Renewable sources such as wind and solar power fluctuate due to the weather but smart grids help balance the supply and demand. That’s expected to make it more efficient and reliable in distributing electricity.

A pilot study – carried out by PowerMatching City – tested 40 households which used solar panels, combined heat and power (CHP) plants and heat pumps to generate their own electricity, heat and water.

‘Smart’ software was used to share the electricity with neighbours and household appliances were activated at times when the supply from the local grid was best.

The study found the energy systems “were feasible and made sense financially”, saving billions of pounds.

“These benefits are based in part on money saved by the grid operators by avoiding costs for investments in and maintenance of existing energy grids. On the other hand, energy providers will be able to manage their customers’ energy consumption more effectively so they will be able to purchase energy for more competitive wholesale prices. Energy providers will also be able to use locally generated energy to match local supply and demand, which also saves costs,” it added.

Mai Linh