Clean Britannia

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It’s been a busy week for the British clean energy industry.

On Monday, the business secretary, Greg Clark, announced the launch of phase one of a £246 million four-year Government investment in revolutionising the UK energy grid through the development and improvement of battery technology and storage. Phase one includes the creation of a £45 million “Battery Institute” competition to establish a centre for research into making battery technology more affordable and accessible. One of the longterm goals is the creation of giant battery facilities around the National Grid which would store excess wind and solar energy to be deployed at times of peak energy demand.

The investment, known as the “Faraday Challenge”, is part of the Government’s Industrial Strategy. It is split into three streams of research, innovation and scale-up and is being seen as a “game-changer” for the UK, enabling the UK to be a world leader in clean energy and transportation.

Responding to the announcement, Professor Philip Nelson, Chief Executive of the Engineering and Physical Sciences Research Council (EPSRC), said: “Batteries will form a cornerstone of a low carbon economy, whether in cars, aircraft, consumer electronics, district or grid storage. To deliver the UK’s low carbon economy we must consolidate and grow our capabilities in novel battery technology.”

Another aspect of the announcement is the introduction of new rules over the next year to enable households with solar panels to generate and store their own electricity with the help of new battery technology and to sell this electricity back to the National Grid. The rules would move away from the traditional tariff model which solar panel owners currently have to pay to import electricity from or export electricity to the National Grid. The new rules would also reduce energy costs for people and businesses that agree to use less electricity during peak times. Overall, the intention is to provide for greater flexibility in the electricity system. The Government and Energy regulator Ofgem estimate that consumers could save between £17 billion and £40 billion by 2050.

These developments will be facilitated by the roll-out of smart meters and the development and installation of smart gadgets and appliances, enabling a washing machine to be turned on by the internet during a period of high energy supply or a freezer being turned off for a few minutes to regulate demand. Tech companies, such as Google and Amazon, are already eyeing up opportunities in this new market to act as energy suppliers on the back of Ofgem agreeing to relax licencing and data sharing rules. This would give such companies direct control over appliances in a customer’s home, which has raised some serious concerns over privacy and security.

In other developments, earlier this week, the world’s first floating wind farm began trials off the coast of Scotland. Using revolutionary technology, this trial if successful, would enable wind energy to be generated in waters that are too deep for bottom-standing turbines, opening a new frontier for wind energy. Although currently much more expensive that traditional wind turbines, producers are hopeful that the cost of floating turbines will fall, just as it has for traditional turbines.

 

Finally, the UK has made a bold announcement to ban the sale of new petrol and diesel cars from 2040, following on from a similar announcement made by France earlier this month. Perhaps somewhat fortuitously, this announcement was followed by BMW announcing that it would start developing a fully electric Mini car at its plant in Oxford, UK.

After years of ignoring clean energy and environmental issues, it looks like the UK Government is finally starting to sit up and take notice. This week’s developments are an excellent step forward. However, much more investment and innovation is still needed for the UK to meet its 2030 Agenda commitments.

 

 

EV Revolution

electric-charge-2301604_1920Electric vehicles (EV) are a hot topic right now.

Tesla has announced that its new Model 3 cars will hit the market by the end of July 2017 – the first Tesla car to be delivered to customers on time. The Model 3 is aimed at broadening Tesla’s customer base. With a starting price of US$35,000, it is much more affordable than the more upmarket Model S and Model X. Production will start at 1,500 cars in September and is targeted to reach 20,000 by December this year.

Yesterday, Volvo announced that it would be going all-electric with every car in its range to have an electric train by 2019. It is the first car manufacturer to make this transition. Volvo’s CEO, Håkan Samuelsson, has said that: “This announcement marks the end of the solely combustion engine-powered car.”

Furthermore, many other car manufacturers either have or are working on creating an electric or hybrid model. These days consumers can choose from the original hybrid, the Nissan Prius or upgrade to the Nissan LEAF, the Renault ZOE or the BMW i3, the Volkswagen e-Golf or the Volkswagen e-up. And of course, we mustn’t forget the upscale Tesla Model S and Model X. Jaguar is also currently working on an electric vehicle to be launched in 2018, the I-Pace, with an expected range of 300 miles on one charge.

All this activity has unsurprisingly led Bloomberg New Energy Finance (BNEF) to reassess their EV forecasts from last year. BNEF’s Electric Vehicle Outlook 2017, published yesterday, draws the following key conclusions:

  • by 2040, 54% of new car sales and 33% of the global car fleet will be electric;
  • falling battery prices are key to the growth of this market and battery electric vehicles will outpace plug-in hybrid vehicles;
  • lithium-ion battery demand from EVs will grow from 21GWh in 2016 to 1,300GWh in 2030;
  • EV sales to 2025 will remain relatively low, but there will be an inflection point in adoption between 2025 and 2030; and
  • electric vehicles will become price competitive on an unsubsidised basis beginning in 2025.

This EV revolution will be great for the environment by removing polluting cars off the roads. And the race is now on between Tesla and Chinese battery companies, such as  Contemporary Amperex Technology Ltd (CATL), to produce enough batteries to power this revolution. One GWh could power 40,000 electric cars each travelling 100km. Chinese battery companies are currently targeting the production of 121 GWh of batteries by 2020, far in excess of Tesla’s gigafactory target of 35 GWh when it reaches full capacity next year. However, Tesla does not like to be in second position, so we may seem some developments on this front soon!