Suppliers provide 100% renewable energy
September 24, 2010 at 1:38 am
A small number of companies have begun to really compete over who can provide the best resources for renewable energy. The two major companies currently in the race are Ecotricity and goodenergy. Both are focused on the electricity market, but significant progress has been made in the gas market and renewable resources are currently under construction.
None of the major electricity suppliers in the UK currently offer comparable services in terms of energy production or business models, though they often charge significantly more for their ‘green’ energy.
Government policies require companies to produce a percentage of their energy from renewable sources and put this back into the grid. However, evidence suggests that, although they are involved in a media battle to appear the most environmentally friendly, most companies will not provide much more than is required of them. These new companies indicate a progression in the market segment that will almost certainly grow with time.
Ecotricity state that their mission is “changing the way electricity is made”, and in order to achieve this aim they have not taken the company public, so profits, instead of going to shareholders in the form of dividends, are put straight back into building more wind farms. One of the most notable achievements for them has been the production of renewable gas by using organic waste. This model of continuous investment in the business also suggests the possibility of rapid growth for the company.
Whilst ecotricity push all of their profits back into producing new sources for renewable energy, by the end of 2009 only 45.6% of their energy actually comes from renewable sources although this is increasing significantly every year.
Ecotricity are currently supplying over thirty-six thousand homes and have a counter on their website so that you can see the exact number.
In competition with ecotricity is goodenergy. Goodenergy claim to provide 100% renewable energy. They use a combination of power sources including wind farms, solar PV, hydro-power and sustainable biomass to feed 100% renewable energy back into the main grid. Goodenergy have not made any plans to move into the renewable gas market.
Going a step further, goodenergy even have a segment on their website about how you can begin producing your own renewable energy; this includes information on installing solar panels and how to take advantage of government feed-in-tariffs. (The government will subsidise every unit of energy produced fed back into the grid from renewable sources).
More companies like these are beginning to appear, especially in light of the new feed-in-tariffs and so it is worth giving some thought to going green in the future as it becomes a viable alternative. The question will be whether to go for companies who invest more in technology or provide the 100% renewable energy.
Planning permission granted for geothermal plant
September 17, 2010 at 4:05 pm
Wind power and solar power get a lot of attention in the press these days, but now another player could be about to enter the renewable energy market in the form of geothermal power.
Planning permission has just been granted for an exploratory drilling project near Redruth in Cornwall, which could pave the way for the construction of the first commercial geothermal power plant in the UK.
The drilling will see the creation of a borehole 4.5km deep in 2011. This will determine the suitability of the location for the construction of the plant. Cornwall is thought to be especially suitable for such a power source due to the granite bedrock on which it sits.
Although this is good news for the renewable power industry in the UK, and will help the government to reach its targets, we are slightly behind some other countries in the implementation of the technology. Germany, for example, already has planning underway on 150 plants.
The government has said that it hopes to generate 1.5 GW of power from geothermal energy by 2030. There is also another possible site for a new power plant near the Eden Project that is still awaiting approval.
Geothermal energy works by pumping water 5km underground where it is then heated by rocks and pumped back to the surface where it is converted into electricity or heat. In contrast to wind or solar power, the plant can operate at a steady rate for 24 hours a day. However, it will be limited to a lifespan of 25 years due to the fact that the rocks cool after this period.
Companies offer to install solar panels free of charge
September 17, 2010 at 4:02 am
Companies have begun offering to install up to £15,000 worth of solar panels in homes across the UK, absolutely free. Homeowners could save up to 40% of their annual electricity bills as firms move to capitalise on a government scheme to encourage renewable energy.
The companies are planning to take advantage of one of the Labour government’s incentives known as ‘feed-in-tariffs’ (Fits). Under this policy the installation company are paid for every unit of renewable electricity they generate and electricity suppliers are obligated to buy from these renewable generators.
Homeowners who can have these panels installed will also be saving money. It’s estimated that the photovoltaic panels (Solar PV) could save up to 40% of a household’s electricity costs, though this depends on their usage habits. Not all homes are suitable to have the panels installed: it can depend upon the roof size, type and the direction it is facing. Good news for those who are suitable though is that homeowners typically do not require planning permission for solar electricity systems.
After twenty-five years the installers of the panels will no longer be able to profit from the scheme but homeowners will be free to keep the panels and keep saving money. The Fits scheme is being run by the Department of Energy and Climate Change (DECC) and for most renewable sources is currently set to run for twenty years. The owners of the solar PV panels will be luckier as they can receive Fits for twenty-five years. The DECC will be reviewing the tariff rate in 2012 but it has been set-out that suppliers will continue to receive tariffs at the same rate as when they registered.
The potential profits for the installation companies are quite interesting and it will certainly take them a few years to begin making their money back. After this initial period though they should be benefitting from a steady stream of cash for very little work. It is estimated that the Fits will bring in £900-£1,450 per year, so whilst it will take time to earn back their investment they could be making a profit of £11,000-£16,000 per home over the twenty-five years.
Many commentators have suggested that if homeowners happen to have a spare £15,000 they should install the panels themselves and this way they can claim the Fits for themselves and save money on their electricity costs. The amounts saved on electricity costs can depend on when the homeowner is around to use it and how much power they can generate.
Overall this scheme looks to be a simple and beneficial way of producing greener energy for both the installer and homeowner.
For more information, or to enquire about whether your home is suitable please see, IsisSolar, Home Sun, A Shade Greener or My Energy Station.
BT in bid for smart energy meter rollout
September 3, 2010 at 12:26 pm
BT is considering launching a bid for the operation of a new network to communicate with the new smart meters that are being rolled out across the country. It has joined forces with Detica and Arqiva, and together they are hoping to win involvement in the £7 billion contract.
The bid proposal is for the construction and operation of a new long-range radio network that will be linked to all the smart meters that will be introduced in the coming years throughout the country. Arqiva will be providing the radio spectrum, Detica the security and BT will be running the project.
The companies want to persuade the government that they can build and operate the network to communicate with the 28 million smart meters.
The main competition BT faces comes from the mobile phone operators. Vodafone is already providing British Gas with network access as the gas giant hopes to install two million smart meters by 2012. And Orange has begun trials with Scottish & Southern Energy and nPower.
But BT has identified weaknesses in the mobile networks: namely, that they are not as effective in remote locations or in places where the signals may not reach properly, such as in basements. BT says long-range radio will provide better reception indoors as well as wider coverage.
The rollout of smart meters is going to take place over the next ten years and should be complete by 2020. Their aim is to help customers track their energy use more accurately, which should lead to them cutting their consumption levels and reducing the amount of CO2 released across the UK.
