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Energy Networks Association

The Voice of the Networks. Energy Networks Association. Gas networks in the UK and the role for biomethane. Tony Glover , Director of Policy April 2014. ENA: Who we a re and what w e d o . The ‘wires and pipes’. Regulation. Health and safety. The voice of the networks.

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Energy Networks Association

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  1. The Voice of the Networks Energy Networks Association Gas networks in the UK and the role for biomethane Tony Glover, Director of Policy April 2014

  2. ENA: Who we are and what we do • The ‘wires and pipes’. • Regulation. • Health and safety. • The voice of the networks.

  3. ENA: Who we are - transmission

  4. ENA: Who we are - distribution

  5. The ‘energy trilemma’ The big three: • Security. • Sustainability. • Affordability. The answer? An integrated energy solution ... ... that includes a vital and enduring role for gas.

  6. UK Gas networks: The facts 1 • Gas is the fuel of choice for most of the UK, delivered to nearly • 60 million people. • Gas provides over 50% of UK energy demand (excluding transport) and the gas transmission system transmits nearly three times as much energy as the electricity transmission system. • The gas distribution networks continues to grow with up to 100,000 new gas consumers connected each year. • The gas network companies use these connections to address domestic fuel poverty, as gas provides a more efficient heating and cooking fuel.

  7. UK Gas networks: The facts 2 • Replacement investment on the distribution networks alone runs at £800m a year. • The companies are replacing up to 4,000km of mains per year. While the gas sector overall employs more than 10,000 highly trained, experienced front line engineers and back office workers. • Closing down the gas network will cost £8.6 billion and could be much higher forcing many homes off the gas network unwillingly.

  8. So the politics have changed • Energy policy was in flux but not for long. • Gas used to have a very uncertain future according to the Government. • The future was ‘wind and nuclear generation’ and ‘heat pumps and heat networks’. • Gas policy had one full-time official in DECC – now there are many. • The landscape has changed – the gas generation and heat strategies see a role for gas way out to 2050 and beyond.

  9. Politicians are learning to use the “G” word • “Gas is not a bogeyman”... said DECC Minister Greg Barker in September 2013. • He went on to say: “If used to the highest environmental standards, gas can be our ally”. • The Government recently convened a roundtable on the future of gas. • So why have things changed?

  10. Gas is a cost-effective green fuel • ENA commissioned an in-depth and independent analysis into the future role of gas in a low-carbon economy, by the respected energy consultants Redpoint Energy. The Report found: • There could be savings of up to £700 billion between 2010 and 2050. • Ongoing gas use could offer a cost-effective solution with potential savings of around £20,000 per household or £10,000 per person – relative to scenarios where gas is phased out of the energy mix by 2050. • Vital to this is the development of biomethane injection in to the grid .

  11. Gas heats our homes • At the heart of the future of gas is how heat our homes. • In 2012, ENA commissioned Delta-ee to analyse the UK’s housing stock in a detailed way looking at how the various heating technologies currently available could be effectively deployed. • The 2050 Pathways for Domestic Heat Report makes clear that the Balanced Transition scenario can be achieved with less government intervention (and at less cost to the customer) than Electrification & Heat Networks (E&HN), while achieving 90% carbon reduction from today to 2050.

  12. Gas is helping solve fuel poverty • Energy network companies are committed to addressing fuel poverty. • In the UK, they are fully utilising an Ofgem incentive scheme to extend the gas network to fuel-poor communities. • The gas distribution network have been working with local groups to find eligible communities to assist. • Since 2008 the gas distribution network companies achieved 46,237 gas connections as part of addressing fuel poverty. The GB target up to 2021 is 77,450 new connections. • Community biomethane schemes?

  13. Biomethane can address the trilemma • Biomethane injected into the grid could transform the future of energy in the UK. • It addresses a range of challenges, energy costs, sustainability and security as well as waste policy. • It could revitalise some parts of the rural economy. • With more that 20 Biomethane Projects being completed in 2014, it is expected that by 2020 there will be well over 100 biomethane sitesconnected to the network. • It could provide around 20% of the UK’s domestic gas demand.

  14. The road to biomethane • ENA is leading a campaign to make UK-wide biomethane injection to the grid use a reality. • An ENA roundtable convened in 2013 to identify, discuss, and establish the practical solutions to barriers preventing the growth of biomethane injection in the UK gas grid. • The subsequent Biomethane Campaign working group continues to work closely with DECC, Ofgem and the Health and Safety Executive to address these barriers.

  15. Breaking the barriers to biomethane The ENA-led Biomethane Campaign Group have achieved some successes: • The most significant barrier to biomethane injection to the grid in the UK was the level of oxygen allowed in the gas – the HSE have now issued a Class Exemption to Gas Safety Regulations to allow network conveyance of gas with an oxygen content of up to 1%. • In July 2013 we achieved a Class Exemption to the Gas Transporter Licence to allow biomethane to be conveyed through the gas grid. • Third Party Ownership of CV Measuring Equipment – Ofgem has now agreed to allow for third party ownership of such equipment, subject to sufficient safeguards. • The Group is now working with Ofgem to address issues in relation to Calorific Value requirements for injected biomethane.

  16. Much more to do... • Work to assess the allowable levels of Siloxanecontent in biomethane and issues with regard to Odouristation of Biomethane – the GDNs are now committed to carrying two projects under the Ofgem Network Innovation Allowance to focus on these issues and to deliver a solution appropriate for the GB Market. • The ENA Biomethane Campaign Group is committed to maximising the opportunities for the use of biomethane injection in the gas grid. The Group now acts as a vehicle for the exchange of stakeholder views and information, as a focal point for the industry, and a sounding board for government.

  17. Conclusion • Gas has a vital role to play in keeping Britain’s lights on and its homes heated way into the future. • It meets the needs of the public. • It ensures we do not throw away our vital UK gas network infrastructure. • It addresses the trilemma by deployment of biomethane.

  18. Thank you Tony Glover Director of Policy T: +44 (0) 20 7706 5122 M: +44 (0) 7843 518293 E: tony.glover@energynetworks.org 6th Floor, Dean Bradley House, 52 Horseferry Road, London SW1P 2AF  www.energynetworks.org @EnergyNetworks LinkedIn

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