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This event took place on Tuesday 19 November. You can watch the recording below.

The opinions expressed in this event recording are those of the speaker. For more information, view our full statement on external contributors.

Nesta’s A sustainable future team worked in partnership with Centre for Net Zero, investigating how automating heat pumps through smart thermostats can help shift energy demand away from peak times, without compromising home comfort.

As the UK transitions to low-carbon alternatives for domestic home heating, such as heat pumps, the demand for electricity will grow. This means that electricity capacity, transmission and distribution will need upgrading. Using heat pumps flexibly could help reduce household consumption during periods of peak demand, reducing the need for expensive upgrades to the grid. Reducing the grid’s reliance on fossil fuels at peak times could also cut carbon emissions.

However, there is limited real-world evidence on how to use heat pumps flexibly, including how much demand could be reduced, and the impact it could have on household occupants. The HeatFlex research report aimed to address this need for evidence through generating insights on how to automate heat pump flexibility.

During this event, we heard from the research team from Nesta and Centre for Net Zero, and experts from Smart Energy GB and Ofgem. They shared key findings from this trial – the practicalities, scalability, and user acceptance of automated heat pump flexibility, and considered how these insights could shape the future of energy in the UK.

This event, hosted by Nesta and Centre for Net Zero (CNZ), explored the findings of the Heat Flexproject, a field randomised controlled trial investigating the potential of automated heat pump flexibility for managing household energy demand.

The webinar began with an introduction to Nesta and CNZ, highlighting their roles in driving innovation for social good and accelerating the energy transition, respectively. The HeatFlex project, a partnership between the two organisations, aimed to address the crucial question of whether heat pumps could provide flexibility without compromising customer comfort.

Daniel Lopez-Garcia, Research Manager at CNZ, outlined the rationale for reducing peak electricity demand, emphasising its environmental impact and the need to accommodate increasing demand from the electrification of various sectors. He then described the project's simple yet effective intervention: using smart thermostats to remotely adjust heat pump temperatures during peak demand periods. This involved a preheating period, where temperatures were raised to a comfortable maximum, followed by a flexibility window where temperatures were lowered to a pre-determined minimum. This automated approach aimed to maintain thermal comfort while minimising disruption to customers.

The research team conducted a randomised controlled trial involving 43 participants with existing heat pumps. Half of the participants took part in HeatFlex (the treatment group), and the other half did not (the control group). The trial involved 27 HeatFlex events conducted between February 2024 and April 2024, with variations in the timing and duration of flexibility windows.

The first research area, presented by Daniel, focused on customer comfort. Analysis of temperature data revealed that the intervention resulted in relatively minor temperature fluctuations. Preheating increased average temperatures by less than one degree Celsius, and during the flexibility window, temperatures decreased by a similarly small margin. This minimal impact on temperature contributed to high levels of customer satisfaction with the internal temperatures of their homes, with over 80% of participants reporting that they were satisfied with the internal temperature of their home during events (collected by surveys sent by email after each event)..

Oli Berry, a senior researcher at Nesta, discussed the second research area, the acceptability of automation. Through interviews and floor plan exercises, the team found that participants were generally comfortable with the remote control of their heating systems. Notably, some participants did not notice events happening, particularly in households where communication about when events were time was not shared with all of the household occupants.

Oli then presented the final research area, focusing on demand shifting. The team measured consumption at both the household level (using smart meter data) and directly from the heat pump.

The results indicated that households in the treatment group had a 32% lower household electricity consumption than households in the control group. For heat pump consumption, the researchers found that households in the treatment group had a 74% lower electricity consumption than those in the control group. This discrepancy was attributed to the presence of solar panels and batteries in half of the participating homes. Homes with these technologies could draw little to no electricity from the grid during events, masking the reduction in heat pump consumption at the household level.

The presentation concluded by discussing the policy implications of the trial findings. The team emphasised the potential for automated heat pump flexibility to significantly contribute to demand shifting at scale. However, they highlighted two key factors that could moderate this impact. First, interoperability is crucial to ensure that future heat pumps can be harnessed for automated heat flexibility. Second, the prevalence of other low-carbon technologies, like solar panels and batteries, could affect the overall demand shift achievable, as the potential demand shifting for households with these technologies may be smaller than households without them.

