Valuing Active Buildings in a Future Energy System

Download or read book Valuing Active Buildings in a Future Energy System written by Joachim Geske and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Active Buildings (ABs) can supply some of the flexibility required by a high-renewable power system by shifting the operation of their (electric) heating and electric vehicle (dis)charging in response to grid conditions, without affecting the users' comfort or convenience. The reduction in users' energy bills, through payments for these services, must be balanced against the up-front cost of installing the equipment needed. We calculate the value of these savings, and the price premium received for a (scarce) more efficient home, accounting for the varied discount rates of buyers. The first ABs might have a price premium of up to £9,400 in 2040, more than three times the present value of flexibility revenues and £3,400 more than the additional costs. As more ABs become available, both the scarcity premium and the marginal value of flexibility fall, halving the surplus once there are 3 million. Even though it will not be financially attractive to meet the higher minimum standards legally required for either new buildings or the existing stock, this suggests it would be optimal for around 21% of buildings to achieve the more desirable standard of ABs.