The power grid is the backbone of energy systems, upholding critical infrastructure by serving as a conduit for power flow. With renewable energy sources expected to account for 65% to 85% of the global power supply by 2050, ensuring this conduit is ready for cleaner power sources is paramount, necessitating grid upgrades and expansion.
However, this is only one half of the equation — the integration of renewables calls for facilitating energy flow and providing the means to sustain its generation, storage and distribution.
This is where buildings enter the picture, holding the proverbial key to unlocking this future.
Buildings as a grid: A new power paradigm
In their current form, buildings — both commercial and residential — are positioned along the grid primarily as power consumers, accounting for more than 30% of the world’s energy intake. But with power demand set to increase, measures must be introduced to combat the rise.
The right investments and upgrades can transform buildings into energy hubs, manage power more effectively, and integrate renewable energy easily. Doing so uniquely positions these same buildings to contribute to the energy conversation by transforming them into energy hubs.
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Tapping into this potential could see entire cityscapes change their operations from solely consuming energy to being active participants in the grid — harnessing, storing, and redistributing renewable energy from onsite sources, lowering overall power demand, and participating in energy buyback programmes.
Commercial buildings, in particular, bear a greater responsibility to lead in this endeavour, especially considering their significantly higher energy consumption. Their large-scale energy usage not only presents a considerable opportunity for energy savings and efficiency improvements, but also enables them to make a substantial impact on the grid by integrating renewable energy technologies and implementing innovative energy management strategies.
This shift in building capabilities is in line with national commitments to the green transition. In the region, Singapore has announced a new future energy fund which will inject an initial investment of $5 billion over the next two decades to help build the critical infrastructure, such as upgrading the existing power grid, needed for the country to shift from natural gas to clean energy.
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Given the potential positive, wide-scale impact on energy flow, as well as the alignment with local and regional governmental strategy and efforts, elevating buildings from energy consumers to prosumers that also generate their own electricity is the logical next step in the green transition.
How grid-interactive tech in buildings helps
Buildings outfitted with grid-interactive technology have the capability to interface with the electrical grid in intelligent ways. For instance, they can adjust their energy usage based on grid conditions, such as demand or availability of renewable energy sources; and potentially send excess energy generated by on-site renewable sources back to the grid when it is not needed locally. Essentially, grid-interactive technology enables buildings to optimise their energy usage and contribute to grid stability and sustainability efforts.
Such buildings also reduce the traditional form factor required for the generation and integration of renewable energy, making participation in the green transition accessible to more businesses, especially in land-scarce regions. As renewable energy such as solar power is weather dependent and thus intermittent, having more buildings able to harness this energy across a wider area can potentially negate these disruptions, improving overall grid resilience.
Moving to the next stage of the energy value chain, Battery Energy Storage Systems (Bess) provide a means to store energy generated for later redistribution. When optimised with energy management software, this capability allows businesses to reduce overall power demanded from the grid, leading to lower operating costs. Bess also enables participation in energy buyback programmes, giving businesses a new revenue stream for excess renewable energy produced.
Furthermore, energy management software gives businesses visibility into the building’s energy consumption, renewable energy integration, and other systems-critical information like maintenance cycles in real-time. Additionally, such systems provide a level of cybersecurity throughout the system. These real-time monitoring capabilities put the control into the hands of businesses to contribute to the energy transition, and help their operations potentially save billions through new revenue streams and increased savings.
Beyond increased energy security, greater savings, and access to new revenue streams, upgrading buildings with these capabilities reduces businesses’ overall carbon footprint. This ultimately brings businesses closer to hitting their sustainability targets.
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Transforming our energy future
A long road lies ahead for governments and businesses in Asia Pacific to unlock the energy transition for buildings.
A key factor for success is ensuring that the national power grid can support flexibility, such as building-to-grid, bi-directional power flow. Such interaction will require interoperability through a common digital language and standardised protocols. Grid and building operators will also need to ensure that their grid infrastructure is cyber-resilient to prevent opportunistic threat actors from finding loopholes within the grid infrastructure.
While interest in greener, more energy-efficient technologies has risen, building owners and managers are hindered by considerations such as investment feasibility for their property. In cities like Singapore, the strong government sustainability push and growing demand for electric vehicles are promising trends that will incentivise buildings to adopt grid storage and interactive capabilities.
Beyond governmental incentives, we need to collectively drive a cultural shift among building owners to recognise their role – and untapped opportunities – in the energy transition. Encouraging the sharing of best practices, and discussions around a more sustainable built environment, whether through energy management or building design, will be key in setting the foundation for the next step of the energy transition.
Jimmy Yam is the vice president and general manager for East Asia at Eaton Electrical