The event concluded with a panel discussion featuring experts from CNZ, Smart Energy GB, and Ofgem. The panel explored various topics, including the scalability of heat pump flexibility, consumer engagement strategies for promoting flexibility, and the importance of automation and consumer protection in the evolving energy landscape. Key points of discussion included the need for ongoing consumer education to address misconceptions about flexibility, the importance of designing compelling flexibility products and services, and the balance between automation and consumer choice. The event provided valuable insights into the potential of automated heat pump flexibility to contribute to a more sustainable and resilient energy system.

Speakers

Daniel

Daniel Lopez-Garcia

He/him

Daniel is Research Manager at Centre for Net Zero, a non-profit, impact-driven energy research institute headquartered in London. Founded by renewable energy group Octopus Energy, CNZ operates autonomously, combining the roles of industry researcher, advanced modelling innovation startup, and research-to-policy conduit. At CNZ, Daniel manages and is responsible for supporting several research areas, spanning flexibility, energy markets, electric vehicles, heat pumps, and solar generation. Previously, Daniel worked at Aurora Energy Research in the UK and Accenture in Spain, where he contributed directly to the delivery of power market forecasts for several European countries, developed research about green hydrogen production and its viability, and helped create cloud solutions for customer relationship management. Daniel has also published literature about the development of solar energy technologies and holds a master’s degree in Sustainable Energy Futures at Imperial College London.

marzia1

Marzia Zafar

She/her

Marzia Zafar is a global leader in energy transition and disruptive technologies, with more than 25 years in the electric and natural gas industry. Currently, Marzia is Ofgem’s Deputy Director with responsibility to encourage deployment of innovations to speed up the pace to digitalize and decentralize the energy system. Marzia also worked briefly with the World Energy Council where she was Director of Innovation and Insights for developing countries. Prior to joining Ofgem, Marzia worked for Kaluza Technologies as part of the executive leadership team across GTM Ops, fundraising, strategy, pricing and finance. She also led Kaluza's strategy on how to embed sustainability into its business ethos. Most of Marzia’s experience was shaped while in California where she spent over 20 years working for both the energy regulator, California Public Utilities Commission, as well as Sempra Energy Utilities.

andrew schein

Andrew Schein

He/him

Andrew is the Director of Trials and Analysis at Centre for Net Zero (CNZ). His team undertakes field trials and quasi-experimental analyses in collaboration with teams within the Octopus Energy Group and external partners. CNZ delivers pioneering research to make a fully sustainable energy system a reality. The Trials and Analysis team's research focuses on intelligent demand, decentralised energy, and technology adoption, to drive better policy outcomes and more accurate energy system modelling. Prior to this, Andrew worked at the Behavioural Insights Team (BIT), where he was a senior advisor in their Energy and Sustainability team. Andrew managed BIT's work with the Department for Business, Energy & Industrial Strategy assessing energy suppliers’ estimate of the impact of smart meters. He also managed BIT’s partnership with the Sustainable Energy Authority of Ireland assessing the evidence of new energy-saving products’ impact on energy consumption, and works with energy and water companies to increase households’ resource efficiency. Before coming to BIT, Andrew was one of the first 20 employees at Bulb, at the time a fast-growing energy supplier start-up. Other previous experience includes work as a project manager at Feedback, an anti-food-waste environmental campaigning organisation, and helping start Toast, a social enterprise making beer from bread that would have otherwise been thrown away. He has a Bachelor of Arts in Economics from Stanford University, where he focused on environmental economics.

Sara Higham

Sara Higham

She/her

Sara is the Director of Corporate Affairs at Smart Energy GB. She has worked in policy, public affairs and corporate affairs in several sectors and organisation types. This includes Parliament, trade and membership associations and a FTSE 250. She has worked in energy since 2017 across a range of energy issues including energy efficiency and building retrofit, price regulation, vulnerable customer support, decarbonisation strategy and smart meters.

About the partner

Centre for Net Zero

Centre for Net Zero is an impact-driven research unit that delivers pioneering research to make the future energy system a reality.

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