Microgeneration. Prospects, Policy and Perspectives. Presenter: Adam Hawkes, Grantham Institute for Climate Change, Imperial College London

Transcription

1 Microgeneration Prospects, Policy and Perspectives Presenter: Adam Hawkes, Grantham Institute for Climate Change, Imperial College London Contributors: D.J.L. Brett, University College London P. Baker, University of Exeter J. Barton, University of Loughborough R. Blanchard, University of Loughborough N.P. Brandon, Imperial College London D. Infield, University of Strathclyde C. Jardine, University of Oxford N. Kelly, University of Strathclyde M.A. Leach, University of Surrey M. Matian, Imperial College London A.D. Peacock, Heriot Watt University I. Staffell, University of Birmingham S. Sudtharalingam, Imperial College London B. Woodman, University of Exeter

2 The Residential Sector Source: Adapted from DUKES 2008

3 What is Microgeneration? Low carbon electricity and/or thermal energy generation suitable for residential dwellings Electricity < 16 Amps/phase 3.7kW e Thermal up to 30kW th Customer side of the meter. Demand side resource. Alternative definitions exist, encompassing capacities up to 100kW e, and applications in commercial premises, etc.

4 Microgen Technologies

5 Key Barriers Typical Capacity Current Approx. Installed Cost Market Status Main Issues Low-Carbon Heat Technologies Biomass Room Heater Biomass Boiler Air Source Heat Pump Ground Source Heat Pump <5kW th 2,000-3, kW th 6,000-10, kW th 2,500-7,500 10,000-15,000 Solar Thermal 1.5-3kW th 3,200, with wide variation Small commercial Large commercial (small in UK) Large commercial Cost, Fuel supply chain, Awareness Awareness, Cost, Not suitable for all dwellings Cost Micro-CHP Technologies Stirling Engine 1kW el 5-13kW th 3,000 (with subsidy) Late Demonstration Electrical efficiency Internal Combustion Engine 1kW el 3kW th 3,500 in Japan Small commercial Cost, Few developers for household scale Fuel Cell 0.7-1kW el 0.5-3kW th 15,000+ in Japan Demonstration moving to commercialisation Cost, Durability Renewable Electricity Generation Technologies Solar PV 1-2kW el 5,500/kW el Commercial Cost Micro-Wind kW el 2,000+ Small commercial Lack of appropriate locations (i.e. energy output), planning permission Source: I. Staffell, J. Barton, D.L. Brett, et al, Review of Microgeneration in the United Kingdom. Part 2: Technology Overviews, Proceedings of the Institution of Civil Engineers (Energy) Forthcoming.

6 The Influence of Policy Support Technology Estimated Installed Cost, including VAT at 5% ( ) Estimated LCBP Grant Support ( ) Estimated CERT Support assuming 20/tonne CO 2 value to Supplier ( ) VAT Reduction from 17.5% to 5% ( ) Total Public Support ( ) Estimated Lifetime CO 2 Emissions Reduction (tonnes CO 2 ) Public Cost of CO 2 Saved ( /tonne CO 2 ) Payback Period with Government Support (years) 1kWe Solar PV $ 5,500 2, , kWe Microwind 1, > Biomass Boiler β 10,000 1, ,190 4, to Heat Pump^ (GSHP) 10,000 1, ,190 3, Low HPR # Micro-CHP 4,000 * 500* 200* 476 1,176 10* High HPR # Micro-CHP 3,500 * 500* 100* 417 1,017 5* Solar Hot Water α 3, N. Bergman, A.D. Hawkes, D.L. Brett, et al., (2009), Review of Microgeneration in the United Kingdom. Part 1: Policy and Behavioural Aspects. Proceedings of the Institution of Civil Engineers (Energy) 162 (1)

7 Policy Instruments FINANCIAL INSTRUMENTS Feed-in Tariff (Energy Act 2008) Carbon Emissions Reduction Target (CERT) Low Carbon Buildings Programme (LCBP) VAT Reduction Income tax exemption for electricity sale revenues Stamp duty exemption for zero carbon dwellings REGULATIONS Code for Sustainable Homes (Buildings Regs Part L, SAP 2005) What is zero carbon? CLG - Definition of Zero Carbon Homes and Non-Domestic Buildings: Consultation Merton rule, EPCs Latest developments in EPBD...watch this space.

8 Perverse Incentives? The case of gas-fuelled micro-chp Feed-In Tariff Incentive 1500 Annual CO2 Emissions Reduction (kgco2/year) Onsite Generation Incentive (pence/kwh) System LHV Electrical Efficiency 0.5

9 Assessing Microgeneration Credible technology characterisation, resource availability (e.g. insolation, wind speed, etc.), temporal resolution, understanding residential demand, tariff uncertainty, metering costs, balancing and settlement logistics and cost, customer engagement, etc. A critical element is definition of the reference system. Marginal by nature Forward-looking Characterised by uncertainty

10 The Case of Gas-Fuelled Micro-CHP UKERC CAM Scenario by 2035 CCGT

11 The Interface of Technology, Policy, and Behaviour Consumer Citizen Business as Usual Economic rights (& Social opportunities) more is better Political rights voting earning responsibilities Microgeneration scenario Buy more microgeneration => smart houses, passive users Wise use & sufficiency => smart houses, smart users Table: Qualities of energy consumption and citizenship, present and possible future scenarios. Adapted from: Janda (2007) Turning Solar Consumers into Solar Citizens: Strategies for Wise Energy Use. 2007, American Solar Energy Society (ASES) Annual Meeting, Cleveland

12 Conclusions Technology and policy developing quickly -> direction required. Interactions between macro and micro Capital costs are a key barrier at present. Heating will be required in the future -> which technologies? Definition of the reference system is critical for fair assessment. The interface of technology, policy and behaviour could be leveraged to catalyse lifestyle change.

13 Thank you Further information available in: N. Bergman, A.D. Hawkes, D.L. Brett, et al, (2009), Review of Microgeneration in the United Kingdom. Part 1: Policy and Behavioural Aspects, Proceedings of the Institution of Civil Engineers (Energy) 162 (1) I. Staffell, J. Barton, D.L. Brett, et al, Review of Microgeneration in the United Kingdom. Part 2: Technology Overviews, Proceedings of the Institution of Civil Engineers (Energy) Forthcoming (2009). A.D. Hawkes, I. Staffell, D.L. Brett, and N.P. Brandon, Fuel Cells for Micro-Combined Heat and Power Generation, Energy & Environmental Science (Royal Society of Chemistry) In Press (2009). A.D. Hawkes, Feed-in Tariffs for Micro-Cogeneration: how to maximise carbon benefits, in COSPP (Cogeneration and Onsite Power Production). 2008, Penwell International Publications Ltd.