Delivering radical reform in the UK energy market
[edit] Can Government deliver radical reform in the UK energy market?
For radical reform to be effective, Government must set a permissive framework, with robust regulations, which are consistently enforced to ensure individual and national safety.
Government can join the dots between energy security, energy supply and demand, workforce requirements and population flow and they can influence consumer behaviour. Government has the overview of all parts of the jigsaw.
Without a Government roadmap, essential elements will be missing, leading to potential imbalance of supply, security and safety issues.
[edit] What are the major benefits that the UK should be seeking to deliver from energy market reform?
- Less reliance on energy from fossil fuels.
- Producing enough home-grown energy to satisfy the UK demand.
- A fair and equitable pricing and taxation system for all types of energy.
- For the UK to become a world leader in an innovative energy market, attracting investment and economic growth.
[edit] What are the chief barriers to reform of the energy market and is the Government serious about addressing those?
[edit] Lack of electrical core competencies
The shortage of a qualified and competent workforce to implement any changes. Any reforms to the energy market must map the workforce needed in collaboration with industry. Electrical core competencies are essential to achieving the changes of a reformed energy market. All new technologies need a competent and well-trained electrical workforce to install and integrate energy systems. The workforce will require electrical core competencies ahead of any technology-specific training. DESNZ and DfE need to work in tandem to overcome this deep-rooted problem.
[edit] Lack of Systems Integrators
There is a need for more trained Systems Integrators (bringing together component systems in the whole building and ensuring that those subsystems function together) to maximise energy efficiency. This would involve seamless integration of smart controls and a range low-carbon technologies using different energy sources.
[edit] Unfair Taxation
Tax changes to treat all energy sources equally are necessary. One solution could be to reevaluate the distribution of costs related to frequency and charging rates among electricity suppliers while also integrating them into the broader framework of social and environmental initiatives overseen by OFGEM.
[edit] Lack of energy storage capacity
Although we can already produce substantial home-grown energy, we do not have sufficient battery and other storage capacity to store it for when we need it most.
[edit] Weak investment in transmission and distribution networks
To enable increased generation and storage solutions, significant investment is needed to increase the capacity for the transmission and distribution networks capable of accepting a greater number of connections. Investment in this area has fallen behind other countries and left the UK at a significant disadvantage.
[edit] Underlying principles of the UK energy market
[edit] Safety
Safety must be embedded as a principle for any decisions about, or changes to, the energy market. An accelerating demand for energy, and in particular electrical energy, without a full understanding of the complexity of integration, is potentially dangerous. Similarly, weak regulation could lead to infrastructure damage or loss of life. The Grenfell tragedy was caused by an electrical fire. Future energy markets must bake in systemic safety processes to prevent future tragedies. Electric shocks and local and national power outages caused through faulty installation of new appliances or systems integration could also have tragic consequences.
[edit] Consistency
UK home nations, Government Departments, the Building Safety Regulator, Office for Product Safety and Standards and Local Authorities must walk in lock step as they take a leading role in enforcing industry agreed safety standards.
[edit] Energy security through Grid resilience
Multiple energy generation in multiple locations, rather than large scale centralised generation. Using local natural resources, such as biomass, waste products or hydro to supplement solar or wind, spreads the risk of reduced grid capacity at times when weather conditions are unfavourable for energy generation. ‘Hybrid-distributed generation’ is cost-effective and suitable for domestic needs. Focusing only on centralised energy generation presents a risk to national security. For example, Ukraine has moved to Hybrid-distribution (multiple energy generation in multiple locations) following the attacks on its large scale central generating power stations.
[edit] Fair pricing
Large scale centralised energy generation is expensive but may be needed for some heavy industry users of energy, such as a steel plant. While domestic users do not benefit from large scale central generation, they carry the burden of its cost. Smart technology could be used to vary the costs for different types of energy production.
A review of energy taxation is overdue and is vital to ensure different forms of energy are treated equally.
[edit] Is the Review of Electricity Market Arrangements likely to deliver the necessary changes to the energy sector?
There is a widespread appetite for Electricity Market Reform. It is becoming increasingly necessary in order for the UK to capitalise on new technological and economic opportunities. The new arrangements need to be permissive enough to allow innovation, without losing sight of the robust regulation necessary to ensure safety. It is vital Government seeks advice from those who understand practical technologies and the implications for their integration in the existing built environment.
[edit] Is it possible to ensure that consumers are insulated from market failures in the energy sector?
With reform of the energy market the need to navigate potential complexity will require a new role - trusted independent advisors (like a mortgage advisor). With both technical know-how and knowledge of the market, they will be able support the public in choosing the right solution for their homes. By incentivising one energy solution over another, governments run the risk of encouraging unscrupulous agents who advise consumers inappropriately.
To learn more about ECA’s work to enable positive change for electrotechnical contractors, visit our Taking Action page here.
This article appears on the ECA bog page as "Can Government deliver radical reform in the UK energy market?" dated 12 November, 2024.
--ECA
[edit] Related articles on Designing Buildings
- Articles about electricity.
- Alternating current and direct current.
- Ampere.
- BEAMA.
- Coal usage for electricity generation to end by October 2024.
- Consumer electronics.
- Domestic micro-generation.
- Electrical consumption.
- Electrical energy.
- Electrical power.
- Electrical safety.
- Electrical system.
- Electricity supply.
- Energy consumption.
- Energy infrastructure.
- Energy storage.
- Energy storage for buildings.
- Engineering Recommendation G99.
- Feed in tariff.
- Glossary of electrical terms.
- Integrated systems.
- Islanded grid.
- Kilowatt hour.
- London Power Tunnels.
- Mains electricity.
- Making Mission Possible: report on achieving a zero-carbon economy by 2030.
- Microgeneration.
- Natural capital, infrastructure banks and energy system renationalisation.
- Power generation.
- Renewable energy.
- Smart Export Guarantee SEG.
- Smart meter.
- Substation.
- Switchgear.
- The future of electricity in domestic buildings.
- The future of UK power generation.
- Total energy supply.
Featured articles and news
Latest Build UK Building Safety Regime explainer published
Key elements in one short, now updated document.
UKGBC launch the UK Climate Resilience Roadmap
First guidance of its kind on direct climate impacts for the built environment and how it can adapt.
CLC Health, Safety and Wellbeing Strategy 2025
Launched by the Minister for Industry to look at fatalities on site, improving mental health and other issues.
One of the most impressive Victorian architects. Book review.
Common Assessment Standard now with building safety
New CAS update now includes mandatory building safety questions.
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.