Disconnected Policy: The Shaping of Local Energy Management

Abstract

Around half of all the CO2 emissions relate to the energy consumed in buildings. Management of energy demand is, therefore, a central concern of environmental policymakers. But how does local environmental policy actually shape local energy-management practices? Rather than analysing how the intensity of energy flows are shaped by institutions and regulatory forces, makers of local environmental policy have tended to adopt a ‘rational’ modelling approach, increasingly divorced from the operational realities of the restructured energy sector. Such an approach misses the way in which privatised utility companies are now reaching ‘beyond the meter’ in order to manage local energy consumption actively. In this way privatised utilities are emerging as important regulators of energy flows in the territories they serve. Local environmental policy is largely bypassed in this process. Policymakers therefore need to acknowledge the role of regional energy companies as key energy managers and to coordinate local energy policy accordingly.