EqualLCT will develop a data-driven approach to identifying areas where the coordinated roll out of HPs and EE could be used to reduce heating related network peaks.
EqualLCT aims to achieve the 3 key outcomes:
*Geospatial mapping tool demo
*Quantified long-term benefits of EE+ flexible heating
*EE + Heat Flex Incentive framework
In the project’s NIA-funded Phase 1, EqualLCT gathered a consortium to understand the challenges of specific consumer segments and identified barriers to mass deployment of LCTs across a range of customer segments.
Deploying EE and flexible heating at scale is a cross-industry effort. We will continue NIA consortium engagement in Alpha to understand challenges and develop solutions.
Consortium feedback on LENZA’s evolving data requirements will inform us:
1.what data technology providers and energy retailers need to identify investment opportunities
2.how to design an appropriate incentive framework for the EE + HPs commercial model.
EqualLCT aims to address significant market and regulatory barriers that prevent mass deployment of EE/HP across wider customer segments
Advanced HP rollouts are at TRL 7 and IRL5 but are currently CRL 5 when compared with traditional alternatives. Through appropriate regulatory reform and financial incentives, including those in this proposal, we aim to increase CRL to 7 by the end of Alpha, and to 9 by the end of Beta.
For our demonstration geospatial mapping tool, we will prove the concept for the new use case (TRL 3) in Alpha and successfully demonstrate and operate technology (TRL8) in Beta. Although the LENZA platform is being used in other environments, we are adding new user segments who have historically not been consumers of networks data.
The SIF Alpha Phase leverages the existing LENZA tool to overlay with housing stock, customer segmentation data and location-specific accessible network flexibility revenue schemes.
We will explore end-to-end commercial viability with appropriate incentive frameworks. In Beta, we will conduct consumer trials and collaborate with knowledgeable LCT value chain partners.
EqualLCT is expected to bring three broad benefits, summing to £60m for the SSEN licensed area.
Direct Benefit 1. Savings from network reinforcement due to reduction of peak demand (c.£48m)
With additional EE, peak demand on networks can be reduced, deferring or avoiding reinforcement costs. Importantly, implementation of EE will provide lasting benefits to the network on an enduring basis.
We measured expected peak reductions from inefficient home (EPC E) to efficient home (EPC C), which is estimated at 2.25kW of peak reduction on average. To understand the value of peak reduction, we used avoided flex procurement cost for simplicity. Assuming the DSO needs to procure demand turn-down for constrained areas, we expect c.£48m benefits for the network.
Indirect Benefit 1. Savings on customers’ bills (c.£11m)
With improvements in EE, customers will consume less electricity on heating and reduce their bills. By improving from EPC E to C, each home can reduce its average electricity consumption by 1,440 kWh and bill by c.£353 on average each year. While the DNO will not fully fund the EE investments from customers, DNO will provide partial payments to customers, which will improve uptake. Therefore, we have attributed 10% of this benefit to Equal LCT.
Indirect Benefit 2. Carbon savings (c.£0.38m)
With 1,440 kWh reduction of electricity consumption from each home, we expect 1,150 tCO2e carbon reduction through 2026-2040. We assumed that 10% of this is via EqualLCT. This equates to c.£0.38m value using carbon price.
Equal LCT has not yet started. It is building on a previous NIA project called Equal LCTs which looked at barriers to the adoption of low carbon technologies by those segments likely to be left behind in the energy transition. The SIF project will look at how to accelerate the rollout of LCTs combined with Energy Efficiency measures to reduce future peak heat demand.
The budget for the Alpha phase is £527,722
Feb 24 to Nov 24
