Consumer demand
The often-overlooked element of the energy challenge
The cost-of-living crisis is causing us all to look at how we can reign in on expenditure – but not with energy. Here the response is for the government to underwrite the increases.
This difference is not surprising as energy is highly opaque, complex, and disjointed. We can’t see what we are using, you need to be an engineer to understand energy appliances and each technical solution is promoted and incentivised separately - probably with its own independent digital platform! There is little integration or coherent help for consumers trying to grapple with higher bills.
But we cannot continue with an approach of unlimited demand, especially as we try to address decarbonisation and reducing our reliance on gas. The cheapest, greenest kilowatt hour of energy is the one we don’t use…. …and of the ones we do use, the cheapest greenest one is the one we generate and consume locally from renewables, including that which has been stored for use at optimum times.
So how do we bring about both a reduction in demand along with a maximisation of local generation and storage?
We believe it is by creating efficient Smart Local Energy Systems (SLES). As with Rome, this will not be built in a day, but we do need to get started and new build is possibly the best place to start. Gas boilers are banned from 2025 onwards; EV charging points are becoming standard; solar and storage should be standard but aren’t - and property developers continue to leave it to the consumer to figure out how best to manage, operate and support whatever technologies they have been provided with.
Traxis Group advocates a formal SLES that is operated, managed, supported and maintained by a community business – a bit like district heating but with rigorous governance procedures to look after consumer interests.
Once a core SLES is established for new build properties, it would be expanded to incorporate adjacent properties. The SLES company would offer energy upgrades incorporating them into the overall SLES minimising costs and maximising system benefits.
How does this help consumers?
The most important element is that a SLES addresses the cost, complexity, and confidence issues that most consumers have. It tackles the energy challenge from the consumer’s perspective by providing a simple one-stop-shop solution that incorporates the ongoing operation and maintenance of the system and delivers lower energy costs.
What next?
In general, the technology is available and has been proven in several trials. What is required is a commercial business model, as has been achieved with wind and solar farms, that enables companies to be established and funded to generate SLES at scale. Traxis Energy has been established to help bring about this much needed change.