Embracing Embedded Generation
The Future of Energy...
Published: 29/11/2024
2- minute read
In this podcast, our Embedded Generation Manager, Rob Brannan, joins the team at Future Net Zero for an insightful discussion on embedded/distributed generation, a topic which is particularly relevant as the UK navigates towards a cleaner, greener, more sustainable energy future.
With the drive to reduce carbon emissions and decarbonise energy systems across the UK, combined with the decreasing cost of renewable energy technology, this has substantially boosted appetite for embedded generation and bolstered the proportion of electricity generation occurring at the distribution level.
Rob talks us through embedded generation 101! What is it, how to get started and what we at TotalEnergies offer businesses looking for traceability, additionality, and clean green power.
Take a listen below...
Podcast highlights...
- Closing of the last coal fired power plant in the UK in 2024 poses significant challenges to the energy landscape. While traditional power plants provided reliable, centralised, abundance of on-demand energy, the future lies in decentralised and renewable energy systems.
- Potential for businesses to become energy generators themselves, with technologies like rooftop solar panels, even small business sites can contribute to the energy grid.
- Rob explains that this shift empowers users to not only consume, but also export and sell clean energy, reducing the reliance on centralised power sources,
- A challenge in the move towards renewable energy is intermittency and Rob discusses the importance of a diverse energy mix and the role of flexible storage solutions to ensure grid stability.
- For businesses looking to ensure their energy is green, Rob introduces the concept of Power Purchase Agreements (PPAs). These allow generators to procure traceable, verified green energy, supporting the adoption of renewable energies.
A closer look at evolving energy production...
The energy landscape is undergoing a significant transformation, with embedded/distributed generation taking centre stage. Distributed Energy Resources (DERs) are increasingly seen as a crucial component of the future energy ecosystem. By generating electricity close to where it's used, DERs offer numerous advantages over traditional, centralised power generation models. Benefits such as the easy integration of renewable energy sources like solar and wind, to enhancing the resilience and reliability of power supply by diversifying sources. These solutions empower consumers, allowing them to generate and sell their own electricity, potentially reducing costs in the long term and increasing energy independence.
By reducing the need for large, centralised power plants and the long-distance transmission of electricity, distributed systems can help lower greenhouse gas emissions and reduce the environmental impact of energy production.
While the benefits are clear, the transition to distributed electricity grids faces challenges, with regulation hurdles and the need for significant infrastructure investment.
Ultimately, the shift towards distributed electricity grids and the continued uptake of embedded generation represents a significant shift in the way we produce and consume energy. As businesses and consumers increasingly adopt renewable energy sources, the landscape of the energy industry will continue to evolve, paving the way for a greener and more independent energy future.
Interested...?
If you've the space for on-site generation, this option is worth exploring for its benefits for your business:
- Lower costs: To get set up and started with your own on-site generation can require upfront capital investment, but you'll be consuming less electricity from the grid, minimising the exposure to market prices and fluctuations. There are also options to effectively rent out your roof space or spare land and sign a long-term agreement to buy that electricity, known as a Power Purchase Agreement (PPA).
- Non-commodity costs: Avoid some of these charges with on-site generation.
- Demand side response: Depending on how much energy you produce, if this doesn't fully cover your consumption, you'll still be able to reduce the amount of energy you need to buy at certain times.
The right solution for you will depend on a number of factors:
- Do you have the right amount of space for on-site generation? What technologies are possible for your set up?
- Are Corporate PPAs (CPPAs) right for you? CPPAs can be lengthy and complex to navigate with the negotiation of long-term fixed prices.
- View on traceability and what makes up a strong renewable, low carbon offer for your organisation.
- Length of commitment you are willing to make and if you are willing to pay a premium for a renewable source, and if so, how much?
Interested in selling your energy, or to find out more information on any of the topics discussed in this blog, please visit our webpage.
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