Decentralised energy - the advantages

Our existing system of centralised electricity generation is incredibly wasteful. Power stations discharge up to 65 per cent of primary energy in the form of heat to the atmosphere, rivers or sea. Another 9 per cent is lost through transmission and distribution from remote power stations to towns and cities. Some 50 per cent of the UK’s water resources are used to evaporate the waste heat at power stations. Local power generation in cities using combined heat and power (CHP) allows us to use the waste heat, radically cut transmission and distribution losses, as well as conserve water resources.

In the long run there is simply no alternative to relying on renewable energy to achieve the reductions in carbon dioxide emissions we need to stop catastrophic climate change, without destroying our quality of life and competitiveness. This is the case even with big improvements in energy efficiency.

A conservative decentralised energy scenario of a combination of efficient supply such as heat and power and energy saving measures in homes and businesses could slash London’s annual energy requirements – even with new growth – by 23 per cent, to just under 100 TWh by 2025. Together with a rapid expansion of renewable energy from wind, solar PV, biomass and waste energy sources within London, this would mean a 27 per cent cut in carbon dioxide emissions.

This scenario would make the building of three new 1.6 GW nuclear power stations entirely unnecessary. A more radical decentralised scenario would achieve even deeper reductions in energy demand and emissions.

No nuclear future

Developing such an infrastructure for decentralised energy will also be cheaper than the nuclear alternative. Our evidence shows that decentralised electricity generation can be accommodated on the local distribution networks with minimal extra investment, while saving around £1 billion per year in avoided costs in upgrading and renewing the centralised transmission network that nuclear would require.

Independent study

To get an independent assessment of how decentralised energy could work in London, the Mayor and Greenpeace jointly commissioned a study from international energy consultancy PB Power (part of the Parsons Brinkerhoff group) - Powering London into the 21st Century.

The study looks at how much gas will be required to heat and power London’s buildings in 2025 for four different scenarios and also how much carbon each scenario would emit. Two scenarios assume that we continue with the approach we currently use - getting our energy from gas and coal-powered stations - and the study proposes two options which use decentralised, local energy systems. The study concludes that decentralised energy is an alternative solution to our energy needs. It shows that London could slash its carbon emissions by adopting this more efficient approach.

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