Co-provision in sustainable energy systems: the case of micro-generation

Electricity generation by individual households (known as micro-generation) is attracting an increasing amount of interest within government, industry and the research community. This paper focuses on the potential for micro-generation to contribute to a more active role for household energy consumers in the development and operation of the energy system. The paper applies the concept of energy service co-provision to aid an understanding of this more active role. It considers a number of alternative models for micro-generation investment that imply different kinds of co-provision by consumers and energy companies. The analysis focuses in particular on the economics of these models in the UK, the associated barriers to micro-generation investment, and the scope for overcoming these barriers through changes in fiscal rules. Having conducted this economic analysis, the paper concludes with a brief discussion of the wider implications of these models for consumer behaviour. In particular, it considers the impact of IT and control systems that might be employed to facilitate energy service co-provision that includes micro-generation.