The Internet of Energy idea is based around household appliances being connected to the internet with some devices that don’t necessarily require power being turned off in times of peak demand so that others that need to be can be operated, reducing the amount of energy being wasted.
Multiplied across thousands of homes, it is said that smart energy means the grid will need fewer power stations than planned to meet peak demand. On the other hand, at times the grid is awash with energy, a computer will contact web-enabled washing appliances to ask if they want to turn on to benefit from cheap power. This is known as demand flexibility - and the infrastructure commission says it must be supported by government.
Lord Adonis, chairman of the commission, said: "The UK can lead the world in harnessing these innovations. We do not call for new subsidies or significant public spending, but rather a level playing field through fairer regulation and a better managed network to allow these exciting new technologies to compete. If we get this right, a smart power revolution could save consumers £8billion a year."
Academics warn that the flexible energy revolution must be enabled because with the future need for cars powered by electricity and homes heated by electricity to save carbon emissions, the existing grid won't cope unless there is change.
A report for the commission by Goran Strbac from Imperial College concluded that if there's enough flexibility in the system, it can prove cheaper than nuclear power or carbon capture and storage technology.
Dr Jenifer Baxter, head of Energy and Environment at the Institution of Mechanical Engineers, said: “This report makes some welcome recommendations, for example highlighting the importance of electricity storage and associated regulations, however recommendations that mean the UK has to rely more on electricity imports from other countries brings a number of risks.”
These risks, she said, include UK electricity supplies being subject to electricity prices outside of the UK and competition from other European countries also looking to reduce their generating capacity. In addition, there is a risk that if demand is very high in the country generating the power, the UK’s power demands won’t be prioritised.
Dr Baxter added: “The proposed role of flexible demand systems and smart power is more welcome and should play a part in the future energy management system.”
However, she also said that more research was needed into the implementation of such a disruptive change to the UK’s energy infrastructure saying it could raise more questions than answers.
