Despite numerous objections raised against it over the years, wind power is finally having its day in the sun, thanks to lowering costs and consumers eager to reap the economic benefits. A consumer-led pro-wind energy revolution fueled by cost savings is currently underway in the United Kingdom and is set to influence the United States soon.
Octopus Energy: The Pioneer of the Wind Revolution
Octopus Energy, a renewable energy startup based in the UK, is spearheading this revolution. The firm has been extending its services to the US, starting with a strong presence in Texas. Octopus Energy made its US debut by acquiring Evolve Energy, a local firm, in 2020.
Transforming Energy Consumption with Effective Software
Michael Lee, the erstwhile CEO of Evolve, explained the concept behind his company’s software. He aimed to empower homeowners having rooftop solar panels with tools allowing them to save on their electricity bills, tools which were conventionally only accessed by industrial consumers. The software provides cues to customers about when to utilize energy or sell it back to the grid depending on the fluctuating rates.
According to Lee, the prospect of cheap electricity will motivate more homeowners to install solar panels on their rooftops. Lee now heads Octopus Energy USA, an energy supplier ranked second-largest in the UK.
Capitalizing on the Wind Turbine Opportunity
Apart from solar power, Octopus Energy is also pushing for wind turbines to bring economic benefits to consumers. The company has been endorsing wind farms in local communities by offering discounts on locally-produced wind energy.
Octopus states that its “Fan Club” initiative designed to bolster local wind turbine support in the UK received a huge response from communities. More than 20,000 local wind turbine requests have been made through this program, all of which are currently on hold due to permitting restrictions.
Changes in UK National Policy to Catalyze Wind Energy Growth
With the new changes in the UK’s national policy, this backlog of requests is expected to be cleared soon. Michael Gove, Conservative MP for Surrey Heath, recently announced an official policy amendment for onshore wind turbines.
Empowering Communities to Support Wind Energy
The policy alteration liberates suitable locations for onshore wind turbines from the necessity of being a part of the community’s development plan. The slow production and implementation of development plans have often caused bottlenecking. Gove expressed hope that this move would expedite the process of identifying sites and ensuring the quick generation of renewable energy.
Disbanding the Siting Policy Bottleneck
The new policy overhauls a major deterrent, the wind siting policy, which earlier favored objections over widespread community support. Gove’s policy revision aims to establish a more balanced community-centric approach.
Communities to Reap Direct Benefits
Under the reformed policy, local areas expressing support for onshore wind turbines will be able to reap direct benefits. Gove proposed measures like energy bill discounts to incentivize community backing for wind farms.
Octopus Energy backed up Gove’s statement, stating that a considerable percentage of Britons would welcome a local wind turbine that contributed to reducing their bills. The company announced plans to speed up the development of onshore wind energy via its “Fan Club” and “Winder” initiatives. The Fan Club program aims to provide cheaper energy to the communities that favor wind energy.
Octopus Energy’s Fan Club Model
The Fan Club model introduced by Octopus might be indicative of what the future holds for wind energy. This model, which was launched in the UK in 2021 and subsequently extended to Germany and Texas, allows members to pay for their electricity based on the amount of wind energy in the grid. Octopus Energy Generation CEO Zoisa North-Bond states that this will be the first time people can reap direct financial benefits from wind energy abundance.
In Texas, Fan Club members benefit from a 50% electricity bill discount whenever wind energy comprises 45% of the state’s electric grid.
The Bright Future of Octopus Energy
Octopus Energy plans to introduce the Fan Club model to other nations. The company recently added seven onshore wind farms in Europe and has set an ambitious goal of supplying 20 Gigawatts of renewable energy to Europe by 2030. Additionally, Octopus introduced its “Power to Choose” plan in Texas, providing subscribers with the cheapest electricity rates in the state.
The new plan also encourages electric vehicle owners in Texas by offsetting registration fees within two years. This development indicates a yet unknown but promising future for the electrification movement against the restrictive regulations imposed by Texas legislators.
