UK Energy Industry and Economic Impact

Introduction

The energy industry in the United Kingdom has been a tremendous contributor to its economy and livelihood of the region for years. Specifically, the gas and oil extraction has been a significant energy contributor, which tends to heighten in the years of 2015 and 2016. In these two consecutive years, oil production increased due to high demand for electricity across UK. As it increased, there have been numerous demands for more energy as the oil and gas tend to be limited in the onset of the year 2018. For that reason, the UK economy has shifted its focus in accessing renewable sources of energy to fuel the ever growing economy. The research focuses on renewable sources of energy, their systems, how they will be beneficial, a cost-benefit analysis in comparison to conventional energy sources as well as the socio-economic and environmental factors involved in the consideration and selection of other approaches to renewable energy sources and technologies.

Renewable Energy Sources

Renewable energy is energy that is fetched from renewable sources, which are naturally replaced on a time scale of human like wind, tides, sunlight, geothermal heat, waves, and rain. Renewable energy in most cases offers energy in water cooling or heating, electrical generation, rural, which are off-grid areas and transportation energy services. A report that was undertaken back in the year 2017 depicted that renewable energy sources contribute to at least 19% of the world energy consumption. The energy originated from sources like biomass, hydro-electricity, wind, solar and geothermal sources that had amounted to an investment of two hundred and eighty-six billion US dollars. Therefore, while the non-renewable sources of energy are depleting, and due to the safety concerns and waste disposal issues revolving around it, renewable energy is better for the economy due to its ability to replenish and does not detriment the environment. These renewable energy resources are as follows:

a. Solar Energy

By use of solar technologies, Twidell and Weir, (2015) claim that infinite power from the sun has been tapped and applied to produce electricity, heat and power. The sun has been used for centuries to light their homes for centuries. But has only been resourceful during the day but not during the dark. Therefore, modern versions of this sun have been developed to passively apply to be used not only to light houses at night to run electrical appliances such as pumps, fans and other mechanical devices. Fahrenbruch and Bube (2012) identifies that the solar energy is collected in different ways, but the most common one is by use of photovoltaic solar panels. These panels convert the rays of the sun into applicable electricity. Commercial property owners and residential too have been installing solar energy panels to be used in heat water systems, and when they are designing these buildings, they put these passive solar heating systems in mind that it will completely take advantage of the sun’s energy with its technology.

The main components of solar power include, a photovoltaic (PV) panels, a direct current (DC) to alternating current (AC) power converter as well as a rack framework that clasp the PV panels in position. The inverter turns the DC electricity generated by the solar panel to AC that can be put into immediate use where it is linked to dedicated circuit breaker in electrical panel. When it gets to electrical grid, it is net metered, that is, it is regulated in relation to demand. It automatically shuts off if the utility power tends to go out, protecting consumers from power being back fed into the grid during a power outage. These kind of solar-powered electric systems are called ‘on-grid’ in another term depicted as ‘battery-less’. Below is a solar power system and how it works;

b. Wind Energy

Wind is air in motion. When wind is in motion, it is caused uneven heating of the earth surface by the sun. The sun’s heat is absorbed in different rates due to the earth made up of very different surfaces, of land, water and several others. As a result, an IPCC special report on renewable energy sources and climate change mitigation of (2010) outlines that different intensities of wind are generated. Recently, wind has been harnessed to generate energy for electricity, and wind is referred to as a renewable energy source since it will blow as long as the sun shines. Munday et al. (2011) identifies that a wind electric system is a combination of a wind turbine that is mounted on a tower to offer an improved access to stronger wind. There is also an electric system needed that depend on whether the system is a stand-alone, grid connected or a hybrid of the two. There are batteries for off-grid and backup frameworks that offer energy storage for periods of utility grid outages. There is a charge controller and a voltage clamp that harvest energy from the wind generator and condition it so that it can charge the batteries safely and efficiently (Saber and Venayagamoorthy, 2010). Overload circuits allow isolation of various parts of the system without accidents. The dump load diverts the extra energy in off-grid framework at times when utility grid has decreased. An inverter is meant to covert DC to Ac to be used at household level. Loads in devices are appliances for lighting. Metering offers the user data as well as logging to display if the framework is working effectively. A transmission conduit and wiring transfers generated energy to its storage site and finally to its application. Finally, the wind generators are the turbines that collect energy in the wind and apply it to generate electricity.

