The ASEAN region is undergoing a substantial increase in energy demand, expected to triple from 2020 to 2050. This surge is largely driven by population growth and economic development.
Notably, according to the 7th ASEAN Energy Outlook (AEO7), energy demand in the ASEAN commercial sector has been on a steady rise, growing at an average annual rate of 3.3% from 2005 to 2020.
The Outlook’s projections estimate that the Total Final Energy Consumption (TFEC) in the commercial sector is poised to increase by approximately 45.1% from 29.3 Mtoe (Millions of tonnes of oil equivalent) in 2020 to 42.5 Mtoe in 2030, and by about 214.0%, reaching 92 Mtoe by 2050.
This growing trend, coupled with the increased integration of unpredictable, weather-dependent renewable sources such as wind and solar, is exerting pressure on the region’s power supply. As a result, consumers and businesses experience higher and more volatile electricity prices, power shortages, and outages. Therefore, the adoption of more efficient and resilient building practices becomes crucial. Grid-interactive buildings, proficient in managing energy use, present a promising solution to the region’s energy challenges.
What are Grid-interactive efficient buildings?
A grid-interactive efficient building (GEB) is a building that interacts with the power grid by utilising on-site energy sources like solar panels, batteries, and electric cars in the best way possible for the people who live or work there and for the stability of the grid. A GEB has four main characteristics that set it apart from a regular building.
First, it is energy efficient: it has good insulation, low-energy appliances and equipment, and smart building designs to lower its energy use and demand.
Second, it can communicate: It communicates with the power grid to adjust to changing energy demands.
Third, it is intelligent: it uses data from sensors and controls to manage its energy sources in ways that help the power grid, the building owners, and the occupants.
Fourth, it is adaptable: it can change its energy use and supply depending on the situation.
Why are they important?
Grid-interactive efficient building (GEB) plays a crucial role in the energy transition, especially within the building sector, offering a wide range of benefits to both the power system and building occupants. These benefits include enhanced building efficiency, improved occupant comfort, and increased building resilience. Additionally, GEBs empower consumers by providing them with real-time energy monitoring and control capabilities, fostering consumer engagement in demand response programmes. These programmes allow consumers to adjust their energy usage in response to grid conditions and price signals.
Furthermore, GEB aligns strongly with outcome-based strategy number 3 of the ASEAN Plan of Action for Cooperation (APAEC) 2020-2025, as they contribute significantly to the development and implementation of green building codes. By incorporating high energy-efficient products and technologies in building design and operation, GEBs support the achievement of energy efficiency goals and promote sustainable building practices.
Transform the Building Sector
GEBs bring transformative benefits to buildings, including the enhancement of operational efficiency, the elevation of occupant comfort, the bolstering of structural resilience, and the provision of significant flexibility. This transition is driven primarily by a key advantage of GEBs: their capacity to vastly improve building efficiency.
Through advanced real-time monitoring and control systems, GEBs empower building owners and operators to track and adjust an array of factors including temperature, lighting, ventilation, and air quality, catering to the dynamic needs of the occupants and the grid. This continual monitoring not only facilitates swift identification and rectification of inefficiencies such as leaks or malfunctions but also contributes to energy savings of up to 29% and commensurate reductions in maintenance costs.
Furthermore, GEBs significantly enhance the indoor environment, prioritising the comfort and well-being of occupants. These buildings can customise temperature and humidity levels to individual or group preferences, accommodating outdoor weather conditions when desired. The systems also regulate lighting and ventilation, ensuring optimal light, fresh air, reduced glare, and minimised noise.
As a result, GEBs create spaces where occupants feel more comfortable and alert, showcasing the multifaceted benefits of energy efficiency.
GEBs also bolster resilience by incorporating energy storage systems and backup power capabilities. These features allow GEBs to store excess energy when the grid is producing more than it needs, and to use it when the grid is under stress or facing shortages. They also enable GEBs to disconnect from the grid and operate in island mode when there are grid disruptions or power outages. This way, GEBs can continue to operate critical systems, such as lighting, heating, cooling, security, and communication, ensuring business continuity and safety.
