UK cities to adopt decentralised energy production and stop ‘big six’ monopoly
Report by Cities in the Institute for Public Policy Research urges cities in the UK to produce their own decentralised energy and compete with the main energy suppliers
Cities in the UK should produce their own decentralised energy and compete with the main energy suppliers, according to the recommendations of a policy think tank.
The Institute for Public Policy Research (IPPR) released a report this week that urges cities to engage in the energy supply market and financing low-carbon local energy projects.
The report outlines various options to raise finance for clean energy projects, in order to help tackle Britain’s energy security issues, lower bills for consumers and create jobs.
Decentralised energy production would also help to address the monopoly of the ‘big six’ UK energy companies with regulators currently investigating whether their dominance is preventing effective competition in the market.
Nick Pearce, IPPR director, said, “Local generation technologies like solar and medium-scale wind are radically transforming how energy systems operate, bringing to an end the dominance of centralised generation and distribution. This will create a system which is much more diverse and competitive. Cities should grasp the opportunity this presents to support local job creation and growth and enhance the resilience of local electricity supply. This will ensure that more low carbon subsidies directly benefit British communities.”
The report cites figures showing that cities account for two-thirds of the world's energy consumption and 70 per cent of global C02 emissions.
The report refers to Munich in Germany, which is aiming to supply the entire municipality of one million people with renewable electricity by 2025. The city has already invested €900 million (£710 million) and is planning to invest a total of €9 billion to deliver its 2025 target.
The report also highlights Bristol’s plan to install one gigawatt of solar panels by 2020, and Aberdeen is looking to run buses on hydrogen produced by using spare energy from wind farms.
Lancashire County Pension Fund has committed around £200 million to low-carbon projects, including a £12 million investment in Westmill Solar, a UK solar co-operative.
The report comes against a backdrop of a steady move towards more community-based power generation that is being supported by the advances in solar and wind-power technologies.
