Distributed energy, including onsite generation and storage, could deliver potential carbon dioxide emission savings of 137 million tonnes by 2030 in the UK, according to a new report by Centrica.
The ‘Distributed Energy: Powering Sustainability’ report said the savings could be made if 50% of organisations in the industry, health and the hospitality and leisure sectors switch to distributed energy.
This equates to 11% of the three sectors’ existing carbon footprint or 3% of the country’s total carbon emissions by 2030.
Other shifts companies can make from centralised supply include demand side response, energy efficiency, combined heat and power and energy insight.
“Falling upfront costs, new financing options including zero-capital investment plans and the ability to create revenue from generation assets are driving the uptake of this new energy technology,” the report said.
It added that the deployment of distributed energy in the future will become the norm for businesses and large organisations. New technologies will also include green gas and smart grids.
Centrica added that in order to foster innovation in all these areas the right political, fiscal and regulatory frameworks need to be in place.
The report makes three recommendations that can help the UK realise the potential offered by distributed energy.
First, BEIS should commit to assessing the role of distributed energy in reducing emissions and promote technologies.
Second, the Committee on Climate Change should assess the impact of new energy technologies for larger energy users to achieve decarbonisation.
Third, reform existing carbon accounting rules because the current system does not allow all companies to account clearly for carbon benefits from projects that they undertake.
Centrica Business Solutions managing director Jorge Pikunic said: “The UK has made a big contribution to the fight against global warming.
“Much of this has been due to the shift away from coal-fired generation and the deployment of solar and wind energy. But things get more difficult from here, as we strive to hit our goal of an 80% reduction in UK carbon emissions by 2050.
“The good news is that business and the public sector can play a central role over the next decade in our path to decarbonisation.
“This report shows how by adopting distributed energy technologies, we can significantly reduce emissions and make a positive impact to the economy at the same time.”