Utilities
Energy
utilities in a number of countries are taking advantage
of solar water heating for their businesses. Currently
1.3 million European households use solar water heaters,
replacing 215*106 m³/year of Natural Gas or 2300 GWh/year.
Many of these installations have been completed by energy
utilities (see ref 1) . Solar water
heaters, typically installed on building roof-tops, produce
around 50% of the hot water load through solar energy,
with the balance being made up by electricity, natural
gas or oil. While the current emphasis is on water heating,
there is also potential for growth in solar home space-heating.
Solar
hot water systems in the Apeldoorn solar project, the
Netherlands. (Source: Ecofys. NL-Utrecht).
Expansion
of Market Share for Gas Utilities
Danish
gas utilities have successfully employed the positive
aspects of solar water heaters in their marketing strategies,
to increase market share of natural gas. One Danish utility,
Naturgas Midt-Nord, has attributed a 60% increase in gas
sales (878,000 m³) (see ref 2) to their marketing campaign, which combines
solar water heating and natural gas. The competitive positioning
is that the solar-gas combination is a more environmentally
friendly package compared to oil or electricity.
Achieving
CO2
Reduction
Targets and Creating Corporate Goodwill
The
Dutch utility, Nuon, has already facilitated the installation
of approximately 7,500 solar water heaters through a well-developed
project approach. This on-going venture provides utility
customers with reliable, cost-effective water heating
by combining solar energy with the base fuel. Each installation
contributes around 300 kg in annual CO2
reductions.
Nuon
has also benefited by taking a leadership position with
respect to emission reduction targets, and has succeeded
in turning this issue into a winning business strategy,
promoting public goodwill for the utility. As a direct
result of this programme, the utility has received extensive
positive publicity both locally and internationally.
New
Customer Choices
Many
utilities are finding that their customers are asking
for new product and service choices. These customers are
motivated by the increased expectations that accompany
deregulation and competition, as well as by an increased
understanding of environmental issues. There are many
markets where customers have expressed a strong desire
for "green" energy products. Some customers
demonstrate a willingness to pay more for "green"
energy (21%, MORI opinion poll (see
ref 3), UK; 11%, Ontario Hydro, Canada (see ref 4)). However, significantly more customers
express a desire for "green" energy if the price
is not higher (65%, MORI opinion poll, UK; 30%, Ontario
Hydro, Canada).
Retailing
Opportunities
In
the UK, some of the recently deregulated energy companies
have added solar water heaters to their retail product
mix. These utilities use their billing service to offer
customers energy-related products such as solar water
heaters. Some utilities also offer financing packages
to assist sales growth.
