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Why? Because heat demand scales with the exterior wall area. Units in multi-family buildings have about half the exterior wall area.
This magic switch would reduce the Industry and Transportation sector emissions more than pictured, because we'd dig up, process and transport a lot less coal, oil and gas.
First, why do we care about demand peaks?
Not huge revenue, but enough to cover aggregation/instrumentation costs within a couple of years. A heat pump aggregator may be able to provide these services alongside others, like demand response curtailment, voltage support, or energy price arbitrage. 2/