The existing energy market is broken; it was set up by incumbent energy producers (oil, coal, gas and nuclear), with a centralised supply chain, and designed around fixed inputs and outputs with little incentive to improve efficiency or flexibility.Into this market enters renewable energy; by its very nature, renewable energy is unpredictable and demands flexibility in the energy market place, because the sun doesn’t always shine and the wind doesn’t always blow. A demanding supply in an inflexible market creates waste.
Reducing global Green House Gas (GHG) emissions to limit average global temperature increases to 2 °C, above pre-industrial levels by 2050, is the challenge of our time. The evidence of climate change on everyday life is irrefutably clearer than ever. Erratic weather patterns and large fluctuations in temperatures are becoming prevalent. Environmental and social impacts such as flooding, drought, human migration, and resource conflict are increasingly apparentThe International Panel on Climate Change (IPCC) special report on the impacts of global warming of 1.5 °C above pre-industrial levels, (published in October 2018) presents the problem with stark clarity. The IPCC warns that without a transformational, rapid and far-reaching shift to a low carbon economy by 2030, it is unlikely that the target of a 2 °C limit can be met. The stakes are colossal.
Retail electricity prices are increasing at a time when wholesale power prices are reducing. The net difference is reflected in increased profits to incumbent utility companies and more taxes to the government.Ironically, increased renewables energy reduces electricity prices in the wholesale market, however, these savings are not being passed onto consumers. Society, which has subsidised the build-out of renewable energy, is being grossly short-changed.