{"id":38298,"date":"2020-03-23T05:21:22","date_gmt":"2020-03-22T18:51:22","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=38298"},"modified":"2024-05-15T14:38:49","modified_gmt":"2024-05-15T05:08:49","slug":"uk-net-zero","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/uk-net-zero\/","title":{"rendered":"A View From The UK: Consumer-Friendly Services Vital To Reach Net-Zero"},"content":{"rendered":"<div id=\"attachment_38330\" style=\"width: 1210px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-38330\" class=\"wp-image-38330 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/uk-city.jpg\" alt=\"Net zero carbon emissions in the UK\" width=\"1200\" height=\"628\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/uk-city.jpg 1200w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/uk-city-300x157.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/uk-city-1024x536.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/uk-city-768x402.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><p id=\"caption-attachment-38330\" class=\"wp-caption-text\">The UK is moving much faster than Australia towards net zero emissions. What can we learn from the Poms?<\/p><\/div>\n<p>I\u2019m often wary when I hear someone say \u201cregulation is getting in the way of innovation\u201d, because it\u2019s so often led to disastrous deregulation of things that matter &#8211; public safety, building regulation, product safety and the like.<!--more--><\/p>\n<p>However, in this early-March Sydney speech posted to YouTube, Dr Jeffrey Hardy, of Imperial College London\u2019s Grantham Institute, makes a convincing argument that energy market regulation is hobbling the development of business models that would help the UK get to its net zero emissions target. The video is well worth watching in its entirety.<\/p>\n<div class=\"youtube-wrapper\"><iframe title=\"Dr Jeffrey Hardy - International keynote\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/HHjkr45DMSw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>In the speech, \u201c(User-centric) UK Zero Carbon Energy Futures\u201d, Dr Hardy\u2019s contention is that while the world has nearly all the technology needed to reach a zero carbon target, consumer behaviour has to change as well.<\/p>\n<p>Technology \u201cabsolutely isn\u2019t\u201d the answer, he said, \u201cbecause only around 38% of the carbon savings are pure technology plays, where you replace something with something else.&#8221;<\/p>\n<p>While there will be a lot of \u201cnew kit\u201d, he said, \u201cthe rest has something to do with behaviour\u201d, such as changing peoples\u2019 mode of travel (to EVs) or heating (the ubiquitous gas boiler in UK households); and changes to social behaviour (less flying is a good example).<\/p>\n<blockquote><p>\u201cYou cannot do this transition without people doing things differently and willingly,\u201d he said.<\/p><\/blockquote>\n<p>Getting people to change their behaviour willingly means the industry needs to invent products and services encouraging change:<\/p>\n<blockquote><p>\u201cThis is a massive opportunity for data-driven, more consumer centric business models\u201d, stated Dr. Hardy.<\/p><\/blockquote>\n<h2>Consumers Are Ready<\/h2>\n<p>Because of the huge profile the environment has in UK politics (<i>wouldn\u2019t it be nice if Australia caught up?<\/i>), consumers are already showing the willingness Dr Hardy said is needed.<\/p>\n<p>\u201cConsumers are prepared to play their part in the transition,\u201d he said, but what they get in the future \u201chas to be better\u201d than what the industry delivers today.<\/p>\n<p>But you need a definition of \u201cbetter\u201d, because it&#8217;s one of those words that can mean pretty much anything.<\/p>\n<p>It\u2019s hard to imagine \u201cbetter\u201d, though, if people don\u2019t know what kind of products and services might exist in the future.<\/p>\n<p>Dr Hardy said one characteristic of future energy products will be that they match demand to supply, rather than the other way around:<\/p>\n<blockquote><p>\u201cIt makes much more sense for demand to follow supply, because that\u2019s when energy is going to be cheapest, as long as you can get it from A to B\u201d.<\/p><\/blockquote>\n<p>And the business opportunity is huge he said, citing research conducted by his organisation together with Leeds University that identified a possible \u00a321 billion \u201cpool of untapped value\u201d available to UK retailers, on the way to 100% renewables.<\/p>\n<p>These include between \u00a375 and \u00a31,809 million in plant efficiency; \u00a35 to \u00a39 billion in new services, up to \u00a34.6 billion in local low carbon generation and up to \u00a38 billion in large-scale low carbon generation, up to \u00a32 billion in \u201cflexibility optimisation\u201d, and up to \u00a31.7 billion in carbon capture and storage.<\/p>\n<div id=\"attachment_38324\" style=\"width: 1275px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-38324\" class=\"wp-image-38324 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/opportunities.jpg\" alt=\"UK utility opportunities\" width=\"1265\" height=\"664\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/opportunities.jpg 1265w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/opportunities-300x157.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/opportunities-1024x537.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/opportunities-768x403.jpg 768w\" sizes=\"(max-width: 1265px) 100vw, 1265px\" \/><p id=\"caption-attachment-38324\" class=\"wp-caption-text\">Going 100% renewable offers new business opportunities<\/p><\/div>\n<h2>The Role Of Regulation<\/h2>\n<p>Why is regulation standing in the way of the \u201cnew services\u201d slice of that value pool? Because, he said, UK energy market regulation today concentrates on <i>processes<\/i> &#8211; how billing works, what is printed on the bill, how retailers answer the phone and so on.<\/p>\n<p>The shift to a more complex services model, in which one provider might focus on <a href=\"https:\/\/www.solarquotes.com.au\/ev-chargers\/public\/\">EV charging<\/a> packages while another encourages peer-to-peer energy supply at a local level, simply doesn\u2019t fit with how UK energy market regulation now operates.<\/p>\n<p>\u201cThere are a lot of companies exploring energy-as-a-service\u201d, Dr Hardy said, but the same model underpins all of them: a service provider depends on selling a commodity, in a world that\u2019s consuming less of the commodity.<\/p>\n<blockquote><p>\u201cBy the time you get through [the UK\u2019s] regulatory spaghetti \u2026 there\u2019s only one model you can be: just a bill with a different sticker on it.