能效意识水平,并进行市场调查;应加强能效标识符合性的能力建设,以推动制度的顺利实施。     

Institutional influences on business model choice by new ventures in the microgenerated energy industry

Business model choice plays an important source of competitive advantage for new ventures in the microgeneration sector. Yet, existing literature focuses on strategic management of internal resources as the constraints in this choice process. In the energy sector, external factors may be at least as influential in shaping these business models. This paper examines the roles of politico-institutional and socio-institutional dynamics in the choice of business models for microgeneration ventures. Business models have traditionally been viewed as constructions of the internal values, strategies, and resources of organizations. But, this perspective overlooks the role that external forces have on these models, particularly in more highly institutionalized contexts like microgeneration. When these factors are introduced into the existing framework for business model choice, the business model based less on firm decision-making and more about variables that exist within national innovation systems and political structure, local socio-technological conditions, and cognitive abilities of the entrepreneur and corresponding stakeholders.     

Coordinated voltage support in distribution networks with distributed generation and microgrids

This paper proposes a new methodology for coordinated voltage support in distribution networks with large integration of distributed generation and microgrids. Given the characteristics of the LV networks, it is shown that traditional control strategies using only reactive power control may not be sufficient in order to perform efficient voltage control. Therefore, microgeneration shedding must also be employed, especially in scenarios with extreme microgeneration penetration. An optimisation tool based on a meta-heuristic approach was developed to address the voltage control problem. In addition, neural networks were employed in order to decrease computational time, thus enabling the use of the tool for online operation. The results obtained revealed good performance of this control approach.     

Innovation subsidies versus consumer subsidies: A real options analysis of solar energy

Given the interest in the commercialization of affordable, clean energy technologies, we examine the prospects of solar photovoltaics (PV). We consider the question of how to transition to a meaningful percentage of solar energy in a sustainable manner and which policies are most effective in accelerating adoption. This paper develops a stochastic dynamic model of the adoption of solar PV in the residential and commercial sector under two sources of uncertainty – the price of electricity and cost of solar. The analytic results suggest that a high rate of innovation may delay adoption of a new technology if the consumer has rational price expectations. We simulate the model across alternative rates technological change, electricity prices, subsidies and carbon taxes. It is shown that there will be a displacement of incumbent technologies and a widespread shift towards solar PV in under 30 years – and that this can occur without consumer incentives and carbon pricing. We show that these policies have a modest impact in accelerating adoption, and that they may not be an effective part of climate policy. Instead, results demonstrate that further technological change is the crucial determinant and main driver of adoption. Further, results indicate that subsidies and taxes become increasingly ineffective with higher rates of technological change.     

Potential for solar water heating in Zimbabwe

This paper discusses the economic, social and environmental benefits from using solar water heating (SWH) in Zimbabwe. By comparing different water heating technology usage in three sectors over a 25-year period, the potential of SWH is demonstrated in alleviating energy and economic problems that energy-importing countries like Zimbabwe are facing. SWH would reduce coincident electricity winter peak demand by 13% and reduce final energy demand by 27%, assuming a 50% penetration rate of SWH potential demand. Up to $250 million can be saved and CO₂ emissions can be reduced by 29% over the 25-year period. Benefits are also present at individual consumer level, for the electricity utility, as well as for society at large. In the case of Zimbabwe, policy strategies that can support renewable energy technologies are already in current government policy, but this political will need to be translated into enhanced practical activities. A multi-stakeholder approach appears to be the best approach to promoting widespread dissemination of SWH technologies.     

Going hybrid: An analysis of consumer purchase motivations

What makes consumers adopt energy-sustainable innovations? The uptake of such products and technologies is of importance, particularly at a time when climate change, diminishing energy resources and energy security are urgent issues. This paper reports on a case study of consumer adoption of hybrid vehicles, a green innovation that has been in the market since the late 1990s. The study is based on a questionnaire survey, conducted in 2009 in collaboration with Toyota GB, to investigate the dimensions that constitute motivations to purchase the Prius and to examine how policy can encourage hybrid adoption. The survey yielded 1484 responses, 1263 of which were used for the analysis; the results of the exploratory factor analyses provide information on consumer purchase motivations. The financial benefits related to transport policy are an important factor in consumer hybrid purchase motivations, and social norms and consumers’ willingness to comply with the norms of their groups influence the purchase decision. We also find that various meanings are attached to hybrid vehicle ownership, and practical, experiential and affective values need to be communicated to consumers in terms of value added.     

