Challenges And Issues Affecting The Implementation Of Demand Side Response And Distributed Generation In The UK Energy Sector

Demand Side Response

The energy sector is usually undergoing different changes. In the transformation stage, the sector is able to experience different factors which are able to affect its progress in the implementation of the different management styles and availability of the resources. The technological advancements are also experienced and seen on the management of the sector. Strategies such as the demand side respond, distributed generation and demand reduction are key demand side management strategies, which are used in the energy sector (Jillian, 2014).  These DSM strategies are emerging due to the progress of the technological advancement in this key sector. The main aim which has led to the energy sector opting for these strategies is to increase the efficiency measures in the energy production.

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The United Kingdom is a key country, which has emerged as a lead to the implementation of these key strategies in its energy sector. Nevertheless, the government has not been able to offer clear and enough incentives to enhance the implementation of these DSM strategies in its market for this sector (Torstensson & Wallin, 2015). Due to the lack of this commitment, the energy sell has not be able to bear enough returns even with its emergence in the country. The lack if this commitment by the government has as well led to the lack of achievement of the projected plans and progress in the energy sector. In addition, the lack of incentives in the energy sector to enhance these strategies has led to their low growth (Jillian, 2014). These key strategies are affected by different key issues, which inhibit their implementation in connection with the energy sector. This paper will look at these drives and the key issues, which are able to affect their implementation, and more specifically in United Kingdom (Stern, 2011). These issues are able to affect their implementation and attaining the required and projected goals in the energy sector. This paper will in details look at the way the issues are able to impede the reaching of these goals in UK.

The element of the demand side respond focuses on the intelligent energy uses within different parameters and by the user. This technique requires some actions to be taken up by the energy users to enhance their energy use efficiency such as turning off the energy appliances (Sherriff, 2014). In addition, the demand side response, DSR involves the changing of the patterns of the energy patterns for the energy users in response to the different incentives available. Moreover, the policy is meant to ensure that the energy supply is kept on and the demand is flexible to ensure the matching of all users (Torstensson & Wallin, 2015). The DSR focuses on the management of the demand side of the energy consumption. With the estimated advantages of the DSR, the policy has been able to face challenges in its implementation stage especially in UK. This has been able to lower the required expectation and achievement of the benefits which the policy has to offer in the energy sector (IEA, 2012). The DSR can be implemented through the turn down DSR where the users reduce their demand of energy and therefore able to reduce their consumption. Another way is through the turn up DSR where the users are able to increase their demand temporarily leading to an increase in energy demand when required (Sherriff, 2014). The last mechanism is through the DSR on site generation, where the users temporarily reduce the demand from the grid through the use of on site generation or use of stored energy.

Distribution Generation

One of the major challenge, which the DSR is facing in UK during the implementation stage, is the lack of incentives which are meant to promote its achievements. The energy sector has been able to accuse the UK for the lack of commitment in ensuring that the DSR methods are well implemented (Torstensson & Wallin, 2015). In relation to the statement, the energy sector has been able to show that the government is denying high cost saving mechanism which has to come up with the DSR methods to the consumers. The mechanism to enhance the release and passing of DSR information is required to enhance the enlightening of the energy consumers. The increase of the incentives from its current 50 percent rate to more is required to ensure that the DSR strategies are able to achieve their required targets and goals.

The data privacy and cyber security is another key issue, which is affecting the implementation of the DSR methods (Torstensson & Wallin, 2015). The automation process is seen is a key area which may lead to an increase of the cybercrimes and inefficiency data privacy for the customers. Is reason is making many of the DSR users shy away from the implementation of the DSR strategies in UK. The misuse of the customer’s information during the automation is one of the key worry which is affecting the DSR methods in UK (Sherriff, 2014). The automation of the data and privacy issue has become a major limiting factor creating some fears for the implementation of several DSR strategies (Stern, 2011). For instance, many fear that the automation of the household data may be used to tell when the occupant are not in the house and therefore may be used for crime purposes. This issue is creating slow implementation rate of the DSR strategy in UK.

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In addition, the initial cost of installing the DSR and its technology is expensive for the small businesses and households. The cost factor with the limitation of the UK government to offer enough incentives to these businesses and households has led to low implementation of the strategies (Sherriff, 2014). The DSR requires a communication technology, which will enhance its operation, and this is able to increase the cost of the DSR implementation for the individuals and small businesses. The cost factor makes the whole strategy expensive and therefore many oi the individuals in households and small businesses shy away from its implementation (IEA, 2012). Moreover, the DSR do not offer enough financial returns and this has been a major cause on many of the businesses have been slow in its implementation. The installation and operation is expensive for the businesses and with the lack of the incentives from the government, the implementation of the strategy has not been effective as it was projected.

In addition, the lack of data in UK has been another major reason for the implementation of the DSR. The data for the household in UK is difficult to get and this has been able to cause the problem during the implementation for the DSR. The DSR requires this data for their proper implementation and the increase of the lack of data has been able to offer challenges for the implementation of the strategy in UK (Sherriff, 2014). In addition, another key challenge for the implementation for the DSR in UK is the inefficient for the use of DSR (IEA, 2012). This is found when the conditions are able to limit the use of the DSR providers as often as possible. This is found when contractual conditions limit the use of the DSR providers from contraction on different parties. This means that there are few providers who are able to satisfy the available demand on the DSR requirements and therefore able to offer low implementation rate for the DSR in UK.  

