A Local, Place Based Solution that Enables New Housing Development in an All-electric Era
Electrifying heat and our cars presents a significant technical and commercial challenge for housing developers when seeking a new grid connection. Indeed, all-electric developments can today expect grid connections costs to be triple that of a dual-fuel home and potentially take up to 10 years to be available from the DNO.
This challenge threatens the ability of the housing market to deliver the 300,000+ homes the UK needs every year, placing additional upward pressure on house prices.
To deliver on net-zero by 2050 and minimise the cost to developers, residents and the energy system at large will require a diverse range of technology and business model solutions.
Funded SmartGrids, otherwise known as Microgrid as a Service (MaaS) is one such solution. SNRG commissioned LCP Delta (FKA Delta-ee) to write a white paper on the potential for Microgrid as a Service to solve these challenges while generating benefits for developers, residents and network operators. The white paper includes sections covering:
- What is the Problem:
The UK faces challenges in achieving low-carbon housing growth due to regulatory barriers, fragmented energy solutions, and the high costs of renewable energy integration.
- What is an Energy Community?
A group of individuals or entities that generate, manage, and share energy locally, promoting sustainability, energy independence, and cost efficiency.
- Private vs Public Networks:
Private networks: Offer innovation and flexibility but face regulatory hurdles.
Public networks: Provide universal access but are slower to adopt innovative energy solutions.
- Physical Energy Communities:
Geographically defined groups, such as neighbourhoods, that share local energy systems powered by renewable sources and supported by microgrids.
- What is Microgrid as a Service (MaaS)?
A service model where a third party builds, operates, and maintains localised microgrids, reducing upfront costs and operational complexities for energy communities.
- Challenges and Opportunities:
Challenges: Regulatory complexity, high initial costs, and risk-averse housing developers.
Opportunities: Market growth, advancing technologies, and government support for net-zero goals.
- What Next for MaaS and Energy Communities?
Policy reforms, collaborative partnerships, and scalable MaaS solutions are key to advancing low-carbon housing and decentralised energy systems.
Uncover the Key to Delivering Sustainable Growth with Funded SmartGrids.
