Written evidence submitted by Professor Mark Barrett, UCL Energy Institute (DHH0145) Summary of some aspects of domestic heat decarbonisation options

Similar documents
Hybrid heat pumps. saving energy and reducing carbon emissions

Sustainable Schools Renewable Energy Technologies. Andrew Lyle RD Energy Solutions

Energy Performance Certificate

SAP 2012 IN A NUTSHELL

GREEN DEAL Saving money by understanding the Energy Agenda. Dave Princep BSc LLB MCIEH

DANISH DISTRICT ENERGY PLANNING EXPERIENCE

HEAT PUMPS A KEY COMPONENT IN LOW CARBON FUTURE

Energy Use in Homes. A series of reports on domestic energy use in England. Fuel Consumption

From today s systems to the future renewable energy systems. Iva Ridjan US-DK summer school AAU Copenhagen 17 August 2015

main heating: pre1998 ducted warm air system main heating fuel: mains gas main heating SAP efficiency: 70.0% main heating controls: programmer

Gas Absorption Heat Pumps. Future proofing your heating and hot water

ACCELERATING GREEN ENERGY TOWARDS The Danish Energy Agreement of March 2012

6 YEAR * PAYBACK A GUIDE TO DOMESTIC RENEWABLE HEAT INCENTIVE (RHI) SOLAR THERMAL SOLUTIONS

Estimated impacts of energy and climate change policies on energy prices and bills

4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies on energy prices and bills

(92 plus) (81-91) (69-80) (55-68) (39-54) (21-38) (1-20)

Low Carbon Domestic Refurbishment

FAS Training Course on Energy Efficiency / Renewable Energy

Rainwater Harvesting

Developing Small-Scale ESCo Opportunities

Domestic energy consumption in Barnet has reduced but remains higher than the British average:

Multiple sources of energy will be available, giving the consumer choices. A Higher Percentage of Energy will come from renewable energy sources

Retrofitting District Heating Systems

Information Guide. The Application of Heat Pump Boilers. Issue Eighteen >

UKERC Energy Strategy Under Uncertainties. Uncertainties in UK heat infrastructure development

ETI Response to House of Lords Science and Technology Committee Inquiry Into Resilience of Electricity Infrastructure

Energy efficiency and excess winter deaths: Comparing the UK and Sweden

OUTLOOK FOR NATURAL GAS IN EUROPE

Building a Low-Carbon Economy The UK's Contribution to Tackling Climate Change.

District Heating & Cooling

DISTRIBUTED GENERATION AND ENERGY EFFICIENCY FOR ACHIEVING ENERGY SELF-SUSTAINING INDUSTRIAL AREAS

Micro CHP (Combined Heat & Power) and its relevance to the gas industry

Feed in Tariffs for Microgeneration. Jos Mister Energy Saving Trust

Implications of Abundant Natural Gas

Levelized Cost of New Electricity Generating Technologies

Energy [R]evolution vs. IEA World Energy Outlook scenario

Netherlands National Energy Outlook 2014

MONITORING SCHOOL ENERGY CONSUMPTION

Thermal Envelopes and Heating Systems

Air-to-water heat pumps: Making the most of renewables. Richard Pickford, Daikin UK

Photo Kirklees IS SOLAR ENERGY FOR ME? A guide to going solar

HORIZON Competitive Low Carbon Energy Call. Paul Verhoef DG RTD K03/Head of Unit

tap into opportunities to develop your business

Smart Cities. Integrated approach for innovative technologies. 2nd Annual Conference of the ETP on. Budapest, 6th May 2011

Greenhouse Gas Implications of HVAC Upgrades in Multi-Unit Residential Buildings

Portfolio Manager and Green Power Tracking

Energy efficiency and consumption. Ongoing development work shared by Eurostat and the Member States

SHELL HAUSWÄRME-STUDIE. Nachhaltige Wärmeerzeugung für Wohngebäude Fakten, Trends und Perspektiven

Options for Financing Retrofits in Ireland. Brendan Nevin Director of Consumer Banking Bank of Ireland

