There are a number of reasons to invest in CleanTech solutions and we set out the main ones below.
Energy Price Volatility
Before the recent global economic crisis, commodity prices were in most cases at, or near, all time highs. Memories are short, but a visit to the petrol pump is a regular reminder of how exposed we are to energy price volatility.
The consensus amongst commentators on energy is that fossil fuel prices will continue to rise over time. This is expected to occur as known reserves of oil and gas dwindle or become harder to extract and therefore more costly to extract. The issue is particularly precarious with oil, and the Peak Oil debate currently raging is arguably as important an issue for the future of the planet as climate change is. Coal is still relatively bountiful and cheap, but carbon capture is as yet an unproven technology and the burning of coal therefore remains possibly the worst option in terms of CO2 emissions into the atmosphere.
The vast majority of our energy is generated by these fossil fuels and reducing our dependence on them reduces our costs in the medium to long term as well as our CO2 production. Producing your own energy enables you to manage your costs in the medium to long term.
Energy Security
Energy security can be split into two different categories.
Firstly, there is the fact that in the UK we are now dependent on other States (some of which we would rather not be dependent on at any cost!) for our energy supplies. Whether it is oil from the Middle East, Russia, Venezuela or Nigeria, or natural gas from Russia we do not control the supply and our geographical location means that we are usually ‘at the end of the line’.
Secondly, successive UK Governments have failed to plan adequately for future energy supply leaving a situation where there are not enough new sources of energy generation facilities being built to replace those due to be decommissioned over the next few years. This will almost certainly lead to severe energy shortages with possible regular power outages by 2016 as has been the case in South Africa over recent years. Unfortunately the likely “solution” to this problem will end up being the rapid construction of gas-fired power stations. As the only option that can be constructed within the timeframe, this form of generation is likely to prevail despite its extremely detrimental impact on the environment due to CO2 emissions. This in turn will mean that bigger CO2 emission savings will need to be made elsewhere to offset the increase. In this uncertain environment it would be reassuring to be less reliant on centrally generated power.
Path of Least Resistance
In terms of CO2 emissions heating, cooling and lighting come second only to transport. Achieving an 80% reduction in transportation emissions is almost unthinkable in the context of current ways of living and working, with reductions of more the 50% in current levels of travel by cars and planes becoming necessary.
In comparison, achieving transformational reductions in CO2 by adapting the built environment is straightforward. As 80% of the housing stock that will exist in 2080 is already built, this means that retrofitting CleanTech solutions such as solar thermal, photovoltaics or heat pumps is the path of least resistance to achieving our CO2 reduction goals.
Carbon Dioxide Reduction
It is now generally accepted that CO2 emissions must be reduced by 80% by 2050. If that is so and that addressing the existing housing stock is the answer, what are the best measures to take? Much focus has been already been put on efficiency. Support has been given to encouraging householders to insulate their properties and there is no doubt that this has to be the first step. However, insulation and draught reduction can only go so far – in general only 60% of the necessary improvements can be made in this way. The last 10%-20% needs to be in energy generation and this can only be achieved through domestic CleanTech solutions to generate energy at the property itself.