The importance of comprehensiveness in renewable electricity and energy-efficiency policy

Based on extensive research interviews and supplemented with a review of the academic literature, this article assesses the best way to promote renewable energy and energy efficiency. It begins by briefly laying out why government intervention is needed, and then details the four most favored policy mechanisms identified by participants: eliminating subsidies for conventional and mature electricity technologies, pricing electricity accurately, passing a national feed-in tariff, and implementing a nationwide systems benefit fund to raise public awareness, protect lower income households, and administer demand side management programs. Drawing mostly from case studies in the United States, the article also discusses why these policy mechanisms must be implemented comprehensively, not individually, if the barriers to renewables and energy efficiency are to be overcome.     

Domestic heat pumps in the UK: user behaviour, satisfaction and performance

Consumer adoption of microgeneration technologies is part of the UK strategy to reduce carbon emissions from buildings. Domestic heat pumps are viewed as a potentially important carbon saving technology, given the ongoing decarbonisation of the electricity supply system. To address the lack of independent evaluation of heat pump performance, the Energy Saving Trust undertook the UK??s first large-scale heat pump field trial, which monitored 83 systems in real installations. As part of the trial, the Open University studied the consumers?? experience of using a domestic heat pump. An in-depth user survey investigated the characteristics, behaviour, and satisfactions of private householders and social housing residents using ground source and air source heat pumps for space and/or water heating, and examined the influence of user-related factors on measured heat pump system efficiency. The surveys found that most users were satisfied with the reliability, heating, hot water, warmth and comfort provided by their system. Analysis of user characteristics showed that higher system efficiencies were associated with greater user understanding of their heat pump system, and more continuous heat pump operation, although larger samples are needed for robust statistical confirmation. The analysis also found that the more efficient systems in the sample were more frequently located in the private dwellings than at the social housing sites and this difference was significant. This is explained by the interaction between differences in the systems, dwellings and users at the private and social housing sites. The implications for heat pump research, practice and policy are discussed.     

Energy and carbon payback times for solid oxide fuel cell based domestic CHP

Fuel cells already provide heat and power to people’s homes with lower direct CO₂ emissions and fuel consumption than traditional methods. However, their whole life cycle, including manufacture and disposal, must be considered to verify that these environmental impacts are actually reduced and not merely shifted elsewhere. The total carbon footprint and energy payback times have been widely reported for other emerging microgeneration technologies, but have not previously been calculated for fuel cell systems.     

Assessing the potential of fuel cell-powered and battery-powered forklifts for reducing GHG emissions using clean surplus power; a game theory approach

This work aims at developing a game theory model for assessing the potential of fuel cell-powered and battery-powered forklifts for reducing GHG emissions in the province of Ontario, Canada. Two stakeholders are considered in the developed model: government and energy consumer. The energy consumer, which is assumed to be an industrial facility, operates 150 diesel forklifts but has the option of replacing them with fuel cell-powered and battery-powered forklifts. The government can encourage this replacement by allocating a percentage of Ontario's surplus power to the energy consumer at a discounted price. The discount is assumed to be exempting the energy consumer from paying the global adjustment. As a result, the energy consumer only pays the hourly Ontario electricity price when discounted power is available. Discounted electricity will decrease the cost of operating battery-powered and fuel cell-powered forklifts for the energy consumer and will encourage it to use those technologies instead of diesel forklifts. The government has an incentive to pursue such policy as the replacement of diesel forklifts with fuel cell-powered and battery-powered forklifts will reduce GHG emissions and subsequently, the social cost of carbon in the province. The reults of our modeling show that when the government does not allocate discounted power to the energy consumer, energy consumer does not reduce emissions and keeps using its 150 diesel forklifts. However, when the government provides 0.1% of Ontario's surplus power at each hour to the energy consumer at a discounted price, the energy consumer replaces 31 of its diesel forklifts with battery-powered forklifts. When the percentage of discounted power is 0.6% of Ontario's surplus power at each hour, energy consumer replaces 91 of its diesel forklifts with battery-powered forklifts and 54 of its diesel forklifts with fuel cellpowered forklifts.A policy of discounting surplus power to encourage replacing diesel forklifts with battery-powered and fuel cell-powered forklifts is shown to benefit both stakeholders in the system. Our analysis also shows that the deployment of both fuel-cell powered and battery-powered forklifts is effective in reducing GHG emissions in Ontario when surplus clean power is available. Battery-powered forklifts are more cost-effective when lower levels of discounted power are available; however, with an increase in the level of available discounted power, fuel cell-powered forklifts become more cost-effective technologies compared to battery-powered forklifts.