Consumer energy customer event 2019: The energy market now in 4D

The annual retail customer event – Setting the course for net zero, was held on 19 November. Delegates heard from seven speakers discussing how finance, transport, heat, consumers and regulation could be utilised to help GB meet its 2050 net zero target.

The event began with Gareth Miller Cornwall Insight’s CEO emphasising that “we are experiencing one of the biggest periods of transformation the GB energy market has ever seen”.

Weaved throughout the afternoon was the “4Ds”: decarbonisation, decentralisation, democratisation and digitalisation. These were described as the four fundamental drivers of this transformational change the market is currently undergoing.

Decarbonisation finally has a focal point, with reaching net zero becoming an objective for the whole of GB, albeit that the speed and the path to take is still being debated. The move has been a catalyst for change, with Gareth highlighting that the decarbonisation objective was radically starting to reshape the market and featured heavily in every one of the speakers’ presentations.

Decentralisation has moved away from previous discussions of how a distributed asset will connect to a network. It appears that the market is moving towards “much smaller units of consumption, storage and generation even at the household level”. According to the presenters, the market is starting to shift to behind the meter, and as a result, it is expected that more integrated service offerings will begin to emerge

Thirdly, democratisation. Gareth explained that currently “we are at a tipping point from what consumers want and expect from energy”. With global protests on climate change, consumers are more aware of the issues. This has moved the political debate on from price and whether it is fair to a much broader discussion about the role of energy to improve the environmental circumstances across the world

The final D, digitalisation, is relatively new and the sector was described as only just starting to get to grips with this pillar of change. New tech-driven businesses are entering the market and are expected to have a profound effect on “the engagement, interaction and management of the consumer energy supplier relationship”. As the retail market evolves, there will likely be a greater focus on the customer experience, and digitalisation is set to play a vital role in this.

It is the digitalisation area that was a key feature of the event and culminated in the launch of Cornwall Insight’s Connected Home Insight Service. A connected home is a home with multiple integrated devices that can be easily controlled to create a safe, comfortable and convenient environment.

The Insight Service focuses on the changing landscape of comfort and convenience, security and wellness technologies and highlights emerging strategies of those operating in the connected homes space and their routes to market. It identifies the opportunities and challenges in the key areas as well as the commercial market.

Related thinking

Announcement

Energy market and net zero transition learning and development: Role-relevant career development training

We’re well over halfway through the calendar year and are now beginning to see more of the government’s thinking and policy-shaping around what needs to change to meet the 2050 net zero target. For example, the flurry of documents issued towards the end of 2020, including the Energy White Paper...

Net zero corporates and ESG

Data critical for sustainable investments

On 24 June, attendees to our 'Financing net zero forum' tuned in to hear the expert panel discussions on the role of data in sustainable investment. Joining the meeting chairs, Cornwall Insight's Daniel Atzori and Emma Bill were our guest panellists from Mercatus and Victory Hill Capital Group LLP. For investors to make...

Heat networks

Reallocating electricity policy costs to incentivise low carbon heating technologies

Funding the cost of decarbonising the power system has mainly been through the consumers' electricity bills. In fact, in 2020-21 these costs amounted to a whopping £10bn. But is this method of raising revenue for decarbonisation still fit for purpose when faced with the need to decarbonise the nation's heat?...

Net zero corporates and ESG

Financing net zero panel advises policymakers for a long-term view of net zero to boost merchant renewable confidence

Last Thursday's 'Financing net zero forum' brought together 580 registered attendees across the renewables sector to listen to the expert panel discuss managing renewable merchant risk. Joining the chair of the meeting were experts from across the industry, with Shoosmiths sponsoring the afternoon discussions. Merchant renewables – the development of...

Net zero corporates and ESG

Get ready for climate risk reporting?

On 30 April we released the latest copy of our Energy net zero. The publication takes an in-depth look at the UK's transition to a low carbon economy. The below is an extract from our Energy Perspective on Task Force on Climate-related Financial Disclosure (TCFD). The article was originally published in the...

Low carbon generation

Data centres predicted to become prosumers of electricity

In combination with Cornwall Insight and Bit Power, Host in Ireland published its Biannual report of Ireland’s Data Hosting Industry. The report highlights the importance of sustainability in Ireland’s digital transformation. The report confirmed the number of operational data centres in Ireland increased by 25 per cent over the past...

Regulation and policy

Why energy system governance is not fit for purpose

In my recent blog, the Emperor’s new clothes I referenced a poll of our Financing Net Zero (FNZ) membership which revealed 75% support for an energy systems architect to ensure we manage the net zero transition. In the spirit of independent thinking that Cornwall Insight is known for, I respectfully disagreed and...

Low carbon generation

How nuclear energy can help the UK reach its net zero goals

This article was originally written in Energy Spectrum on 21 March 2021. To find out more about a subscription to Energy Spectrum, please contact Nick on n.palmer@cornwall-insight.com. There are several challenges to reaching net zero, where its proponents believe nuclear could add value. Some of tomorrow’s main issues concern: How to provide low...