Posted on 18 June 2013
How we think about electricity, and how that electricity is delivered to us, has to undergo a fundamental shift in order for the EU to meet its decarbonisation targets.
According to the latest research from THINK, a 2million euro project providing policy advice to the European Commission (DG Energy), consumers could benefit from becoming more active in considering how they consume electricity, while the local distribution networks, will in turn need to adapt to take into account localised production, such as household solar panels or small wind farms.
“We still consume electricity in a very unconscious way,” says researcher Xian He, “Research foresees a future where people consume energy similar to how they take care of their mobile phone.”
Such a change will require more effective price comparisons tools to examine tariffs, and better understanding of individual consumption profiles. In order to achieve this, Xian recommends the EU focus their research on consumer behaviour rather than new technologies. “Without knowing the actual consumers perspective …the technology push could be blind.”
As consumers become more responsive, for example as home producers of renewable energy, it becomes possible for them to not only receive electricity but also to return it to the grid.
This change presents a massive challenge according to Sophia Ruester, also a researcher with THINK. “The whole system changes with these new features, and this also deeply modifies the cost structures of these (distribution network) operators.” says Ruester.
While admitting costs would rise, Ruester argues that such changes could be mitigated if the operators themselves become more active. However, such a change will require new regulations in regards to power grid operation to ensure distributors and suppliers remain separate. Ruester does not believe this is a job to be undertaken solely by the EU. “There is no need, and no real justification to harmonise [all regulation] across the EU. Many issues might be better handled by national regulators, while the EU can help by providing guidelines about how to adapt national regulation.”
The results formed part of the THINK, a three years research project financed through the 7th Framework Programme studying energy policy, ended last month, and was based at the Florence School of Regulation at the EUI.
(Text by Mark Briggs)