Transforming energy policy

With climate change one of the biggest issues of the modern age, changing energy consumption and moving from a high- to low-carbon economy is more critical than ever.

Sussex Energy Group

The Sussex Energy Group uses an interdisciplinary research approach that is the hallmark of Sussex to understand the social, political and economic implications of radically changing our energy systems and moving towards a more sustainable future.

The Sussex Energy Group at SPRU – Science and Technology Policy Research has existed for as long as the institute itself, and currently comprises 11 researchers and 15 doctoral students.

The Group is in the process of expanding after receiving a share of the £26 million of government funding designated for research into reducing UK energy demand and cutting carbon emissions.

This funding will establish the Research Centre on Innovation and Energy Demand, one of five new research centres on End Use Energy Demand (EUED) jointly funded by the Research Councils UK Energy Programme (RCUK).

SPRU – Science and Technology Policy Research takes an interdisciplinary approach to innovation, energy and technology policy research, drawing upon methodologies and research networks developed over its 40- year history.

Sustainable energy systems

Within this context, the Sussex Energy Group are especially interested in the transition to a low-carbon economy and the development of sustainable energy systems.

But to fully understand the challenges this involves, the Group also explores the synergies and trade-offs with other objectives such as improving energy security and ensuring economic efficiency, as well the interdependencies between technical change and broader social, political and cultural conditions.

The Group's approach combines ideas from economics and innovation studies and covers a range of topics that includes technologies such as carbon capture and storage, policy initiatives such as emissions trading and social concerns such as grassroots community energy initiatives.

The energy sector is under huge pressure to change, massively and rapidly, away from fossil fuels and towards renewable energy sources.

To do this, novel approaches such as the Smart Grid are needed, where information technology is used to control electricity supply and demand in a more intelligent way.

From this arise interesting questions on how people behave and react to changing technology and energy policy, and whether people would necessarily react in ways that technologists or policy makers presume.

In addition to evaluating the source and impact of innovation and technology on energy systems, the Group's research also examines how people learn to live with new technologies.


The rebound effect

Projections from the International Energy Agency suggest that around half of the required emissions reductions between now and 2030 can be achieved through improved energy efficiency – more than the contribution from nuclear, renewable sources and carbon capture and storage combined.

However, a controversial idea known as energy 'rebound' suggests that those projections are too simplistic, neglecting how individuals and economies may respond to improved energy efficiency.

Rebound is illustrated by the idea that someone who invests in a more fuel-efficient car may offset the energy savings made by driving more.

On a larger scale, industries that introduce a more efficient production process may become more successful, expanding their business and in turn increasing energy consumption to generate more output.

Any potential energy savings from improved energy efficiency may be partially or wholly offset by how individuals, companies and markets behave.

To determine the evidence for such rebound effects, and drawing on analytical methods originally developed in the study of medicine, Dr Steven Sorrell at the Sussex Energy Group led a major study of this phenomenon, the original results of which were published by the UK Energy Research Centre (UKERC) in October 2007.

The study was the most comprehensive analysis of the evidence on rebound effects ever published and concluded that these effects are frequently large and need to be taken much more seriously by policymakers.

But while rebound effects reduce the contribution of energy efficiency to emission reduction, they do not provide an argument against energy efficiency policy.

A follow-up project, funded by the UK government, aims to quantify these effects in UK households, using economic modelling to understand how families respond to improved energy efficiency.

For example, when replacing old lighting with more efficient lighting, what will they spend the savings on, and what carbon emissions will be associated with this re-spending?


Community energy

At the other end of the spectrum of such complex sociotechnical systems is the rising interest in the UK in community energy projects, where local groups and community activist networks form to develop their own solutions to energy supply and demand reduction.

The Community Innovation in Sustainable Energy research project, led by Dr Adrian Smith of the Sussex Energy Group, was set up to interact with and study such groups.

The purpose was to understand how such projects arise and function, how they do things differently, how they impact their communities, what changes in practices or behaviour occur to lead to more sustainable energy use, what sustainable energy technologies they use, and how innovations that arise can then be used to inform wider energy policy.

As a result of such activities, including work at Sussex, the Department of Energy and Climate Change are now developing a strategy on community energy.


Transformations

At present we are locked into an intensive, carbon-dependent system, where our whole way of life – our buildings, our businesses and the way we generate our energy – forms a complex, multilayered and deeply interconnected system.

How do we shift to something radically different, how do we do so quickly, and how do we change or create the policy that allows us to do so?

How well we adapt depends in part on how well we understand the complex sociotechnical systems that underpin energy generation and consumption.

Adrian's perspective

Dr Adrian Smith, Senior Lecturer SPRU – Science and Technology Policy Research, The Sussex Energy Group said: "A striking development in UK energy policy is recent interest in community energy.

"Hundreds of local groups and various activist networks have formed over the last decade with the aim of developing their own projects for energy supply, demand reduction, and awareness raising in ways that respond to the needs, values and interests of their local communities. Government is currently developing its strategy for supporting this activity.

"I've been leading the Community Innovation in Sustainable Energy research project, in which we have studied these developments and informed policy.

"While community energy is motivated partly by a desire to play a role in transforming our energy systems into low-carbon, sustainable forms, sometimes borne of frustration with government and utility ambivalence on the issue, this is only part of the story.

"Community groups recognise the growing value associated with energy saving and renewable energy promising resources for local economic and community development. A good example is Brighton Energy Co-operative who collaborated in our study.

"Our research finds community activity is opening spaces for different kinds of innovation in sustainable energy, and forms part of a wider body of work at SPRU – Science and Technology Policy Research on grassroots innovation."