Benefits of Smart Hot Water Systems
In July, Federal and State Energy Ministers made a decision to expedite the implementation of new standards for hot water heat pumps. The aim is to assist consumers in identifying the most efficient appliances for their homes. However, the focus was solely on this aspect, overlooking the potential for technology to enhance the efficiency of hot water storage systems further. This oversight could lead to missed opportunities to reduce emissions and save significant amounts of money.
Dr. Gabrielle Kuiper, an expert in consumer energy resources, emphasised the importance of incorporating “dynamic management systems” into hot water systems to facilitate a more effective energy transition. These systems, known for their ‘smart’ capabilities, allow appliances to adapt to external signals, such as price fluctuations or renewable energy availability, like sunlight or wind power.
The Need for Flexible Demand
Kuiper highlighted the necessity for both flexible demand and storage in energy systems. Hot water systems, she explained, present a readily accessible form of flexible demand. Despite this, there is currently no mandate for hot water heat pumps subsidised through government initiatives to incorporate smart technology.
Victoria stands out as the only state that requires hot water systems to meet certain flexible management criteria to qualify for government subsidies. These criteria include the installation of a timer, enabling distribution networks to regulate the system during specific times of the day.
Embracing Dynamic Management Systems
While some networks are leveraging solar energy by shifting hot water heating to daytime hours, Kuiper argues that passive management methods, like timers, are only a partial solution. She advocates for the adoption of dynamic and responsive management systems, such as wifi connectivity, to maximise emission reductions and cost savings.
Kuiper envisions a scenario of rapid electrification, where households transition from gas and traditional hot water systems to heat pump technology. This shift could potentially add 22 gigawatts of flexible demand through domestic hot water, equivalent to the current solar capacity on Australian rooftops.
Transitioning to Renewable Energy
With the increasing focus on renewable energy sources, the timing of hot water heating becomes crucial. Kuiper suggests that dynamic management systems can ensure hot water is heated when renewable energy, such as wind power, is abundant. This strategic approach could lead to substantial savings for households and a more efficient matching of electricity demand and supply.
Flexible demand management has a historical context in Australia, dating back to the 1950s when hot water storage tanks were utilised for off-peak heating. However, with the shift towards renewable energy, there is a growing need to align hot water heating with renewable energy availability.
To delve deeper into this topic, you can listen to the full interview with Gabrielle Kuiper on the SwitchedOn podcast, where she discusses the potential of hot water systems in driving energy efficiency.