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New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Using technology to build a cheap, green energy future
19/4/2023
4 min read
Comment
We have the technology to enable greater energy efficiency, reduce emissions and drop bills for consumers. Greg Jackson FEI, Vice President of the Energy Institute and Founder and CEO of Octopus Energy Group, discusses the central role of technology in facilitating the green energy transition.
Someone from the fossil fuel industry recently asked me: ‘What’s the role for us in the energy transition?’ It’s the wrong question. Any industry should be built around the needs of its consumers, not as a roadmap for its suppliers. Energy must work better for consumers – businesses and households – better for them, and better for the climate.
This will mean all manner of new solutions, some of which the fossil fuel industry could never have dreamed of.
When we invent new technology, we change how we think about processes in every way. Take the iPhone: no one could have predicted that it would lead to the downfall of the cab office through the rise of Uber. Or that QR codes would get everyone out again after the pandemic. Now, we have groceries delivered within minutes; holographic music concerts; and AI chatbots writing our essays.
Energy needs the same revolution.
ChatGPT probably isn’t the key to the green transition. But a smart, dynamic, interconnected power system is – and it will unleash smarter, greener, cheaper energy for everyone.
Radical technological change
To see the full benefits of renewables, we must cut ties with traditional energy infrastructure and use technical innovation to drive a new system.
Green power is already cheaper than power from fossil fuels, but our grid blocks that value. In the world of fossil fuels, people sit in control rooms and switch power plants on and off according to predictable demand curves. Renewables don’t fit into that rectangular world. The grid that operates today is therefore no longer fit for purpose.
We’re seeing the consequences of this first hand. In the UK, we’re throwing away free, green electrons because we can’t intelligently manage demand. And it’s costing us dearly: each year, we spend over £1bn turning wind farms off and using gas as a back-up. That’s a huge amount of money needlessly spent – when all the tech we need to solve the problem exists today.
Without clean technology, the system will remain inefficient, outdated and loaded up with costs.
Renewables are best if we consume them at the point they’re being generated – like intelligently charging EV batteries when it’s windy. This gives us the cheapest power we’ve ever had and reduces the real – but manageable – challenge of intermittency.
Data is a big part of this. Giving consumers the ability to manage their energy from devices at home – like a smart meter – allows them to see how much they’re spending, on what device and at what time.
We’ve created a palm-sized device that connects to your smart meter and beams real-time readings from your smart meter so we can provide up-to-the-minute smart insights. The benefits are obvious: people play a more active role in their energy consumption; suppliers can track movement across the grid, and so better manage demand.
Consumer-centric approach
Consumers need to remain a priority – after all, it’s why we exist, and technology is the saving grace in preventing high bills.
Low-carbon technologies such as solar panels and heat pumps are key to driving down costs for consumers. We’re taking this one step further with ‘Zero Bills’, which use these low-carbon technologies to end the worry and cost of bills for good. By using the tech that’s available to us, we’re making energy bills a thing of the past. This is the future.
But even without this kit, people can now be rewarded for saving on their energy. The National Grid’s Demand Flexibility Service helps consumers manage – and understand – their energy usage and make money from doing so. This is a win-win scenario: as people lower their bills, pressure on the grid goes down, preventing blackouts and the reliance on firing up coal plants. It’s an easy way of sidelining fossil fuels while keeping the grid fully functioning.
We know consumers want to take part in these sessions. Almost half of our eligible smart meter customers (~700,000) were involved, and we’ve paid them almost £5mn.
Low-carbon technologies such as solar panels and heat pumps are key to driving down costs for consumers.
A global movement
Transforming our energy system is a global effort with huge opportunities. The pandemic showed us that in a crisis, the world can move fast. Now, staring down the double barrel of a fossil-climate crisis, we need to take the same approach with energy.
Projects are already helping us reach this new electrified world – from thousands more wind turbines and solar farms being built across Europe to a 3,800 km-long subsea power cable bringing green energy from the Moroccan desert directly to the UK. We need to double down on these innovations, and fast.
If we prioritise green energy today, it will change our lives in every way. We’re already building green homes with no energy bills. In reality, we’re only just getting started.
The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.