The £8 billion announcement from the Department of Energy and Climate Change (DECC), which comes a week before world leaders and officials amass in Copenhagen to find a new deal on emissions, is hoped to revolutionise energy use in the home, but critics say the installation costs will be greater than the energy savings made.
The meters are aimed to cutting down on energy use and in turn reducing energy bills.
However, it is estimated the scheme will save the average home just £28 a year; meaning it could be over a decade before the initial installation costs are recouped.
The meters work by allowing households to monitor the amount of energy they are using, ending the need for meter readings and estimates.
Energy and climate change minister Lord Hunt said: 'A global climate deal in Copenhagen needs all countries to make the most ambitious commitments possible, but it will also require all of us to change how we lead our lives and how we generate our energy.
'Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills.
'Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear and clean fossil fuels.
'Globally the business of developing smart grids has been estimated at £27 billion over the next five years and the UK has the know-how to be part of that.'
Big energy companies are said to be backing the installation of the meters, but are yet to set out plans on how it will be carried out.
Lord Hunt also announced that 'Smarter Grids: The Opportunity', published today, makes the case for developing smart grids in the UK, saying 'smart grids will give operators and consumers much more information about supply and demand of electricity – enabling more effective interaction between consumer needs and fluctuating supplies'.
Alison Kay, partner in Ernst & Young Power & Utilities advisory team, commented on the announcement: 'One of the most significant costs of the roll out is installation costs, and these are going to be driven to a great extent by how willing people are to make and keep appointments. Missed appointments will result in wasted time for installers and increased costs.'
The meters are aimed to cutting down on energy use and in turn reducing energy bills.
However, it is estimated the scheme will save the average home just £28 a year; meaning it could be over a decade before the initial installation costs are recouped.
The meters work by allowing households to monitor the amount of energy they are using, ending the need for meter readings and estimates.
Energy and climate change minister Lord Hunt said: 'A global climate deal in Copenhagen needs all countries to make the most ambitious commitments possible, but it will also require all of us to change how we lead our lives and how we generate our energy.
'Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills.
'Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear and clean fossil fuels.
'Globally the business of developing smart grids has been estimated at £27 billion over the next five years and the UK has the know-how to be part of that.'
Big energy companies are said to be backing the installation of the meters, but are yet to set out plans on how it will be carried out.
Lord Hunt also announced that 'Smarter Grids: The Opportunity', published today, makes the case for developing smart grids in the UK, saying 'smart grids will give operators and consumers much more information about supply and demand of electricity – enabling more effective interaction between consumer needs and fluctuating supplies'.
Alison Kay, partner in Ernst & Young Power & Utilities advisory team, commented on the announcement: 'One of the most significant costs of the roll out is installation costs, and these are going to be driven to a great extent by how willing people are to make and keep appointments. Missed appointments will result in wasted time for installers and increased costs.'
No comments:
Post a Comment