Economic forecasts used by government estimate the costs and benefits over the lifetime of a project, and usually involve hidden assumptions about the value of costs and benefits in the future relative to the costs and benefits in the present. The basic assumption is that we would rather pay more for something in the future, CONTINUE READING
Transactions and market mechanisms
The costs of the energy system are connected indirectly with the income to the energy system through market mechanisms. Were the ‘money in’ attempts to stick to income to the system, and ‘money out’ attempts to stick to the final payments and costs to the system as a whole, this chapter attempts to trace the CONTINUE READING
Money out – Cost structure
This section addresses what needs to be paid for in running the energy system – where the money goes out of the energy system. The way money flows between parties within the energy system is discussed here. Main costs include: Generation of electricity Power station construction Operation and maintenance Fuel Purchasing of other energy Import CONTINUE READING
Money In – Income Structure
Money goes into the energy system primarily through consumers paying their bills. This section therefore begins with examining how these bills are structured, and how pricing is set. Dissecting the energy bills The price of energy Domestic Most domestic electricity and gas tariffs are in two parts: A simple cost of energy that is a CONTINUE READING
Energy System Roles
There are a number of different energy system roles in the electricity and gas systems. These roles are addressed in detail in the chapters on ownership, money flows and governance and decision-making. They are described here to give an overview and definition. Electricity Generation This is the generation of electricity from primary energy e.g. coal, CONTINUE READING
Acknowledgements
Many people have helped this project in so many ways. Jen Ren and Liz Snook did a whole lot more illustration and design work than we had funds to pay for, and really cared about the project and what it was all about. Thanks Liz for the gorgeous illustrations, and Jen for being part of CONTINUE READING
A note of caution on energy efficiency
A note on efficiency Energy Efficiency is often promoted as the solution to all of our problems. However, it is worth thinking about a bit more carefully, as this is not always the panacea it seems to be. Efficiency is a ratio. That means it is a comparison of how much you get of something desirable CONTINUE READING
Energy demand and energy use
Discussions of energy typically use the word ‘demand’ to refer to the energy that is consumed. This fits with economic framings of ‘demand and supply’, and the way that the energy system is structured to allow unlimited demands for energy from users. This guide does not assume in advance what form of distribution would be CONTINUE READING
Transport
In 2017, 41% of UK energy demand and 37% of UK GHG emissions were from transport. The Zero Carbon Britain report by the Centre for Alternative Technology makes a proposal for shifting transport away from cars and onto busses, bicycles and motorbikes, and significantly reducing distances travelled. This is shown in the diagrams below. Transport CONTINUE READING
Glossary
BEIS – department of Business, Energy and Industrial Strategy (2016-current) Cost reflective – a way of organising markets so that the end-user pays an amount that reflects the cost of production Decarbonise – change a system so that it doesn’t emit carbon dioxide or other greenhouse gasses, to reduce its contribution to climate change DECC – CONTINUE READING
Bibliography
Bibliography Books about energy For an overview of the trade-offs and dilemmas we face in getting to zero carbon energy in the UK: Sustainable Energy Without the Hot Air, David MacKay: available as a printed book or free to download: http://www.withouthotair.com/Contents.html For an overview of the different types of renewable energy, how they work and CONTINUE READING
Energy Democracy
Energy Democracy What is energy democracy? Broadly, energy democracy means that ‘the people’ have power over how our energy system works. This includes users of energy and people working in the energy industry. The term energy democracy is being used by many different groups, including climate campaigners, community energy activists and trade unions. Energy democracy CONTINUE READING