Heat 2014 - Construction Industry Council

Report
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
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
CHP
District
Heat
Areas of focus:
Combined heat and power
Sustainable energy services
District heating and cooling
Energy
Services
A few of the CHPA members…
CURRENT AND FUTURE UK
ENERGY SYSTEM
UK Final energy use
Power
Heat (46%)
Oil
derived
fuels
Gas
Transport (41%)
Lighting and
Appliances (8%)
On-site generation helps manage costs
Industrial electricity price increases as % (20042011)
140%
120%
100%
80%
60%
40%
20%
0%
General Price Inflation
Autogenerators
Industrial Energy Users
The need for smart systems
Now
Future?
+5-9kW
+3-6kW
Customers
Vertically Integrated Player
Vertically Integrated Player
Vertically Integrated Player
Vertically Integrated Player
Vertically Integrated Player
Vertically Integrated Player
Our current energy market
Supplier Push
Decentralised
Generator
Demand-Side
Participation
Customers
Decentralised
Generator
Decentralised
Generator
Decentralised
Generator
Decentralised
Generator
ESCo
Decentralised
Generator
Decentralised
Generator
Decentralised
Generator
VIP
VIP
VIP
VIP
VIP
VIP
Our future energy market
Supplier Push
Transmission Network
Distribution Network
Demand side approaches to energy
Demand-side
measures
Lighting
HVC & DHC
Pumps
Supply-side
M
Motors
D3 services
• Demand
reduction
Fabric
• Demand
response
Behaviour
O&M
• Decentralised
generation
Controls
Electricity
THE ROLE OF CHP AND
DISTRICT HEATING
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).
Why is CHP more efficient?
CHP and security of supply
CHP provides lower costs and CO2
Costs saved
CO2 saved
£31,000
185kW CHP
539T
CO2
1MW CHP
1,200T
CO2
4.7MW CHP
3,500T
CO2
£200,000
£300,000
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
Fast-growing <2MW CHP sector
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Wholesale vs retail electricity price
16.0
14.0
12.0
10.0
8.0
Electricity
6.0
Gas
4.0
2.0
0.0
Gas CHP incentives
Genuine value
Level playing field
CPS relief for on-site
power (April 2015)
CPS relief on fuel for
heat generation
CCL relief for on-site
power and all fuel
Business rates
exemption
Enhanced Capital
Allowances
CHP heat treatment
under EUETS
Feed-in tariff for <2kW
CHP
Embedded benefit
What is district heating?
District heating is technology neutral
Heat as part of an integrated energy system
District heating market
Modern DH schemes
~50,000 dwellings on modern DH schemes
New build and retrofit planned projects will deliver a
further 50-60,000 dwellings
Block heating refurbishment
377,000 dwellings in England on ‘district heating
systems’ ≡ 2% of dwellings
Includes both large and building-level schemes
Potentials from
Pöyry/AECOM for
DECC (2009)
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
Campus Schemes
Universities
CHPA Survey: Modern DH Schemes
108 completed schemes: >50,000 dwellings &
~900,000m2 commercial
>50 schemes planned: ~50,000 dwellings and
350,000m2 commercial
Completed: 32
Planned: 17
Hospitals
Completed: 64
Planned: 20+?
The growth of UK district heating
Emerging
Established with
growth potential
Leicester City Council (Cofely
DE)
Birmingham (Cofely)
Newport City Homes Limited
Shetland Heat, Energy and
Power
Manchester – Media City
(Cofely)
Newcastle - Riverside Dean
(Vital)
Nottingham (Enviroenergy)
Southampton City Council
(Cofely)
Woking (Thameswey)
Stoke (tbc)
Sheffield (Veolia & Eon)
Association of Greater
Manchester Authorities
Milton Keynes (Thameswey)
Aberdeen (Aberdeen Heat &
Power)
London
Olympic Park and Stratford City (Cofely)
Barbican Arts Centre (Eon)
Guildhall, Bastion House and London Central
Markets (Eon)
PDHU
Bloomsbury Heat & Power (Cofely)
Whitehall (GPS/Cofely)
Dalston Sq (Eon)
Greenwich Millennium Village (Eon)
Bunhill (Islington BC)
Local Authority-led development
Energy master
planning
Planning
requirements
Public buildings
and social housing
Brokering,
procuring,
operating, owning
heat networks
ECO delivery
INDUSTRY INITIATIVES
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
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
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
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
Further questions?
Thank you
[email protected]

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