powerful analogy here with !he computer industry. There was a period when !he world's leading computer companies were trying to compete with each other by producing ever bigger machines with ever more capacity to process information but !he industry was revolutionized by finding ways to make the network itself work efficiently, so !hat the sharing of information increased the capacity of everyone's computer. WHAT POLICIES Wlll HELP US REALIZE THIS VISION OF A 21ST CENTURY ENERGY SYSTEM? The vision of a micropower-focused energy system is challenging to the status quo, but is clearly eminently possible, technically and commercially, provided !he policy framework is designed appropriately. The problem is !hat most of the current energy policy framework, from regulation to price incentives is geared towards an inefficient, centralized electricity system !hat doesn't value heat. So how should governments go about changing !he framework? Get central energy policy objectives right The last decade has seen an obsession with liberalization in energy markets, which in some cases has changed from being a very useful tool of policy to becoming an objective itself. The pendulum appears to be swinging back towards traditional planning in the US and elsewhere, based on the fears !hat liberalization cannot deliver security of supply. Yet both doctrines focus on the delivery units of energy at low price, rather !han the service !hat energy delivers. The importance on the political agenda of environmental sustainability and climate change varies widely across !he world, depending on the politicians involved, but it has generally been placed below the need for cheap energy. This objective needs to be change. The central objective of energy policy should involve looking at !he whole energy system, and give equal priority to competitiveness, affordability, security and sustainability. Remove regulatory barriers Liberalized and centrally planned energy systems have frequently created barriers far micropower technologies and betler efficiency, with market regulations being set up to drive down !he average unit price of energy, rather !han encouraging !he least-cost solution for the system as a whole. Removal of these barriers needs to be the second area of government concern on !he road to a decentralized energy market. Suitable measures include: • giving priority to renewable and CHP generators within the liberalized market. • ensuring !hat future changes in market structure lake full account of needs of intermittent renewable and CHP generators and encourage their participation. • refarming !he connection-charging regime for micropower generators so !he system encourages their installation. One solution to !he many technical, safety and regulatory questions could be far !he government to set up a fund to !§J] ECOGENERATION WORLD support a small number of 'micropower zones'. Here a combination of micro-CHP, solar photovoltaics and demand-side measures could be piloted in a small area, to monitor !he impact on !he distribution network. Market and regulation innovations could alsa be trialed in these zones. Eventually, the price control regulation on electricity networks should ensure !hat the income of network operators is no longer related to the volume of energy sold, but to !he performance of !he network in delivering services such as security of supply, frequently balancing and reducing energy losses. Reform building and planning regulations A fully decentralized energy system will have implications far !he way buildings are designed and how communities are developed. Building regulations will have to be refarmed so !hat a requirement far self-generation is either mandated far new buildings or at least encouraged. Minimum standards far two-way metering should be set for new buildings, and micro-generation should be facilitated whenever extensions or improvements to electricity networks are made. ■ Denmark leads the field in clean energy and has consistently set itself ambitious long-term goals, be it far district heating or wind power. ■ Similarly, the planning system may have to adap! to allow far a different energy infrastructure. More distributed sources of electricity generation will need to be accommodated in urban areas, be !hey CHP, solar or wind power. Consideration of heat loads and other energy requirements should be made at the planning stage of developments. The policy framework will have to ensure !hat micropower generation and greater efficiency are betler understood and eventually promoted by the construction and development industries. Stimulate demand tor clean energy As well as getting !he regulatory framework right, governments will alsa have to introduce specific incentive to promote clean power options by means of ambitious targets and economic instruments. Denmark leads the field in clean energy and has consistently set itself ambitious long-term goals, be it far district heating or wind power. Similar targets could be set by governments far micro-CHP and other low carbon technologies, linked to specific long-term CO 2 reduction targets. Britain's Royal Commission on Environmental Pollution has recently
RkJQdWJsaXNoZXIy MTcyMTY=