{"id":1316,"date":"2021-04-21T14:01:10","date_gmt":"2021-04-21T13:01:10","guid":{"rendered":"https:\/\/research.reading.ac.uk\/sbe-news-and-events\/?p=1316"},"modified":"2021-04-21T14:01:10","modified_gmt":"2021-04-21T13:01:10","slug":"jacopo-torriti-submission-published-by-environmental-audit-committee-community-energy-publications","status":"publish","type":"post","link":"https:\/\/research.reading.ac.uk\/sbe-news-and-events\/jacopo-torriti-submission-published-by-environmental-audit-committee-community-energy-publications\/","title":{"rendered":"Jacopo Torriti submission published by Environmental Audit Committee (Community Energy publications)"},"content":{"rendered":"

Jacopo Torriti has had his written evidence submitted on 24 March 2021, published by the Environmental Audit Committee’s inquiry, Technological Innovations and Climate Change: Community Energy.<\/p>\n

Written evidence from Professor Jacopo Torriti<\/span><\/strong><\/p>\n

\n

This evidence is submitted by Professor Jacopo Torriti from the School of Construction Management and Engineering at the University of\u00a0Reading, an expert on energy policy.<\/p>\n

    \n
  1. My evidence for the Technological Innovations and Climate Change: Community Energy inquiry looks at how an understanding of \u2018demand-side\u2019 energy is hugely beneficial in adopting energy technology to tackle climate change.<\/li>\n
  2. Demand-side energy considerations look at how much energy is drawn from a power grid, who uses it and what for. There are clear benefits from an understanding of demand, including reducing the peak power generation needed, and better utilising renewable\u00a0energy systems and battery storage.<\/li>\n
  3. I will discuss demand side flexibility and how it will\u00a0be critical in order make sure the UK minimise the costs of balancing demand and supply from renewables.<\/li>\n
  4. As we better\u00a0understand\u00a0where flexibility can and should come from (residential sector, heating demand, electric vehicles), I highlight a growing market opportunity for \u2018load shifting\u2019, in which energy use is rescheduled outside of peak demand times with financial incentives, and\u00a0how\u00a0regulatory reform of tariffs\u00a0stands to bring\u00a0about estimated bill savings for UK residential customers of between\u00a0\u00a31.6bn-\u00a34.5bn\u00a0from 2021 to 2045, and a total saving\u00a0in the UK of \u00a38bn.\u00a0I will also highlight some\u00a0key considerations about adopting this for consumers.<\/li>\n<\/ol>\n

    \u2018Demand-side\u2019<\/p>\n

      \n
    1. Demand-side energy looks at\u00a0the\u00a0end users and means of distribution of energy, whether that is household consumers boiling a kettle, charging an electric vehicle; or\u00a0a business powering their offices, server rooms, or manufacturing processes.<\/li>\n
    2. It is important to understand how energy is used when considering how to\u00a0change the energy system to make it environmentally sustainable. As well as\u00a0developing increased share of energy from renewable sources, and improving the efficiency of systems, we need to\u00a0reduce\u00a0the burden of energy generation.<\/li>\n
    3. I have been looking at how we reduce the need for energy production to cope with peaks of use.\u00a0As the risk of peak demand exceeding supply is\u00a0so\u00a0undesirable, there are two ways to tackle\u00a0the issue. Increase peak production,\u00a0or reduce peak demand. Alongside\u00a0other energy experts<\/a>[i]<\/a>, I argue that in order to\u00a0achieve a net zero carbon emission energy system in the UK, we must do both.<\/li>\n<\/ol>\n

