UK mCHP industry activity

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UK mCHP industry activity
Gas Industry micro CHP workshop

• Martin Orrill
• Head of Technology and Innovation
• British Gas New Energy
• 29 May 2008

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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

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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
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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!)
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The mCHP policy agenda.

• Reducing energy use energy efficiency and
  behavioural change
• CERT and the Suppliers Obligation
• Smart metering
• EPCs
• ESCOs
• 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

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How will this be achieved?

• Effort across the economy - Energy will play a
  big role
• Renewable target may not make sense but its
  there!
• Downstream
• Energy efficiency,
• Behavioural change
• Microgeneration - Heat

mCHP can impact all the downstream factors,
division of effort needs to be agreed
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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.

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Current market place for Microgeneration in the
UK.
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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
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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
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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
  !