Energy flexibility

The energy landscape is changing rapidly and property managers face increasing pressure to optimise energy use while reducing costs. With electricity prices fluctuating and renewable energy sources becoming more prevalent, energy flexibility is no longer a luxury, it’s a necessity. In fact, studies show that properties utilising flexible energy systems can realise significant savings on their energy bills, making this a key strategy for staying competitive in today’s market.

At MRI Software, we understand the unique challenges property managers face when it comes to energy management. Our expertise in property management solutions allows us to provide tools that streamline operations and enhance tenant experiences while improving energy efficiency. In this post, we’ll explain what energy flexibility is, why it’s important and how you can leverage it to optimise energy use and maximise profitability for your properties.

What is energy flexibility

Energy flexibility is all about being able to adjust when and how you use or generate electricity. Whether it’s responding to fluctuating electricity prices or balancing the grid, energy flexibility helps ensure your building runs smoothly without skyrocketing utility bills. Think of it like shifting gears in a car, by being adaptable you can keep things running efficiently.

For property managers, flexible energy solutions are key to both cost savings and sustainability. Using tools like smart energy management systems or renewable energy sources (like solar), you can conserve energy and shift your energy use to off-peak times, saving money. Not only will this keep your operations lean, but it will also align your properties with the future of energy use.

The difference between implicit and explicit flexibilities

When talking about energy flexibility, it’s important to know the difference between implicit and explicit flexibility. Implicit flexibility is when you adjust energy usage based on price signals. For example, with flexible energy tariffs, you might shift electricity use to off-peak times to save on costs.

Explicit flexibility is a bit more involved. This is where you commit your resources, like your property’s energy generation or storage, to provide services that the grid needs. For instance, if the local grid needs extra energy, you might sell some of your stored solar power back to the grid, earning additional revenue while helping maintain stability.

Why value stacking becomes crucial

Value stacking is a great way to maximise returns on your property’s energy investments. In simple terms, it means tapping into more than one way to make money from the same energy asset. This is becoming increasingly important as energy markets shift and evolve.

For example, if your property has a solar panel system and battery storage, you’re not just reducing your reliance on the grid. You could store the energy during sunny periods and use it later when demand and prices are high. At the same time, you can participate in grid services by selling surplus energy back, turning one system into two revenue streams.

The flexibility value chain

The energy flexibility value chain might sound complicated, but it’s simpler than you think. It’s a series of steps that enable property managers like you to unlock the full potential of flexible energy assets. By understanding each step, you can turn your property’s energy systems into valuable tools for saving money and boosting efficiency.

Start by identifying any energy assets already in place, such as solar panels or energy storage systems. Then, implement smart technology to monitor and adjust these assets in real time for peak performance. For example, energy management software can help you automate energy use, ensuring that you’re maximising both savings and efficiency.

Finally, it’s essential to forecast your building’s energy flexibility to tap into revenue-generating opportunities. You can use this forecast to decide which energy markets to participate in or how best to reduce consumption during peak times. By doing this, you ensure that your property not only saves on energy costs but also contributes to a more resilient energy system.

Roles in energy flexibility markets

Energy flexibility markets rely on several key players, each with a unique role in keeping the system balanced. Understanding these roles can help you strategically position your property to benefit from market participation. Let’s look at the most important players and how they can impact your energy management.

Balance responsible parties (BRPs) ensure that energy generation and consumption remain in harmony. If there’s an unexpected surge in demand, BRPs may activate your property’s flexibility to help stabilise the grid. As a property manager, collaborating with BRPs can offer you opportunities to optimise your energy use and contribute to a more stable system.

Balancing service providers (BSPs) play a similar role but focus on services like reserve capacity to help smooth out fluctuations. For example, they may use your property’s stored energy during high-demand periods to maintain grid balance. By participating in BSP services, you can unlock additional revenue streams while improving your property’s energy efficiency.

Then there are aggregators, who bundle smaller flexible energy resources, like those from build-to-rent properties, into a single portfolio. This makes it easier for smaller assets to participate in larger energy markets. By working with an aggregator, you can access these markets and boost your returns without needing a massive infrastructure overhaul.

Accessible flexibility mechanisms for small-scale assets

You don’t need a massive energy infrastructure to take advantage of energy flexibility, even if you manage smaller properties. There are several accessible mechanisms designed specifically for small-scale assets, giving you the chance to reduce costs and improve efficiency. By tapping into these options, you can stay competitive while supporting grid stability.

One of the simplest ways to get involved is through grid balancing services, using assets like residential solar panels or battery storage. These systems can participate in services like frequency containment reserve (FCR), which helps keep the grid stable by reacting to sudden changes in energy demand. For example, when demand spikes, your stored solar power can be deployed to balance the load and support the grid.

Another option is working directly with your local distribution system operator (DSO) to manage grid congestion. DSOs can signal your property’s energy systems to shift consumption or reduce it when the grid is under stress. Not only does this support the grid, but it can also help lower your property’s peak demand charges, saving you money on energy bills.

FAQs

Contact MRI Software

At MRI Software, we’re passionate about helping you leverage technology to drive greater operational efficiencies. With over 30,000 users across more than 260,000 buildings using our energy management software, contact us today to find out more about how our solution can enable you to gain total visibility and take full control over your energy consumption.