Renewable Heat and Microgeneration

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Renewable Heat and Microgeneration

• Graham Meeks
• Head of Fuels Heat
• Renewable Energy Association
• National Assembly Sustainable Energy Group
• 5 June 2007

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Renewable Heat and Microgeneration
Emerging drivers for action

• The EU Spring Council commitments
• The policy case for renewable heat

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EU Spring Council
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The EU commitments

• Emissions reductions Binding
• 20 unilateral, or
• 30 if multilateral
• Energy conservation Non-binding
• 20 below current projections
• Renewables Binding
• 20 of total energy
• 10 of transport fuels

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How is the UK responding?

• Energy White Paper
• Right direction wrong scale
• Further measures will be needed
• Cannot be the last word
• The UKs burden-share
• Starting from a lower base
• Europes top wind, wave tidal resource
• But EWP hits a sceptical note

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20 - EU Breakdown
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Existing plans merchant power

• RO1 achieves 15 of electricity
• Banding achieves diversity
• Doesnt harm onshore wind (not net neutral)
• Planning grid restrictions overcome
• All energy planning to IPC2
• Connect manage grid access
• Beauly-Denny transmission upgrade
• Renewable (electricity) Obligation
• Independent Planning Commission

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Existing plans onsite energy

• Zero carbon new homes from 2016
• Building regs CSH4 level 6 from 2016
• EEC effective for micro-renewables
• Appropriate multipliers for renewables
• Positive planning
• Extend Merton Rule5 nationwide
• Encourage renewables in existing houses
• Energy certificates in Home Information Packs
• Code for Sustainable Homes Level 6 is zero
  carbon
• Larger developments require minimum renewable
  energy supplies

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Current outcomes on-site energy
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Feed-in Law
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100,000 Rooftop program KfW
1,000-Rooftop program (2.500 x 3kW)
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yearly installed MWp
60
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20
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

• Germany today has 2GWe of installed PV capacity
  equivalent to 800,000 domestic roofs
• UK capacity is 13 MWe equivalent to 5,000

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Road to 2020 - Existing Plans
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First Cut energy consumption

• Energy conservation measures
• More efficient energy usage
• Regulate against inefficient products
• Regulate against parasitic loads
• More efficient energy generation
• Limit generating stations waste energy
• UK consumption in 2020 same as now
• as a rough working assumption

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Enhanced plans merchant power

• Increased RO objective 22 in 2020
• Set 25 quota and increase headroom
• Retain buyout link to retail price index
• Offshore super-grid?
• Tidal barrage(s) and new large hydro
• Incentives for large scale CHP
• Renewable Heat Obligation (or similar)
• Large thermal generators must use heat
• Measures to deliver biomass strategy

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Enhanced plans on-site domestic
Equivalent Welsh target is 25,000
homes/annum Consistent with Microgeneration
Action Plan target for 300,000 installations by
2020 Extension of permitted development rights
and devolution of Building Regulations are key
enablers

• Building regulations for new homes
• CSH4 level 4 from 2010, level 5 from 2013
• Retrofit programme for existing houses
• 50,000 rising to 500,000 per annum
• Freeholders and can pay sector
• Feed-in tariffs for electricity similar for heat
• Stamp duty breaks, council tax concessions
• Tenants and fuel poor
• Active rolling programme through local
  authorities
• Smart metering
• Code for Sustainable Homes Level 5 is low
  carbon

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Enhanced plans on-site commercial
Consistent with Target for new buildings in
Wales to be zero carbon from 2011 Devolution of
Building Regulations

• A new Code for Sustainable Buildings
• Commercial buildings equivalent to CSH4
• Building regulations to reflect
• Heat networks in new developments
• Regulatory system for heat networks
• Positive planning
• Progressively rising Merton Rule requirements
• Code for Sustainable Homes

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Road to 2020 - Enhanced policy
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20 - EU Breakdown
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Possible UK Breakdown
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Areas of Attention - Heat
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The Policy Case for Heat

• Conclusions from
• A Manifesto for Sustainable Heat

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Heat dominates UK energy use

