Assessing demand flexibility as a new business model for decarbonising social housing

Abstract

Buildings account for 35% of greenhouse gas emissions in the UK. Decarbonising residential buildings is a major step in the journey to Net-Zero. However, renewable heat systems are currently expensive and could increase fuel bills for consumers. Furthermore, renewable energy support mechanisms such as the Renewable Heat Incentive in Northern Ireland and the Renewables Obligation have been suspended. Social housing is a critical sector because of its scale and because it is responsible for low income and vulnerable groups. Getting decarbonisation right for social housing tenants would ensure that vulnerable consumers who are not homeowners, or who have limited access to capital, are not left behind in the journey to Net-Zero.

Demand flexibility presents the opportunity for social housing providers to decarbonise their housing stock. The penetration of renewable generation and the challenges of managing congestions caused by the uptake of heat pumps and electric vehicles presents opportunities for these consumer devices to create system value and to be remunerated for doing so. This thesis investigates the potential of low carbon technologies installed in residential buildings to provide grid services and the benefits of such schemes. Thermal storage allows these devices to provide grid services while maintaining comfort standards for consumers.

The technical, economic, spatial, and social aspects of demand flexibility are also investigated. The research develops methodologies for spatio-temporal assessment of demand flexibility needs, opportunities, response potentials and adequacy assessment. It also provides a methodology for identifying vulnerable and potentially left-behind groups and proposes a flexibility prioritisation framework that ensures an equitable distribution of flexibility opportunities. It quantifies the costs and benefits of providing various system services and examines the potential of value stacking. It proposes an innovative business model for funding the replacement of oil-fired boilers with heat pumps and thermal storage, and for installing solar panels and batteries in social housing. Finally, the thesis also provides several evidence-based policy and regulatory recommendations to help policymakers develop an effective flexibility
strategy.

Date of Award	Jul 2021
Original language	English
Supervisor	Ye Huang (Supervisor) & Patrick Keatley (Supervisor)