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Micro-CHP Organising the Future: UK example Ian Manders CHPA 30 May 2008

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 Heating Widespread natural gas network Old houses hard to insulate. Rising Gas Prices. Double price of energy in UK and lose only 10% of demand.

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Micro-CHP Organising the Future: UK example Ian Manders CHPA 30 May 2008

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  1. Micro-CHPOrganising the Future:UK example Ian MandersCHPA30 May 2008

  2. Why is the UK a good prospect for mCHP? • Little competition from District Heating • Widespread natural gas network • Old houses hard to insulate

  3. Rising Gas Prices Double price of energy in UK and lose only 10% of demand

  4. 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 • R3 Project…

  5. CHPA R3 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

  6. 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

  7. CHPA R3 Project NEXT STEPS… Next Steering Group • Findings of survey, and other issues eg • Reputation management • Government relations • Routes to market • Discuss any recommendations • Decide the next steps

  8. More information ian.manders@chpa.co.ukIan MandersCHPATuesday 20 May 2008

  9. 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”

  10. 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

  11. 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

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