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This POSTnote summarises the developments in demand side response, evidence of its potential contribution to the decarbonisation of the power system, and the technical barriers associated to this tool.
Demand side response: A tool for lowering household energy bills (299 KB , PDF)
DOI: https://doi.org/10.58248/PN715
Demand side response is changing consumption of electricity in a way that is beneficial to the electricity system, and covers a range of services that vary the demand of both domestic and commercial consumers to help balance the power grid. It is used for two main reasons: to manage peak demand to reduce the amount of network investment required to meet an increasing electricity demand, caused by the electrification of heating and transportation; and to match demand with the output of renewable electricity generation, which tends to be intermittent.
Opportunities for demand side response have increased significantly in recent years with the rollout of smart meters – now installed in half of UK properties. Demand side response could make household energy bills cheaper, and the British electricity system £3-8 billion per year cheaper to run by 2050. For reference, the projected annual electricity system cost in 2050 is about £70 billion.
According to academia, industry and the government, demand side response is one method of reducing the amount of infrastructure investment required to meet an increasing electricity demand. Yet consumers have differing abilities to understand what they have to do to engage effectively and provide demand side response, raising just transition issues. For example, electric vehicles offer greater flexibility compared to an electric cooker. People with children, shift workers, and households with medical devices may need to consume electricity at peak times. Households with less ability to shift may end up paying more for their electricity.
POSTnotes are based on literature reviews and interviews with a range of stakeholders and are externally peer reviewed. POST would like to thank interviewees and peer reviewers for kindly giving up their time during the preparation of this briefing, including:
Members of the POST board*
Claire Addison, Flexitricity
Avi Aithal, Energy Networks Association
Naomi Baker, Energy UK
Nick Banks, University of Oxford
Robert Barthorpe, University of Sheffield
Steph Budenberg, Baringa
Peter Bullock, Evergreen Energy
Simona Burchill, Octopus Energy
Azad Camyab, Pearlstone Energy
Timothy Chapelle, Energy Systems Catapult
Chris Collins, Baringa
Matt Copeland, National Energy Action
Simon Cox, Baringa
Sarah Darby, University of Oxford
Sam Do, UK Power Networks
Samuel Ebohon, Baringa
Xander Fare, Department for Energy Security and Net Zero
Michael Fell, University College London
Rebecca Ford, Regen
Elena Gaura, Coventry University
Alex Hart, National Grid ESO
Robin Healey, Centrica
Evelyn Heylen, Centrica
Sarah Honan, Association for Decentralised Energy
Charlotte Johnson, Centre for Sustainable Energy
Niall Kerr, Scottish Parliament Information Centre
Ben Kinrade, Hitachi
Nina Klein, Ofgem
Silvia Laera, International Energy Agency*
Andrew Larkins, Sygensys
Mark Lufkin, Wondrwall
Luca Mezossy-Dona, IONATE
Rachel Mills, Citizens Advice
Peter Morgan, Department for Energy Security and Net Zero
Thomas Morstyn, University of Edinburgh
Daniel Murrant, Energy Systems Catapult
Mark O’Malley, Imperial College London
David Parfitt, National Grid ESO
Natasha Patel, Baringa
Fahrat Raza, Ofgem
Alasdair Reid, Scottish Parliament Information Centre
Valerie Reif, Florence School of Regulation
Nicolo Rossetto, Florence School of Regulation
Florentine Roy, UK Power Networks
Vida Rozite, International Energy Agency*
Jon Saltmarsh, Energy Systems Catapult
Laura Schade, Department for Energy Security and Net Zero
Alex Schoch, Octopus Energy
Rebecca Shutt, Department for Energy Security and Net Zero
Goran Strbac, Imperial College London
Gemma Stanley, Piclo
Aidan Stennett, Northern Ireland Assembly Research and Information Service
Jacopo Torriti, University of Reading
Paul Troughton, Enel X
Calvin Tsay, Imperial College London
Robert Westmancoat, National Grid ESO
Matthew Williams, IONATE
Marzia Zafar, Ofgem
* Denotes people who acted as external reviewers of this briefing
Demand side response: A tool for lowering household energy bills (299 KB , PDF)
Evidence suggests that the decline of psychological wellbeing in schools has accelerated since the Covid-19 pandemic. How can we best support students individually and equitably?
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