Making Energy Efficient with Real-Time Data

The UK energy industry is going through a time of significant change - and it really, really needs to! One key element of this change is an Office of Gas and Electricity Markets (Ofgem) initiative called the Market-wide Half Hourly Settlement (MHHS) Programme that I’ll explain below.

The Need for More Efficient Energy Distribution

Increased demand for electricity, coupled with sky-rocketing prices and a virtual monopoly in the hands of a few large multinationals, prove we need to rethink energy supply. We should ask ourselves, “How did we get here?” And more importantly, “What can be done to reduce our energy bills?”

The rising price of energy can be attributed in part to the economic comeback following the early struggles due to the pandemic. Soaring demand has unfortunately been paired with windless summers in Europe, droughts in Brazil, and now issues with gas supply due to the invasion of Ukraine by Russia. The time has come to lean on the innovations the renewable energy industry has long been known for: solar, wind, and wave. As of 2021 these three renewable resources accounted for 42% of energy produced in the UK – which sounds good, but the UK still imports 36% of the energy used by its citizens.

The rapid rise and subsidisation of the electric vehicle (EV) is only going to exponentially increase the demands for electricity over the next 15 years, so it makes sense that increasing power generation from renewable sources is the key to driving the UK’s carbon reduction targets, while also meeting the rising demand for energy.?

Ofgem Leads the Way to Smarter Energy

MHHS is designed to support a radical change in the industry to help deliver key benefits for both energy consumers and energy producers.

The cornerstone of the MHHS Programme is the smart meters plan. At the heart of it, event-driven architecture will be the key differentiator for the successful implementation of MHHS. It will allow energy companies to react in real-time to the production, detection, and consumption of events; any significant change in the state of energy will be recognised by the software. Ofgem could then introduce ‘smart tariffs’, to act as an incentive for lower energy usage.

Real-time Consumption Data to Improve Your Energy Efficiency

When prices are cheaper during certain hours, customers will be made aware in real-time and be encouraged to take advantage of this by shifting their consumption level. The real-time nature of event-driven architecture allows for the most cost-effective energy source to be consumed at any point in time, which will, in turn, encourage new and disruptive services.

Imagine being able to routinely charge your devices at a cheaper rate, and potentially make money by doing it strategically. For example, an energy-intensive electric vehicle (EV) could be charged at night when there is an excess of renewable power supply available. Then during the day, you would be able to sell it back to the grid, at a more expensive rate, or use it to power your house or office – effectively turning your EV into a large cheap storage battery when not in use.

This conscious, efficient use of energy is especially important in these times of unpredictable, turbulent energy supply and demand. With real-time data and event-driven architecture at the helm, it is all possible. Personally, I’m looking forward to energy providers implementing the kind of innovative, disruptive services our net zero goals depend on. It’s time for the UK to become an example and set the global standard for sustainability and efficiency. I think the MHHS Programme is a good start!