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Energy Efficiency Solutions, and Future EEC Developments Mike Newell Energy Efficiency Manager

Energy Efficiency Solutions, and Future EEC Developments Mike Newell Energy Efficiency Manager. Energy Efficiency Solutions. HeatStreets Powergen PAWS FridgeSavers Powergen HeatPlant Ground Source Heat Pumps WhisperGen Micro Combined Heat and Power (mCHP) Energy Advantage

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Energy Efficiency Solutions, and Future EEC Developments Mike Newell Energy Efficiency Manager

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  1. Energy Efficiency Solutions, and Future EEC Developments Mike Newell Energy Efficiency Manager

  2. Energy Efficiency Solutions • HeatStreets • Powergen PAWS • FridgeSavers • Powergen HeatPlant • Ground Source Heat Pumps • WhisperGen • Micro Combined Heat and Power (mCHP) • Energy Advantage • Environmental and Energy objectives

  3. Power in Good Hands • Powergen offers a wide range of products and services within the energy field and we believe we have an important role to inform and in the case of new technology lead the market • Energy Products e.g Energy Saving Plan / StayWarm • First to launch a mCHP product to the UK market • TV Ads focus on Energy Efficiency • Powergen PAWS – Pocket Affordable Warmth Software • Powergen WarmFront

  4. HeatStreets • HeatStreets is a street by street approach to alleviate fuel poverty in private sector homes by targeting the Local Authority and Powergen funding at specific households • HeatStreets has been developed over 4 years in Derwentside and has subsequently been rolled out over the whole of Sunderland City • HeatStreets has 3 main objectives: • To target a LA budget towards measures in households defined by the LA as priority • To maximise the opportunities for energy efficiency improvement in the targeted area • To deliver maximum financial leverage from the LA funding by combining with Powergen, local residents and Warmfront • For every £1 contributed by the local council, £3 comes from other sources

  5. Customer Proposition • Grants are targeted at 3 specific levels to facilitate the installation of cavity wall and loft insulation, draught proofing, hw cylinder jackets etc A) Grant A- for every priority household –(those on a means tested benefit or in fuel poverty) B) Grant B- for households ‘over 60’ not on benefit C) Grant C- for households ‘under 60’ not on benefit The able to pay rates are comparable with Powergen’s national scheme

  6. Funding: Example • Assuming a split of fuel rich (C grants), Warm Front and Council funded work (grants A & B) as above the following can be expected • Based on Sunderland HeatStreets Scheme • This enables the LA to target specific customer needs in the local community

  7. Targeted Funding • There is no ‘fixed’ investment required from the LA, a project will be formulated around available budgets • A LA budget of £250k would improve 4000 homes and help to remove 1900 vulnerable households from Fuel Poverty • This approach can be used Borough wide or just to target particular estates • Grant penetration with this method means measures are required at 1 in 4 i.e. a 25% take-up of measures • Each household could save up to £240 per year on Heating costs • (based on CW and LI installed in an uninsulated 3 bed Semi-Detached house

  8. Pocket Affordable Warmth Survey Identifies the "fuel poor" after a five minute doorstep assessment • Pocket survey provides: • NHER • SAP • Annual running costs • Affordable Warmth Index (AWI) • Predicts fuel poverty • CO2 emissions • Only minimal data is required

  9. FridgeSavers • National scheme to offer A rated Fridges and Fridge freezers to customers on benefit who own an old inefficient fridge • In partnership with Currys

  10. Powergen HeatPlant • Ground Source Heat Pump designed for the social housing sector • Also a possible solution for off gas network fuel poor.

  11. What is a ground source Heat Pump • A heat pump collects and concentrates solar energy stored naturally in the ground • Heat Pumps can operate over a variety of mediums, air to air, air to water and water to water • The pump distributes this heat through the domestic heating and hot water system in the same way as a conventional boiler • The heating is “low grade” i.e operates at around 50oC

  12. How HeatPlant works

  13. The benefits of HeatPlant • Environmental • Up to 50% lower CO2 emissions • 100% sustainable technology with 20 year lifetime for the HeatPlant and 50 years for the ground loop • Economic • Provides full space and water heating for around 75% of the cost of conventional gas boiler • No need for annual Gas safety checks • No need for additional immersion heating • 1kWh of electricity can extract over 3kWh of renewable energy

  14. HeatPlant Installation

  15. HeatPlant Installation

  16. HeatPlant Installation

  17. Powergen HeatPlant unit • The unit is 450mm wide, 550 deep and 800mm high and would fit under the surface in a kitchen

