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Smart Energy

The UK faces unprecedented energy and climate challenges. The decisions we make now will affect the planet and our way of life for generations.

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A crisis of energy demand and supply


The world is demanding more and more energy. The projected growth of worldwide energy demand by 2030 is 36.8% according to the International Energy Outlook 2008. This is due not only to population growth, urbanisation and improvement in living standards, but also to new requirements such as electric vehicles and the substitution of electricity for hydrocarbon-based fuels as an “energy carrier”.

We now face a series of major problems relating to the generation, transmission and consumption of energy, all of which are essential to business, the way we live and the development aspirations of humankind.

The power generation industry faces major challenges in meeting this growing demand, not least because of inhibitors such as regulation and legislation; inadequate investment returns and unhelpful economic incentives; and of course the supply of natural resources.

Any growth in energy supply must be achieved in a low carbon way. Power generation creates 25% of the world’s CO2 emissions, the largest man-made source, according to The Climate Group and McKinsey & Co., (“Smart 2020 Report”). The industry is both a major greenhouse gas emitter and one of the solutions to reducing emissions. Electric vehicles are promoted by many as the best option to reduce vehicle emissions, but there is little point in doing this if the generation, transmission and distribution of electricity is no ‘cleaner’ than it is today.

Successful electricity companies of the future will be those that act now upon the clear signals that climate change is underway. They will have a fully integrated approach to the challenges of the energy revolution, reducing emissions and adapting to climate change. They will use the lessons gained from the present financial crisis and from history to avoid the even greater and entirely ‘predictable surprise’ created by climate change.

Climate change problems and solutions are intertwined. We are beginning to see the impact of rising global temperatures and sea levels due to the level of greenhouse gases that have already been emitted. As this continues, increases in temperature and changing rainfall patterns are predicted to: Reduce agricultural and fisheries yields. Increase stress and competition for water resources. Enhance migration to urban areas. Increase geo-political risks. Lighting the way : Do you understand the smart energy consumer? Read our insights on how customer behaviour is changing. Read the summary report. Read the summary report.Get Adobe Reader.

Addressing Climate Change

Mitigation: reducing greenhouse gas emissions to limit the impact of climate change in coming decades will require changes in consumption behaviour and new supply side technologies.

Adaptation: addressing the risks and opportunities resulting from climate change which is changing demand patterns and placing operational and resource constraints on supply.

Consumers must help with the supply side… and utilities with demand.

Electricity is a complex system-of-systems and it requires an integrated approach to fundamentally redesign the way the industry works. Many opportunities exist to optimise and grow existing capabilities and accelerate emerging technologies to commercial scale, relying on collaboration between consumers and utilities companies.

Three areas of action to address energy production:

  • Optimise: Apply smart solutions to extend existing capabilities. Examples could include: asset life extension and optimisation programmes; and new, cleaner fossil-fuel plants.
  • Grow: Rapidly grow existing capability through smarter design and operation. Examples could include: new-build nuclear programmes; automated & intelligent smart grids; smart metering; and new regulatory incentives.
  • Accelerate: Nurture and accelerate new capabilities to commercial scale. Examples could include: carbon capture and storage; deep-water wind; tidal / wave power; micro-combined heat and power (CHP); more efficient home wind & solar; distributed on-shore wind, waste & bio; various forms of storage; electric vehicle infrastructure; and intelligent home devices.

To achieve this, individuals must become part of the electricity management and efficiency story. Use less and use differently – This can help to lower energy usage directly and to lower and spread the peak usage. A smart way of achieving this would be to implement smart grids smart meters, remote operation and automated operation of electrical appliances and goods. Collaborate in generation – expansion of micro generation, has the potential to provide an almost infinitely controllable electricity generation capability able to meet demand more closely than the current centralised approach. Plugging in the consumer: Read the report on how consumers will soon be participating in the energy supply network. Download the summary. Download the summary.

Malta: the first smart grid country

Known for its dry sunny weather, knights and long architectural history, this Mediterranean archipelago is about to become known for something else: it's the world's first "smart grid" country.

Malta's electricity and water systems are inexorably intertwined. Malta depends entirely on foreign fuel oil for the production of all of its electricity and for more than half of its water supply, which filters through an energy-intensive desalination process.

The new smart grid, integrating both water and power systems, will be able to identify water leaks and electricity losses in the grid, allowing the utilities to more intelligently plan their investments in the network and reduce inefficiency. 250,000 interactive metres will monitor electricity usage in realtime, set variable rates, and reward customers who consume less energy and water.

By addressing the issues of water and power as a system, the Maltese government can provide citizens with better information to make smarter decisions about how and when they use power — and the country can begin the task of replacing carbon-intensive fuel oil with renewable energy for the future.

Malta: the first smart grid country

Smarter Business & Technology

You've seen the areas where progress is still needed to build a smarter planet ... now why not explore the business solutions and technology that will help drive the change that is needed.

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