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What is Energy Demand?

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Energy demand is the term used to describe the consumption of energy by human activity. It drives the whole energy system, influencing the total amount of energy used; the location of, and types of fuel used in the energy supply system; and the characteristics of the end use technologies that consume energy.

When we talk about energy demand, we refer to all uses of energy: electricity, transport fuels and fuels for heating and industrial processes. Our current energy system is at the beginning of a period of massive change. In order to respond to the threat of climate change, we will need to eliminate fossil fuels from the UK energy system by 2050. Energy efficiency has increased and demand in the UK has fallen significantly in the last decade, but this trend needs to be continued and reinforced.

Improved energy efficiency will not be sufficient

Although critical, improved energy efficiency will not be sufficient; we will also need to move away from fossil fuels. In electricity generation, current trends are positive. The costs of wind and solar energy are falling rapidly, and therefore we are seeing higher proportions of renewables in electricity generation, allowing us to move away from polluting fossil fuels such as coal. However, including large amounts of renewables into electricity supply is not straightforward. Electricity supply and demand have to be constantly balanced and solar and wind are variable sources, making this balancing more difficult.

Many people are working on energy storage solutions and these are improving. Greater flexibility in electricity demand, often called demand side response, can also help. This involves a much greater understanding of the timing of energy demand and how it can be altered, either by changing our energy practices (e.g. doing the washing at different times) or storing energy locally (e.g. in hot water tanks or electric vehicle batteries). There are some technologies that promise to manage demand through smart devices connected via the internet and smart meters to a smart grid. Significant social changes will need to accompany these technological changes.

Decarbonising fuels

We will also need to decarbonise the fuels we use in heating and transport. Electrification can play a big role in this. We are already seeing increased demand for electric vehicles and some electric heating. However, complete electrification of heating is unlikely, and there are similar issues in moving away from fossil fuels in freight transport, aviation, shipping and many industrial processes. It is therefore likely that new energy carriers such as hydrogen will be needed, raising new issues for energy demand research.

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Energy demand reduction is key to achieving net-zero by 2050, requiring positive social changes that will change the way we travel, consume, eat and how we heat our homes. Also, energy efficiency measures must be adopted. By 2050, a 52% reduction in energy demand is possible.

  • In transport, better provision of local services to reduce the need to travel combined with electrified transport can reduce energy demand in the sector by 68%: 36% through social change, 32% through efficiency.
  • For domestic buildings, well insulated homes combined with new technologies like heat pumps can reduce energy demand in the sector by 52%: 25% through social change, 27% from efficiency.
  • In nutrition, shifts in dietary habits combined with improvements in agricultural productivity can reduce energy demand in the sector by 62%: 40% through social change, 22% from efficiency.
  • We can reduce energy demand in non-domestic buildings through changes to the way we work combined with smart energy control systems. This could reduce demand by 48% for the sector, 22% through social change, 26% in efficiency.
  • For materials and products, changes in how we consume products combined with energy efficiency measures can reduce energy demand in that sector by 26% – 21% through social change, 5% through efficiency.

Studying energy demand at CREDS

From this we can see that are different ways of dividing up the study of energy demand. In CREDS it was been divided into three main ‘sectoral’ areas: transport (where, how and why we travel), buildings (how to achieve comfortable, healthy, energy efficient buildings) and materials (how industry could adapt their processes and materials). These are supplemented by three cross-cutting themes, namely: flexibility (the timing of energy demand), digital (the influence of IT on energy demand) and policy (understanding how public policy affects energy demand). We also have a specific focus on the decarbonisation of heating, fuel and transport poverty and the decarbonisation of steel.

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