Downloads / Energy demand

The Impact of Digital Technologies on OECD Energy Demand

Information and Communication Technologies (ICTs) offer many opportunities for energy saving, such as optimising energy use in buildings and industrial processes, but the continuing increases in the number, power and range of applications of ICTs may act to increase energy demand. To date, however, there have been few rigorous, empirical estimates of the net impact of ICTs on energy demand in different sectors. In this paper, we provide such estimates using a panel dataset of 28 sectors in 17 OECD countries over 13 years. By estimating equations for the share of energy in variable costs, we are able to derive estimates of the elasticity of energy use with respect to ICT capital services – both for the whole sample and for individual sectors. Our results suggest that investment in ICT is associated with a modest reduction in energy demand, with the impact being much larger in ‘service’ sectors. These results appear robust to a variety of specifications. The findings are relevant to the role of digitalisation in delivering net-zero emissions, and to the panel session on energy demand.

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3rd
Jun
2021

Experimenting with Heat Plans to discover how to help businesses and governments harness energy services to build an energy system people will want to pay for

Matthew Lipson, Energy Systems Catapult There is a growing consensus that we need to put consumers at the heart of the energy system if we are to transform it successfully. Standard consumer research is instructive, but struggles to guide the complex choices that need to be made about the future energy system. For instance, what combination of generation and storage should we build where, what networks should we invest in and how much capacity should we build? People do not know exactly what they want and cannot say which they will prefer of futures they can barely imagine. The decisions made will constrain how people can use energy in their lives every day. The networks built to heat buildings in each area will influence how many households have to insulate their homes and install hot water tanks to get comfortable and clean as conveniently as they can today.The amount of capacity built will determine whether everyone can use electricity when they like, or some will have to go without at peak times.</p><p>Consumer choices have helped guide similar decisions in other Read more…

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Lipson-Experimenting-with-heat-plans-to-discover-how-to-help-busninesses1.pdf 176.49 KBLipson-Experimenting-with-Heat-Plans.pptx 17.38 MB
19th
Sep
2018

BEIS Heat Networks Consumer Survey

Philip Cole, BEIS The Department of Business Energy and Industrial Strategy (BEIS) are supporing investment in heat networks as a means of decarbonising heating. Heat Networks provide heat to multiple properties in a single building, or to multiple buildings via pipes from a central heat source. Heat networks are heat agnostic and therefore can take heat from a range of renewable sources. This is a small but growing market in the UK and is currently unregulated (unlike the rest of the heat and energy market) with no access to the energy ombudsman. This means that consumers living on heat networks have less protection. Little was known about heat network consumers with only anecdotal evidence of consumer detriment available. Therefore in December 2016 BEIS commissioned a large scale quantitative research project to give a representative picture of consumer experiences. The Heat Networks Consumer Survey (HNCS) consisted of a postal survey of heat networks consumers and a matched comparison sample from the general population. There is little data on heat network consumers and therefore the sample selection involved matching a number of Read more…

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Cole_Heat-Networks-Consumer-survey.pptx 3.61 MBCole-P-HNCS_Executive_Summary_-_FINAL.pdf 93.37 KB
19th
Sep
2018

The role of utilities in enabling prosumers and flexible distributed energy resources

Daniel Quiggin, Chatham House This paper explores how utilities could transform as the electricity system undergoes a second phase of transformations and the business models they could develop. The main focus will be on the role existing power companies could play in enabling distributed energy resources (DERs) and prosumers to participate in an increasingly flexible electricity system, via energy service platforms. The electricity sector is experiencing a deep and profound disruptive shock, the effect is most obvious in Australia, the EU-28 and parts of North America, where once powerful utility companies are struggling in the current market and many are restructuring to survive. Three major factors define this phase of transformational changes: renewable deployment, slower than expected demand growth and in many jurisdictions, market reform. Whilst many utilities are now beginning to respond to the structural shifts embedded within the electricity systems they operate, it is becoming apparent that a second phase of transformational shifts is around the corner. This second phase is intimately linked to the first phase and is likely to have greater transformational impacts, amplifying the impacts Read more…

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Quiggin-The-role-of-utilities-in-enabling-prosumers-and-flexible-distributed-energy-resources.pptx 1.39 MBQuiggin-The-role-of-utilities-in-enabling-prosumers-and-flexible-distributed-energy-resources.pdf 809.02 KB
19th
Sep
2018

Exploring socioeconomic and temporal characteristics of British and German residential energy demand

Russell McKenna, Karlsruhe Institute of Technology The British and German residential sectors account for similar fractions of national energy demand and carbon emissions. But they also exhibit underlying differences in the building stock, fuel split, tenure and household behaviour. Notable are dissimilarities in the age, size and spatial distribution of residential buildings, for example, as well as the German prevalence of renting, compared to British aspirations to climb the “property ladder”. The temporal habits in British and German households are also quite different, which is challenging to measure due to the paucity of German smart meter data. This contribution takes this background as a starting point to explore some of the temporal and socioeconomic characteristics of residential energy demand in Britain and Germany, by combining three main areas of work. Firstly, an overview of existing research into the socioeconomic and temporal characteristics residential energy demand is given, with a particular focus on employing time-use and smart meter data to this end. Secondly, the wealth of smart meter data available in the UK is employed to provide insights into the habits Read more…