Another significant feature of GEBs for building is their flexibility to integrate various energy sources, reducing dependence on a single energy supply and thus increasing resilience. The use of diverse energy sources, like solar or wind power, can also further reduce a building’s carbon footprint.
GEBs, being inherently energy-efficient, consume less energy than traditional buildings, thus reducing the overall energy demand. With lower energy demand, the strain on the grid is eased, helping prevent blackouts and other power outages. GEBs, in their resilient and efficient nature, also support grid recovery and stability post-disturbance.
Empowering Consumers
Another pivotal advantage of GEBs is the empowering impact they have on consumer behavior through real-time energy monitoring and control systems. Through the integration of smart devices and applications, consumers can access instant, meaningful data about their energy consumption patterns, associated costs, and carbon footprint.
The benefits of real-time energy monitoring for consumers are significant. Firstly, it empowers them with the knowledge to understand and regulate their energy usage. With instant visibility into their energy consumption, consumers can make informed decisions, adjusting their usage behaviors for efficiency. This transparency into energy use not only reduces wastage but also translates into financial savings. For example, by identifying energy-hungry appliances or unnecessary energy use, such as leaving lights on, consumers can take action to minimise wastage, thereby lowering their energy bills.
Secondly, GEBs enhance the comfort of living spaces by allowing consumers to fine-tune various parameters such as temperature, lighting, and air quality to suit their personal preferences. This capability results in more comfortable, energy-efficient homes and workplaces.
Moreover, GEBs offer the potential for consumers to participate in demand response programmes, which incentivise energy use adjustments during periods of high electricity demand or grid stress. By shifting or reducing their electricity use, consumers help maintain the grid’s stability, contribute to a balanced supply and demand, and potentially lower electricity costs.
Some ASEAN member states have implemented successful demand response programmes.
In Singapore, consumers voluntarily reducing electricity demand during high wholesale prices receive incentives up to 4500 SGD/MWh. In Vietnam, over 2,094 large electricity consumers participate in a similar programme in its Central Highlands region. These instances demonstrate the benefits of GEBs for energy efficiency, cost savings, and consumer engagement in the region.
Conclusion
Grid-interactive efficient buildings (GEBs)are beneficial, as for consumers, they lower energy bills, improve comfort and convenience, and provide backup power during grid outages.For businesses, GEBs can reduce operational costs. For the building sector, they increase buildings’ efficiency and resilience. For society at large, GEBscertainly help to reduce greenhouse gas emissions, support clean energy jobs, foster innovation, and enable a more sustainable energy system.
However, challenges remain in implementing Grid-interactive efficient buildings (GEBs) in the regions. One challenge is the high cost of upfront investment. GEBs can be more expensive to build than regular buildings due to additional equipment, such as solar panels and battery storage. Additionally, GEBs require specialised knowledge and skills to design, build, and operate, which can be a barrier for small-scale developers and homeowners.
Way forward
To accelerate the adoption of grid-interactive efficient buildings (GEBs) in ASEAN, a comprehensive approach is necessary. This involves creating policies and incentives that support GEBs, investing in research and development, forming public-private partnerships, and raising public awareness. Working together across sectors and stakeholders is key to creating a conducive environment that embraces energy efficiency and sustainability in building codes and standards. Additionally, technology and data analytics should be prioritised fo investment as they are essential to optimising grid integration.
In the coming years, grid-interactive efficient buildings (GEBs) will play a significant role in contributing to a more sustainable and resilient energy system for the region and empowering its consumers.
However, a concerted effort is needed to accelerate their adoption, as they face various barriers such as a lack of standards, high costs, low awareness, and insufficient incentives. Therefore, stakeholders involved in the building and the energy sector must work together to overcome these challenges and to create an enabling environment for GEBs to flourish.
The authors are officials at the ASEAN Centre for Energy (ACE), an intergovernmental organisation based the Indonesian capital Jakarta.
The views expressed are solely those of the authors.