• Outside of the transport sector, it accounts for
  76 of final energy consumption
• 3x as much as electricity

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Domestic

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Public and service sector
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Industry
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Heat is used across the economy

• Melting
• Evaporating
• Drying
• Cooling

• Warmth
• Hot water
• Cooking

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4 Pillars of energy policy
all can be addressed by producing heat more
sustainably

• 1. To set the UK on a path to reduce emissions by
  60 by 2050 
• 2.To maintain the reliability of energy supplies
   
• 3. To promote competitive markets in the UK and
  beyond
• 4. To ensure that every home is adequately and
  affordably heated

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1st Pillar to set the UK on a path to reduce
emissions by 60 by 2050
32 of the UKs carbon dioxide emissions in
2004 were from heat
converting only 4 of domestic users to
renewable heat would save one million tonnes of
carbon
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and these C savings can be cheap
Cost of carbon savings from bioenergy sources
(DTI, 2006)
lowest cost savings from heat
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2nd Pillar to maintain the reliability of energy
supplies

• 60 of the gas we use today is to provide heat
• gas provides
• 90 of domestic heat
• 55 of industrial and commercial heat

• In 2006 the UK moved from being a net exporter to
  a net importer of gas
• By 2020 we could be importing up to 80 of our
  gas needs

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UK Gas Dependency
the looming problem of gas dependency is most
acute in the heating sector
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3rd Pillar to promote competitive markets in the
UK and beyond

• Ofgem has no remit to address competition in the
  heating market beyond gas
• Heat markets are naturally distributed, there is
  the possibility for a diverse and competitive
  market

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4th Pillar To ensure that every home is
adequately and affordably heated

• Reducing heat demand by increasing energy
  efficiency can decrease gas bills by an average
  of 26
• widening the sources of domestic heat would
  reduce reliance on gas and oil and vulnerability
  to price rises

• The price of consumer gas has risen by 35 since
  2003, doubling the fuel poor to 2 million

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Recent Energy Price Trends
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Renewables are among a suite of sustainable
heat approaches
 biomass heating

•  energy efficiency measures/insulation

 district heating
 active and passive building design
 combined heat and power
 ground and air source heat pumps
 energy management devices
 geothermal
 anaerobic digestion
 absorption and other cooling technologies
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• most of these technologies are ready and
  available to use today

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Reducing demand for heat

• Insulation and smart energy management are key
  and should be the first priority in any existing
  building

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Reducing demand for heat

• Consideration for heat needs to be central to any
  new building design

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Providing heat from sustainable sources

• Combined heat and power (CHP) captures the heat
  that is wasted in conventional generation for use
  close by

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Renewable technologies diverse but proven

• base-load heat hot water
• provide 50-70 of hot water
• ideal for domestic retrofit
• 25m homes!

• solar thermal
• heat pumps
• geothermal

• ideal for off-gas grid applications
• integration at new build is ideal
• 3-4 units of heat per unit electricity

• limited number of UK opportunities
• has provided basis for Southampton district
  heating scheme

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Renewable technologiesdiverse but proven

• integration with local waste management framework
• ideal for CHP or heat-only with district heating

• biogas
• biomass

• comparable to conventional boilers
• cost-competitive with oil LPG
• Fuel supply is key consideration
• pellet fuel is a traded commodity
• woodfuel supply can make biomass core to local
  energy economy
• Forestry Commission woodfuel strategy targeting 2
  Mt/annum

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Thermal services cooling

• groundwater, absorption and radiant cooling

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Summary

• Direction should be towards growing dependence on
  renewable energy supplies across the economy
• Comprehensive and proactive policies for on-site
  renewables required
• Heat cannot continue to be overlooked

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Further details
Renewable Energy Association www.r-e-a.net Green
Alliance www.green-alliance.org.uk Manifesto for
Sustainable Heat http//www.green-alliance.org.uk/
grea1.aspx?id1324
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Graham Meeks Head of Fuels and Heat Renewable
Energy Association Email gmeeks_at_r-e-a.net Tel
0207 747 1842 Mob [phone]