AWARDS FINALIST: Octopus Energy – demand flexibility

Octopus Energy says its mission is to use technology to accelerate decarbonisation by shifting demand to lower-cost and lower-carbon times of the day without inconveniencing its customers.

The company uses price signals and automated load control to shift consumption patterns.

Time-of-use pricing encourages customers to shift their energy usage to off-peak periods. But to enable customers to shift more of their consumption, Octopus is automating and optimising electricity usage of hot water control cylinders, EVs and batteries.

These benefits are designed to be accessible to the average customer, “not just the energy techies,” Octopus says.

More than 10 per cent of  customers already have smart meters that enable retailer-control of hot water.

With hot water typically making up a third of a household’s electricity demand, Octopus can shift about a sixth of the annual electricity demand from peak to off-peak, or night. That equates to about 1500 kWh of typically lower-carbon consumption which can also be 25 to 50 per cent lower cost as well.

Octopus can also personalise a load control profile for a customer to account for individual circumstances such as household size, cylinder size, water use and location.

The approach has been validated by Energy Link as having a significant impact on carbon emissions. If the average Octopus customer load profile was adopted by half the national residential market, it could lead to a 7 per cent reduction in peak emissions and a 6 per cent reduction in coal-fired generation emissions.

Octopus has engaged widely with industry stakeholders to share its learnings and to encourage load shifting as a means to reduce reliance on thermal generation and create a more sustainable and affordable energy system.

The Low Carbon Future Award category is sponsored by Energy Resources Aotearoa.