      Demand-side flexibility<\/p>\n

        \n
      1. One way to reduce the impact of demand on our energy system is through\u00a0\u2018Demand-side flexibility\u2019.\u00a0What demand-side flexibility looks like in practice is the\u00a0smoothing out of peak demands for energy, also called load shifting. This\u00a0reduces\u00a0the\u00a0pressure for energy generation\u00a0by taking away peaks. It also creates a market\u00a0in which energy customers are\u00a0financially rewarded for using energy outside of peak times.<\/li>\n
      2. Demand-side flexibility\u00a0crucially\u00a0enables\u00a0an\u00a0energy system\u00a0with increased mix of renewable energy\u00a0to\u00a0better cope with fluctuations\u00a0in supply as well as demand.\u00a0This flexibility, along with solutions for battery storage, will enable\u00a0renewable energy\u00a0to provide the bulk of UK energy even though\u00a0some renewable sources\u00a0such as solar and wind\u00a0are more contingent factors such as\u00a0the weather.<\/li>\n
      3. The power of demand-side flexibility is in the creation of market incentives for\u00a0electricity use\u00a0during\u00a0lower demand\u00a0times.\u00a0This\u00a0has already been trialled [ii]<\/a>\u00a0in the commercial sector\u00a0with great success, such as in 2017 where\u00a0around\u00a02.7GW\u00a0which is equivalent to two large power stations\u00a0was\u00a0estimated to have taken part in a trial.<\/li>\n
      4. A Carbon Trust and\u00a0Imperial College report suggests that adopting\u00a0would save the UK between\u00a0\u00a317bn and \u00a340bn [iii]<\/a>\u00a0by 2050,\u00a0\u201cby reducing the required expenditure in low carbon generation, peaking plant and network reinforcement.\u201d<\/li>\n
      5. The UK Government\u2019s Clean Growth Strategy recognises the need for\u00a0a flexible energy system, and is outlined in\u00a0Ofgem\u2019s\u00a0Smart Systems and Flexibility Plan [iv]<\/a>.\u00a0Some of their plans to\u00a0create a \u2018smart and flexible\u2019 system\u00a0have been achieved\u00a0through the\u00a0widespread adoption\u00a0of\u00a0smart\u00a0meters.\u00a0However, while 23.6 million [v]<\/a> have been installed, it is the accompanying demand-side flexibility that will enable consumers to financially benefit by making energy use at certain times more financially attractive [vi]<\/a>.<\/li>\n
      6. In addition, the Clean Growth Strategy is unambitious in\u00a0adopting\u00a0demand-side response (DSR),\u00a0and I have argued [vii]<\/a>\u00a0that a more radical approach to flexibility is needed to ensure that the UK\u00a0is able to have a market and regulatory system that matches our ambitions for renewable energy mix.<\/li>\n<\/ol>\n

        Impacts for consumers<\/p>\n

          \n
        1. The benefits of employing DSR\u00a0include\u00a0making electricity cheaper at times where supply exceeds\u00a0predicted\u00a0demand, as well as\u00a0decarbonising the energy sector and reducing public spending\u00a0leading to better health and economic benefits for society.<\/li>\n
        2. The idea within flexibility of \u2018load shifting\u2019\u00a0has been adopted at a commercial level, but not currently with residential customers, which accounted\u00a0for\u00a034% [viii]<\/a>\u00a0of electricity use in 2019. Given the changing nature of work following the Covid-19 pandemic, this figure is likely to be significantly higher as more people work from home.<\/li>\n
        3. However, no such large-scale trials of consumer DSR have\u00a0been implemented in the UK\u00a0and currently our understanding of how households would adopt it are theoretical or based on equivalent models from industry.<\/li>\n
        4. In\u00a0my\u00a0recent research [ix]<\/a>, I have\u00a0looked at\u00a0what any adoption of a \u2018Time of Use\u2019 tariff as part of\u00a0increasing DSR for\u00a0household electricity users\u00a0would mean for different demographic groups\u00a0based on certain domestic tasks.\u00a0I found that\u00a0adopting household flexibility will\u00a0need to be done carefully in order to not penalise lower socioeconomic households where time scarcity is a major factor in domestic chores requiring electricity.<\/li>\n
        5. I give an example of a single\u00a0parent working as a nurse, who is time poor as well as potentially on a low income and\u00a0is less able to flexibly use electricity outside of peak times.\u00a0This demonstrates that adopting flexible tariffs for consumers needs to be carefully thought out to ensure that\u00a0those who can\u2019t benefit from such adoption are not further penalised.<\/li>\n
        6. Overall, across all sectors, increasing flexibility of electricity demand (that is, reducing consumption at specific times of the day) would yield savings in the UK in the order of \u00a38bn per year up to 2030 [x]<\/a>\u00a0and allow progress towards a\u00a0zero-carbon\u00a0electricity system; and\u00a0regulatory reform of tariffs bringing about estimated bill\u00a0savings for UK residential customers of between\u00a0\u00a31.6bn\u00a0and\u00a0\u00a34.6bn\u00a0from 2021 to 2045 [xi]<\/a>.<\/li>\n<\/ol>\n

