Micro-CHP Organising the Future: UK example Ian Manders CHPA 30 May 2008
Why is the UK a good prospect for mCHP? Little competition from District HeatingLittle competition from District Heating Widespread natural gas networkWidespread natural gas network Old houses hard to insulateOld houses hard to insulate
Rising Gas Prices Double price of energy in UK and lose only 10% of demand
emerging in the UK… PAS 67 – benchmarking exercise MCS (“voluntary” Microgeneration Certification/Accreditation Schemes) re mCHP and CERT - Industry concerns £ etc “Positive” Govt (BERR) report 2 June R 3 Project…
CHPA R 3 Project UK micro-CHP “Roadmap” = Industry Delivery Plan Brings “fragmented” industry together “Confidential” survey of stakeholders 4 energy suppliers (utilities) 4 appliance manufacturers 2 fuel cell developers 6 micro-CHP developers
CHPA – some UK member views Protection against “cowboys” is provided by UK energy suppliers needing to protect brand reputation Very high performance requirements could be prejudicial against some (cheaper) technologies Want level playing field with heat RE eg heat-pump Believe the market will eliminate weaker products
Next Steering Group Findings of survey, and other issues eg Reputation management Government relations Routes to market Discuss any recommendations Decide the next steps CHPA R3 Project NEXT STEPS…
More information Ian Manders CHPA Tuesday 20 May 2008
What happens when a new technology is developed? Many manufacturers competing All different types of product whose only similarity is that they are broadly alike in function Reliability issues! Prices high – only attractive to “early adopters” – usually rich Product produced at a loss, cost, or v small margins Therefore maybe Govt incentives* to encourage the establishment of the new technology *Govt incentives usually demand a “standard”
What happens when a new technology matures? Many manufacturers drop out, leaving a few “winners” Product becomes “standardised” in function and form – and comparable And reliable! Prices drop – available to many Govt drops incentives as technology becomes commercially viable
Govt incentives means creating a standard Govt thinks this lessens risk eg “Minister, you spent half a million pounds on this product, and it is rubbish” Means they can compare products – or so they think Provides a threshold to help ration spending