IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v10y2017i7p1050-d105315.html
   My bibliography  Save this article

The Potential of Smart Technologies and Micro-Generation in UK SMEs

Author

Listed:
  • Peter Warren

    (School of Public Policy, University College London, 30 Tavistock Square, Bloomsbury, London WC1H 9QU, UK)

Abstract

Small-to-medium-sized enterprises (SMEs) make up 99% of businesses and contribute 13% of energy demand globally. However, much of the demand-side energy research and policy attention to date has focused on the domestic, large commercial and industrial sectors. Previous research on SMEs has primarily concentrated on the drivers and barriers to the adoption of energy efficiency measures. However, less attention has been given to other areas of demand-side management in SMEs, such as the role of ‘smart’ technologies and micro-generation. The paper aims to contribute to filling this gap. To analyse the potential of smart technologies in UK SMEs, a quantitative model is developed to assess seven categories of smart technologies in ten non-domestic sectors. Overall, the results suggest that smart technologies within the UK SME market offer significant estimated annual energy savings potential of ~£8.6 billion against an estimated energy spend of ~£49.7 billion (representing ~17% savings potential on energy expenditures). From the smart technology categories examined, fleet management, integrated building management systems and smart meters have the potential to offer the greatest energy savings to SMEs, providing estimated total energy savings of ~£7.5 billion annually. To analyse the potential of micro-generation in UK SMEs, interview-based qualitative research was undertaken with 17 SMEs to explore the drivers and barriers to its adoption. The research found that the initial costs, technical feasibility and planning permission on historical buildings were the main barriers, and that the ‘green’ marketing potential of micro-generation, coupled with ethical reasons and feed-in tariffs, were the main drivers.

