LCP Delta won funding from the Department for Energy Security and Net Zero (DESNZ) on Alternative Energy Markets innovation programme
Energy transition Flexibility research Climate change
LCP Delta is part of a new government-backed feasibility study to look at innovative ways to reduce customer bills and their impact on the environment.
Working alongside EDF Energy and Landis+Gyr, LCP Delta aims to assist households in reducing their peak energy demand. To achieve this goal, the project will evaluate the potential benefits of various low carbon technologies, storage product bundles, and customised tariffs for domestic consumers.
By engaging consumers throughout the process, the project aims to design solutions that will support energy transition and decarbonisation and be attractive to end-users. The study will also include structured consumer focus groups, to incorporate the perspectives of consumers and create solutions that align with their needs and preferences.
Phase One of the project has just started and is a six-month feasibility study to look at how the use of new low carbon technologies such as heat pumps, storage products and electric vehicles could be supported by bespoke tariffs, further reducing pressure on the grid, as well as household bills, in the short-term and the future.
LCP Delta is leading some of the customer research, testing tariff options with focus groups to gain valuable feedback. The extensive research base of LCP Delta is also helping to inform the structure of the tariffs, to help enable a range of different propositions to be tested and trialled. LCP Delta modelling will help simulate the impact of these tariffs in the broader electricity system.
Stuart Fenner, Director of WMS Commercial from EDF Customers, said: “Reducing both our and our customer’s environmental impact aligns with our purpose of Helping Britain achieve net Zero, and with OFGEM’s price cap due to remain higher than pre-energy crisis levels, we are doing all we can to reduce customer bills.
“With a recent flexibility study carried out by National Grid finding that active households responding to price signals could help reduce peak energy demand by 23%, this project will be key in helping both our customers and the environment. And, by combining our energy market, customer supply and Research & Development expertise, we are well placed, alongside our partners, to drive innovation.”
Andrew Turton, Head of Consultancy at LCP Delta, commented: “The energy transition brings a significant change to the interface between consumers and the energy system, where customers dynamically interact through flexibly managing their demand as well as generating and storing energy. Through LCP Delta’s research and consultancy expertise, we have explored many innovative ‘customer side of the meter’ solutions and associated business models. A common theme across all of these is the use of innovative tariff propositions, which provides the golden thread between how customers operate assets and the overall functioning of our future energy system.
“Our participation in this project excites us as we join forces with EdF Energy and Landis+Gyr. It presents a valuable opportunity for us to apply our expertise and delve into the exploration of new tariff models based on half-hourly settlement. Together, we aim to uncover ground-breaking approaches that optimise the utilisation of tariffs and pave the way for enhanced energy management. By leveraging this collaboration, we strive to contribute to the advancement of a more sustainable and efficient energy system.”