Missing Opportunities To Lower Bills With Renewables No Longer An Option

Concerned about energy security and access, Dr Mo Hajhashem issues a stark warning about three consequences of inaction: keeping bills elevated, maintaining dependence on Russian gas, and obstructing net-zero progress.

Renewable energy generation has become disadvantaged through a series of governmental energy decisions, representing a missed opportunity consumers cannot afford to lose.

The renewable energy sector has approximately 17.4GW of projects with planning permission ready to advance. However, the Government has authorized only around 12GW of new renewable generation — insufficient to alter the current trajectory.

The existing broken energy model has created a situation where both businesses and households face exorbitant energy prices. The author identifies three unacceptable outcomes: depriving energy savings during the cost-of-living crisis, preventing progress toward net-zero targets, and allowing energy to become a luxury rather than a necessity.

Maximising UK Renewables

Cost comparisons demonstrate renewable viability: gas-fired generation costs approximately £140 per megawatt hour, while solar and wind power generation costs approximately £40 per megawatt hour.

The Low Carbon Contracts Company (LCCC) forecasted £770m in paybacks by winter’s end, representing potential savings for businesses and households.

The current system operates through “contracts for difference,” where renewable generators bid at auction to produce power, with the Government setting incentive payments and capacity limits.

Doug Parr, Greenpeace UK policy director, stated: “renewables are low-carbon, cheap, domestic and can be deployed faster than the alternatives.”

Maximising Step-Change Solutions

An “Energy sector digitalisation” report from September 2021 highlighted how “Digital technologies such as Artificial Intelligence (AI), the Internet-of-Things (IoT) and Distributed Ledger Technology (DLT) can improve the efficiency and flexibility of the UK energy system.”

A 2020 PwC report estimated digital technologies in the energy sector could boost global GDP by up to £3.82 trillion by 2030 while reducing carbon emissions by up to 4%.

AI + Blockchain Since 2017

UrbanChain launched eChain, a peer-to-peer energy exchange system, in 2017 for businesses consuming energy and renewable power producers.

The platform represents the only peer-to-peer renewable energy market in Britain. Participants buy and sell green energy amongst themselves, with consumers saving at least 25% on bills while generators improve margins by 25% minimum.

AI and blockchain technologies enable corporate consumers to place precise electricity orders and generators to fulfill them. The platform handles matching, balancing, consumption, billing, and generation management, along with profiling and aggregating to overcome renewable intermittency.

Report Highlights

The digitalisation report emphasizes two critical points:

AI systems can improve energy sector operations through predictive analytics and Digital Twin Models for better network asset decision-making.

Blockchain, though still in earlier development stages, can help manage decentralized energy systems and facilitate peer-to-peer energy trading among consumers.

The conclusion urges investment in low-cost renewables and adoption of opportunities to escape volatile gas price volatility.