With the Government currently pondering its future national energy strategy at a time when energy costs have soared by over 60% in the last four months, energy is the political hot potato of the moment.  There is the question of affordability as those on low incomes struggle to meet their increasingly hefty utility bills.  And with the government seriously considering the expansion of its nuclear programme, environmental concerns are also looming large...

But a growing number of voices are arguing that the response to these challenges does not need to be a fraught affair with environmentalists and consumers facing each other down.  The argument runs that if efforts are thrown into minimising energy wastage - both in the generation and distribution of power and its consumption within properties - instead of trying to increase energy supply ever further, then not only can utility bills be dramatically reduced, but greenhouse gas emissions will also be minimised into the bargain.

In this article, we look at what's going on in the field of energy efficiency in homes as well as reporting on innovative proposals to reduce wastage by "decentralising energy".

Efficiency starts at home

According to the US Environmental Protection Agency, the average home produces twice as much greenhouse gas pollution as the average car.  An average house releases 22,000 pounds of carbon dioxide into the atmosphere each year compared to the 10,000 pounds of CO2 produced by a typical automobile.

The lion share of greenhouse gas emissions produced by homes stems from the combustion of fossil fuels in power plants needed to supply a household with electricity.  Hence in its "Are you doing your bit?" advertising campaign, the Government's exhortation for consumers to minimise electricity usage by such good citizen behaviour as only filling up kettles with as much water as is strictly necessary and ensuring electrical devices are properly switched off rather than left in stand-by mode.  Households also produce greenhouse gas emissions through heating appliances that burn coal and gas on site although electricity consumption represents a far higher proportion of greenhouse gas emissions overall.

But even where households ensure that electrical devices are used sparingly, energy can still often be wasted unnecessarily.  Some electrical devices consume electricity around the clock even when officially "switched off" whilst heat can be easily lost through drafty doors and poorly insulated windows and walls.

Widespread concern

It is from this reality that a concern with the energy efficiency of property structures and household appliances has sprung up championed by environmental and consumer groups alike.  Proponents claim that with available technology you can as much as halve your energy bills, a fact that is generating some considerable interest amongst consumers.  A recent study by Wolseley UK found that nearly two thirds of adults in Britain (63%) would be willing to pay more for an energy efficient home with almost a quarter (24%) prepared to pay between £1,000 and £5,000 on top of a property's asking price.

The same study revealed a very high level of concern among adults in Britain about climate change.  78% of adults questioned said they were concerned about this issue, with almost a third of respondents (29%) claiming to be "very concerned."

What's being done

With an increasing number of energy efficient appliances on the market and energy suppliers offering consumers the option of sourcing electricity from renewable sources, there is already considerable scope for action available to the consumer.  By contrast, however, momentum towards an industry consensus on environmental standards in construction is only just beginning to roll.

The government has recently approved new building regulations coming into effect on 6 April which it claims will raise energy efficiency standards in construction.  Elliot Morley, Minister for Climate Change and Environment told Edie news: "Reducing emissions through energy efficiency is a crucial part of tackling climate change. I strongly welcome the measures being announced, the strengthening of the Code, and the work in progress."

But many campaigners are not satisfied pointing out that the new standards lack bite.  Although the new Code for Sustainable Homes does specify higher energy efficiency standards it is only a voluntary set of rules that is limited to new homes which represent a mere 1% of the overall housing stock.  And whilst the new legislation makes it mandatory for new homes to state their energy efficiency rating according to the new Code, this flexible, "choice-led" approach falls far short of environmental leadership that advocates were hoping the government would demonstrate.

"Decentralising energy"

In its recent report "Decentralising Power: An Energy Revolution for the 21st Century", Greenpeace have highlighted a scandalous wastage of energy within the energy generation sector.  The environmental lobbying group claims that the current electricity system is so inefficient that two thirds of the energy in fuel is wasted before it gets to homes and workplaces.  Greenpeace state that this huge loss of energy occurs because the large power stations that make our electricity discard an enormous amount of heat through chimneys, while more power is lost transporting the energy long distances through power lines.

Stephen Tindale, Greenpeace's Executive Director, said: "A deranged industrialist would find it tough to develop a more wasteful way of producing energy than the current method."

Greenpeace's solution?  To generate electricity close to where it is needed or "decentralise it."  A decentralised energy system would see everyday buildings employing devices such as solar panels, small wind turbines and combined heat and power boilers to generate electricity as well as providing heat and hot water.  The electricity created would be used directly by the house or workplace with any surplus being fed into a local network.

In addition, Greenpeace are advocating a network of community-scale generation plants close to the point of demand.  For example, this could include district combined heat and power plants, generating power and also providing heating and cooling for nearby communities.  In the short term most of these would be gas-fired, but capturing the heat and reduced transportation would mean that the gas was being used far more efficiently than in large gas-fired power stations hence cutting greenhouse gas emissions overall.

Greenpeace claim that the use of such a decentralised system would mean that the UK's global warming emissions created by power generation could be at least halved.  This would reduce overall carbon emissions by at least 15%.

All sound a bit wacky?

All sound a bit far-fetched?  Well, decentralised energy already provides over 40% of the energy consumed by the Netherlands as well as 50% of Denmark's power needs.  Closer to home, Woking Council has cut its own CO2 emissions by 77.4 per cent between 1991 and 2004 by using decentralised energy.

And with the Government currently seriously considering the nuclear option, the decentralised energy cause is currently receiving much high profile political support.  In his report, "Powering London into the 21st century", Mayor Ken Livingstone outlined his vision for a London run on decentralised energy.  Mr Livingstone has previously expressed his enthusiasm for both the Thames Gateway development and the Olympics being built to run on decentralised energy and independent decentralised energy projects are already successfully up and running in London, including ones in Kings Cross and Tower Hamlets.

Mayor of London Ken Livingstone said: "As this new study shows, we stand a far better chance of achieving Government targets on carbon reductions by investing in decentralised energy. Nuclear power is neither the cheapest, the safest, or the most reliable way to reduce greenhouse gases."  Mr Livingstone continued: "Rather than spending taxpayers' money on the failed technology of the past, I hope the Government will invest in the most efficient, proven solutions to combat global warming: greater energy efficiency, decentralised energy and renewable energy."

And even the Conservative Party is getting in on the act!  Speaking ahead of the "Stop Climate Chaos carbon 'dating' event" in Westminster, Mr Cameron commented: "Achieving a sustainable world and combating the threat of climate change will require some really fresh ideas and radical thinking. We cannot expect to meet the challenges of this century by toying with the structures and technologies we have inherited from the past, and the concept of Decentralised Energy should be taken seriously."

It looks like hanging out with Zak Goldsmith is really rubbing off on the Tory leader...