UK mCHP industry activity Martin Orrill Head of Technology and Innovation British Gas New Energy 29 May 2008 1 Gas Industry micro CHP workshop.
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UK mCHP industry activity Martin Orrill Head of Technology and Innovation British Gas New Energy 29 May 2008 1 Gas Industry micro CHP workshop
2 Current drivers of growth in microgeneration Low carbon products, technologies and services Economics: Costs falling Energy prices rising CO 2 price in power Legislative: Financial Support Planning (Merton) Zero Carbon Homes Consumer: Corporate Public Service House Builders Individual Dwellings
3 Lessons from the policy soup Increasing activity: meetings, calls, consultations, briefings Domestic/ business low-carbon agenda moving from theoretical to practical Government looking for innovation and excitement No area ignored – political haste to use every trick in the book Increasingly linked to other aspects of energy policy Variables are uncertain direction of travel is not……
4 UK targets and frameworks Kyoto Commitment 12.5% greenhouse gas reductions below 1990 levels over the period 2008-2012. Latest projections show UK emissions should be around 23% below by 2010 Domestic Climate Change Goals 2000 UK Climate Change Programme – 20% CO2 reduction below 1990 levels by 2010. The Energy White Paper 2003 – 60% CO2 reduction by 2050 Climate Change Bill – draft Bill March 2007, Bill introduced to House of Lords November 2007 – makes statutory the 60% target Climate Change Committee – may increase 2050 CO2 target to 80% The Energy Bill – implements the legislative aspects of the 2007 Energy White Paper, Commons first reading January 2008 Coming up: UK share of EU Renewable Energy target and post-Kyoto commitment Policy framework needs to be re-drawn (again!)……
5 The mCHP policy agenda…. Reducing energy use: energy efficiency and behavioural change CERT and the Suppliers Obligation Smart metering EPCs ESCO’s CRC Personal Carbon Allowances Security of supply, fuel poverty, green collar jobs De-carbonising for 2050 targets Engaging customers on the low-carbon journey Green tariffs Carbon offsetting
6 How will this be achieved? Effort across the economy - Energy will play a big role Renewable target may not make sense but it’s there! Downstream: –Energy efficiency, –Behavioural change –Microgeneration - Heat mCHP can impact all the downstream factors, division of effort needs to be agreed……
7 Greener and cleaner energy Making energy greener: encouraging microgeneration and DG A new support mechanism or more consultation? LCBP Zero carbon homes Merton rule planning A focus on heat: coming in from the cold Call for evidence (March 2008), further consultation expected What are the technologies What are the incentives What is the role of low-carbon electricity How can surplus heat be captured, transported and used, especially where we have a well established gas network.
8 Current market place for Microgeneration in the UK….
9 MCHP Industry activity… Carbon Trust Field Trials PAS 67 - progress Low Carbon Building programme – mCHP? UK mCHP certification scheme – mCHP? REA scheme – mCHP? BERR report planned for release 2 nd June 2008 – mCHP? mCHP at risk of exclusion through lack of products……
10 Current Manufacturer activity Baxi Stirling engine (EGOGen) Whispergen (Stirling Engine) Disenco (Stirling) Vaillant (Stirling) Remeha (Stirling) Bosch (Stirling) MTS (Stirling and SOFC in partnership with Acumentrics) CFCL (SOFC) Cerespower (SOFC) investment by Centrica Genlec (ORC unit) Significant investment and activity, volume manufacturers now entering the mCHP market……
11 Where next? Building confidence that mCHP can deliver the goods Showcasing technologies and hitting development targets Leading the debate, focusing on how, playing to our strengths Keep commercial! Keep innovative! Keep reliable! Balancing low-carbon and renewable objectives –is mCHP a renewable? Keep talking, developing and building confidence !