Energy Performance Certificate

Daikin Altherma Hybrid Heat Pump

Information Guide Domestic Air Source Heat Pumps

Domestic Renewable Heat Incentive. The first step to transforming the way we heat our homes

Smart Energy Systems Energy Efficient Buildings and the Design of future Sustainable Energy Systems

POSITION PAPER KEY MESSAGES

Daikin Altherma Hybrid Heat Pump

The Solar Ice storage system

Energy Performance Certificates (EPCs) and renting homes: A landlord s guide

Private Sector Landlords. Making your properties more energy efficient

Tax treatment of Feed-in Tariffs (FITs) scheme for small-scale low-carbon electricity generation. Feed-in Tariffs

Future Heat Series Part 1 Pathways for Heat: Low Carbon Heat for Buildings A report by Carbon Connect

GENERATING YOUR OWN ENERGY. A planning guide for householders, communities and businesses

Heating technology mix in a future German energy system dominated by renewables

Generating your own ENERGY. A planning guide for householders, communities and businesses

Extra help where it is needed: a new Energy Company Obligation

Warmer Healthier Homes: A Consultation Paper on a new Fuel Poverty Strategy for Northern Ireland

Photovoltaics and Solar Thermal Energy in Germany: Market Development, Applications, Industry and Technology

1..GENERAL DATA 2. CLIMATIC DATA. Location

Greenhouse gas abatement potential in Israel

A new direction in energy?

Renewable Choice Energy

ENERGY EFFICIENCY IN POWER PLANTS

Briefing. European Strategic Energy Technology Plan (SET-Plan) and NER300

Solar Power Frequently Asked Questions

Offshore Wind: some of the Engineering Challenges Ahead

Energy Strategic Plan Los Angeles Community College District Community College League Conference

SMARTGRID Roadmap 1.

Details on the Carbon Tax (Tax for Climate Change Mitigation)

Critical Policy Options to Protect Industry Competitiveness

WORLD ENERGY INVESTMENT OUTLOOK 2014 FACTSHEET OVERVIEW

NUCLEAR FUEL CYCLE ROYAL COMMISSION. Advantages and disadvantages of different technologies and fuel sources; risks and opportunities

Fact Sheet on China s energy sector and Danish solutions

KIRKLEES. Visions and Strategies related to Energy and Climate Issues

MIDDLESBROUGH HECA PROGRESS REPORT 2015

Grants for Renewable Energy and Sustainable Projects in Schools March 2010 Update

Land East of Clitheroe Road Renewable Energy Statement

Summary technical description of the SUNSTORE 4 plant in Marstal

Setting the Scene. Fuelling the Future, Heat Pumps and more. What are the Drivers? Have we reached Peak Oil? Heating Technologies.

An overview of the energy

Danish-German Energy Efficiency Summit. Cost effective policy instruments Obligations on Energy Companies

A window of opportunity for hybrid heat pumps

Integrating renewable energy sources and thermal storage

Gas: the right choice for heating in Europe

The Energy Saving Trust s community solar programme How your community can benefit from discounted solar panels and Feed-in Tariffs

UK Government proposals on energy tax changes

Growing the Green Economy

FULL SOLAR SUPPLY OF INDUSTRIALIZED COUNTRIES - THE EXAMPLE JAPAN

Results Figure 1 Analyses the impact of three alternative methods considered for Emissions Trading EUETS Ref iii.

Energy Projections Price and Policy Considerations. Dr. Randy Hudson Oak Ridge National Laboratory

World Bank. International Review of Trading Schemes for Energy Saving, Carbon Reduction and Renewable Energy

Transcription:

Written evidence submitted by Professor Mark Barrett, UCL Energy Institute (DHH0145) Summary of some aspects of domestic heat decarbonisation options Mark Barrett UCL Energy Institute 19th April 2021 This is a summary of some aspects of dwellings, retrofit, heat supply, and implementation and financing for heat decarbonisation. Net zero emission and primary energy The assumed context is that that decarbonisation is mainly achieved with zero emission renewable (mostly wind and solar) and nuclear electricity. Fossil fuels, even with carbon capture, cause greenhouse gas emissions which would have to be balanced by absorption with commercially unproven or constrained processes. Housing form, ownership, heat load Tenure Heat

