Buildings as Batteries

Alejandro Lopez and Derek Bunn

The Energy Journal, 2025, vol. 46, issue 1, 67-92

Abstract: Aggregators are increasingly using portfolios of various end-user resources such as local renewable generation, batteries, EVs, and demand-side management to participate in the electricity markets as virtual power plants. Whilst the smart control of energy within buildings is well established for cost optimization, the prospect of an aggregator collaborating with the energy managers of buildings to trade electricity in the wholesale markets is under researched. This paper uses a state-of-the-art architectural simulator to model the thermal inertia of a typical high-rise building in London and represent the thermodynamics of its hourly occupancy and weather responses. The building is simulated as a virtual battery by manipulating the HVAC settings. Price arbitrage on the electricity wholesale market and contracting with the local distribution network for flexible reserve services are both feasible and profitable. It is concluded that aggregators can apparently use buildings as additional assets within their trading portfolios. JEL Classification: L85 and L94.

Keywords: electricity; storage; buildings; trading; aggregators (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:46:y:2025:i:1:p:67-92

DOI: 10.1177/01956574241280818

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