Below is a wind turbine system:

c. Hydro Power

Hydro power of hydroelectricity is the conversion of energy generated from flowing water into usable electricity. Since the cycle of water is consistently being renewed by the sun, it is considered as a renewable energy. Twidell and Weir (2015) identifies that the first time water was used to generate power was use to mechanically mill grains. However, in modern times, hydro-electric power plant generates electricity by applying turbines, generators, whereby the mechanical energy developed when moving water spins the turbines. These turbines are linked to electromagnetic generators that yield electricity when the turbines are rotated. There exist three kind of hydro power facilities according to Connolly et al. (2011), these are; diversion, impoundment as well as pumped storage. The impoundment type of hydro power plant is the most common facility. It is basically a large hydropower system that uses a dam to store water from a river in form of a reservoir. The water from the reservoir flows via turbines that rotates them, starting up generators via mechanically and yields power in form of electricity. The water can be let out to either meet the same river or pumped back to the reservoir to maintain its level.

Below is a diagram depicting the impoundment system of hydropower plant;

d. Tidal Energy

According to studies by Vlasenko et al. (2014), tidal energy is a renewable energy originating from natural rise and fall of ocean tides and currents. It was in the twentieth century when engineers discovered that ocean tides generated energy. So they devised ways to harness the energy to be electricity by us of generators. So the focus was on areas that recorded significant tidal range, these are areas of low and high tides. While tidal energy is still at inception, the quantity of power generated is still minimal. Also the number of commercial tidal energy power plants that are effectively across the globe. The first of tidal energy power plant was set up in La Rance in France. The largest that was built was in South Korea known as the Sihwa Lake Tidal Power Station. There exist three varying methods of generating tidal energy, these are tidal lagoons, tidal streams and barrages. The most common one are the tidal streams, where the turbines are placed in a fast-flowing body of water that is developed by tides. The turbines and generator converts the movement of water from being kinetic energy into electricity. In this tidal stream, water is eight hundred and thirty times denser that air or wind thus, can generate more electricity compared to wind energy and wind turbines. Below is a diagram depicting how a stream tidal energy is generated;

How to connect to Local Systems

Solar Energy

Solar energy is the easiest to harness and install and by use of grid connection system that functions with the local utility. For a successful installation, you would require solar panel, a charge controller, a battery, an inverter and source of light or appliances. Wilkins (2010) explains that the grid connects system needs these few components installed in a home or a business. The solar panel that possesses photovoltaic cells made of silicon positive and negative films is mounted on the roof, where there are no shades of trees or other structures. An inverter is situated in an accessible position on a wall of a house, which is as close to the modules. These inverters convert the DC electricity generated from the solar panels into 120-volt AC, capable of being put into immediate use. For it to be used, it must be connected to a circuit breaker in the electrical panel. A net meter reduces the demands for the power for various uses. The excess power generated from the solar panel is sourced to the batteries for storage to be used when the utility power goes offline.

Wind Power

To source wind power locally, Bevrani et al. (2010) identifies that there is need for a general ideas of the quantity of wind at the site, the requirements of zoning and covenant in that area, as well as the economic incentives of installing a wind system in that locale. Munday et al. (2011) studies a mall wind turbines are needed that ranges the size from 400 watts to 20 kilowatts that will depend on the quantity of electricity needed to be generated. There is need for a tower, and the higher the turbines are located the more the power that the system can generate. Manyonge et al. (2012) identifies that there is a gear system and coupling that steps up the speed and transmits it to the generator. The purpose of the generator is to convert the rotational energy into electrical energy. There must be a controller that is meant to detect the direction of the wind. The electrical energy from the generator is fed into the power grid either to be used immediately, or to be stored in batteries. There are inverters installed to convert power from DC to AC.