  18. HeatPlant Comparison • System Annual fuel cost Annual CO2 (Oct 2003) (SAP 2003) • Ground source heat pump £215 1.6 tonnes • Natural gas boiler (condensing) £300 2.9 tonnes • Natural gas boiler (non-condensing) £345 3.3 tonnes • LPG (bulk) (non-c.) £500 4.3 tonnes • LPG (bottle) (non-c.) £670 4.3 tonnes • Oil (35sec) (non-c.) £300 4.4 tonnes • Electricity (storage + panels) £510 6.5 tonnes • House coal (closed stove + back boiler) £380 6.6 tonnes • Smokeless solid (closed stove + back b.) £515 7.5 tonnes • GSHP@ Braddock House £187 1.3 tonnes

  19. HeatPlant Progress to date • 92 installations to date • 62 over 4 sites in Nottinghamshire • 6 on a site in Worchester • 24 on one site in Cornwall – 16 of which were retrofit • We have raised the profile of a technology that is installed in tens of thousands in Europe and hundreds of thousands in the USA • Gordon Brown reduced VAT on GSHP in the last budget

  20. What is Micro CHP? • A direct replacement for the boiler in a central heating system • It burns gas to produce heat just like a boiler, but... • At the same time it generates FREE electricity • Some of the electricity you use in the home • Any surplus is purchased by Powergen

  21. EXHAUST 8% ELECTRICITY 12% ELECTRICITY micro IMPORT/EXPORT CHP HEAT unit GAS 80% 100% Micro CHP concept Micro CHP replaces boiler in conventional central heating system

  22. What are the benefits of mCHP? • Environmental benefits • Reduces Carbon emissions • Social benefits • Helps to eliminate fuel poverty particularly helpful in the solid walled properties where an efficient heat source is critical • Economic benefits • Reduces fuel bills by around 20%

  23. The Powergen product • Whispergen MkIV unit • 8kWt (heat output) • 1.2kWe (electrical) • 500x600x850mm • Same as small fridge • Fits under worktop • 54dBA noise level • Similar to freezer • Annual service • Same as boiler

  24. Example case study house • 138m2 total floor area • three storey - living on mid floor • built 1998 • insulation to Building Regulations • usage pattern • continuous occupancy • copious showers

  25. Original heating system • Wall-hung boiler in kitchen (mid-floor) • Y-plan (3-port valve) • Single zone • 7-day programmer • room/cylinder thermostat

  26. Economics (of case study home) • Annual gas bill £ 550 • Annual electricity bill £ 450 • Annual gas consumption kWh 35 000 • Annual space heat kWht 18 000 • Annual DHW kWht 6 000 • Annual electric consumption kWh 6 000 • Generation kWhe 3 400 • Projected savings £ 150-200

  27. The Powergen offer • Powergen supply and install the WhisperGen unit in your home • Direct debit monthly payment covers the cost of: • Installation • Electricity • Gas • And we buy back any surplus electricity you generate!

  28. Boiler replacement offer • Applies to householders wishing to replace existing (defunct) boiler • Installation cost is fixed at £3000 including VAT regardless of complexity • May require changes to existing system • April 2003 Building Regulations may require upgrade of complete system to include cylinder insulation, controls, TRVs • Installation type depends on heat loss of house • <6kW: standard installation • 6-8kW: PIC, Programmable Intelligent Controller* *£250 cost to Powergen-no charge to customer

  29. Householder benefits • Monthly budget account spreads the cost of energy over the year • “State of the Art” heating system • No worries about repairs • Reduces electricity bills • Doing your bit for the environment and saving money!!

  30. Energy Advantage • New Product for the Social housing sector • It will enable you as the stock manager to plan ahead, and get real support from Powergen to deliver your targets. • Energy suppliers could be accused of concentrating too much on their own objectives. • Energy Advantage facilitates the delivery of the landlord’s obligations.

  31. Energy Advantage • To find out more contact: • lisa.sims@powergen.co.uk • chris.banks@powergen.co.uk • sarah.proffitt@powergen.co.uk • d.ward@powergen.co.uk

  32. The Challenge of EEC II • EEC II – 2005 – 2008 • Market Transformation

  33. EEC II – 2005 – 2008 • EEC II like EEC I is still primarily a Carbon saving programme • The Energy White paper called for around 1 MtC from the new EEC

  34. Market Transformation • Cavity Wall Insulation will be the single most important measure in EEC II • The energy white paper referred to 4.5 million cavity wall installations between 2005 and 2010 which equals 750,000 per year • What do you think is the current rate of installation as measured by the insulation industry?

  35. Transforming the insulation industry

  36. Transforming the insulation industry

  37. Transforming the insulation industry EEC II would Represent 1.74 million CWI

  38. The EEC II Challenge • This represents a 50% year on year growth in the insulation industry during EEC II • And if we fail Ofgem will have the powers to fine Suppliers for not delivering their targets • We are all familiar in our roles at work with having to deliver targets in our performance driven economy • S.M.A.R.T • Specific • Measureable • Achievable • Realistic • Time period

  39. Is EEC II at SMART target? • Is EEC II Achievable? • Is EEC II Realistic? • Few of us I believe would be happy to accept a target where the ability to deliver is outside our control

  40. mike.newell@powergen.co.uk

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