In relation to the idea of DSM, the distributed generation also known as distributed energy is one of the key strategies which is thought to be able to enhance the efficiency in energy provision in UK. The distributed generation is a key drive, which focuses on the generation of the energy on the point of consumption. Nevertheless, these key strategies are able to face different challenges, which are able to affect its implementation (Shove & Walker, 2014). Nevertheless, regardless of the shortcoming the distributed energy has specific key promising strategies. These promising entities are unable to be attained due to some opposition, which the strategies are able to face during their implementation stages (Tainter, 2011). This strategy focuses on the reduction of the problems, which are faced during the distribution, and transmission of energy. The lack of the implantation incentives in UK has been able to affect the achievement of the key goals. Key measures are being taken with the technological advancements in order to enhance their implementation. Nevertheless, the key distributed energy is faced by some methods which has to be addressed to enhance their application for proper energy distribution.

Some of the key and major issues, which prevent the implementation of this strategy, are the lack of clean source of energy. Most of the sources of energy which are involves in this trend include the use of the generators which mainly use sources of energy such as diesel. The proposers of these methods argue that this drive is able to enhance the destruction of environment. The environmental impact has been one of the major limitation, which the generated energy has been able to face in its current implementation (Shove & Walker, 2014). The impacts of the strategy in relation to the environment are able to cause a lot of institutional barriers since many of organizations and people are against such sources on energy. The environmental drive is a key issue, which is critical and gains a lot of focus from many. The need to have the clean energy source has therefore be able to limit some of the methods, which involve the distributed generation strategy. This drive is able to enhance and act a barrier as a key element, which is able to prevent the implementation of the strategy (Tainter, 2011). Nevertheless, some of the strategies in this category are clean and this is able to offer some light in the distribution generation. The use of other key clean methods, which has been able to provide the energy at the consumption points have been in line of implementation (Shove & Walker, 2014). The energy and solar energy have been implemented as sources of renewable energies, which are key to enhance the clean energy sources.  

In addition, some of the methods in this drive are intermittent. This means that these methods are recurrent and therefore have other cost implications. The recurrence of the trends is able to help many people to turn to other strategies, which have less cost factors and do not repeat themselves each time. This is able to make this strategy an incompetent method, which many can rely on especially for the business purposes who need the power around the clock. Some methods such as the solar panels have been used as part distributed energy. The lack of reliance on these methods has been key to reduction of the implementation of these strategies in the market and especially in UK (Tainter, 2011). Considering the business aspects which has to maintained, the continuous energy is needed on different locations and therefore proper energy sources are required. This factor is able to enhance the restriction of the DSM method. Moreover, the recurrence of the method is able to enhance the key limitation factors since more costs are incurred in reconnection. The use of the method is able to require a backup method which is a connection method (Shove & Walker, 2014). The limitation is key to inhibit the implementations of the energy strategies. The technological advancements in the energy sector have looked to look for methods, which will create a consistency in energy provision in different parts. This will enhance the reliance for the energy in the business and other purposes. Moreover, internal backups are also being provided has parts of technological advancements to enhance the reliance on this DSM strategy. This technological reliance is nevertheless expensive and therefore creating an additional expense for the energy users.

The demand reduction measures are meant to ensure that the efforts are meant on reducing the consumption of energy in different sections and therefore increasing the efficiency. There are key measures which the UK has taken in order to ensure that the implementation of the demand reduction is achieved and the efficiency in the sector is maintained. First, the demand reduction are key measures which ensure that the carbon emissions are cut. The energy reduction encourages the use of renewable measures in energy production and therefore able to cut the carbon emission to the atmosphere (Wilson and Gruebler, 2011). Moreover, through the reduction of consumption capacity, the carbon release to the atmosphere is usually reduced by a bigger margin. The government has been able to invest on site generation mechanisms, which are able to promote the demand reduction measures in UK.

The enhancements of these measures are able to promote the demand reduction and therefore promoting the carbon reduction through the control of energy production in UK. In addition, through zero carbon homes, the UK government has been able to promote the existence of the energy reduction measures (Barrett et al., 2013). The reduction of carbon emission has ensured that the different households control their energy consumption and increase the energy efficiency in UK. In addition, through Green Deal, the UK government has been able to enhance the demand reduction measures. This is because most of the green energy sources are controllable at the consumption point and therefore the consumers are able to enhance the reduction of their consumption (Wilson and Gruebler, 2011). These key schemes in UK have been great drivers in enhancing the demand reduction in UK energy sector. They are able to ensure that the energy sector in industries and households are able to control their consumption at given times.

Nevertheless, with the regard to the different drivers in the implementation of this strategy, the demand reduction in UK is also faced by key challenges which limit its implementation in UK. Most of the on site production measures which highly encourage the demand reduction are environmentally unfit to be approved (Barrett et al., 2013). Many organizations are against some of the methods and therefore able to inhibit the demand reduction methods in UK. This factor is therefore able to affect the implementation of the demand reduction measures on different locations in UK.

Moreover, the demand reduction requires smart meters, which will be able to enhance the reduction of the consumption when the energy is not needed. The meters are able to add additional expenses to the consumers and therefore limiting the implementation of the demand reduction measures in UK (Barrett et al., 2013). The additional expenses in energy sector are able to disable the implementation of some of these programs since the consumer has to pay for them. Due to this case, it becomes uneconomical for the consumer to adopt the measures and the demand reduction measures are one of the mechanisms experiencing such difficulties.

In conclusion, the energy sector in UK is in all time trying to adopt new technologies which are able to enhance the energy efficiency in the country. The government is able to enhance different drivers which are meant to enhance the implementation of such programs such as the demand side response, distributed generation and demand reduction in energy sector in UK. Some of key drivers in the sector include the incentives offering by the government as well as the non-governmental involvement in enhancing such programs. Nevertheless, there are other key challenges which are able to inhibit the implementation of these programs in UK. There are key measures which are able to enhance the lack of the commitment from the government to enhance such programs. The incentives are at times less to enhance the goals of such programs.

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