The Strategic Use of Heat Pumps and Thermal Storage for Residential Demand-side Management

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Space conditioning and domestic hot water loads account for over 80 percent of the residential energy use in Canada. These loads place significant peak energy demand on the utility grid during winter mornings (space heating and hot water use) and summer afternoons (space cooling). This has a number of negative impacts on the electricity grid, including an increase in required production capacity and distribution capabilities. As a result, reducing peak energy demand on the grid is paramount over the next decade due to infrastructure aging and rapidly approaching capacity. In response, utility providers in Ontario and Nova Scotia (accounting for 41% of Canada’s population) have implemented rate premiums during peak periods (i.e., time of use billing). This practice is used to encourage consumers to shift their electricity use from on-peak to off-peak periods.