Low carbon heat full of challenges and opportunities

Transcription

1 Delta Energy & Environment Ltd Registered in Scotland: No SC Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS, UK Low carbon heat full of challenges and opportunities Smart Grids Europe, Amsterdam Jon Slowe (Director), 10 October 2012

2 Delta Energy & Environment Delta provides: Market expertise Commercial insight Strategy & tactics Clients: Energy companies Manufacturers Finance sector Policy makers Research includes: ASHP Innovation Monitor Service HEMs MCS Micro-CHP Service 2

3 Why heat? Design point for heat delivery system Design point for electricity delivery system Source: Energy Technologies Institute,

4 Heat Every year, over 40% of the total energy consumed in Europe is used for the generation of heat. Household energy consumption by end-use in the EU

5 % share of heating market What is low carbon heat? New low carbon heating solutions (electric HPs, solar, mchp, gas HPs, hybrids, biomass etc) Traditional fossil-based heating solutions (oil, gas, LPG, electric) Illustrative 5

6 Carbon intensity of heat (g/kwh) Carbon intensity of heat in the UK Extract from Delta-ee Domestic Heat Pathways Report for Energy Networks Association Customer Choice Scenario 0,5 0,45 0,4 0,35 0,3 0,25 0,2 0,15 0,1 0, Source: Delta-ee,

7 How can they be mitigated? Stop! You can t do this! Our networks will be fried! It won t happen oh, it has happened and now we have to spend to cope Let s roll-out electric heat pumps to decarbonise heat. Oops, either the lights go off on a cold winter evening or households are cold Let s investigate smart solutions and build a tool kit to live with a low carbon heati future 7

8 Discounted Totex in bn Re-enforcing the low voltage distribution network Extract from Delta-ee Domestic Heat Pathways Report for Energy Networks Association Customer Choice Scenario Electrification High heat electrification & HN Balanced Medium heat Transition electrification` Customer Low heat electrification Choice BAU Incremental Top Down Source: Delta-ee, EA Technology, Energy Networks Association 8

9 Selected smart heat pump trials across Europe 9

10 It can be hard to decouple heat pump operation from the timing of thermal demand 10

11 Case Study #1 Pre-emptive control of HPs in Switzerland A cheaper electricity tariff if you let us switch off your heat pump Heat pumps switched off typically 2 x 1 hour each day Most homes have under floor heating -> thermal storage >100,000 heat pumps controlled in this way 11

12 Proportion of heating market (excluding Case Study #2 Flexible heat pump operation in Denmark Key partners district heating) 100% 80% 60% 40% 20% 0% Source: Dansk Energi, Energinet.dk, Delta Energy & Environment Heat Pumps Biomass Boilers Oil Boilers Gas Boilers Number and type of trial sites homes will be used as trial sites. The homes are self-selecting given an option of being included in the trial, and receive ~5% off their standard electricity tariff. The aim is to have a wide array of housing types with the focus being on retrofit properties. Some buildings have large thermal storage tanks of L, while some have none 12

13 Case Study #3 Electricity hydrogen CHP in Denmark Heat for the home Wind - hydrogen Hydrogen storage Hydrogen to fuel cell Power for the home Power to the grid A Rolls Royce solution Massive demand side flexibility But not cheap, and needs space -> rural areas Fuel cells run on hydrogen (not reformed natural gas) 13

14 Case Study #4 Virtual Power Plants in Germany Challenges 1. Cost of communication and control system -> persuade manufacturers to bring out smart ready heat pumps 2. Volumes -> one residential heat pump provides a few kw of flexibility 3. Customer proposition 4. Monetising the flexibility 14

15 Messages for DSOs and the electricity value chain 1. Don t forget about heat the heat revolution is coming Heat pumps Micro-CHP 2. Flexibility is the key 3. We re at the beginning of the learning curve 4. Be pro-active, not re-active Downloads available at jon.slowe@delta-ee.com,