Downloads / Energy demand

Energy cooperatives: a missing piece of the peer-to-peer energy regulation puzzle?

Alexandra Schneiders, UCL Energy Institute, University College London Peer-to-peer (P2P) energy trading, often facilitated through distributed ledgers (‘blockchains’), is emerging as a new mechanism for settling exchanges of energy between renewable energy generators and consumers, as well as matching local supply and demand. It is currently being tested in urban areas, where there are fewer renewable energy installations due to space constraints. The sharing of energy generated by a single installation (e.g. solar panels on the roof of a tower block) between residents, through a P2P blockchain-run energy trading platform, can tackle the disparity in renewable energy generation across the UK. Furthermore, grouping residents into a single legal entity, such as an energy cooperative, could resolve regulatory problems associated with P2P energy trading- such as the legal recognition of prosumers acting as consumers and entrepreneurs, as well as the validity of ‘smart contracts’ programmed to trade energy on the platform. Energy cooperatives are popular in European countries such as Denmark and Germany, where they benefit from government support. The situation is different in the United Kingdom, where energy cooperatives are Read more…

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Schneiders-Energy-Cooperatives-A-Missing-Piece-of-the-P2P-Energy-Regulation-Puzzle.pptx 1.44 MBSchneiders-Energy-cooperatives-a-missing-piece-of-the-peer-to-peer-energy-regulation-puzzle.pdf 460.95 KB
18th
Sep
2018

Incentivising households to reduce electricity consumption: A meta-analysis of the experimental evidence

Penelope Buckley, Université Grenoble Alpes With the increasing demand for electricity, the phasing out of what were once guaranteed sources of energy supply, and the switching of energy production to renewable sources, there is a need to have a more flexible demand for electricity. There are two principal approaches to lowering electricity demand: (1) more efficient technologies and buildings, (2) incentives for consumers to modify their electricity consuming behaviour. The present paper focuses on the latter. In the experimental literature, households are incentivised to lower their consumption through financial (monetary incentives, monetary information), and non-financial (personalised advice, individual and real-time feedback, social and injunctive norms) incentives. The incentives are designed to either make it more costly for consumers to consume as they typically do, to provide them with greater information about their consumption so that they can target types of consumption which can be reduced, or to exploit behavioural biases to “nudge” consumers towards lowering their consumption of electricity. The present paper employs a meta-analysis approach to analyse the results of recent field experiments and pilot studies which explore the Read more…

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Buckley-Incentivising-households-to-reduce-electricity-consumption.pdf 1.32 MB
18th
Sep
2018

Peak demand, price elasticity and intrinsic flexibility from time use activities

Dr Jacopo  Torriti, University of Reading, United Kingdom Peaks in electricity demand bring about significantly negative environmental and economic impacts. This is because if a vast number of users is consuming electricity at the same time, suppliers have to activate power plants with higher greenhouse gas emissions and higher system costs. In Europe, the residential sector is responsible for about one third of overall electricity demand and up to 60% of peak demand. During peak demand, electricity prices in wholesale markets could fluctuate from less than €0.04/kWh to as much as €0.35/kWh (Torriti, 2015). Whilst the volume of electricity demand relates to many factors (e.g. weather, type of appliances, types of building), patterns throughout the day are a direct reflection of people’s activities. A simple example derives from the substantial difference between residential electricity load curves for weekdays and weekends. During the same season the weather can be equal at the weekend compared with the weekday. Everything else remains the same between a day of the week and the weekend: building, appliances, fuel substitution, price of energy and appliance control, and Read more…

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Torriti-Peak-demand-price-elasticity-and-intrinsic-flexibility-from-time-use-activities.pdf 1.45 MB
22nd
Sep
2016

