C&W Perspectives

We believe that incorporating residential flexibility and utilising electric storage is key to the future of energy, this in turn will have clear positive implications for commercial property OPINION CUSHMAN & WAKEFIELD 07 OPINION A ccording to recent research completed by OVO Energy, the UK’s largest independent energy supplier, and Imperial College London in their “Blueprint for a post-carbon society”, the UK is on the brink of the next industrial revolution. This is driven by electrifying transport and heat and at the same time integrating more cheap, abundant renewable energy onto the system. However, the generation of renewable energy is not constant and the increase in demand for clean electricity, particularly as it substitutes carbon based fuels, places more strain not only on renewable energy production but on the entire distribution network. This combines to make residential flexibility key to decarbonising power, heat and transport. But what does this mean in practical terms? OVO strongly believes that unleashing flexible energy at a residential level is critical to reducing the cost of decarbonisation in the UK. Most flexibility will be found via “behind the meter” (BTM) technologies which include residential battery storage or DSR (Demand Side Response) associated with smart Electric Vehicle (EV) charging or smart residential appliances. Opinion: residential flexibility is key to the future of UK energy By Phil Moore, Partner, National Office Agency In order to meet climate change goals set out in the 2015 Paris Agreement and remain within the emissions envelope of a 2°C warming scenario, UK carbon emissions must decline from current levels to reach near net zero levels by 2050. With new technologies like EVs, smart electric heat and home energy storage, consumers can actively participate and engage in the energy transition whist saving themselves and others, billions of pounds. How? These technologies are enabling us to shift as much consumption as possible away from peak times, when demand is highest and the grid is most congested. And they’re enabling us to store cheap renewable energy when it’s available. By increasing residential flexibility through intelligent and bi-directional charging of EVs, smart electric heating and domestic energy storage, the “Blueprint for a Post- Carbon Society” study concludes that household energy flexibility could cut the cost of decarbonisation by £6.9 billion per year. Sustainability and minimising our impact on the world is high on the agenda for Cushman & Wakefield and we have watched with interest the activity within the energy industry and how this might translate into real estate. As a client of ours we asked Chris Houghton, CEO of OVO’s Energy Retail for his thoughts : “We believe that incorporating residential flexibility and utilising electric storage is key to the future of energy, this in turn will have clear positive implications for commercial property. At OVO we are continuing to call for the Government, regulators and the industry to work together and adapt to this new energy system where supply no longer has to match demand at a given point in time and flexibility makes energy cheaper and greener for everyone.” Source: https://www.ovoenergy.com/binaries/ content/assets/documents/pdfs/newsroom/ blueprintforapostcarbonsociety-2018.pdf

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