The feed-in tariff in the UK : a case study focus on domestic photovoltaic systems

This paper explores the photovoltaic (PV) industry in the United Kingdom (UK) as experienced by those who are working with it directly and with consideration of current standards, module efficiencies and future environmental trends. The government's consultation on the comprehensive review for solar PV tariffs, proposes a reduction of the generation tariff for PV installations in the UK of more than 50%. The introduction of the Feed-In Tariffs scheme (FITs) has rapidly increased deployment of PV technologies at small scale since its introduction in April 2010. The central principle of FIT policies is to offer guaranteed prices for fixed periods to enable greater number of investors. A financial analysis was performed on two real-life installations in Cornwall, UK to determine the impact of proposed cuts to the FIT will make to a typical domestic PV system under 4 kW. The results show that a healthy Return on Investment (ROI) can still be made but that future installations should focus on off-setting electricity required from the national grid as a long term push for true sustainability rather than subsidised schemes. The profitability of future installations will have to be featured within in-service and end-of-service considerations such as the feed-in tariff, module efficiencies and the implications of costs associated with end-of-life disposal

Constructing Policy Success for UK Energy Feedback

Energy feedback tools are commonly used to promote energy saving. In the UK, energy feedback provision (currently via an In-Home Display) is part of the government-mandated roll-out of smart meters to all homes by 2020. A core assumption underlying this widespread provision is that information, or evidence, can lead to positive changes in action. This is analogous to assumptions underlying the notion of ‘Evidence-Based Policy’, which raises questions about how users, researchers and policymakers go about using evidence in aiming for a ‘successful’ outcome. In addition the ‘policy feedback’ research agenda has asked how policies alter the landscapes within which they operate by, for example, affecting relationships between actors. Via an in-depth review of DECC (now BEIS) policy literature over 2010-2016, the UK smart meter roll-out was analysed in terms of how its energy feedback focussed measures may be deemed as ‘successful’. Findings include that direct energy savings played a smaller role than might be expected, and translation from one success measure to another was repeatedly observed. A key conclusion is that acting on feedback requires an assessment of success, but such assessment is highly contextual, for consumers and policymakers alike. Ways to increase reflexivity in this area are discussed

The co-evolutionary relationship between energy service companies and the UK energy system: Implications for a low-carbon transition

The Energy Service Company (ESCo) business model is designed to reward businesses by satisfying consumers' energy needs at less cost and with fewer carbon emissions via energy demand management and/or sustainable supply measures. In contrast, the revenue of the incumbent Energy Utility Company (EUCo) model is coupled with the sale of units of energy, which are predominantly sourced from fossil fuels. The latter is currently dominant in the UK. This paper addresses two questions. First, why has the ESCo model traditionally been confined to niche applications? Second, what role is the ESCo model likely to play in the transition to a low-carbon UK energy system? To answer these, the paper examines the core characteristics of the ESCo model, relative to the EUCo model. The paper then examines how ESCos have co-evolved with the various dimensions of the energy system (i.e. ecosystems, institutions, user practices, technologies and business models) to provide insight into how ESCos might help to shape the future UK energy system. We suggest that institutional and technological changes within the UK energy system could result in a more favourable selection environment for ESCos, consequently enabling the ESCo model to proliferate at the expense of the EUCo model. © 2013 Elsevier Ltd

Do smart grids offer a new incentive for SME carbon reduction?

Collectively small and medium sized enterprises (SMEs) are significant energy users although many are unregulated by existing policies due to their low carbon emissions. Carbon reduction is often not a priority but smart grids may create a new opportunity. A smart grid will give electricity suppliers a picture of real-time energy flows and the opportunity for consumers to receive financial incentives for engaging in demand side management. As well as creating incentives for local carbon reduction, engaging SMEs with smart grids has potential for contributing to wider grid decarbonisation. Modelling of buildings, business activities and technology solutions is needed to identify opportunities for carbon reduction. The diversity of the SME sector complicates strategy development. SMEs are active in almost every business area and occupy the full range of property types. This paper reviews previous modelling work, exposing valuable data on floor space and energy consumption associated with different business activities. Limitations are seen with the age of this data and an inability to distinguish SME energy use. By modelling SME energy use, electrical loads are identified which could be shifted on demand, in a smart network. Initial analysis of consumption, not constrained by existing policies, identifies heating and cooling in retail and commercial offices as having potential for demand response. Hot water in hotel and catering and retail sectors may also be significant because of the energy storage potential. Areas to consider for energy efficiency schemes are also indicated

State, community and the negotiated construction of energy markets: Community energy policy in England

This article provides fresh insight on the political construction of markets through empirical analysis of community energy in the UK. It considers the diverse actors, understandings, processes and technologies enrolled in market creation, stabilisation and correction, while emphasising how negotiation, mediation and translation are pervasive throughout. Our starting point is an exploration of the role of the state in managing processes of socially embedding and disembedding markets, and how tensions between ideological commitments to deregulation and the social necessity of intervention are addressed by governing at a distance, in this example through the conveniently malleable notion of ‘community’. We draw attention in particular to the variegated manifestations of these processes and the plurality of actors and logics operating within the ‘black box’ of the state, as well as within and between markets and civil society. We reveal how negotiation between competing logics – the impulse to marketise and its diverse others – can be observed across different forms of organisation and action. We argue that such deliberations can be seen as fractal patterns throughout contemporary socioeconomic arrangements, emphasising how the Polanyian concept of the ‘double movement’ can be deepened through analysis of the heterogeneous associations and logics at work in ‘actually existing’ instituted action, understanding political processes as ontologically performative. Empirical material is drawn from across four research projects, each focusing on different aspects of the UK government's Community Energy Strategy, exploring the varying ways marketisation plays out through different governmental programmes