Smart technologies in the domestic and SME sectors: evidence and policy options

Dr Peter  Warren, Department of Energy and Climate Change, United Kingdom Smart technologies refer to the use of digital and communications technologies based on signals. They include smart appliances, smart equipment, smart heating controls, smart lighting systems, building energy management systems, energy display monitors, smart meters and demand-side response, amongst others. This rapidly evolving area is being driven through innovation that seeks to develop new business models for improving the way energy is consumed and managed. The development and uptake of smart technologies plays an important role in contributing to meeting the UK’s policy objectives for energy security, affordability for consumers and reducing carbon emissions. Much of the previous policy work in this area has focussed on large consumers, such as those in the industrial and large commercial sectors. However, the evidence base is less well established for small consumers, such as small-to-medium-sized enterprises (SMEs) and domestic consumers. Although individually, consumers in these segments have low energy consumptions, collectively, they are significant. In the UK, as SMEs contribute 25% of business energy consumption and the domestic sector contributes around a third Read more…

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Warren-Smart-technologies-evidence-and-policy-options1.pdf 954.42 KBWarren-Smart-technologies-evidence-and-policy-options.pdf 420.18 KB
22nd
Sep
2016

The role of regulation in supporting transformative change in the energy market

Mr Martin  Crouch, Ofgem, United Kingdom Dr Jeffrey Hardy, Ofgem, United Kingdom   The energy system is undergoing a radical transformation from one that is largely centralised and carbon-intense to one that is carbon constrained, smart, (to some extent) decentralised and flexible.   Our role as the energy system regulator is to ensure existing and future consumers’ interests are protected. But who are these future consumers and what is the energy system we are protecting their interests in?   These questions are material today and are in part the driving force for several Ofgem projects, including our work on flexibility, future of retail regulation, quicker, more efficient connections and code governance reform.   There are also potentially disruptive technologies and business models that could disrupt the market and set the energy system on a new paradigm. The recent trend on solar PV deployment is an example of this. These innovations could shape the future of the energy system. We recognised this in our Innovation Plan that we published in March 2016. It was also a key finding from our work on non-traditional Read more…

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Crouch_The_Role_of_Regulation_in_Supporting_Innovation1.pdf 1.12 MBCrouch_The_Role_of_Regulation_in_Supporting_Innovation.pdf 241.6 KB
21st
Sep
2016

Innovative Business Models to Meet Grid Challenges

Mr Bruno Menu, Limejump Ltd,United Kingdom Dr Luke Peck, Limejump Ltd, United Kingdom At the tail end of 2015, National Grid UK released its System Operability Framework (SOF) detailing how the Future Energy Scenarios (FES) will impact the energy system and what operability challenges are foreseen. Currently, the UK grid is under considerable stress as the margin between supply and demand continues to narrow. However the situation will only exacerbate with the planned closure of fossil fuel plants and the expected increase of distributed generation.   According to National Grid UK’s SOF, within 5 years the primary frequency response requirement is expected to increase by up to 40% and by 2030 the overall response requirement will be up to 4 times today’s level. National Grid UK has highlighted the implications of this by clearly stating that unless alternative business models are offered, by 2035 providers will not be able to meet requirements as listed by any of the FES.   An additional challenge to the UK energy system is the growth of embedded generation over the next decade which is forecast to Read more…

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Peck-Innovative-business-models-to-meet-grid-challenges.pdf 3.19 MBPeck-Innovative-Business-Models-to-meet-Grid-Challenges.pdf 133.6 KB
21st
Sep
2016

Energy trilemma for the 21st century

Mr Ian  Marchant, Dunelm Energy, United Kingdom The supply side of the energy industry has, for far too long, dominated the nation’s energy policy agenda. While the three issues of affordability, security of supply and sustainability are certainly a useful framework, it is invariably a supply side policy discussion that follows: – Sustainability: Low verses high carbon generation. – Security of supply: How secure the capacity margin on the network is. – Affordability: How cheap or expensive the unit price of generation is. This supply side trilemma is important, but it is only half of the story. We need a demand side trilemma. Demand Side Trilemma: Policy on energy demand needs to balance the following three forces: – Flexibility: The extent to which consumption can be controlled as opposed to dictated or incentivised. The cost of providing flexibility varies hugely, yet consumers remain unaware due to fixed tariffs. – Meeting of needs: How much energy is required to heat homes, charge phones, power lights, provide hot water, without simply using more energy. – Affordability: How cheap or expensive the unit consumption Read more…

