flexibility will be key to accelerating the energy transition
Huge changes are on the horizon for the way that we generate and use power in the UK.
The naysayers will tell you; “There’s not enough electricity for everyone to have electric cars” or say things like “renewables are unreliable, too much power one minute and not enough when you need it most.” And of course, we can solve the first problem by building even more renewables, a lot more wind and solar. But, admittedly that will make the second problem worse.
We can build large scale batteries, to store electricity until it is needed, and that will be part of the solution. But there is another simpler, and cheaper part of the solution, and it is going to be massive ~ flexibility.
It’s not solar panels on your roof at home that is going to drive the energy transition - it’s the huge wind farms off the Cumbrian coast, and elsewhere that will add to the nationals supply
what is energy Flexibility?
In simple terms it relates to the ability to choose when you use power.
If we can choose to use power when it is readily available, we will solve the reliability problem with renewables.
But, in reality we don’t have full flexibility ~ we need lights at night for examnple, and you may not want to change when you watch television or boil the kettle depending on the wind.
That said, most of us do already have access to some energy flexibility. Even if it is a simple as setting the time delay on the dishwasher.
If the cumulative total of all these little pieces of electrical demand could be coordinated, then we work towards matching demand to renewable generation.
Anecdotally the national grid is designed to cope with the demand just after Coronation Street finishes, when millions of households put the kettle on simultaneously. What if we turned down all the EV chargers for two minutes when the kettles come on?
Unlike batteries, flexibility is already there, built into the system, and more is being installed all the time.
It just needs a coordinated approach to unlock its potential - and that turns a problem into a huge opportunity.
Right now, most of us don’t exercise this flexibility, and why would we? With flat rate tariffs, electricity costs the same all day, and from one day to the next, regardless of the weather. If you have solar panels, then you might already be used to doing the laundry on a sunny day, and not just so you can hang it outside. But it’s not solar panels on your own roof that is going to drive the energy transition. It’s the huge wind farms off the Cumbrian coast and the like. But, as consumers, most of us don’t see any of the fluctuation in price yet, except for EV drivers.
The EV driving community have been exercising their flexibility for years.
Because their cars sit on a driveway all evening and through the night, there’s plenty of time to top up the battery, so most EV drivers use a Smart EV Tariff of some sort. Many electricity suppliers will offer cheaper electricity in the middle of the night when there is little other demand. EV drivers simply plug in whenever they park, and their charger automatically picks when to charge the car, based on a cheapest night rate. This can be as low a 7p per unit of electricity at the time of writing in late 2024. And you don’t need to have an EV to get on these tariffs. 7p for electricity is a bit of a magic number, because mains gas will be 6.3p per unit from January 2025 on the Default Tariff Cap and a good gas boiler is 90% efficient vs the 100% efficiency of direct electricity ~ 90% of 7p is 6.3p meaning that for domestic heat, direct electricity costs the same as gas.
Should the price shift again, the balance will tip. But, if you are in one of the many households in the country off the main gas grid, your heating oil or LPG will likely be significantly more expense, making this a significant cost saving.
This is just a simple domestic example of how flexibility is all around us, just waiting to be unlocked.
The application of energy flexibility for cost management in commercial settings is potentially huge, and the energy transition is going to be full of opportunity.
Renewables are cheap to build and therefore will be developed to saturate demand, which means in time, renewable generation is going to provide surpluses not shortages.
Good news if you are Flexible.
Freehold and energy independent organisations would be wise to investigate their energy consumption and flexibility options so they can lock in cost benefits as soon as possible.
To find out more, or to discuss options in your business, please contact one of the @Cogent Action team or email info@CogentAction.com to arrange a call.