A waste of energy? A critical assessment of the investigation of the UK Energy Market by the Competition and Markets Authority

This document is the accepted manuscript version of the following article: Chrysovalantis Amountzias, Hulya Dagdeviren and Tassos Patokos, ‘A waste of energy? A critical assessment of the investigation of the UK energy market by the Competition and Markets Authority’, Competition & Change, Vol. 21 (1): 45-60, February 2017. The final version of this paper is available at doi: http://journals.sagepub.com/doi/pdf/10.1177/1024529416678070. Published by SAGE Publishing.In this paper, we assess the findings of the UK energy market investigation by the Competition and Markets Authority, conducted during June 2014–June 2016.We argue that the results of the investigation have been advantageous for the large energy companies and they risk failing to bring any significant and positive change to the energy industry.We highlight three major aspects of the Competition and Markets Authorities assessment. First, the panel examined retail and wholesale segments of the energy industry in isolation, which can be misleading in the assessment of vertical integration. It also considered new entries to the sector as a sign of competitive strength when many were due to favourable government policies in the form of exemptions from various obligations. Second, its conclusion that a position of unilateral market power by the large energy companies arises from weak customer engagement (i.e. low switching rates) shifts the focus and responsibility for the problems of the energy markets away from the conduct of the companies onto customers. Finally, the investigation placed an overemphasis on competition without due reference to its consequences for consumers’ welfare.Peer reviewe

A barrier and techno-economic analysis of small-scale bCHP (biomass combined heat and power) schemes in the UK

bCHP (Biomass combined heat and power) systems are highly efficient at smaller-scales when a significant proportion of the heat produced can be effectively utilised for hot water, space heating or industrial heating purposes. However, there are many barriers to project development and this has greatly inhibited deployment in the UK. Project viability is highly subjective to changes in policy, regulation, the finance market and the low cost fossil fuel incumbent. The paper reviews the barriers to small-scale bCHP project development in the UK along with a case study of a failed 1.5MWel bCHP scheme. The paper offers possible explanations for the project's failure and suggests adaptations to improve the project resilience. Analysis of the project's: capital structuring contract length and bankability; feedstock type and price uncertainty, and plant oversizing highlight the negative impact of the existing project barriers on project development. The research paper concludes with a discussion on the effects of these barriers on the case study project and this industry more generally. A greater understanding of the techno-economic effects of some barriers for small-scale bCHP schemes is demonstrated within this paper, along with some methods for improving the attractiveness and resilience of projects of this kind

The relationship between wind power, electricity demand and winter weather patterns in Great Britain

Wind power generation in Great Britain has increased markedly in recent years. However due to its intermittency its ability to provide power during periods of high electricity demand has been questioned. Here we characterise the winter relationship between electricity demand and the availability of wind power. Although a wide range of wind power capacity factors is seen for a given demand, the average capacity factor reduces by a third between low and high demand. However, during the highest demand average wind power increases again, due to strengthening easterly winds. The nature of the weather patterns affecting Great Britain are responsible for this relationship. High demand is driven by a range of high pressure weather types, each giving cold conditions, but variable wind power availability. Offshore wind power is sustained at higher levels and offers a more secure supply compared to that onshore. However, during high demand periods in Great Britain neighbouring countries may struggle to provide additional capacity due to concurrent low temperatures and low wind power availability

UK grid electricity carbon intensity can be reduced by enhanced oil recovery with CO2 sequestration

Enhanced Oil Recovery (EOR) using CO2 coupled with Carbon Capture and Storage (CCS) can potentially accelerate CO2 storage investment through creation of a large commercial market for EOR . This article assesses how coupled a CCS-EOR scenario might contribute to decarbonization of UK grid electricity. Progressive introduction of 11 CCS-to-EOR gas-power plant projects from 2020 is estimated to store 52 Mt CO2 yr−1 from 2030. These 11 projects produce extra revenue of 1100 MM bbls of taxable EOR oil from 2020 to 2049. After each 20-year EOR project ceases, its infrastructure is paid for, and has many years of life. UK climate change targets would necessitate continued CO2 storage at low cost. Considering all greenhouse gas emissions – from power generation, CCS-EOR operations, and oil production and combustion – this project suite emits an estimated 940–1068 Mt CO2e from 2020 to 2049, while storing 1358 Mt CO2. The total average electricity grid factor in the UK reduces to 90–142 kg CO2e MWh−1, with gas generating 132 TWh yr-1. This life-cycle analysis (LCA) is unusual in linking oil production and combustion with CCS and gas-fueled electricity, yet provides a net carbon reduction, and progressively reduces net oil combustion emissions beyond 2040