Due to the demand of energy use across the globe, it is the role of various leaders to understand the benefits gotten after energy is managed and regulated. With more and more management of energy resources as well as regulation will help in developing the economy of a country. Although there exists a number of challenges that hinder in achieving the same, it is much advisable to concentrate more on the positive benefits that will be later be enjoyed. There are many efficiencies and saving energy measures that are taken into place and helps in managing the use of energy resources. Some of the measures used in the UK include the energy awareness programs in the creation of awareness. Identifying the climate-damaging factors, optimizing the energy efficiency through the use of slide doors, freezer rooms, exploiting the waste heat and introduction of micro gas turbine among others (Warren 2014, p.943). On the other hand, the topic of management of energy resources and regulation looks at the aspects such as regulation, the environment and energy demand and supply. All this makes the topic of managing energy resources and regulation be a huge topic altogether. Hence, this paper will concentrate on why energy companies in the UK are not investing in demand-side management, the demand side reduction in the UK, demand-side response in the UK and finally the distributed generation in the UK.
Why the Energy Companies in the UK Are Not Investing In Demand Side Management
The first reason as to why the energy companies in the UK are not investing in demand-side management is due to lack of proper communication, information, and technology infrastructure (Warren 2014, p.945). When the three are not found in a country, then it becomes difficult for UK companies to indulge in demand side management. Poor communication and giving out of information will make the transaction process not to be effective as expected. Technology infrastructure also comes in as it is very crucial since every production activity relies fully on technology. Without technology, the companies will not be able to compete healthily with other businesses. According to Bradley et al. (2013, p.315), the second reason as to why energy companies in the UK are not investing in demand-side management is due to the lack of awareness programs that do entails the benefits of demand-side management. They have no clue on matters to do with the benefits being enjoyed by the customers and the society at large.
Energy companies in the UK have no idea of the benefits such as improved service, reduce foreign energy costs and lower cost of service of which could have done otherwise. This just acts as a barrier as to why the energy companies in the UK do not find the essence of investing in demand-side management. The third reason as to why energy companies in the UK do not invest in demand-side management is due to increased complexity of this approach when comparing it with the traditional one. The traditional approach tends to be more effective than the demand side management (Warren 2014, p.949). This kind of complication encountered are the ones that make the approach to kind of scare away the energy companies in the UK. So the companies prefer to adopt other approaches instead of much concentrating on a method that will inhibit their performance in the market. The fourth reason as to why the energy companies in the UK do not invest in demand-side management is simply because of the competition level associated with the approach.
When any company prefers a given approach, then it comes as mandatory that the approach should be more competitive enabling the company to move forward economically. However, this is not always the case with the demand side management. Its approaches are often very less competitive in comparing with the other approaches. The fourth reason as to why energy companies in the UK do not invest in demand-side management is due to the economy that is often associated with the solutions of the demand side management experienced in the long run (Bradley et al. 2013, p.322). The economy situations that have to be undergone through in the long run are not that favorable to any company that is in use of the demand side management approaches. Since the economy, in the long run, do not favor such companies, then they prefer not to invest in demand-side management. The fifth reason as to why the energy sources in the UK do not invest in demand-side management is the high tedious level when it comes to the rehabilitation of the distribution system networks (Warren 2014, p.951).
The process of demand side management has a lot of procedures and several protocols that have to be followed which kind of scares away the energy companies in the UK. Not only that the procedure is tedious but also the cost to be incurred when the whole process is going on is also too high. This comes out to be tricky since every cost to be incurred by energy companies has to be minimized whatever the cost. If the costs of operation are too high then it means that the company may close down due to the insufficient funds available where it will not be able to cater for other expenses such as the wages of the workers.
Demand Side Reduction in the UK
According to Barton at al. (2013, p.86), due to the increase in gas emission in the UK, the government has decided to set up several measures that will help in reducing the energy demand in that country. This has come from the consumption of the non-domestic building which is estimated to be 15GW during the period of winter from the national grid production. In addition, commercial offices, education, and the retail have been estimated, to sum up to 50 percent. All this information tells about the expectation consumption of the demand side response in the country. However, during winter, the demand consumption from domestic sector always decrease from one winter to another. This all aims at having a healthier environment that one will tend to admire and live in. This will not only facilitate capital use in environment conservation but also will help improve the health of the people living in the UK. Thus, to achieve all these targets, the businessmen in the UK and the public sector have been encouraged to use less energy.
