A recent report by Cornwall Insight has highlighted the potential of rewarding consumers for their role in making energy systems more sustainable and efficient.
The report, titled Integrate to Zero: Rewarding Consumers for Energy Flexibility: global market highlights, looks at how incentivising flexible energy use can benefit energy grid management.
The study demonstrates that offering tangible benefits to consumers who participate in flexible energy programs can significantly increase involvement. This can play a crucial role in balancing energy demand, reducing costs, and bolstering the deployment of renewable energy sources.
Global success stories
Cornwall Insight’s report delves into diverse energy initiatives worldwide, including time-of-use tariffs and approaches like vehicle-to-grid (V2G) solutions. These initiatives showcase a range of strategies, from incentivising reduced consumption to rewarding customers for generating and exporting energy to the grid.
Notable success stories include Germany, where thousands of consumers have benefited from discounts of up to 35% by shifting energy use to off-peak periods. German customers have also seen savings of €100/year (£85.75/year) for optimising the import and export of energy. Similar programmes in the UK, US, Japan, Australia, South Korea and other nations have yielded comparable consumer benefits.
Balancing the grid
Flexible energy use is vital for achieving a balanced energy system. By encouraging households to store energy during peak generation hours, export excess energy, and minimise consumption during peak demand, we can stabilise the grid and alleviate the strain on infrastructure. This approach is essential as we transition to a future dominated by renewable energy sources.
Anna Moss, senior consultant at Cornwall Insight, emphasised this transformative potential: “In a world struggling to cope with increasing energy demand while simultaneously striving for sustainability, rewarding consumers for energy-efficient habits becomes not just a choice, but a powerful tool for change.
“Flexible energy usage emerges as a linchpin in grid stability, urging households to optimise consumption, store surplus energy, and contribute to peak demand management. We need to embrace these initiatives, encourage innovation and forge a sustainable energy future for all.”