Price structures for electricity supply and potential consequences for building services systems

Abstract

Policies to reduce carbon emissions are leading to substantial changes in the demand for electricity and to the structure of electricity supply systems, which will alter the cost structure of electricity supply. This can be expected to result in corresponding changes to the price structure faced by customers. This note is an initial exploration of how possible new price structures may impact on HVAC system and building design and use. Changes in the price structure of electricity supply (separately from changes in price levels) can significantly affect the cost-effective design and operation of building services systems; especially of heating and cooling systems. The nature and implications of these changes can have important implications for future system design and operation.