As electricity networks come under growing pressure during periods of peak demand, Brad Pilgrim, CEO at Parity, explains why HVAC automation could become one of the most effective tools for easing the strain.
From June 23-25, 2025, New York City’s electricity grid experienced significant demand, totalling 31,857 MW. Using its Grid Alert system, NYISO issued Energy Watch notifications on June 24 and 25. On June 24, the Energy Watch was escalated to an Energy Warning as reserves fell below 1,965 MW.
Yet the New York City grid did not fail or experience any major incidents such as brownouts. Part of the credit for that resilience is likely due to the city’s demand response programme, the growing prevalence of grid-interactive, energy-efficient buildings, and the increasing adoption of automated building systems, including automated HVAC.
For the UK, the relevance is clear. As peak demand rises and flexibility becomes more valuable, buildings need the right controls, visibility and automation in place if they are going to participate rather than simply add to the strain.
This is the part where I should disclose that I am the CEO of a company that helps buildings automate their HVAC operations. And while that role certainly makes me somewhat biased, at the end of the day I am another person who wants to see electricity grids endure and even flourish.
So, in an era of growing pressure on the grid, how do we go about achieving that? At least one important part of the answer is HVAC automation.
Why is HVAC automation so important?
According to the US Department of Energy, the energy devoted to heating and cooling buildings accounts for approximately 35% of a property’s overall energy consumption, representing the largest share of energy attributed to any single use within a property.
In other words, if we are looking to reduce strain on the grid, the single biggest lever we can pull is HVAC.
Here is the problem, though: we have all been trained to think about HVAC operations in the wrong way. For decades, the prevailing mentality has been to ‘set it and forget it’. It makes sense: people find a temperature setting they are comfortable with and leave it there. Why interfere with something that appears to be working?
But growing pressure on the grid, driven by a wide range of factors, including climate change and the increasing prevalence of major energy users such as data centres, means we need to adopt a different mindset. At the same time, the power supply is becoming more variable. Wind and solar are vital additions to the grid, but their intermittency means flexibility elsewhere in the system becomes even more important. Thanks to advances in automation and machine learning, it is increasingly possible to provide that flexibility without affecting the comfort of a building’s occupants.
Where building automation can make a difference
Many of the largest HVAC providers have focused their automation efforts on the commercial sector, including industrial, office, and large municipal properties. By contrast, multifamily and hotel properties have often been overlooked.
That matters because these buildings represent a significant opportunity. They may not have the same operational flexibility as a factory or a large industrial site, but they still consume substantial amounts of energy and, with the right systems in place, can play a far more active role in supporting the grid.
The starting point is visibility and control. Modern HVAC optimisation platforms can connect to existing building systems, ingest operational and equipment data, and use machine learning to improve performance in real time. That can include adjusting set points, refining equipment schedules, and continuously optimising control strategies in response to changing conditions.
The result is not simply lower energy use. It is smarter, more responsive demand that better reflects what the grid needs at any given moment. Just as importantly, that can often be achieved without compromising occupant comfort.
For building owners and operators, this creates a dual benefit: lower operating costs and a more active role in grid resilience. For the wider energy system, it means more buildings can begin to function as flexible assets rather than passive loads.
How automation supports the grid
On a day-to-day basis, optimised HVAC systems can reduce energy consumption and therefore provide meaningful support to the grid. Buildings with intelligent controls can become more grid-interactive, reducing usage as utility prices rise or demand intensifies.
But the role of automation becomes particularly important during periods of peak consumption, such as those seen in New York City at the end of June.
During such periods, grid operators and utilities will frequently initiate demand response events. These events give properties an opportunity to curtail their energy consumption for a defined period and, in return, receive payment from the grid operator and/or utility for taking part.
Demand response is not new, but until recently the focus was largely on large commercial and industrial properties. That is because these buildings have historically been both the largest energy consumers and the properties with the greatest operational flexibility. A factory, for example, can choose to shut down part of its operations for a few hours, whereas a multifamily building or hotel does not have that same option.
Moreover, demand response events are often initiated with only a few hours’, or even a few minutes’, notice. It is nearly impossible for a resident manager to make all the necessary manual adjustments across a building within that timeframe.
This is where automation changes the equation. Because intelligent systems can already understand a building’s energy usage patterns, they can automate curtailment strategies in a way that is both faster and more precise. Techniques such as pre-cooling can enable multifamily properties to take part in demand response events while keeping residents comfortable.
That shift matters because it broadens participation. It means demand response no longer has to be limited to the largest commercial or industrial users. A wider range of buildings can contribute, giving grid operators a broader and more flexible resource to call on when conditions tighten.
There is also a commercial case for participation. Buildings that can respond effectively to demand events may be able to unlock new revenue streams while also reducing energy use. But the bigger picture is that they become part of the solution to grid stress, rather than simply another source of demand.
The biggest users of HVAC can make the greatest contribution to supporting the grid. But sustainability, at its core, depends on everyone doing their part. If more multifamily and hotel properties can become active participants in grid flexibility, the cumulative impact could be significant, not only for building owners and operators, but for the resilience of the wider energy system.
