Centrica has gained National Grid approval to include thousands of new smart hot water tanks as part of its 2.5GW virtual power plant.
The new units will be combined with the flexibility of industrial consumers and battery projects using its demand response platform FlexPond.
Centrica will offer its British Gas customers the smart tanks through a Centrica Innovations-funded partnership with Mixergy, a spin-out company from Oxford University’s Energy and Power Group.
The Mixergy tank system combines sensory and Internet of Things technologies to keep track of hot water levels in the tank. It learns the usage habits of the household so water volumes are personalised to heat what is needed at the right time.
Centrica says this can reduce heat losses, water and energy usage by up to 40 per cent a year, saving over 10 per cent on hot water bills annually, potentially worth up to £100 per year.
Charles Cameron, Centrica’s group director of technology and engineering and chairman of Centrica Innovations, said: “We use our proprietary technology to unlock the power of Mixergy’s tanks in order to provide firm frequency response to the electricity grid.
“The first batch of 100 hot water tanks, which are now in homes in the UK will, at times of stress, be capable of capturing energy at low market prices on sunny or windy days when there is an abundance of renewables on the network, all whilst maintaining efficiency, cost and comfort for our customers.”
Pete Armstrong, speaking on behalf of Mixergy, said: “Together with Centrica, we are paving the way for smart tariffs which will reduce energy consumption and carbon emissions by storing excess renewable energy on the grid.
“At the same time we reduce bills for householders by only heating the amount of hot water they require.”
Earlier this year Centrica revealed it had turned 100 Cornish homes into a virtual power plant as part of a £19 million local energy market trial.
The company fitted smart battery systems in 100 properties and solar panels in 60 which did not already have them installed.
They will will be used to provide flexibility services for the local electricity network, which is becoming increasingly constrained due to the high penetration of renewables in Cornwall.
The local energy market trial was launched by Centrica in December 2016. Last year the company announced it would test the use of blockchain technology to enable peer-to-peer trading between participants, which include both businesses and households.