Heat pumps and EV batteries could save grid £4.7bn, says Ofgem

HOOKING up millions of electric vehicles, heat pumps and other devices to the UK’S electricity grid could save up to £4.7bn a year by the end of this decade, the energy watchdog has predicted.

Ofgem set out proposals yesterday for how the electricity grid of the future could work, using technology to ensure infrastructure is used as efficiently as possible. It estimates it could save households between £3.2bn and £4.7bn a year compared to the alternative: keeping gas power plants running.

Instead, its preferred proposals will give households a bigger role in fine tuning supply and demand for electricity, by consuming or generating power through smart devices such as batteries, electric cars and heat pumps when required. For example, electric cars parked in people’s driveways could be called upon to send electricity back into the grid when supplies are tight. This could provide a major boost and avoid the need to build a lot of extra nuclear or renewable generation, Ofgem said.

The regulator also proposed setting up new bodies with responsibility for regional grid plans, forcing companies to share more data, and establishing a joined-up way for households to help supply energy back into the grid from their new smart devices.

Ofgem’s director of infrastructure and security of supply, Akshay Kaul, said that making the grid more flexible would mean lower bills for consumers and “reduced strain on the grid”.

Ofgem’s proposals came as researchers revealed the race to develop fusion energy had produced software that could help prevent blackouts in Britain.

Technology that helps control fusion reactions could be redeployed to help stabilise electricity grids in the push to net zero, a six-month study has found.

The UK Atomic Energy Authority (UKAEA) and tech start-up Sygensys have been exploring how MARTE technology, which was developed at UKAEA and regulates the environment needed for fusion reactions, could help solve the problem of ensuring there is enough supply at times of high demand.

The software could also help manage fluctuations in supply and demand on electricity grids, particularly as Britain shifts more towards renewable energy.