Since June’s general election, it’s been full speed ahead on Labour’s plans to make Britain a clean energy superpower. The King’s Speech, the government’s first opportunity to set out its legislative agenda, included intentions to deliver vital changes to the grid. Shortly following this came the announcement of the partnership between Great British Energy and the Crown Estate, marking a significant step towards providing Britain with clean energy.
However, while these developments are encouraging, there remains a significant opportunity for the government to further advance this agenda by prioritising greater flexibility within the energy market. Beyond the commendable focus on grid improvements, it is essential to support demand-side flexibility. This will enable businesses to play a pivotal role in accelerating the energy transition.
A change in approach
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.
Focusing on commercial 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, but they also achieve operational efficiencies that translate into significant cost savings, all while lowering their carbon footprint.
Unlocking new revenue streams
Beyond the operational efficiencies that demand-side flexibility offers, it also presents commercial buildings with the opportunity to unlock new revenue streams and enhance property value. By participating in demand response programs, where buildings are compensated for adjusting their energy usage during peak demand periods, businesses can generate additional income while supporting grid stability.
The strategic deployment of energy storage solutions not only allows buildings to shift energy use to times when electricity is cheaper, but it also creates the potential for selling excess stored energy back to the grid. This capability can turn energy management into a profit centre rather than just a cost-saving measure.
Moreover, as the demand for EVs continues to grow, commercial properties with on-site EV charging infrastructure can attract tenants and customers who also prioritise sustainability. This can enhance the marketability of these properties, setting them apart in a competitive real estate market.
In a rapidly evolving energy landscape, embracing demand-side flexibility enables commercial buildings to play a more proactive role in the energy transition, turning sustainability initiatives into tangible, incentivising economic benefits. This approach not only aligns with the UK’s broader net-zero goals but also ensures that businesses are well-positioned to thrive in a future where energy flexibility and sustainability are paramount.
Adopting a collaborative approach
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.
Embracing a flexible future
The journey towards making Britain a clean energy superpower hinges not only on advancing grid infrastructure but also on embracing energy flexibility. By prioritising demand-side flexibility, the government and businesses can collectively address the challenges posed by renewable energy intermittency, ensuring a more resilient and efficient energy system.
Commercial buildings, with their substantial energy consumption, have a crucial role in this transition, and it is important they begin leveraging innovative technologies to optimise energy use, lower costs, and unlock new revenue streams. As we move forward, fostering a collaborative approach between the government and industry will be essential to creating a flexible energy market that supports the UK’s net zero ambitions while delivering tangible economic benefits. The future of energy lies in flexibility.