How Renewable Energy would be beneficial to Remote Communities of UK

Significant parts of England such as Lake District; Dartmoor, Pennines and Exmoor, Scotland; Nevin and Hanley are areas that are made up of low population densities, less infrastructure, low levels of economic activities as well as limited conventional energy sources would greatly benefit from renewable sources of energy as findings by Connolly et al. (2016). These areas have not been sourced with energy to light up their houses or to facilitate economic activities or set up essential infrastructures such as schools, hospitals and others. For that reason, they would greatly benefit from renewable energy in the following ways;

With renewable energies, new economic opportunities are being promoted as maintenance of these renewable energy facilities and opening up job opportunities in these farms that will be generating clean energy.

Through clean energy, specifically solar and wind can minimizes water usage. The water that could be competed for in generating power can be used to provide affordable irrigation for nearby agricultural concerns.

With renewable energy, power outages that are common in rural areas that are connected to non-renewable energy power grids. When homes and businesses are provided with renewable energy from on-site sources, there are lesser chances of losing power.

In Dartmoor, Pennines and Exmoor wind and solar energy can be harvested in these areas having had large chunks of unused lands to install the solar panels and wind turbines. With the combination of these two energy sources, Yadoo and Cruickshank (2012) argue that it will power the immediate homes and surrounding towns and cities. Each of the mega-turbine and solar panels of hundreds of megawatts will be capable of powering at least 20,000 homes and hundreds of businesses in the UK. Both of these renewable energies will make up a wind and solar farms capable of generating enough renewable electricity to power a hundred and thirty kilometer area of the mentioned localities which could be almost 10% of the total power supplied across UK.

Conduct a cost-benefit analysis between renewable and conventional energy sources to determine the most viable option

a. Solar Power System Design- Three bedroom property in London

Appliances energy consumption

PV panels required: Energy capacity -7800 watts

Include cost of installation and construction of the system

Installation Cost

Cost benefit Analysis

Currently, the average cost of solar panel is about $2.96/watt. For a small family (3-4 people) living in 3-bedroom houses, the average utility bill paid for energy use is £66 monthly (£765 a year). The cost solar installation is approximately £12,700. The maintenance cost of solar approach average £500 per year.

Cost-effective Analysis in determining the most viable renewable source of energy

According to Angelis-Dimakis et al. (2011), there could exist tough choices that confront the suitable renewable energy power to be installed for electrification. Uncertainty in the viability of setting up a technology of this stature, and require informed decision-making by an individual or organization that chooses such a renewable energy project. Hence quantitative analysis of possible results of alternative courses of action can reduce the ambivalence and foster the decision making procedure. Between solar and wind renewable energies, they have depicted that both are essential sources of energy, whereby the total energy available from the sun estimate is 80,000 to 115, 000 Terra Watts. For over a century. When compared to that of the wind it is estimated to have turned to 10,000 to 50,000 Terra Watts over a century. In addition in comparison of the cost of installations of wind and solar energy, all appliances compared and services that will be rendered shows that solar is cheaper while wind is expensive. While both solar and wind renewable energies are clean, Esen and Yuksel (2013) claim that solar energy is captured immediately it is available. The cost of maintenance of all the tools is minimal and can last long when measured in form of decades, compared to wind renewable energy. Therefore, Ogunlade (2008) in his research discovers that the availability of consistency of source of power, the cost of installation and the maintenance favor the solar renewable energy benefiting it to investors, consumers and organization interested in applying the renewable sources of energy.

Socio-economic, legislative and environmental factors affect the selection, set-up and operation of renewable energy sources

The prominence of socio-economic has been the driving force for renewable energy selection, set-up and operation. First of all, there are economies that have faced low development due to lack of energy to drive them, but adaptation of these renewable energy, these businesses have the potential to grow exponentially researches Calvillo et al. (2016). With the assimilation of renewable energy sources, policy makers have realized that they generate more income, fosters trade balances, and augmentation to industrial growth not leaving out creation of jobs. The environment is greatly impacted on the selection, installation and operation of the renewable sources of energy. Therefore, Liserre et al. (2010) assert in their studies that the unending availability of the sources of energy provided by the environment tends to favor the cheap cost of installation and operation. Solar energy and wind are the easiest sources that can be selected, since they are readily available during the day, The harnessing of the energy to be immediately used as well as being stored to be used when energy is limited has no complication in developing instruments to access it. Finally, the energy from the environment is clean and sustainable as it produces no toxic substances.

