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UK mCHP industry activity

UK mCHP industry activity . Gas Industry micro CHP workshop. Martin Orrill Head of Technology and Innovation British Gas New Energy 29 May 2008. 1. Current drivers of growth in microgeneration. Economics: Costs falling Energy prices rising CO 2 price in power. Legislative:

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UK mCHP industry activity

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  1. UK mCHP industry activity Gas Industry micro CHP workshop Martin Orrill Head of Technology and Innovation British Gas New Energy 29 May 2008 1

  2. Current drivers of growth in microgeneration • Economics: • Costs falling • Energy prices rising • CO2 price in power • Legislative: • Financial Support • Planning (Merton) • Zero Carbon Homes Low carbon products, technologies and services • 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 2nd 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 !

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