Could Wales’ rural heartlands be the pioneers of a DIY energy revolution?
Wales Business — By Ceri Williams on July 20, 2010 7:00 am
A time to generate something new
LIVING in rural Wales offers a fantastic quality of life. But alongside that comes a number of practical challenges, and one of them – limited access to the piped gas network – has shown that these residents could be the pioneers of DIY green-energy.
This research is published today in Consumer Focus’ new report Off-Gas Consumers and Micro-generation.
So could it be that Wales’ rural and suburban areas nurture the green energy revolution? Certainly, the attitudes of people towards micro-generation like air and ground source heat pumps, solar hot water and biomass boilers show that the potential is there. The key will be whether governments can pull the policy and financial levers needed to make it happen.
The report started out by looking at 20% of Wales’ population whose homes are not connected to the gas network. We know that people off the network are far more likely to be in fuel poverty. Many isolated rural homes are poorly insulated, and their residents also face the additional burden that the alternatives to domestic gas are more expensive.
Our research has found some evidence of people being unable to replenish their fuel supply – particularly in LPG and coal, where upfront bulk buying is standard practice. We have also uncovered high levels of customer dissatisfaction, even among those who have switched suppliers.
We acknowledge that it is not practical to connect everyone to the gas mains. In addition, not everyone is willing or able to pay the upfront cost – even if it leads to savings in the longer term. Some people could connect, but even a few hundred metres of pipe can be expensive. Our research found that 40% of off-gas consumers want to connect, but less than 5% are willing to pay.
Which led us to look at alternatives – and what better than the latest green technology? There is lots of interest in micro-generation from policy makers in order to reduce our carbon emissions, although it has to be said that interest has yet to be matched by the public. The good news for policy makers is that off-gas consumers show a greater interest in micro-generation. One in three off-gas consumers is interested in it. For those attached to the gas mains, that figure falls to one in five.
Only 20% said they would be willing to pay up to £6,000 for micro-generation, so the key seems to be providing the right incentives. There is real potential for off-gas consumers to be pioneers – but the cost of installation and payback times need to be attractive if this is to take off. There has to be a way to ensure microgeneration is something that the poorest consumers can access too; because it is they who have the greatest need of affordable heat and power.
Tackling the problems faced by people living off the gas network will require joined up action. A spaghetti-soup of government & regulators (DECC, WAG, EST and OFGEM) as well as the gas distribution networks all have a role to play.
The Consumer Focus Wales report reaches a number of conclusions. One is that there needs to be greater competition in the markets for alternatives to gas, including oil, LPG and coal. Another is that the OFT should introduce an industry agreed code of practice for off-gas fuels to improve customer service. Currently, consumers who have gas, also enjoy far greater protection than those using oil, coal and LPG.
There is also a role to play for the gas distribution networks, in linking up those homes closest to the mains where the costs are relatively small.
But the most exciting possibility lies in the potential to promote micro-generation. Our research shows that there is a group of people in Wales who live mostly, but not exclusively, in rural and suburban areas, who are keener than most to embrace green, home-generated energy. But very few of them are willing or able to pay significant sums up front. The challenge for policy makers is to find the keys to unlock this potential.
The rewards would be great: lower levels of fuel poverty, reductions in carbon emissions, and greater energy security. But the challenge of incentivising consumers, in the age of government austerity, may require a few lightbulbs of inspiration.
Tags: consumers, Energy, environment, fuel poverty, renewables
Tweet This
Share on Facebook
Digg This
Bookmark
Stumble
7 Comments
I’d love to stick a turbine in my garden/on my roof, but I don’t think the council would let me. You want planning permission for WHAT?
(Think of it – if everyone in your street/village had Sky-dish sized turbines on the roof, your street/village could be more-or-less self sufficient. I’m up for it.)
Good piece of original thinking. Dare I say it, but we’re beginning to expect nothing less from Consumer Focus Wales.
For of those unacquainted with its work, and that of the Fuel Poverty Charter, can I commend them?
http://www.consumerfocus.org.uk/wales/
http://www.fuelpovertycharterwales.org.uk/
I am deeply suspicious of environmentalism in all its forms. Its advocates seem to want the advanced, Western countries to pay lots of money to become, basically, poorer.
On the ground, I live close to the Centre for Alternative Technolgy in Corris and after 20+ years of ‘The world is coming to an end – give us lots of public money’ I have concluded that CAT – which has never done anything for the local population – exists solely for the benefit of those who work there and are now expert at milking grants and other forms of public funding.
The unofficial logo of the environmental movement is the wind turbine, the most expensive and inefficient form of generating electricity known to man. If in 2010 windmills are the answer to anything – other than the greed of the big corporations getting vast subsidies for erecting them – then I’d like to know the question.
Environmentalism is the last throw of communism. The final, desperate attempt to destroy Western society and its prosperity. Western governments should treat it for the dangerous idiocy it is and get on with building nuclear power stations.
I think one of the sharpest tools in CFW’s box is the innovative ways they look at the use of market mechanisms to generate socially beneficial change and this is another good example. Potentially low interest loans have a role to play in unlocking the potential which are only repayable once income starts being generated from micro generation.
Royston, if you really distrusted environmentalism as much as you claim, you’d surely be advocating digging and burning more coal….. by advocating nuclear you’ve already sold the pass.
Ben wrote: “I think one of the sharpest tools in CFW’s box is the innovative ways they look at the use of market mechanisms to generate socially beneficial change and this is another good example.”
They’re certainly a very creative and talented team of thinkers. Maybe they should start their own political party?
First class article.
Absolutely correct about rural dwellings being not connected to the gas network. Many such as myself are not too bothered. Natural gas is a potent grenhouse gas.
Councils in Wales could get moving in the right direction by trapping the biogas from landfills. If you travel on the M4 a few miles before Carmarthen you wil be able to smell at first a gas leak. This comes from the landfill which could be trapped and used. The Methane is much worse environmentally than CO.
Many in rural areas tend to use Heating oil to fill up their tanks. Wood is sustainable and thousands of acres of woodland could be planted now for a fuel so when the price of oil and gas rises it will be available. Hedgerows which support Ash and other saplings are being needlessly cut.
We have done an experiment on 40m stretch of land by not cutting the hedges. Lettting the Ash saplings grow, In 5 years they are over twenty feet tall and branchs can be harvested for burning. The Woodburner can do a great job, takes a bit more physical effort. No need for coal which is a very bad environmental choice.
Microgeneration is the key as you say. I’m determined to build a small turbine myself. As you say a lot of people are put off by the price.
Solar panels on rooftops need to be promoted more by government.
All those guys sceptical about enviornmentalism and green energy will just see in the next 20 years when petrol, heating oil, natural gas go up and up an up in price due to a decreasing resource and more demand from developing nations.
landfill biogas- are Welsh councils bottling it? No, the Methane is just to escape to he air. Much worse than CO enviornmentaly.
Wood- sustainable resource, thousands of miles of hedgrows coul be left to grow instead of being cut, is their any proper policy on this from the Assembly?
We have let 40m of hedgerow grow- The Ash saplings are now 25ft tall, branchs can be cut and used fro heating.
Microgeneration is certainly a great possibility. Small turbines (I’m determined to make one) and what about solar panels on rooftops, needs more promotion of these.