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CHP, district heating and the role of decentralised energy in buildings

CHP, district heating and the role of decentralised energy in buildings. Jonathan Graham Policy Manager 8 October 2014. About The Chpa. Putting the energy user at the centre. CHPA Mission statement.

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CHP, district heating and the role of decentralised energy in buildings

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  1. CHP, district heating andthe role of decentralised energy in buildings Jonathan Graham Policy Manager 8 October 2014

  2. About The Chpa

  3. Putting the energy user at the centre

  4. CHPA Mission statement • Our vision is for an energy system that is dictated by the consumers' needs rather than one that dictates to them, creating a more local, efficient and less costly energy system • Areas of focus: • Combined heat and power • Sustainable energy services • District heating and cooling

  5. A few of the CHPA members…

  6. Current and Future UK energy System

  7. UK Final energy use Power Oil derived fuels Gas

  8. On-site generation helps manage costs

  9. The need for smart systems Now Future? +5-9kW +3-6kW

  10. Our current energy market Supplier Push Vertically Integrated Player Vertically Integrated Player Vertically Integrated Player Vertically Integrated Player Vertically Integrated Player Vertically Integrated Player Customers

  11. Our future energy market Decentralised Generator Decentralised Generator Decentralised Generator Decentralised Generator Decentralised Generator Decentralised Generator Decentralised Generator Decentralised Generator ESCo Demand-Side Participation Supplier Push VIP VIP VIP VIP VIP VIP Transmission Network Distribution Network Customers

  12. Demand side approaches to energy Demand-sidemeasures Lighting HVC & DHC • D3 services • Demand reduction • Demand response • Decentralisedgeneration Supply-side Pumps Motors M Fabric Behaviour O&M Controls Electricity

  13. the role of CHP and district heating

  14. Opportunity of energy inefficiency Energy Flows in the Global Electricity System 2/3 of the fuel “we” use to produce power is wasted -- CHP can more than double this efficiency Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008).

  15. Why is CHP more efficient?

  16. CHP and security of supply

  17. CHP provides lower costs and CO2Costs saved CO2 saved £31,000 539T CO2 185kW CHP £200,000 1,200T CO2 1MW CHP £300,000 3,500T CO2 4.7MW CHP

  18. CHP in the UK • 1,900 CHP schemes in UK, with 1,500 in commercial and services sector • At least £200m new investment last year • 6.4% of electricity generation • 70% is natural gas

  19. Fast-growing <2MW CHP sector

  20. Wholesale vs retail electricity price

  21. Gas CHP incentives Genuine value • CPS relief for on-site power (April 2015) • CCL relief for on-site power and all fuel • Enhanced Capital Allowances • Feed-in tariff for <2kW CHP Level playing field • CPS relief on fuel for heat generation • Business rates exemption • CHP heat treatment under EUETS • Embedded benefit

  22. What is district heating?

  23. District heating is technology neutral

  24. Heat as part of an integrated energy system

  25. District heating market Potentials from Pöyry/AECOM for DECC (2009) • ~50,000 dwellings on modern DH schemes • New build and retrofit planned projects will deliver a further 50-60,000 dwellings Modern DH schemes • 3 to 8 million dwellings • 15-26M m2 non-domestic floor space • Requires ‘de-risked’ cost of capital (3.5% SDR) and comprehensive application of carbon price Block heating refurbishment • 377,000 dwellings in England on ‘district heating systems’ ≡ 2% of dwellings • Includes both large and building-level schemes Campus Schemes Universities • Completed: 32 • Planned: 17 Hospitals • Completed: 64 • Planned: 20+? CHPA Survey: Modern DH Schemes • 108 completed schemes: >50,000 dwellings & ~900,000m2 commercial • >50 schemes planned: ~50,000 dwellings and 350,000m2 commercial

  26. The growth of UK district heating Established with growth potential • Olympic Park and Stratford City (Cofely) • Barbican Arts Centre (Eon) • Guildhall, Bastion House and London Central Markets (Eon) • PDHU Emerging • Leicester City Council (Cofely DE) • Newport City Homes Limited • Manchester – Media City (Cofely) • Newcastle - Riverside Dean (Vital) • Stoke (tbc) • Association of Greater Manchester Authorities • Birmingham (Cofely) • Nottingham (Enviroenergy) • Shetland Heat, Energy and Power • Southampton City Council (Cofely) • Woking (Thameswey) • Sheffield (Veolia & Eon) • Milton Keynes (Thameswey) • Aberdeen (Aberdeen Heat & Power) London • Bloomsbury Heat & Power (Cofely) • Whitehall (GPS/Cofely) • Dalston Sq (Eon) • Greenwich Millennium Village (Eon) • Bunhill (Islington BC)

  27. Local Authority-led development • Energy master planning • Planning requirements • Public buildings and social housing • Brokering, procuring, operating, owning heat networks • ECO delivery

  28. Industry Initiatives

  29. Independent Heat Customer Protection scheme • Consultation now concluded • Voluntary scheme aims to launch by December 2014 • Will set minimum standards for heat suppliers and customers • Customer service and reporting a fault or emergency • Joining and leaving procedures • Heat bill, heat charge calculations and heat charge comparator • Paying the heat bill and payment difficulties • Disconnection and re-connection process • Complaint handling and independent adjudication • Privacy policy and data protection

  30. Heat Network Code of Practice • CIBSE and CHPA developing minimum technical standards for heat networks • Proposals currently out for consultation • Addressing issues related to the often too fragmented stages of delivery of a network

  31. New small-scale CHP guidelines • CHP only provides benefits when it is installed and operated properly • Reputation risk to all parts of supply chain • Read and use CIBSE’s AM-12 Guidance • Energy audit to see if CHP right solution • Use reputable CHP supplier, with long-term O&M contract • Design properly to use CHP’s efficiency, low temperatures • Create a handover strategy with building users

  32. Heat 2014 5th November Hotel Russell, Russell Square, London The UK's only heat-specific energy conference Find out more at www.heatconference.co.uk

  33. Further questions?Thank you Jonathan.graham@chpa.co.uk

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