Siobahn Meikle, Vice President for Northern Europe, Eaton
Following their electoral success, the new government has been quick to put into motion its strategy for making the UK a ‘clean energy superpower’. The legislative announcements in the King’s Speech, followed by the partnership announcement between Great British Energy and the Crown Estate demonstrate a commitment from the Government to deliver on its promises.
The enthusiastic start is very welcome, and rapid progress is absolutely necessary to deliver the UK’s energy transition. However, there is opportunity for the Government to make even further waves by allocating efforts to enhance energy flexibility in the UK. The energy transition will be delivered through government working in tandem with businesses, and a key part of the latter’s contribution will be increased use of demand side flexibility.
Adapting to a new type of energy source
The Government’s vision for grid transformation is undeniably important: decarbonisation of the grid is essential to the UK achieving its net zero targets. However, this can only happen if the grid and its users are able to fully manage the inherent intermittency of renewable energy generation. In the UK we cannot always guarantee the sunshine, and while wind is more reliable, it is not a certainty either. This means delivering infrastructure which allows for the generation and storage of renewable energy, as well as promoting demand-side flexibility.
One of the solutions lies in enhancing the grid’s capacity to balance intermittency through advanced forecasting and demand response technologies. In buildings, energy storage systems can store excess energy generated during peak production times and release it when renewable energy production is low. Moreover, integrating demand response programmes allows for more flexible energy consumption, aligning usage patterns with renewable energy availability.
Modernising the grid to handle increased renewable energy capacity is a cornerstone of our clean energy future. Demand-side flexibility will play a vital role in bringing it to fruition.
The role of businesses and their buildings
Commercial buildings have an important role to play in delivering progress. As they represent a third of the UK’s energy consumption, ensuring such buildings can leverage innovative solutions to foster a more resilient and adaptable energy system will make a significant contribution to the UK’s net zero ambitions.
Encouraging commercial building owners to invest in the flexible capabilities of their premises will ultimately benefit them by providing them with a degree of independence from the grid and access to zero-carbon energy which they generate themselves. Smart energy management systems, on-site renewable energy generation, EV charging infrastructure and energy storage solutions are all part of the equation. In combination, these technologies make it possible to manage energy use in commercial buildings depending on the conditions of the day.
This might be via the deployment of advanced energy management systems to optimise energy use in real-time and thus enable businesses to respond dynamically to fluctuations in energy supply and demand. More simply, it could be a matter of encouraging businesses to use any onsite renewable generation capacity they may have – solar panels, for example – together with energy storage solutions to take advantage of weather conditions, such as a sunny day.
By adopting flexible technologies, businesses not only contribute to the overall stability of the grid they also achieve operational efficiencies that translate into significant cost savings, all while lowering their carbon footprint.
Sharing the weight of responsibility
While the Government’s role is pivotal in setting the stage for a flexible energy market, responsibility does not fall solely on its shoulders. Success will require collaboration between government and industry to design the frameworks which will encourage the necessary investment and innovation. This includes developing clear standards for energy storage, demand response, and other flexible solutions.
Attracting private investment to fund the deployment of enabling technologies at scale through policies which foster fair, transparent and easy access to flexibility markets will be vital to ensuring the energy transition is accessible and affordable for all.
Consolidating the positive steps we’re making
The new government’s proactive stance on making the UK a ‘clean energy superpower’ is commendable, and its early actions demonstrate a serious commitment to achieving this vision. However, the success of this endeavour will rely heavily on collaboration between the government and the private sector, particularly in enhancing energy flexibility. By encouraging businesses, especially those in commercial real estate, to adopt flexible energy solutions, the UK can not only manage the inherent intermittency of renewable energy but also ensure a resilient and sustainable energy future.
The Government must continue to play a key role in creating an environment that promotes investment and innovation in these technologies. Ultimately, it is through shared responsibility and cooperation that the UK will be able to achieve its net zero ambitions while ensuring the benefits of the energy transition are widely distributed across society.
This article appeared in the September 2024 issue of Energy Manager magazine. Subscribe here.