What is "the Building as an Energy System"?

Buildings are responsible for around 40% of the UK's total energy use and contribute approximately 20% of total greenhouse gas emissions across both residential and commercial properties. Most of these emissions stem from heating, cooling, lighting, and the use of appliances. Operational carbon, or the emissions generated through energy use such as heating is a major contributor, as the UK still heavily relies on fossil fuels such as natural gas.

We all know what these greenhouse gases mean and the effect that they have on our environment. With the global focus on reducing such emissions in 2015 at the United Nations Climate Change Conference (COP21) in Paris, the UK, along with almost 200 other countries, adopted the Paris Agreement and committed to addressing global climate change. Its overarching goal is to limit global warming to well below 2°C, ideally aiming for 1.5°C above pre-industrial levels, in an effort to significantly reduce the risks and impacts of climate change.

To support its commitment the UK is progressively rolling out Environmental, Social, and Governance reporting for businesses, with increasing mandates over recent years with more to come. Since 1 April 2019 Streamlined Energy and Carbon Reporting: SECR requires companies above £36 million turnover and more than 250 employees to report on energy use and carbon emissions, with a "comply or explain" provision. The Sustainability Disclosure Requirements (SDR) are expected to come into force by 2025 to align with the International Sustainability Standards Board (ISSB). This new framework is expected to significantly impact how UK businesses report on climate and other sustainability and will likely be rolled out to include smaller businesses. These all fold into the Climate Change Levy (CCL) which is a tax on the energy consumption of businesses, aimed at promoting energy efficiency and reducing greenhouse gas emissions. These requirements aim to enhance corporate transparency, improve governance practices, and guide the transition to a sustainable business model across the UK. What this means for businesses in the UK is that they must concentrate on reducing their carbon footprint and one of the areas to reduce this production is within their factories, offices and other premises that they have for their business. This problem is coupled with the fact that the UK has one of the oldest building stocks in Europe, which presents a significant challenge. Approximately 80% of the buildings that will exist in 2050 have already been built, meaning that retrofitting existing buildings to improve energy efficiency is essential to meeting climate goals and making the building an energy system.

Building as an energy system refers to the concept of treating a building as a dynamic and integrated part of the energy grid, where it can generate, store, manage, and consume energy efficiently. This idea is central to modern sustainable and smart buildings, where advanced technologies are employed to optimize energy usage and reduce environmental impact. The approach integrates various components like renewable energy sources, energy storage systems, smart controls, and efficient consumption strategies. This new approach will produce the desired effect of reducing the business's carbon footprint, it can also provide other benefits of lowering operating costs along with building energy resilience and energy independence. The business might also have an additional revenue stream for providing grid support where their building may indeed contribute to grid stability by managing energy flows, reducing peak demand and contributing back to the grid.