GAS FOR HEATING & COOLING. POLICY WORKSHOP 14 June 2016, European Parliament
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1 GAS FOR HEATING & COOLING POLICY WORKSHOP 14 June 2016, European Parliament 1
2 Why gas? System considerations for heating & cooling and future opportunities Eva Hennig 14 June 2016
3 Thüga Partnership Model: 10 million people, 560 cities and towns, 100 companies, one idea Working together to create energy for homes An alliance of cities and towns 560 cities and towns Active in 12 federal states Covering the communities totalling of 10 million people Cities and towns are the majority shareholders in 100 municipal utilities Corporate network: the Thüga Group Key figures* Turnover: 21.6 billion Investments: 1.0 billion Gas sales: billion kwh Electricity sales: 48.3 billion kwh Heating sales: 7.9 billion kwh Water sales: million m 3 *Status: 31. December
4 Framing the challenge of modernising the heating & cooling sector and the existing building stock Financial capabilities of owner Available Infrastructure Efficient Heating Technologies Options to reduce demand 4
5 Primary energy demand for heating [kwh/m 2 a] New buildings will hardly use any energy after The fast reduction of CO 2 emissions in the existing building stock is the real challenge Regulatory Standards (WSchV, EnEV) depending on building geometry Building Practice Nearly-zeroenergy standard Source: Fraunhofer IBP, FIW München 5
6 Only 20 % of the EU final energy consumption is electricity. For a decarbonisation of the heating market incredibly high investments would be needed Final energy consumption in EU The power grid already needs major investments even without excessive heat load 25.1% 13.8% 2.2% 31.6% 50 % of final energy is used for heating and cooling 26.8% Transport Industry Agriculture and forestry Households Services Other Map of long-term projects of pan-european relevance Source: Eurostat, European Commission, ENTSO-E 6
7 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Hourly consumption of gas and electricity in kwh/h The gas grid has been built for the seasonality of the heating demand. And it will be needed for back-up generation in the dunkle Flaute days Peak load for heating is 7x higher than for normal electricity usage Heating demand is extremely seasonal Putting all loads on a single infrastructure, e.g. electricity, requires a massive build-up of grids and additional renewable and back-up generation capacity for a low number of utilisation hours Residential gas consumer (heating + warm water) with kwh/a Residential electricity consumer (no heating, no warm water) with kwh/a Source: Thüga
8 Fast replacement of inefficient heating systems is the most economic way for achieving quick wins towards energy efficiency and climate goals Roof Insulation Costs Amortisation 44 years Energy savings 3 % Solar Thermal System Costs Amortisation 14 years Energy savings 7 % External Wall Insulation Costs Amortisation 30 years Energy savings 13 % Window/Door Replacement Costs Amortisation 32 years Energy savings 9 % Basement Ceiling Insulation Costs Amortisation 9 years Energy savings 6 % New Heating System Costs Amortisation 6 years Energy savings 25 % Source: Dekra 8
9 With the new technologies residential and industrial customers have a choice of very modern and low CO 2 appliances. And this is only the start! Gas Technology & Infrastructure Electricity System Backup generation Storage Bio-Methane High-efficient CHP Gas + Solar Micro-CHP Smart Grids Gas Heat Pumps Fuel Cells Power-to-Gas Efficiency potential Enabling prosumers Reliable generation Add-on revenues Individual Heating District Heating 9
10 Combining the existing infrastructures of gas and electricity and heating with modern technologies is the most cost effective way to 2050 Central energy world Gas-to-Power is the most flexible and CO 2 reduced way to back-up renewable electricity production Power-to-Gas opens opportunities to store excess electricity over seasons Decentral solutions Gas technologies meet the consumers needs in choice of applications, comfort and price Gas can transform consumers to prosumers 10
11 Thank you for your attention! 11
12 Contact details Av. de Cortenbergh Brussels BELGIUM Phone: eurogas@eurogas.org 12
13 GAS FOR HEATING & COOLING POLICY WORKSHOP 14 June 2016, European Parliament 13
14 H&C strategy: in our diversity lies our strength European Parliament Brussels, 14 June
15 In this presentation EU Heating Strategy against the background of EU energy and climate policy objectives; Heating technologies that can lead Europe there; Which policies to support the transition? 15
16 Heating with EU energy & climate goals EU goal: reducing greenhouse gas emissions by 80-95% compared to 1990 levels by Source: European Commission: An EU Strategy for Heating and Cooling EU energy consumption 40% in buildings 85% spent for heating & hot water Buildings in EU 90% heat demand supplied by decentralised heat 120 mil central space heaters 65% installed heaters old & inefficient (oil & gas noncondensing energy class C,D) Winbjork Dreamstime.com 40% built before ,5% rate of newbuilt in EU 9% heat demand supplied by district heating ~ 79% based on fossil fuels
17 Priority: modernise the installed stock Drive the modernisation of the inefficient (1) installed heating appliances and (2) existing district heating networks. A + 65% District heating in the EU= most systems years old, on average 10-20% heat losses (European Commission) Source: European Commission (2016), JRC (2012), KPMG (2009) 17
18 Some of the heating technologies to lead Europe there Condensing boiler Hybrid Biomass boiler Solar thermal Air/water heat pump Micro CHP Fuel cell Smart temperature control 18
19 So how can these heating solutions contribute to decarbonising the building sector? Question: Can an accelerated modernization of heating systems keep the EU on track to meet its 2030 climate targets? Focus on 2030 to provide a realistic scenario Scenario based on existing and new technologies Take into account characteristics of heating market (risk-averse consumers, affordability of new(er) technologies such as hybrids)
20 CO2 reduction to match EU targets Key elements: Increase replacement of heating systems by 25%; forward looking heating system mix: initial high share of condensing; growing shares of hybrids, heat pumps & mchp. Energy need: -12% (building envelope and ventilation system); Delivered energy: -19% (energy need reduction, solar thermal and heating system replacements); CO 2 : -18.5% (delivered energy reduction and heating system mix). For the acceleration an appropriate policy framework is required!
21 Which EU policies to support the transition? 21
22 Flexibility Awareness raising Policies need consumer focus Energy efficiency Consider differences Climate, geography, buildings Infrastructure Energy demand 1. Policies economical for consumers and society and require as little government intervention as possible 2. Policy cannot choose the winning heating solution for consumers! Energy Label new appliances installed ones Mandatory regular inspections Fiscal incentives Identify other measures!
23 Thank you for your attention 23
24 GAS FOR HEATING & COOLING POLICY WORKSHOP 14 June 2016, European Parliament 24
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