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McKenna-et-al-Exploring-socio-economic-and-temporal-charactersitics-of-British-and-German-Residential-energy-demand.pdf 441.5 KBMcKenna-et-al_BIEE-outline_180919.pptx 4.24 MB
19th
Sep
2018

Energy Barometer 2016

Deane Somerville, Knowledge Team Manager, Energy Institute The 2016 Energy Barometer Report captures insights from UK energy professionals and enables them to form the energy debate, policymakers, influencers, the industry and the public. Deane Somerville has worked in the Knowledge Team at the Energy Institute for the past three years, and has been involved in the development and production of the Energy Barometer as well as other Knowledge Service products. Prior to joining the EI, he worked in environmental consulting, focusing on contaminated site remediation. Academically, his background is in Geology as well as Energy and Environmental Technology. Deane is a Graduate member of the Energy Institute.  

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Energy_Barometer_2016-Somerville.pdf 1.35 MB
21st
Sep
2016

Electrification of heating: the role of heat pumps

Dr Tina Fawcett, Environmental Change Institute, University of Oxford Russell Layberry, Environmental Change Institute, University of Oxford Nick Eyre, Environmental Change Institute, University of Oxford   Heating accounted for  44%  of UK national energy demand in 2011 (DECC, 2013). It is currently predominantly supplied by natural gas. However, the future of heating  is thought to be very different , with electrification expected on a grand scale. UK 2050 scenarios which meet the 80% carbon reduction target universally include an electrified heat supply. Most commonly, heat pumps are seen as the key technology, delivering 80-90% of heating.  While heat pumps can deliver low carbon energy services, given sufficient supplies of low carbon electricity, their contribution to the other energy policy goals of security of supply and affordable costs are much less certain. This paper will set out the major challenges for widespread adoption of heat pumps in the UK and worldwide, present original modelling work on the effect of heat pump adoption on electricity system peaks globally and for individual countries, discuss these findings in the context of other challenges to Read more…

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Fawcett-Layberry-Eyre-Electrification-of-Heating-v5.pdf 522.11 KB
18th
Sep
2014

The impact of future heat demand pathways on the economics of low carbon heating systems

Mr Robert Sansom, Imperial College The demand for heat will have a fundamental influence on all the associated assets required from supply to delivery through to end-user consumption.  Thus it is important to understand heat demand and how it might change in the future as it will have a direct impact on the economics of low carbon heating systems.  Heat demand forecasts are frequently presented in annualised format and although this is helpful for macro economic analysis, without further refinement it is not possible to determine the assets required to meet short term variations in heat demand.  For example, electrification of heat will have a direct impact on peak electricity and the capacity requirements of the assets to meet this demand. To address this, a model was constructed which uses actual metered space and water heat demand data collected from residential properties.  These are then converted to an annual half hourly national heat and electricity demand profile based on annual heat demand scenarios as well as assumptions for heat electrification and the efficiency of electrical heating systems.  Space heating is Read more…

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The-impact-of-future-heat-demand-pathways-on-the-economics-of-low-carbon-heating-systems.pdf 1.61 MBSansom_Impact_of_heat_pathways_on_economics_low_carbon_heating_Sept-2012.pdf 974.31 KB
19th
Sep
2012

Estimating Direct and Indirect Rebound Effects for UK Households

Dr Mona Chitnis, University of Surrey Policymakers expect improved energy efficiency to play a key role in reducing GHG emissions. However, the energy and emissions savings from such improvements may be less than simple calculations suggest, owing to a variety of mechanisms that go under the heading of rebound effects. Direct rebound effects result from increased demand for cheaper energy services: for example, insulation lowers heating costs and encourages households to heat their homes for longer and/or to higher temperatures. Indirect rebound effects result from re-spending the resulting cost savings on other goods and services: for example clothes that are manufactured in China and shipped to the UK. Energy efficiency improvements, such as cavity wall insulation, lead to both types of effect, while conservation measures such as lowering the thermostat lead only to indirect effects. In combination, they can be significant. In this paper, we simulate a number of energy efficiency improvements and conservation measures by UK households and estimate the resulting direct and indirect rebound effects. The measures considered include insulation improvements, energy efficient lighting, fuel-efficient cars and walking/cycling Read more…

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Living-up-to-expectations-estimating-direct-and-indirect-rebound-effects-for-uk-households.pdf 608.69 KBChitnis-Estimating-Direct-And-Indirect-Rebound-Effects-For-UK-Householdsfinal.pdf 406.94 KB
19th
Sep
2012

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