Environmental analysis and planning tools such as PESTLE to identify possible sources of conflicts of interest

Political- Politics has the capacity to influence the future of renewable sources of energy, with most governments and the United Nations have championed the adoption, with specific emphasis on the environmental impact. However, according to Kolios and Read (2013) there is a lot of political pressure in to attaining the stability of the globe’s energy. The major risk is that organizations and governments will rely on already designed technology as the future rather than aiming as contemporary upcoming technologies.

With uncertainty in the markets, the economy, it has raised the cost of installation of appliances meant to support renewable energies. At earlier phases, technologies for renewable energies were quite expensive compared to the anticipated outcomes. Over time, Edenhofer et al. (2011) studies that the lacks of political will for investment into renewable energies have risked the market opportunities for private investors’ thus slow adoption of the renewable energies.

Social- The social factor relies on acceptance of people to changes in manner of life. Therefore, with cities needing these sources of energy to meet the growing demands for clean energy in efforts to reduce global warming, large populations have not completely accepted tis adoption. Hence, renewable energies such as solar and wind are only installed in rural areas, where no significant environmental effects need to be addressed. It risks the efforts of mitigating global warming in efforts to save the environment and consequently the human race. The IPCC special report on renewable energy sources and climate change mitigation of (2010) attest that technology has been the driving force into realization of renewable energy application and utilization, and could have a huge effect on the overall global energy generation. However, the technologies adopted have been unable to sustain the demands for energy. Therefore, it is vital that advanced technology capable of harnessing the unreliable sources of renewable energy and store large quantity of it. Industrial standards of other non-renewable energies have devised ways of reducing or halting the risk of power failure or power shortage.

Legal- Regulations and legislations governing renewable energies and devices are yet to be simplified so as to minimize legislative risk for those investing into and developing their application. Panwar et al. (2011) attest that the Renewable Energy Directives of 2001 requires that nations that comply with them need to meet certain targets for various renewable energies, and if a nation fails to comply, there are monetary penalties subjected. Therefore, it is a risk for developers not to comply with these directives or the legal framework.

Environment- Adoption of renewable energies is as a result of commitment in reaching targets for climate change; reduce greenhouse gas emissions, air pollution and acid rain. With the current technology of harnessing and applying renewable energies, they could subject the same environment into high risk potential of damage, although, the effects could only be realized after a number of years studies Boyle (2004). Thence, more researches need to be done on devices to be used and the effects on the environment.

Recommendations

Renewable sources of energies are meant to be utilized in urban areas where there are increased demands for energy and where environmental mitigations need to be met. Hence, according to Østergaard et al. (2010) it is vital to recommend energies that can sustain commercial, residential as well as public facilities. These energies that have the potential to sustain such towns and cities include, landfill gas, geothermal, hydroelectric power from water flows, biomass and several others to mentions a few. The energies can be transitioned from urban landscapes, to transport and to industries, bringing about huge benefits such as clean air, improved living spaces, and modern services. A report by Owusu and Asumadu-Sarkodie (2016) depicted that cities like Seattle, Colorado, Aspen rely on renewable sources of energy to power their facilities, industries and homes. Altogether, these cities have realized economic, social, and environmental sustainability and adhered to the greenhouse gas emission cuts that were set in Paris Climate Agreement.

Conclusion

Renewable energies include solar, wind, hydro-electric, tidal, and several others. These energies despite them not being popular, the have the capacity to mitigate the detrimental effects non-renewable energies have rendered to the global environments. There are a lot of benefits and risk associated with these energies that may considered most vital to various organizations and governments due to different focus. As a result, it becomes difficult to point out the general significant factor that must be considered when harnessing, installing and operation of renewable energy sources. It is therefore to conclude that the most important areas that would significantly benefit from these energies would be cities by adopting energies like hydro-electric, biomass, landfill gas and geothermal to run cities sufficiently as achieved by cities like Aspen.

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