decentralised energy
The DECC forecasts that the national grid will need an additional 100GW in order to deliver large-scale energy deployment by 2035. 47GW is expected to be sourced from renewables
decentralised energy
The DECC forecasts that the UK national grid will need an additional 100GW in order to deliver large-scale energy deployment by 2035. 47GW is expected to be sourced from renewables

A new report by global consultancy firm KPMG outlines how the UK can deliver cheaper electricity bills to households and businesses through a decentralised energy strategy with solar and storage at its core.

The report, targeted at the government, puts forward a future strategy that claims to assist the UK to address several energy challenges – by redistributing funding for solar currently available under the country’s Levy Control Framework government.

According to the UK's National Audit Office, the Levy Control Framework is considered a "valuable tool for supporting control of costs to consumers arising from government energy policies", and not exceed its budget.

In July 2015, the UK Department of Energy and Climate Change (DECC) decided to review its support of renewable and clean-energy schemes, and subsequently decided to cut subsidies on implemented to wind, solar and biomass.

Energy Minister Amber Rudd has also removed tax exemption from low-carbon power generators, and has cut the government’s primary domestic energy efficiency programme.

Next Energy news reports that the cuts could take as much as "87% off the value of small-scale solar feed-in tariffs."

In addition, the large-scale solar sector is said to be slowing down, as a result of other programmes, such as Renewable Obligation Certificates (ROCs) coming to an end.

Solar + storage

Another report by energy regulator Ofgem recommends increasing the flexibility of the electricity network, with the implementation of energy storage.

The regulator also suggested investigating non-traditional energy business models to provide services to the grid - eg. distributed generation to host platforms that allow for energy trading and other flexibility mechanisms such as demand response.

Tariff structure

KPMG's 'Decentralised Energy Transition' report makes further recommendations on tariff structures for solar and storage systems. It suggests the re-working of future feed-in tariffs for solar and a time-limited incentive for households to purchase domestic storage solutions.

It adds that tariffs can be combined with time-limited deployment 'grant' for storage, similar to the scheme, which would include a one-off payment for discharge capacity made available to residential customers.

Solar development company Lightsource Renewable Energy, co-author of the report, found that while traditional PV solutions meet 20-35% of a regular household’s energy demand, a “whole house”  solution would meet 60-90% of a home's energy needs.

3 COMMENTS

  1. One question arises as I read the article. Has KPMG approached the question from a holistic technical and economical point of view to get to a optimal lower cost for the country, not just for one group. How does KPMG foresee the supply of high power electricity for industry (heavy machinery)? Whatvis the cost of harmonics on this scale if the solar storage is connected tonthe grid? What are the costs of O&M, safety and reliability, and the environmental cost cradle to cradle of batteries and solar equipment? What is the effect on the sector which remains on the grid for legitimate reasons and is the overall cost of energy really lower?