Management consultancy Baringa has warned that the market must learn lessons from the unexpected adoption of photovoltaics to ensure it is “not playing catch up again” with the right market arrangements.
It has urged the entire energy market to work proactively and collaboratively with the government and the regulator to ensure new products and services can be integrated.
Last week the government released its long-awaited call for evidence on the transition to a smart and flexible energy system, which focuses on how to create the right market framework for energy storage.
Stephen Haw, partner in Baringa’s energy retail and network practice, said: “Technology is a key enabler in the energy system. The pace of technological innovation is greater than ever and there are new solutions being developed all the time. But their success will depend on the UK energy market’s ability to respond to these quickly.
“At present, we face a risk of ‘redundant innovation’, where the money and time invested in developing new technologies could go to waste as products and services fail to reach the masses.”
Baringa has also called for energy providers to respond to the changing nature of consumer’s engagement with the energy system, focusing marketing efforts on brand values and not just financial gains.
It says the move from consumer to prosumer is too often believed to be motivated by financial gain, but for lots of prosumers the motivation is ideological which requires a new approach to customer engagement.