Type Owner Private rent Social by type Non-owner About 37% of dwellings are privately rented or social housing and because these dwellings are smaller than average and a higher fraction are flats, they account for about 27% of the total domestic heat demand. Conversely, the 63% owner occupied dwellings are generally larger with more external envelope and higher heat loads. There are complex relationships between dwelling type and wealth. In general, larger dwellings are owned by wealthier people but there are issues; for example, many retired people on low fixed incomes live in and own large, erstwhile family houses with high capital value and large heat loads per capita. This has implications for who can afford decarbonisation technologies. all terrace 28% 58% 26% 16% 19% 8% semi-detached 25% 75% 13% 12% 32% 8% detached 17% 93% 6% 0% 29% 2% bungalow 9% 71% 9% 20% 11% 3% converted flat 4% 27% 58% 15% 2% 1% purpose built flat, low rise 14% 27% 31% 42% 6% 4% purpose built flat, high rise 2% 22% 42% 36% 1% 1% Total 100% 100% 27% Tenure 63% 20% 17% Source: English Housing Survey, author estimates Concerning heating options: District heating can be applied to all houses with little impact.

About 80% of houses have gardens and access to environmental heat (air, ground) for heat pumps. Without gardens, environmental heat can be obtained from wall or roof mounted external units, but visual obtrusion and noise can be problematic. Space for energy storage may be limited. Hydrogen heating can be deployed in most dwellings, but a percentage are not connected to gas mains. The Grenfell fire and the changed Building Regulations (Amendment) 2018 has made the use of gas heating in high rise buildings problematic. This may also impact on lower rise buildings. Future heat and cool demand Some factors will reduce heat demand: building efficiency and climate change could have substantial impacts. Some factors may increase demand such as population and household growth, and space and hot water demand service levels. On balance, total domestic annual heat load may fall by 20-30% by 2050; but peak demands may not fall so much. Although space heating is the largest fraction, water heating with power showers causes high peak demands which are difficult to meet with heat pumps. Climate change, with perhaps a temperature increase of 2-4 o C around 2060 and more extreme heat episodes, will increase cooling needs and maybe therefore drive an expansion of residential cooling Reversible heat pumps and district heating and cooling can heat and cool, unlike hydrogen boilers. Building efficiency vs heat supply The reduction of about 80% in renewable generation costs in the past 15 years, with more reduction projected, have reduced electric heating costs and therefore changed the economic balance between retrofit and heat and energy supply. Over the past half century, deep retrofit (beyond measures such as for loft, cavity, and window efficiency) programmes have generally failed for reasons including capital financing and impact (disruption, visual amenity). Consideration might be given to more cost-effective, partial insulation of the highest heat load areas of a dwelling, such as the living room. Building efficiency will impact on the sizing of heating systems, both heat sources and emitters, this is especially important for heat pump maximum load, and the annual consumption of hydrogen. Heat supply options Heat supply options frequently proposed are forms of consumer central heating of some sort, but it is to be noted that lower energy, focused heating (and cooling) can be provided with more directed personal systems including heated/cooled panels and furniture. HP: Air or ground source consumer heat pumps. Reversible electric heat pumps can provide heating and cooling with an overall efficiency of about 250-300%. HPs can replace gas boilers when they die. Possibly later replace HPs with DH if it reaches the house. Network reinforcement will be required. Currently, millions of HPs are installed in Europe and globally. DH: District heating/cooling. Air/ground/water electric heat pumps (efficiency about 350%) may be the main heat sources but other sources are possible including hydrogen, bioenergy, geothermal, solar etc. DH can be scaled from