          Recommendations<\/p>\n

            \n
          1. In considering\u00a0future incentives for community energy collectives for generation or distribution, attention should be paid to how\u00a0communities (in both a residential sense as well as collective organisations) can\u00a0support demand-side flexibility.<\/li>\n
          2. Call on Government\u00a0to promote demand-side solutions to\u00a0reach Net Zero targets.<\/li>\n
          3. Introduce plans for residential demand-side flexibility that promote fairness.<\/li>\n
          4. Consider plans for ensuring that the benefits of demand-side flexibility are passed on to community energy collectives.<\/li>\n<\/ol>\n

            March 2021<\/p>\n

            References:
            \n            [i] <\/a>\u00a0https:\/\/www.creds.ac.uk\/wp-content\/pdfs\/CREDS-Shifting-the-focus-July2019.pdf<\/a> p61
            \n<\/span>            [ii]<\/a>\u00a0Grunewald, P. and Torriti, J. (2013) \u2018Demand response from the non-domestic sector: Early UK experiences and future opportunities\u2019. Energy Policy, 61. pp. 423\u2013429. doi:\u00a0<\/span>https:\/\/doi.org\/10.1016\/j.enpol.2013.06.051<\/a><\/span>
            \n            [iii]\u00a0<\/span><\/a>https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/568982\/An_analysis_of_electricity_flexibility_for_Great_Britain.pdf<\/a><\/span>
            \n            [iv]\u00a0<\/span><\/a>https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/633442\/upgrading-our-energy-system-july-2017.pdf<\/a><\/span>
            \n            [v]<\/a>\u00a0<\/span>https:\/\/www.smart-energy.com\/industry-sectors\/smart-meters\/23-6-million-smart-meters-in-gb-but-one-fifth-not-operating-smart\/<\/a><\/span>
            \n            [vi]<\/a> Torriti, J. (2020).\u00a0Appraising the economics of smart meters: Costs and benefits. Routledge
            \n<\/span>            [vii]<\/a>\u00a0<\/span>https:\/\/www.creds.ac.uk\/wp-content\/pdfs\/CREDS-Shifting-the-focus-July2019.pdf<\/a>\u00a0p63, p65
            \n<\/span>            [viii]\u00a0<\/span><\/a>https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/904805\/DUKES_2020_Chapter_5.pdf<\/a> p.2
            \n<\/span>            [ix]\u00a0<\/span><\/a>Torriti, J., &\u00a0Yunusov, T. (2020). It\u2019s only a matter of time: Flexibility, activities and time of use tariffs in the United Kingdom Energy Research & Social Science, 69, 101697.\u00a0<\/span>https:\/\/doi.org\/10.1016\/j.erss.2020.101697<\/a><\/span>
            \n            [x]<\/a> Ibid
            \n<\/span>            [xi]<\/a>\u00a0<\/span>https:\/\/www.ofgem.gov.uk\/system\/files\/docs\/2020\/06\/mhhs_draft_impact_assessment_consultation_-_final_-_published_17_june_2020.pdf<\/a><\/span><\/p>\n<\/div>\n

            Please see link on the website for further information: https:\/\/committees.parliament.uk\/writtenevidence\/25131\/html\/<\/a>)<\/span><\/p>\n

            \u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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