The demand side reduction in the UK has been fueled by the following affirmative action being put into place: one of the main action taken into place in ensuring that the demand side reduction in the UK does take place, the CRC energy efficiency scheme which has to do with improved energy schemes that tends to work with price scheming (Gelazanskas and Gamage 2014, p25). This often takes place in private organizations and also in large public energy companies. The second action taken into the place that fuels the demand side reduction is the enhanced capital allowances. The energy producing companies in the UK has been given energy serving equipment and also the companies that rely most on energy. There is always a first-year allowance of 100 percent that makes them enjoy their 100 percent profit without any taxation. This has boosted the demand side reduction. The other factor that enhanced the demand side reduction is the climate change agreements being signed now and then (Barton at al. 2013, p.90).
Some of the agreements being signed tend to favor the energy-intensive industries when it comes to climate change levy. This is possible only if they are up to the task of achieving the government agreed efficiency as a way to accomplish the targets. The other factor facilitating the demand side reduction in the UK is the EU emissions trading systems where they have finally set up a price for the greenhouse as a way to create capital for businesses and industries. This has been proved beyond doubts that the rate of emission has been reduced drastically. On the other hand, such effort has been distinguished to be reducing electricity production from various energy-intensive companies. The other factor boosting the demand side reduction is the green deal where the cost of energy-saving property improvements are paid for the use of savings through energy bills in different times (Gelazanskas and Gamage 2014, p29).
The other factor facilitating the demand side reduction is the smart meters that do help to know the energy consumption in households. There is also the aspect of using the combined heat and power that facilitate the use of by-product heat which was meant to be wasted. This is usually a single process of which has been marked to be much efficient. Furthermore, there is the electricity demand reduction project as a way to cut the energy bills through the use of being maximally efficient which also aims at reducing the emissions. There also exists some financial incentives that all aims at reducing the demand for energy in the country. Finally is the reducing of the government carbon emission through looking at the greenhouses emission reduction, water usage and waste disposal (Barton at al. 2013, p.99).
Demand Side Response in the UK
Demand side response concentrates more on the usage of electricity rather than how it should be generated (Yi et al., 2012, p.3). This helps to solve the demand that only occurs during the short periods. This kind of a strategy operates where the customers are paid for every kilowatt they demand and can be easily be done away with. This comes out to be easier for the national grid to pay the various companies to reduce the demand for power rather than paying the peaking power station. It comes out to be more advisable to address how energy is being used rather how more of it should be generated. This has helped to cater for the short periods that have been associated with the high demand of over 2GW. It is not advisable at all to go more deep in establishing a power station that will only be used for several hours. However, more consideration should be directed towards how energy demand should be reduced. According to Grunewald and Torriti (2013, p.424), appraising the demand side response has helped to reduce the establishment of power station more so those producing electricity that does come out to be much polluting and also the fossil generators that are less efficient.
Although the demand side response has been associated with the effect of the price level, it has been noted that the price of the electricity is usually high during the peak times hence calling for lowering of the electricity prices as a way to reduce the demand. On the other hand, such a practice helps in lowering the energy generation margin as a way to avoid any possible loss during the process of energy generation. This entails going from one customer to another with an aim to make them comfortable with the need to reduce the demand more so during the times of reducing in supply. Examples of power forms that have been used to enable the demand side response include the solar and wind energy which was distinguished to reduce the extent of energy production to a sum of 1.5 from the year 2014 (Yi et al., 2012, p.7). Besides, the demand side response has also been said to reduce the cost of power production by 30 in the year 2015 at the same time ensuring that there is operational efficiency.
The amount of generation could also be associated with reduced cost which in turns favors the bill payer who will end up paying less. On the other hand, demand side response also reduces the amount that should be paid when maintaining various electricity networks. This also entails the proper management of the urban areas transformers. The other advantage falling under demand side response comes in managing the various networks that have t...
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