Projects
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| Reference Number | NIA2_NGESO068 | |
| Title | Market Signals for the Electrification of Heating | |
| Status | Started | |
| Energy Categories | Other Cross-Cutting Technologies or Research (Energy system analysis) 20%; Energy Efficiency (Residential and commercial) 50%; Other Cross-Cutting Technologies or Research (Energy Economics) 10%; Other Cross-Cutting Technologies or Research (Environmental, social and economic impacts) 20%; |
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| Research Types | Applied Research and Development 100% | |
| Science and Technology Fields | SOCIAL SCIENCES (Business and Management Studies) 100% | |
| UKERC Cross Cutting Characterisation | Not Cross-cutting 100% | |
| Principal Investigator |
Project Contact No email address given National Grid plc |
|
| Award Type | Network Innovation Allowance | |
| Funding Source | Ofgem | |
| Start Date | 01 March 2024 | |
| End Date | 31 January 2025 | |
| Duration | ENA months | |
| Total Grant Value | £400,000 | |
| Industrial Sectors | Power | |
| Region | London | |
| Programme | Network Innovation Allowance | |
| Investigators | Principal Investigator | Project Contact , National Grid plc (100.000%) |
| Industrial Collaborator | Project Contact , National Grid plc (0.000%) |
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| Web Site | https://smarter.energynetworks.org/projects/NIA2_NGESO068 |
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| Objectives | This project aims to understand what market signals the ESO should develop to encourage electrified heating and flexibility practices and understand where these sit in the wider context of market signals for domestic consumers. Delivered through 5 quantitative and qualitative workstreams.The key objective for this project is to investigate what market signals and enablers could be created to incentivise energy customers to switch to electric heating technologies, adopt flexibility enabling technologies and consume flexibly. The outcome of the project will be a roadmap for implementation of the optimal enablers, including design of a trial. The project will be structured in five work packages to deliver, with work package four focusing on stakeholder engagement running in parallel to work packages two and three. All workstreams will utilise ESO data and assumptions where available, such as FES data. A series of webinars, including an initial project launch and briefing meeting, a mid-project progress update briefing, and a close-down and reporting briefingTwo workshops or round-tables, with groups of industry representatives from the key constituencies: energy suppliers, third party aggregators/ optimisers, and consumer representativesDirect engagement in the form of semi-structured interviews with interested parties, to include ESO experts and third parties which are identified by the project team or who self-identify through the wider engagement exercises.Data Quality & Measurement Quality Statement: Publicly available ESO data such as Future Energy Scenarios workbook data will form the basis for scenarios for electrification of heating, and the project will align on assumptions with ESO subject matter experts to ensure alignment. As the project is focusing on modelling future outcomes, there is a high degree of uncertainty. The ESO Future Energy Scenarios are trusted across industry as viable pathways for the energy system and will form the foundation for this project. All other assumptions will be aligned with ESO subject matter experts as well as with wider industry representative active across electric home heating and flexibility markets. Where proprietary models will be used by WSP and Cornwall Insights, methods, data and outputs will be reviewed by ESO subject matter experts to ensure quality assurance.Risk Assessment:In line with the ENA"s ENIP document, the risk rating is scored Low.TRL Steps = 2Cost = 1(£400,000)Suppliers = 1 (1 Supplier)Data Assumptions = 1 The project scope focuses on electric home heating including heat pumps, storage heaters, direct electrical heating and thermal storage including hot water and phase change materials. Domestic consumers are the focus for the project, and a number of home heating archetypes and profiles will be developed. The project does not include networked home heating solutions such as district heating solutions. The project takes a whole electricity system approach to understanding costs and benefits from electrified heating, and for market signals. The project will however focus on market signals that the ESO have direct influence over and look to understand these in the context of other market signals and options to accelerate electrification of heating and flexible operation. The project will only focus on home heating and will not focus in detail on other electrification or flexibility technologies or consumer segments. Whilst the project scenarios will have a long-term outlook, the market signals and options for interventions will focus on the medium term, up to 2030. The key objectives are to:Understand electric heating uptake scenariosUnderstand status quo, including counterfactual and identifying costs of "doing nothing"Identify gaps, enablers and blockers for electric heating in the GB marketIdentify what signals would be more effective with consumers Design a trial of market interventions | |
| Abstract | Significant electrification of heating is a fundamental requirement for decarbonisation. Electrification of home heating is expected to increase residential electricity demand by 50% in 2035, and to double peak demand by 2050, creating a significant additional cost for the GB electricity system. This project will look to understand how flexibility market signals can encourage electrification of heating, and the adoption of flexible heating practices from domestic consumers and their homes. This project aims to understand what market signals the ESO should develop to encourage electrified heating, flexibility practices and understand where these sit in the wider context of market signals for domestic consumers. | |
| Data | No related datasets |
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| Projects | No related projects |
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| Publications | No related publications |
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| Added to Database | 02/10/24 | |
