Octopus Energy’s Centre for Net Zero and Energy Systems Catapult (ES Catapult) have united in a call to government for the introduction of a ‘Smart Building Rating’ (SBR).
This rating – supported by Chris Skidmore MP and a cross-industry coalition including E3G, Energy Savings Trust (EST), and the Royal Institution of Chartered Surveyors (RICS) – would be designed to incentivise demand flexibility at scale throughout the UK.
A smart and effective future energy system will require UK households to be both energy efficient and capable of providing energy flexibility. Demand-side energy flexibility – the practise of shifting one’s energy use according to grid capacity signals – could save the system between £9.6 to £16.7 billion in 2050 said the Centre for Net Zero, whilst also saving individual households up to 52% on wholesale electricity costs in 2040.
To help achieve this, the SBR would place value for flexibility by measuring a building’s capacity for flexible services. This includes, whether a building is equipped with technologies that are compatible with flexibility services such as heat pumps, electric vehicle (EV) chargers or energy storage batteries.
Chris Skidmore MP commented on the SBR stating: “Decarbonising homes is at the heart of the UK’s journey to net zero. The future energy system will need buildings to be both energy efficient and able to provide energy flexibility. In placing a value on a building’s capacity for energy flexibility, the Smart Building Rating can help us to achieve this. It is a prime example of forward-thinking policy-making that aligns with a data-driven, digital future energy system.”
Together the Centre for Net Zero – launched in February 2021– and ES Catapult are urging the government to consult on the introduction of the SBR, whilst they continue to collaborate on the development and trial of a proof-of-concept model to demonstrate its policy value.
“Flexibility is not optional; it is essential to a net zero energy system. Whilst it comes in many forms, consumer flexibility is the lowest-cost way of keeping supply and demand in balance – but the current landscape is not conducive to rapidly scaling it,” said Lucy Yu, CEO of Centre for Net Zero.
“The Smart Building Rating is designed to confront this challenge head on, ensuring that we can unlock the benefits that a flexible energy system affords – from cheaper bills to cleaner, more secure energy.”
Guy Newey, CEO of Energy Systems Catapult, added: “The Smart Building Rating would enable businesses, Government and other stakeholders to better target and incentivise uptake of the technologies needed to achieve flexibility from homes. It would also help to stimulate innovation, boosting the market for new flexible products and services, where the UK has some of the most exciting and high growth-potential companies.”
The call follows worrying government moves which threaten to delay building energy efficiency and decarbonisation.
In just five days, the Prime Minister Rishi Sunak confirmed that the ban on fossil fuel boilers will be pushed to 2035 – including a delay on the ban on installing new coal heating for off-gas-grid households which will make the target seven years later than the Committee on Climate Change‘s (CCCs) recommendation – and that the energy efficiency taskforce will be scrapped.
Both the delay to low-carbon heating installation requirements and the removal of the energy efficiency taskforce were met with severe criticism.
