Electric vehicles, virtual power plants (VPPs) and microgrids

Are we looking far enough down the road in terms of the energy market?

The Public Accounts Committee (PAC) issued a strong criticism of the government on its approach to meeting net zero goals and aligning the tax system to environmental targets, reported in many media channels including Edie (28.04.21). Alex Johns, on behalf of Altelium issued this commentary in response:

“F1, rally drivers and advanced driving instructors will all say that the key to driving success is to look further ahead in the road.  Is the government thinking past electric cars and far enough into the future to see the potential of virtual power plants (VPPs) and microgrids?

“With electricity that can move in all directions, unlike the very simple linear routes or vectors today, the need to set targets and taxes in a different way is obvious, especially to protect or give opportunities to the most vulnerable in our society.

“We need look much further down the road to what the future could look like. Envisaging distributed energy and microgrids, rather than focussing on the electric vehicles which come before them would help achieve the smart and just transition the country needs.

“With these in our sights the tax levers and incentives needed while fossil fuels are phased out would become clearer to see and apply.”


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