\u201d<\/p><\/blockquote>\n<p>That\u2019s what Dr Hardy would like to see change. Rather than regulating processes, he wants the regulatory environment to encourage new energy business models (without sacrificing consumer protection and supply stability).<\/p>\n<p>Dr Hardy said his teams have identified six characteristics of a future market that can inform how we regulate future energy markets:<\/p>\n<ol>\n<li>Energy retailers need to be more like other retailers &#8211; supermarkets, with their data-driven understanding of how to shift multiple products, rather than living in the old world of selling a single, simple commodity. This needs to be accompanied by \u201crisk-based\u201d regulation rather than process regulation. The retailer would be responsible for convincing the regulator it has properly risk-assessed its proposed new product, possibly with new insurance products that would help mitigate potential harms.<\/li>\n<li>The market will move to more bundling. For example, you might get your transport, electricity, entertainment and telecoms from the same company. \u00a0It might make sense to bring consumer regulation under a single entity, \u201cbecause it might not make sense if there\u2019s no visibility between different services.\u201d He said there\u2019s a parallel discussion about whether economic regulation in the energy market still needs to be in different sectors.<\/li>\n<li>With more service provider freedom to create business models, \u201cthe regulator\u2019s going to have to have a commensurately large hammer to bring down on bad behaviour \u2026 potentially putting CEOs in jail\u201d<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/uk-net-zero\/#en-38298-1' id='enref-38298-1' onclick='return hhEndnotes_show(38298)'>1<\/a><\/sup>.<\/li>\n<li>The regulator has to \u201cbe better at data than any of the companies \u2026 it cannot be in the centre pulling levers, it has to be at the perimeter looking in, spotting trends, spotting things that might result in harm\u201d.<\/li>\n<li>Data becomes \u201cincredibly important\u201d, and while this will almost inevitably lead to strong industry opposition, \u201cenergy data should be considered a public good, and therefore open.\u201d<\/li>\n<li>He also said the industry has to take a new look at how it achieves security of supply, switching from the old habit of \u201csecurity means build more stuff\u201d to managing demand so as to avoid building new generation.<\/li>\n<\/ol>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-38325 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/redesigning-regulation.jpg\" alt=\"redesigning energy regulation\" width=\"1276\" height=\"675\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/redesigning-regulation.jpg 1276w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/redesigning-regulation-300x159.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/redesigning-regulation-1024x542.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/03\/redesigning-regulation-768x406.jpg 768w\" sizes=\"(max-width: 1276px) 100vw, 1276px\" \/><\/p>\n<p>Finally, the Q and A session following the talk is below. Particularly interesting is Dr Hardy says based on his research, the Australian Government&#8217;s latest &#8216;Technology Roadmap&#8217; approach to reducing emissions will simply not work&#8230;<\/p>\n<div class=\"youtube-wrapper\"><iframe title=\"Q&amp;A - International keynote\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/WybwCiXrfVg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019m often wary when I hear someone say \u201cregulation is getting in the way of innovation\u201d, because it\u2019s so often led to disastrous deregulation of things that matter &#8211; public safety, building regulation, product safety and the like.<\/p>\n","protected":false},"author":23,"featured_media":38330,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-38298","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-policy","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - 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UK_Coal, which publishes hourly tweets of current National Grid UK's coal generation, put the figure at 128 hours coal-free a short time ago - and\u2026","rel":"","context":"In &quot;General Solar &amp; Storage News&quot;","block_context":{"text":"General Solar &amp; Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Coal power in Britain","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/05\/coal-power-britain.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/05\/coal-power-britain.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/05\/coal-power-britain.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/05\/coal-power-britain.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/05\/coal-power-britain.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":47143,"url":"https:\/\/www.solarquotes.com.au\/blog\/emissions-australia-morrison\/","url_meta":{"origin":38298,"position":3},"title":"PM Commits To Zero Emissions By 2050 With Zero Practical Steps To Achieve It","author":"Ronald Brakels","date":"February 2, 2021","format":false,"excerpt":"Yesterday at the National Press Club, Prime Minister Scott Morrison said the following: \u201cOur goal is to reach net-zero emissions as soon as possible, and preferably by 2050.\u201d My response was, \u201cThank god for that.\u201d Twenty-nine years to get our emissions down to zero is a lot more time than\u2026","rel":"","context":"In &quot;Solar Policy&quot;","block_context":{"text":"Solar Policy","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-policy\/"},"img":{"alt_text":"Prime Minister Morrison - Australia Zero Emissions","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/scott-spin.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/scott-spin.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/scott-spin.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/scott-spin.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/scott-spin.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":44802,"url":"https:\/\/www.solarquotes.com.au\/blog\/australiansuper-net-zero-mb1760\/","url_meta":{"origin":38298,"position":4},"title":"AustralianSuper Joins The Net-Zero Bandwagon","author":"Michael Bloch","date":"November 13, 2020","format":false,"excerpt":"Superannuation fund AustralianSuper announced yesterday it has committed to achieving net-zero carbon emissions for its investment portfolio by 2050, stating that it was in members' interests to do so. 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