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67 changes: 67 additions & 0 deletions content/Guides/EnergyManagement/EnergyManagementOverview.md
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# Transitioning to Renewable Energy

Decarbonizing our grid entails a shift towards greater reliance on renewable energy sources like solar and wind power. Whilst these sources are clean their available fluctuates - solar for example cannot generate electricity at night. Consequently, our energy consumption patterns, characterized by peak demand in the mornings and evenings, often don't align with renewable energy generation peaks.

This misalignment necessitates the continuous operation of traditional fossil fuel generators to maintain grid stability, resulting in varying carbon intensity throughout the day. Yet, during periods of low demand, such as overnight, excess renewable energy production, particularly from wind turbines, goes unused, representing a wasted opportunity.

If we can shift when we use energy, we can help balance the grid, making it more efficient, cleaner and cheaper for everyone.

# Time of Use tariffs (ToU)

Energy utilities already buy the electricity from the energy suppliers at different prices throughout the day on energy markets. Many of them are starting to look at encouraging consumers to become more aware of the variable supply and demand during the day by offering 'Time of Use' tariffs, by providing lower cost tariffs when there is less demand and higher cost tariffs when demand is at its peak.

Energy utilities presently procure electricity from suppliers at varying prices across the day through energy markets. Increasingly, utilities are exploring avenues to incentivize consumers to better understand and respond to fluctuations in supply and demand. One such approach involves the implementation of 'Time of Use' tariffs, wherein consumers are offered lower-cost tariffs during periods of lower demand and higher-cost tariffs during peak demand times. This not only optimizes energy usage, but also to alleviates strain on the grid during peak periods, ultimately benefiting both consumers and the overall energy ecosystem.

# Transition to electric vehicles, solar, batteries and heat pumps

As the adoption of Electric Vehicles (EVs), Solar panels, Batteries, and Heat pumps increases, consumers have the opportunity to significantly reduce their carbon footprint. However, the widespread installation of these technologies could potentially strain the grid if not coordinated effectively.

To address this challenge, Energy Management Systems (EMS), also known as Home Energy Management Systems (HEMS), play a crucial role. These systems enable consumers to automatically regulate their peak power load by balancing the supply, such as energy generated from local rooftop solar panels, with the demand from various assets like EV chargers and heat pumps.

For these assets to be effectively managed, they must be classified as Energy Smart Appliances (ESAs), allowing them to share energy information and, if desired, be controlled by the HEMS. This integration not only optimizes energy usage but also ensures the efficient operation of renewable energy resources, ultimately contributing to a more sustainable and resilient energy infrastructure.


# Flexibility in our appliances

What does 'flexibility' mean? The term 'flexibility' in the energy industry refers to the ability of an asset or appliance to adjust its operation in terms of when and how it consumes or produces energy. This adaptability is crucial for optimizing energy usage, particularly in response to fluctuations in supply and demand on the grid.

For instance, consider a scenario where a consumer arrives home at 6 pm and wishes to charge their electric vehicle (EV) overnight before their morning commute. The consumer's EV has a charging window of 12 hours and requires only 4 hours to recharge for an 80-mile range. In this case, the charging process can be flexible, allowing for adjustments in the charging start time, power level, and duration to coincide with the cheapest and greenest periods on the grid. This flexibility may involve shifting the charging start time, reducing the charging power to extend the duration, or even starting and stopping the charging process multiple times during the night to avoid peak pricing.

Some appliances can also be flexible, for example a dishwasher can be run overnight, again starting at cheap rate pricing with a delayed start, and in some cases can be paused mid way through the programme to help avoid creating a peak load.

Energy suppliers leverage this flexibility by offering services to grid operators, enabling them to better manage supply and demand dynamics. By incentivizing consumers to adopt flexible energy practices, such as adjusting appliance usage patterns, energy suppliers can avoid the need to activate fossil fuel generators or upgrade grid infrastructure. The cost savings generated from these actions are then passed on to flexibility service providers, ultimately benefiting consumers who are willing to embrace flexibility.

It's important to note that while flexibility offers numerous benefits, not all consumers may choose to be flexible at all times. There may be occasions where consumers prefer to opt-out of flexible arrangements, for example, they need the washing to finish as soon as possible.

# Peak power vs Energy

It is important to differentiate between 'power' and 'energy', and the terms are often used inter-changeably, but there is a key difference.

## Electrical Power


`Electrical Power` refers to the instantaneous rate at which electrical energy is transferred or converted. It is measured in Watts (W) and can be likened to the force driving the operation of various appliances such as motors or heaters. When appliances are activated, they draw power from the grid or solar generators. This power consumption can be calculated by multiplying the voltage of the power supply by the current drawn by the appliance (Volts x Amps).

Cables used in electrical systems are rated based on the maximum amount of current they can safely handle. Overloading cables with excessive current can cause them to overheat, potentially leading to fire hazards. Hence, cables are protected by fuses rated in Amperes (A) to prevent such occurrences.

It is crucial to manage the operation of appliances in our homes to prevent them from simultaneously drawing full power, which could overload the electrical system and trip the fuse.

In the context of Time of Use tariffs, Energy Smart Appliances may inadvertently coincide in switching on simultaneously if not managed properly, leading to spikes in power demand and potential strain on the grid.

For homes equipped with rooftop solar panels, the instantaneous power output from these panels fluctuates with changes in weather conditions, such as passing clouds. If the solar panels produce more power than the household appliances can consume, the excess power is fed back into the grid, a process known as `feed-in`. While consumers may receive compensation for this excess power, the payment is typically lower than the cost of purchasing power from the grid. As a solution, many consumers opt to install home batteries, which store excess solar power during the day and can be utilized to power household appliances during times when solar energy production is insufficient, thereby reducing reliance on grid-supplied electricity.


## Electrical Energy

Electrical Energy represents the cumulative amount of electrical power consumed over a specific period. It is calculated by multiplying the power (measured in Watts) by the duration of its consumption (measured in hours) and is commonly expressed in units of Watt-hours (Wh). For instance, if a 3kW kettle drawing 3kW of `power` is operated for 1 hour, it will have consumed 3kWh of electrical `energy` during that time.

Energy utilities typically bill consumers based on the total amount of electrical energy consumed, measured in kilowatt-hours (kWh).

With the implementation of Time of Use tariffs, utility companies monitor energy consumption at different times of the day to determine the amount of energy used during specific intervals. For example, in the UK, smart metering systems divide the day into 48 half-hour intervals and record energy consumption data at each interval. This enables utility providers to apply pricing structures that reflect variations in energy demand throughout the day, incentivizing consumers to shift their energy usage to off-peak hours when electricity rates are lower.

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# Guides

This section goes into detail about how to make a product using Matter.