Chris Doherty, Managing Director at Joulen, explores the benefits of energy democratisation as a means to achieve 100% clean energy.
The UK Government has committed to achieving a 100% clean electricity system by 2030. This ambitious goal — just six years away — would make it the first G7 nation to reach this milestone. This is more than simply a target; it would represent a seismic achievement and mark a transformative moment in the new era of clean power.
This ambitious target demands equally bold action to achieve it. Yet, at present, the planning, connection, and construction timelines for large-scale clean energy projects often extend beyond 2030. Achieving this vital goal thereby necessitates a shift in approach.
There is no silver bullet for achieving our clean electricity goals. However, are we using all the tools available? Historically, our electricity landscape has been made up of small numbers of larger assets owned by multinational companies. While there has been significant change in this landscape, the ‘fewer but larger’ mindset of the past remains.
This new era of a 100% clean electricity system will require a diverse mix of assets, both small and large. Onshore and offshore wind, solar PV, hydropower, and hydrogen solutions will all play a crucial role. Integrating this variable generation into the grid effectively and efficiently will also require the wide-scale deployment of battery storage.
Large renewable projects, backed by grid-scale battery systems, are vital for achieving our clean energy goals, providing the flexibility needed for a renewables powered system. Yet, the multiple opportunities created by widespread distributed renewables and storage are being overlooked. Empowering households and businesses to generate and store their own clean electricity brings transformative benefits that extend beyond decarbonising electricity; it also drives profound and lasting societal and economic change.
Increased resilience
Our continued reliance on imported gas exposes us to risks of geopolitical conflicts impacting energy prices. Currently, 29% of imported gas is used to heat our homes, and while households and businesses are still grappling with the aftermath of energy crises, the threat of further geopolitical challenges looms.
However, deploying solar and battery storage in just 20% of domestic properties would reduce our spending on imported gas by £123 million each year — money that could be put directly back into the pockets of households at a time when the UK is experiencing a cost of living crisis. Increased self-sufficiency through self-generation and optimised storage is therefore a powerful strategy to safeguard against external shocks.
Savings for households and businesses
Investing in your own energy generation naturally reduces the need to purchase electricity from the grid.
Joulen’s Better Battery Strategy shows that households could save up to 65% on their electricity costs through self-generation and optimised storage. Furthermore, if we can facilitate access to all available energy markets — an area that needs addressing — households could earn up to an additional £375 a year, while large businesses could see earnings of up to £75,000 a year.
Reduced infrastructure investment
The electricity distribution network is already under significant strain, and the imminent mass adoption of electrified vehicles and heating is set to double electricity demand in the UK. Deploying self-generation and storage in households and businesses presents a rapid solution. This approach not only reduces demand on the grid but also allows for more flexible electricity use, optimising the existing infrastructure while generating income for participants. This all results in a reduction in infrastructure investment costs, offering further indirect savings for customers.
Faster deployment of renewables
Large-scale generation and grid-scale battery projects can take over five years to complete, with many projects stuck in queues and receiving connection dates for the mid-2030s. The lengthy processes of business case development and funding, planning approvals, grid connection, construction, and commissioning puts our 2030 target at risk.
In contrast, the deployment of distributed clean generation with storage in homes and businesses could take weeks or months rather than years. This ‘smaller but more’ groundswell approach accelerates our transition to 100% clean electricity while harnessing local resources for the benefit of local communities.
Social acceptance and inclusion
Often overlooked in the energy transition is acceptance from the wider public. Our legacy electricity system has excluded customers as active participants, and this needs to change.
Encouraging the widespread adoption of generation and storage at the local level will provide a vital sense of engagement and participation in the transformative shift to a clean, decentralised system and government subsidies will be crucial to achieve this.
Adopting a ‘smaller but more’ approach
Given these myriad benefits, there’s no time to lose in prioritising a ‘smaller but more’ approach. But what needs to change to encourage and drive the widespread adoption of clean generation and storage by households and businesses?
Energy market changes
Energy markets and incentives remain heavily focused on encouraging large infrastructure funds to invest in grid-scale generation and storage, with profits primarily benefiting these investors. Energy markets must be opened up to give households and businesses the same financial incentives and revenue opportunities as grid-scale investors, democratising the energy transition and driving broader participation.
Introducing incentives
We need to simplify the investment process for households and businesses aiming to install renewables and storage systems. This can be achieved by offering tax-deductible green loans, salary sacrifice schemes, or providing property rate relief for SMEs. These measures would lower the financial barriers, making it easier and more attractive for individuals and businesses to participate in the clean electricity transition.
Future developments
Mandating self-generation and battery storage in all new homes would be a significant step forward. If the government made this a requirement as part of their objective to build 1.5 million new homes, we could add 7.5 GW of clean power to the grid, equating to 10% of the UK’s generation capacity. By making these changes and realising the benefits of distributed energy generation and storage, the government would see an immediate and substantial impact toward our clean energy goals, making the 2030 target more achievable.
The far-reaching benefits of self-generation and optimised storage are clear — and as an integral tool in our clean energy toolbox, there is no time to lose. A decentralised system means households and businesses can collectively act as a clean electricity powerhouse, supercharging our shift to 100% clean electricity more rapidly and cost-effectively than large-scale systems alone. Energy is big business, and if we all have a seat at the table, we can achieve so much more.
