BEAMA

15 February 2010

Along with DECC’s (Department of Energy and Climate Change) recent carbon emissions reduction targets and recommendations for non-domestic buildings, our association has also welcomed the two Government documents ‘Towards a Smarter Future’ and ‘Smarter Grids: The Opportunity’. They outline the Government’s plans for the phased approach to installing smart metering in all UK homes, and small to medium enterprises (SMEs), and the links to future developments for smart grids.

As representatives of the electrotechnical industry we have been waiting for these announcements. We fully endorse the level of functionality presented for smart metering, which should provide the maximum benefits for consumers and industry. Outlining the basis for integration with smart grids, the challenge now facing our industry is to deliver the necessary products and services to meet the ambitious targets.

It is particularly pleasing to see the clarity of thinking presented in the ‘Smarter Grids: The Opportunity’ document. This discussion paper provides a roadmap to 2050 with increased future interaction between the distribution network and energy users. The provision of real time data from smart meters will enable enhanced communication between energy providers and energy consumers. This in turn will facilitate improved management of the electricity supply grid and result in a more reliable and effective supply system with lower operating and maintenance costs.

The installation of smart metering will obviously eliminate the need for estimated readings, but more importantly will provide a better understanding of patterns of energy use in homes and SMEs. Mass installations of smart meters is the first step towards revolutionising the way energy is supplied and distributed in the UK. Smart meters will open up many new services for energy consumers, as well as stimulate greater competition from energy suppliers for customers. This will put the consumers in a strong position to seek out the best deals from energy providers.

Engagement

The one-to-one engagement between consumers and energy suppliers on an individual property’s energy use will be the catalyst for delivering a wide range of government policy ideals that have long been desired, but not yet achieved. For example, energy services, behaviour change, targeted energy efficiency measures, individuals taking personal responsibility, introducing ‘feed-in’ and multi-rate tariffs. The combination of these activities will ultimately lead to a culture change in the way consumers understand, and act upon, their own energy usage. There should be a role here for building engineers to help the process and in influencing the way householders and SMEs use electricity and energy in the years ahead.

To meet the climate change targets, in the future, significantly more homes, offices, public buildings, factories, schools and colleges, leisure facilities etc will need to become energy producers through renewable technologies with more sophisticated supply and demand balancing. This will lead to a more tailored energy system of generation and supply managed through a smart electricity supply grid. This combined approach will give invaluable benefits in the way energy is both supplied and consumed.

The enhanced control over power flows within the supply grid will assist the building of the near zero carbon electricity supply system of the future. Connecting the increased generation from renewable technologies will be made easier, with dynamic data provided from the increasingly ‘smart’ system.
The integration of low carbon electric vehicles will be integral to the development of this new grid. The smarter grid should also open up new possibilities for further technology developments such as energy storage.

The near zero-carbon supply grid will increase take-up of electrical technologies, particularly for space and water heating. Future building services design will need to take account of low carbon electricity supply and increasingly incorporate electrical alternatives to traditional space and water heating design. There will also be a push towards installing carbon saving measures on a community-wide basis. The government has clearly indicated that the emphasis in the future will be on tackling households on a street-by-street basis rather than individual one-off properties. There will be incentives to maximise the installation of energy efficient technologies on a ‘one-stop-shop’ basis. This is likely to spin off into opportunities for SMEs within the same community.

This will open up significant opportunities for electrical and building contractors and now is the time for them, and building engineers, to be planning their services to maximise their input into this exciting future. BEAMA is well placed to coordinate the input from the full range of electrotechnical manufacturers and will play a leading role in developing future supply systems.

The UK electrotechnical industry players are already providing ‘smart’ products for installation within homes and SMEs. Smart meters will become the communication hub, which will facilitate better-coordinated installation programmes and improved energy management in domestic households and ‘intelligent’ commercial buildings.

Challenge

The scale and impact of the smart metering rollout should not be underestimated. The challenge of installing smart meters in 26 million households is immense but the associated opportunities for delivering UK carbon savings are massive.

Already we are seeing the installation of ‘smart’ technologies within homes and smart meters will now follow to become the communication hub, which will facilitate coordinated energy management between the demand side and the supply side. The final piece of the jigsaw will be the development of smart grid and distribution networks.

This is a once in a lifetime opportunity and if the UK gets it right it will genuinely be the case that ‘everybody wins’ - so the manufacturing industry will work through BEAMA with government, regulators, energy suppliers and members to make sure UK plc makes the most of this opportunity.
It will be those building engineers and building services providers who look to be part of the ‘smart scene’ by seeing these challenges as a means of opening up new business opportunities who will benefit.

The winners will be those who keep up with smart developments, developing relationships with energy suppliers, scheme managers and potentially manufacturers of smart products to forge symbiotic partnerships. The opportunity is there to create joint initiatives and added value services in terms of educating customers, giving sound advice, and ultimately to realise the significant installation potential.

This is a unique opportunity for those professionals associated with developing the ‘intelligent’ buildings of tomorrow, and who themselves are smart enough to help make the ‘smart revolution’ happen.