Transition to affordable sustainable energy requires getting rid of ‘Monday laundry day’
“Never again will Monday be the traditional laundry day. That will be the result of the transition to affordable sustainable energy in the near future,” says Henk Don, Member of the Board of the Netherlands Authority for Consumers and Markets (ACM). He continues: “Major investments must be made in wind turbines, solar panels, home batteries, and our grid. And that costs a lot of money. Power will continue to be affordable because, in the future, consumers will only run their laundry machines at times when the electricity price is low. As a result of peaks and troughs in electricity supply and demand, power will cost more at certain times than at other times. Companies could develop useful apps, enabling consumers to consume power more efficiently. Network operators will have to make their networks ready for the future.” Mr. Don’s comments reflect ACM’s reaction to the European Commission’s plans for a new energy market.
Investing efficiently in sustainable energy
Making sustainable energy possible requires a considerable effort on the part of network operators, businesses, and consumers. Companies install wind turbines, and consumers buy solar panels. In order to get, for example, that wind power from the sea to the shore, network operators will have to make large-scale investments in cables and high-voltage lines. The investments of network operators are financed through the transmission tariffs. These tariffs are passed on to consumers and businesses. ACM makes sure that the investments of network operators are carried out as efficiently as possible so that consumers and businesses do not pay more than absolutely necessary.
Cost-conscious consumers save more
Reducing everyone’s energy consumption can help decrease the production of electricity. The peaks in energy demand determine how much production and transmission capacity is needed. The lower these peaks are, the less production and transmission capacity is needed. Mr. Don explains: “Consumers can reduce their consumption. But they can also buy power more efficiently, or they can store power in a battery that is installed in their homes. They could outsource that efficient-buying process to specialist firms or they could do it themselves using all kinds of different apps. My expectation is that this market of innovative companies will grow tremendously. They will offer a multitude of new services, for example, a service with which your laundry machine will switch on automatically when the electricity price is low. This means that Monday as the traditional laundry day will become a thing of the past.”
Other energy contracts
In addition, more and more consumers (or groups of consumers) will generate electricity themselves with their solar panels or wind turbines. That power, too, can be stored, and used when prices are high. Network operators must ready themselves for completely different supply and demand patterns. The same goes for energy providers. Mr. Don comments: “It creates opportunities for suppliers or businesses that are able to offer flexible prices. Prices are then able to change every hour, which means you will pay or get the price at that particular point in time.”