WP3: Regulation and policy

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1 WP3: Regulation and policy

2 Who is this guy? Sanghyun Hong Ph.D. in University of Adelaide Energy systems modelling using optimisation algorithms Evaluating energy systems using sustainability criteria Any other? (WAS) a mechanical engineer in manufacturing process and mechanical machining Energy storage roadmap (Supergen)

3 WP3 Overview How can policy and regulation covering electricity and heat evolve alongside a changing energy system to deploy new storage technologies at city-scale: Meta-analysis of future scenarios and energy system flexibility; Review of national and international experience; Local and national energy policy analysis; Stakeholder engagement.

4 Update Start from Oct New postdoc. is coming.

5 Meta-analysis of energy scenarios Purpose Role and value of distributed storage by 2030 Local energy system transformation Scenarios National Grid UKERC DECC

6 Meta-analysis: National Grid

7 Meta-analysis: National Grid 10.5 TWh 13.4 TWh

8 National and international experience

9 National and international experience 400 MW Flywheels (non commercial) Excluding PHS

10 Local and national energy policy analysis how local and national energy systems will interact to meet national targets is not clear and will need carefully designed policy/regulatory instruments to ensure optimisation at one level does not have perverse consequences lack of expertise within local authorities to plan for energy system transformation may hinder the deployment of energy storage integrating power and heat markets

11 EU legislation Market Legislation Organisation Local and national energy policy analysis Type Name Notes Implication Energy Technology Institute A public-private partnership that works to speed up the development and Research partnership demonstration of energy technologies and shorten the lead times to market. Innovate UK Innovate UK is the UK's innovation agency determining the science and Governmental body technology development to meet the need for economic growth of the UK EPSRC EPSRC is a non-departmental public body principally funded through the Public research funding Science Budget by the Department for Business, Innovation and Skills organisation (BIS). We employ around 230 staff in Swindon. Ofgem Ofgem is the Office of Gas and Electricity Markets to regulate and deliver the governmental schemes Electricity Act 1989 and EU Treating storage as either generators or end-users Directives Order, Interpretations paragraph 2(d) Defining the meaning of generating electricity ES does not fit into any categories Levy Exempt Certificates Electricity generated from renewable sources is exempt from CCL and most renewable technologies are eligible for LECs. Increasing renewables shares Renewables Obligation Supporting large scale renewables in the UK The Feed-in Tariff with Contracts for Operating alongside the RO, but replacing the RO in 2017 Difference (FiT CfD) Climate Change Act 2008 Promoting energy efficiency measures and renewable energy share Renewable Heat Incentive (RHI) The world s first long-term financial support programme for renewable Promoting heat pump and heat. low-car heating Air-source heat pumps: 7.3p/kWh Ground and water-source heat pumps: 18.8p/kWh Bio: 12.2p/kWh Solar thermal panels: 19.2 p/kwh The Capacity Market Offering regular payment to organisations that can guarantee to supply electricity when required Directive 2009/28/EC Promoting renewable energy sources in EU Affecting energy policies in Directive 2009/29/EC EU ETS legislation (latest amendment) the UK Energy Efficiency Directive Promoting energy efficiency by creating common framework to measure (2012/27/EU)

12 Stakeholder engagement The WP will provide detailed draft pathways to present to national and city stakeholders. Insights on barriers to achieving these pathways will be gained from a series of one-to-one semi-structured interviews and workshop, and used to refine the pathways.

13 Thanks