Consumers are the energy disruptors

By Lee Guo Rui

The disruption in today’s energy industry is caused by changing consumer needs and technologies, said Dr Michael Weinhold, Chief Technology Officer of Siemens.

Speaking on a panel that discussed “Disruptive Technologies and the Energy Consumer” at the Singapore Energy Summit, Dr Weinhold said that energy innovations are being driven by consumers – not by regulators or electricity companies. For example, German utility companies have added the maintenance of roof-top solar panels to their services as a result of their popularity among the public.

With further technological advancements and cost reductions, roof-top solar is set to be a game changer, Shri Gireesh B. Pradhan, Chairperson of the Central Electricity Regulatory Commission (CERC) in India added.

Anne Nilsson, Director General of the Swedish Energy Markets Inspectorate (Ei), reiterated the importance of consumer influence. She said that consumer participation is required for market competition to thrive, and is often dependent on pricing signals. Pricing comparison websites and studies on how to incentivise consumers to adopt new renewable energy (such as through smart meters) will further transform the energy industry, Ms Nilsson added.

That said, despite the emergence of consumer-driven disruptive technologies, the transmission network still serves a significant purpose in transmitting electricity from the traditional large power plant to the consumers. Going back to Germany as an example, Dr Weinhold shared that solar potential is “only 20% of the electrical energy needed per year” and that the transmission network also serves to transmit electricity generated from large scale renewable sources, such as offshore wind power, to meet demand in the cities.

Disruptive technologies could make the electricity transmission network more flexible and efficient, causing reactions from the whole electricity sector value chain. Ms Nilsson agreed with this concept, adding that such changes create challenges, but they also create opportunities – such as allowing greater adoption of cleaner energy, encouraging more efficient use of energy by the consumers, and stimulating efficiency and competition in the energy market.

Within the European Union, such disruptive technologies can help promote an integrated and harmonised energy market, she added.