Suggested Citation

  • Peter Warren, 2017. "The Potential of Smart Technologies and Micro-Generation in UK SMEs," Energies, MDPI, vol. 10(7), pages 1-20, July.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:7:p:1050-:d:105315
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/10/7/1050/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/10/7/1050/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
    2. O'Malley, Eoin & Scott, Susan & Sorrell, Steve, 2003. "Barriers to Energy Efficiency: Evidence from Selected Sectors," Research Series, Economic and Social Research Institute (ESRI), number PRS47.
    3. Watson, Jim & Sauter, Raphael & Bahaj, Bakr & James, Patrick & Myers, Luke & Wing, Robert, 2008. "Domestic micro-generation: Economic, regulatory and policy issues for the UK," Energy Policy, Elsevier, vol. 36(8), pages 3085-3096, August.
    4. Anderson, Soren T. & Newell, Richard G., 2004. "Information programs for technology adoption: the case of energy-efficiency audits," Resource and Energy Economics, Elsevier, vol. 26(1), pages 27-50, March.
    5. Fredrik Backman, 2017. "Barriers to Energy Efficiency in Swedish Non-Energy-Intensive Micro- and Small-Sized Enterprises—A Case Study of a Local Energy Program," Energies, MDPI, vol. 10(1), pages 1-13, January.
    6. Tobias Fleitera & Joachim Schleich & Ployplearn Ravivanpong, 2012. "Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data," Post-Print hal-00805748, HAL.
    7. Depuru, Soma Shekara Sreenadh Reddy & Wang, Lingfeng & Devabhaktuni, Vijay, 2011. "Smart meters for power grid: Challenges, issues, advantages and status," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2736-2742, August.
    8. Allen, S.R. & Hammond, G.P. & McManus, M.C., 2008. "Prospects for and barriers to domestic micro-generation: A United Kingdom perspective," Applied Energy, Elsevier, vol. 85(6), pages 528-544, June.
    9. Warren, Peter, 2014. "A review of demand-side management policy in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 941-951.
    10. Fleiter, Tobias & Schleich, Joachim & Ravivanpong, Ployplearn, 2012. "Adoption of energy-efficiency measures in SMEs—An empirical analysis based on energy audit data from Germany," Energy Policy, Elsevier, vol. 51(C), pages 863-875.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simona-Vasilica Oprea & Adela Bâra & Adriana Reveiu, 2018. "Informatics Solution for Energy Efficiency Improvement and Consumption Management of Householders," Energies, MDPI, vol. 11(1), pages 1-31, January.
    2. Claudia Patricia Maldonado-Erazo & José Álvarez-García & María de la Cruz del Río-Rama & Ronny Correa-Quezada, 2020. "Corporate Social Responsibility and Performance in SMEs: Scientific Coverage," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    3. Gloria Jiménez-Marín & Rodrigo Elías Zambrano & Araceli Galiano-Coronil & Rafael Ravina-Ripoll, 2021. "Business and Energy Efficiency in the Age of Industry 4.0: The Hulten, Broweus and Van Dijk Sensory Marketing Model Applied to Spanish Textile Stores during the COVID-19 Crisis," Energies, MDPI, vol. 14(7), pages 1-10, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    2. Olsthoorn, Mark & Schleich, Joachim & Hirzel, Simon, 2017. "Adoption of Energy Efficiency Measures for Non-residential Buildings: Technological and Organizational Heterogeneity in the Trade, Commerce and Services Sector," Ecological Economics, Elsevier, vol. 136(C), pages 240-254.
    3. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    4. Kalantzis, Fotios & Revoltella, Debora, 2019. "How energy audits promote SMEs' energy efficiency investment," EIB Working Papers 2019/02, European Investment Bank (EIB).
    5. Runst, Petrik & Bettendorf, Axel, 2017. "Energieeffizienz in Klein- und Kleinstunternehmen des Handwerks," Göttinger Beiträge zur Handwerksforschung 16, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Trianni, Andrea & Cagno, Enrico & Farné, Stefano, 2016. "Barriers, drivers and decision-making process for industrial energy efficiency: A broad study among manufacturing small and medium-sized enterprises," Applied Energy, Elsevier, vol. 162(C), pages 1537-1551.
    7. Caporale, Guglielmo Maria & Donati, Cristiana & Spagnolo, Nicola, 2023. "Small and medium sized European firms and energy saving measures: The role of financing," Energy Policy, Elsevier, vol. 179(C).
    8. Gliedt, Travis & Hoicka, Christina E., 2015. "Energy upgrades as financial or strategic investment? Energy Star property owners and managers improving building energy performance," Applied Energy, Elsevier, vol. 147(C), pages 430-443.
    9. Jose García-Quevedo & Xavier Massa-Camps, 2019. "Why firms invest (or not) in energy efficiency? A review of the econometric evidence," Working Papers 2019/07, Institut d'Economia de Barcelona (IEB).
    10. Gerarden, Todd D. & Newell, Richard G. & Stavins, Robert N. & Stowe, Robert C., 2015. "An Assessment of the Energy-Efficiency Gap and Its Implications for Climate Change Policy," Climate Change and Sustainable Development 202116, Fondazione Eni Enrico Mattei (FEEM).
    11. Osamu Kimura and Ken-Ichiro Nishio, 2016. "Responding to electricity shortfalls: Electricity-saving activities of households and firms in Japan after Fukushima," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    12. Balcombe, Paul & Rigby, Dan & Azapagic, Adisa, 2013. "Motivations and barriers associated with adopting microgeneration energy technologies in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 655-666.
    13. Runst, Petrik, 2016. "A comment on the adoption of energy-efficiency-measures within firms - Energy costs and firm heterogeneity," ifh Working Papers 4 (2016), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    14. Barbetta, Gian Paolo & Canino, Paolo & Cima, Stefano, 2015. "The impact of energy audits on energy efficiency investment of public owners. Evidence from Italy," Energy, Elsevier, vol. 93(P1), pages 1199-1209.
    15. Spyridon Karytsas & Ioannis Vardopoulos & Eleni Theodoropoulou, 2019. "Factors Affecting Sustainable Market Acceptance of Residential Microgeneration Technologies. A Two Time Period Comparative Analysis," Energies, MDPI, vol. 12(17), pages 1-20, August.
    16. Herrera, Bernardo & Amell, Andrés & Chejne, Farid & Cacua, Karen & Manrique, Raiza & Henao, Wilson & Vallejo, Gabriel, 2017. "Use of thermal energy and analysis of barriers to the implementation of thermal efficiency measures in cement production: Exploratory study in Colombia," Energy, Elsevier, vol. 140(P1), pages 1047-1058.
    17. Paramonova, Svetlana & Thollander, Patrik, 2016. "Energy-efficiency networks for SMEs: Learning from the Swedish experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 295-307.
    18. Cunha, Paulo & Neves, Sónia Almeida & Marques, António Cardoso & Serrasqueiro, Zélia, 2020. "Adoption of energy efficiency measures in the buildings of micro-, small- and medium-sized Portuguese enterprises11The financial support of the NECE - Research Unit in Business Science and Economics, ," Energy Policy, Elsevier, vol. 146(C).
    19. José Rafael Lopes & Salvador Ávila & Ricardo Kalid & Jorge Laureano Moya Rodríguez, 2018. "Energy Efficiency Improvement in Non-Intensive Energy Enterprises: A Framework Proposal," Energies, MDPI, vol. 11(5), pages 1-16, May.
    20. Kristaps Locmelis & Dagnija Blumberga & Andra Blumberga & Anna Kubule, 2020. "Benchmarking of Industrial Energy Efficiency. Outcomes of an Energy Audit Policy Program," Energies, MDPI, vol. 13(9), pages 1-15, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:10:y:2017:i:7:p:1050-:d:105315. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.