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Trilemma-for-the-21st-century.pdf 1.36 MB
21st
Sep
2016

Integrating supply and demand: smart systems; storage

Mr Eamonn  Boland, Baringa Partners The GB Power Market is in a period of transition.  The existing infrastructure of large thermal plant connected to high voltage transmission networks is steadily being replaced by small scale intermittent wind and solar generation, connected at lower voltage levels.  This creates a unique set of challenges for the system operator (National Grid), who will increasingly need to utilise flexible generation and storage assets through their balancing service provisions to manage the level of intermittent generation on the network. Large pumped storage hydro stations and spinning thermal plant have been the stalwarts of the system operator historically.  Responding dynamically within seconds, these units continue to manage real time supply and demand imbalances on the system, ensuring frequency limits are met and the lights in GB stay on. It is these real time balancing services markets that are the first entry point for new flexible technologies, be they gas reciprocating engines, demand side response or electrochemical storage (storage).  In the case of storage, it has been difficult for storage developers to build a robust business case in Read more…

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EBoland_Integrating_Supply_and_Demand_Storage_V11.pdf 1.05 MB
21st
Sep
2016

The energy ladder: A model for projecting energy demand

Dr Tashi  Erdmann, Shell Global Solutions International Mr Martin Haigh, Shell International Shell’s scenarios team develops long-term scenarios to explore the future of energy in the world. The scenarios are intended to draw attention to potential future developments affecting Shell’s business environment, such as innovation and disruptions in the energy sector, or economic and geopolitical developments. A core element of Shell’s World Energy Model for projecting energy demand in these scenarios is the so-called energy ladder, describing the relation between energy demand and economic development. This talk describes the methods used to develop these energy ladders, the way they are used for quantifying Shell’s energy scenarios, and the implications they have for long-term energy demand in the world. In its World Energy Model, Shell’s scenarios team uses separate energy ladders for all end-use sectors in  100 different countries and regions, each represented by an S-shaped curve. As a country develops, its energy demand tends to shift from industrial sectors to the services and transport sectors. The S-curve has a number of different parameters that allow it to be different across countries Read more…

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Erdmann-The-Energy-Ladder-v21.pdf 1.61 MBErdmann-The-Energy-Ladder-v2.pdf 55.86 KB
21st
Sep
2016

The Impact of Demand Side Management on the Wholesale Prices of the British Electricity Market

Ms Sara  Lupo,  University of Edinburgh Dr Aristides E. Kiprakis, University of Edinburgh In its attempt to modernise the electricity grid the United Kingdom faces a lot of obstacles trying to accommodate for the needs of smarter and greener technologies that were not included in the energy picture when the original transmission and distribution (T&D) system was designed. The smart grid brings along a lot of additions, such as renewables, electricity storage, and demand side management (DSM) that will in long term provide a more resilient and independent power system. Currently, however, these technologies and their effect on wholesale electricity prices are yet to be fully examined. These technologies have potentially a very significant impact on electricity demand and this paper aims to assess the effect of DSM on future demand fluctuations and their impact on the wholesale prices of the British electricity market. There are three types of DSM, which are energy efficiency, dynamic demand, and demand response. The latter’s main goal is demand reduction in addition to helping with the integration of renewable energy; it is the main focus on Read more…

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Lupo-The-impact-of-demand-side-management-on-wholesale-prices.pdf 584.04 KBLupo-The-Impact-of-Demand-Side-Management-on-the-Wholesale-Prices-of-the-British-Electricity-Market.pdf 490.46 KB
21st
Sep
2016

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