UKERC EDC: Publications

This resource links to a document we hold in our system

Abstract:

This project studied how value can be delivered across a smart energy value chain - in the context of the UK. It built a clear understanding of how smart energy systems can deliver combined consumer value alongside commercial value for market participants - producers, suppliers, distributors. The analysis will help to make the commercial deployment of smart energy systems more likely. This £600,000 project was delivered by Frontier Economics, a leading economic consultancy.

The final report has 11 annexes. This is Annex 3c: Factors affecting intervention take-up order.

This annexe looks at the order in which interventions are taken up. Whether consumers take up interventions sequentially (and if so in what order) or simultaneously can have important implications for the design of business models and policies. For example, if the majority of factors lead to consumers wishing to carry out simultaneous upgrades, business models and policies which help overcome credit constraints may be more relevant. This is due to the significant up-front costs that consumers would incur when installing multiple interventions at once.

In this annexe, we explore the factors that may affect intervention take-up order for three types of consumer-level intervention: heat pumps, insulation retrofits and HEMS.

This analysis points to intervention take-up order being a particular problem for consumer groups with uninsulated solid walls and electric resistive or oil-fired heating. Although such groups may find it optimal to take up all three interventions within a short period, credit constraints may mean they need to delay the installation of a heat pump. Given the relative infrequency of trigger points, this could lead to a delay in heat pumpinstallation, with substantial missed financial savings for both consumers and society as a whole (due to higher carbon emissions). This is therefore a customer group that may benefit from tailored business models and policies.

This document was prepared at the time to contribute to ETI internal thinking and planning only.

Publication Year:

2015

Publisher:

ETI

DOI:

https://doi.org/10.5286/ukerc.edc.000504

Author(s):

Frontier Economics

Energy Categories

Class Name:

Subclass Name:

Category Name:

Energy Efficiency

Residential and commercial

Other Cross-Cutting Technologies or Research

Energy Economics

Other Supporting Data

Language:

English

File Type:

application/pdf

File Size:

519367 B

Rights:

Energy Technologies Institute Open Licence for Materials

Rights Overview:

The Energy Technologies Institute is making this document available to use under the Energy Technologies Institute Open Licence for Materials. Please refer to the Energy Technologies Institute website for the terms and conditions of this licence. The Information is licensed "as is" and the Energy Technologies Institute excludes all representations, warranties, obligations and liabilities in relation to the Information to the maximum extent permitted by law. The Energy Technologies Institute is not liable for any errors or omissions in the Information and shall not be liable for any loss, injury or damage of any kind caused by its use. This exclusion of liability includes, but is not limited to, any direct, indirect, special, incidental, consequential, punitive, or exemplary damages in each case such as loss of revenue, data, anticipated profits, and lost business. The Energy Technologies Institute does not guarantee the continued supply of the Information. Notwithstanding any statement to the contrary contained on the face of this document, the Energy Technologies Institute confirms that it has the right to publish this document.

Further information:

N/A

Region:

United Kingdom

Publication Type:

Technical Report

Subject:

Buildings

Theme(s):

Smart Systems and Heat

Related Dataset(s):

List of projects for the ETI Smart Systems and Heat (SSH) Programme