Advances in energy innovation
A Scottish Renewables event today heard from the Scottish Government, a utility and an angel funder on the challenges and opportunities for innovation in our energy system. Policy Officer Hannah Smith blogs:
The challenges facing our energy system are evolving, and we're increasingly turning to innovation to provide solutions.
Data analytics is giving us insights that we never dreamed we'd have, even five years ago.
An angel's insights
While that data can drive massive savings and efficiencies, the fact that DNOs run the grid for security and reliability can mean new technology is hamstrung at its first hurdle.
That's the view of Green Angel Syndicate's Andrew Aldridge, speaking at a Scottish Renewables event on Innovation in Renewables this morning.
Andrew's business is investing in green energy start-ups at an early stage.
His experience has shown that "there is a need for more and more innovation, and that needs R&D, but this need comes at a time when funding for R&D is being cut by universities".
He singled out government as one of the solutions to that problem, and said "it's positive in Scotland that there is a long-term move towards an innovation strategy".
New role, new opportunity
Simon Coote's role was only recently created - and its creation was seen as "a very positive move" by fellow speaker Barry Carruthers, ScottishPower Renewables' Strategic Innovation Manager.
Simon, who's the Scottish Government’s Head of Energy Industries and Innovation, spoke at this morning's event in Edinburgh and told how he's "pushing very hard" for a Scottish innovation strategy to underpin the Scottish Government's wider Energy Strategy.
That document is expected to be ready by the end of 2016, and looks set to focus on heat pumps, mirroring the direction taken by the Department of Energy and Climate Change in the launch earlier this month of a consultation into the future of the Renewable Heat Incentive.
Sobering issues
Speaking of the challenges facing government in order to hit 2050 targets – including the need to completely decarbonise road transport – Simon said, "shows that we face some sobering issues".
But he also highlighted that there are big wins to be made in heat, as well as through a renewed focus on energy efficiency, which has now been designated a National Infrastructure Priority.
That broad focus on a range of fixes to reduce carbon emissions is, Simon says, essential, adding: “To just push for electricity decarbonisation is myopic”.
Responding to a question from the floor, he also reiterated the Government's support for renewable electricity, and said a shift to focus 100% on heat was not on the cards.
Funding energy innovation advances
The event's chair, Clare Foster, is sponsor and host Shepherd + Wedderburn's Head of Project Finance.
She has acted for the Renewable Energy Investment Fund in providing £20 million of project finance debt and equity to the MeyGen tidal energy project.
Clare also advised the UK Green Investment Bank on the development of its new product, the Green Loan, which led to the deployment of LED streetlights by Glasgow City Council.
Kicking off the session, she asked:
"What do we mean by innovation? Why do we need it? And what challenges do we face?
"We need only look at the wind sector for examples of doing things better, faster and cheaper.
"Today, it's not only about generation. It's about trying to use energy in a more efficient, better and cheaper way, and we are relying on innovation to do that."
The risks of 'shifting sands'
Challenges to the uptake of innovation in energy are significant, however.
Clare pointed out that UK Government policy is now "a case of shifting sands", and that risks associated with new technology often leave financiers cold.
She added: "For every innovator saying 'opportunity knocks' you'll see a financier saying 'red flag', 'danger', or 'don't go there'."
View from the industry
Scottish Renewables’ recent focus on innovation began with a briefing paper outlining areas to which we feel innovation funds should be committed to benefit our energy system the most.
In this blog a month ago I wrote that it's coordinated effort as much as 'Eureka moments' that turn the best ideas into reality, and that remains the case.
Events like this one are just one way of bringing together stakeholders and getting the wheels of innovation turning.