communal/block to city scales and can play a major role in balancing the electricity system with its storage and multiple heat sources. New heat networks will be required. Currently, millions of consumers are currently connected to DH in Europe and globally. H2: Hydrogen. [H2 can be made from natural gas but it will have relatively high GHG (CO2, methane) emissions in and outside the UK which will have to be balanced by environmental carbon capture processes which are largely unproven or constrained. Gas imports degrade energy security. ] Hydrogen with electrolysis (efficiency about 80%) using renewable electricity is zero emission. A hydrogen boiler (efficiency about 90%) would be similar to gas and does not provide cooling. Overall efficiency of electricity to heat about 75% so H2 uses four times more electricity per unit of heat than HP or DH and this increases costs and means zero emission generation capacity for heat has to be built at four times the rate. It is generally assumed that much of the existing gas distribution and consumer network can be used without substantial and costly modification: however, there are no extant H2 distribution and heating systems at scale, so technicalities and costs are uncertain. Implementation Experience with millions of consumers using HPs or DH in Europe and globally could provide useful guides to policies for these heat options. For example, in Scandinavia consumers can be offered choices of HPs or DH, with multiple tariff structures having different fractions of capital, and fixed and variable annual costs. Consumer heat pumps could replace gas boilers as they die, possibly as mandated, so the process does not have to be coordinated. HPs could possibly be replaced with connection to DHC. DH and H2 have to be implemented on an area by area basis. The economics of these will depend on the percentage uptake of consumers in the area, which might have to be incentivised or possibly mandated. Financing Zero emission systems are capital intensive as zero emission fuels like biomass are constrained, and dynamic competition, such as between gas supplies, will be more limited. Capital costs are differently distributed across the system depending on heating vector, but in all cases the bulk - more than 80% - of costs are upstream of the consumer in the system for primary production, intermediate conversion, storage and transmission and distribution. The capital costs incurred at the consumers premises will be paid by private or social landlords in 37% of dwellings, a proportion of which will be recouped through rent. Heat pumps have a higher capital cost of about 5 k at the consumer end than DH connection or an H2 boiler. One possibility is to provide a capital grant such as for EVs to cover some of this incremental cost for private owner occupiers, but like many such schemes, this may result in a cross-subsidy to wealthier people. A scheme such as the RHI is another example of reducing costs to the consumer. The investment time horizon for most system components is long. Return on investment in upstream parts of the system may need securing in some way, such as through

capacity or contract for difference payments, as currently occurs for electricity supply components such as renewable generators. It is perhaps possible to apply such mechanisms to the system components of heat supply. Future electricity supply will become increasing capital intensive. The marginal cost of supply will become more volatile, ranging from near zero when there is renewable or nuclear surplus to very high when rarely used capacity (e.g. of heat storage) is required. A question is the degree to which consumers (individual consumers, DH operators, hydrogen electrolysers, etc.) will be exposed to this volatility through electricity prices (as opposed to costs). Marginal DH and H2 costs will likely show lower volatility because of their storage or heat supply flexibility (DH). These upstream costs will ultimately be paid by consumers via tariffs for fixed and variable charges for the public supply of electricity, heat or hydrogen. These may be adjusted by public policy and regulation, such as to protect low income consumers. DH and H2 networks would not be national scale unlike electricity and gas supply and so some regulation would have to be devised or extended for these to account for less competition or variations in local systems. Using current energy prices (future gas and electricity costs are not considered) and assuming capital costs for gas heating of 5 k and heat pump 10 k, we may estimate illustrative costs to the consumer of heating options, and the percentage of average annual household expenditure these represent. We see that heat pump heating might increase consumer expenditure by 1-2% as compared to gas heating. It is to be noted that gas heating is susceptible to insecurity as imports increase, and gas price shocks such as occurred following the Fukishima disaster, and this caused problems for those on low fixed incomes, especially old people. Hydrogen made from natural gas would be more sensitive to gas price due to the inefficiency of conversion. % household Total expenditure /a annual Public supply /a Fixed Variable p/kwh Gas boiler: Eff 85% Gas 1.7% 510 95 3.4 12208 10377 415 Electricity 2.0% 593 82 17.4 2943 511 3.7% 1102 177 926 Boiler capital 0.8% 250 Total 4.5% 1352 Heat pump COP 2.5 0.0% kwh 0.0% Ele Elec non heat 2.0% 593 82 17.4 2943 511 Heat pump ele 2.4% 720 17.4 4151 10377 720 4.4% 1313 Heat pump capital 1.7% 500 Total 6.1% 1813 Heat pump extra cost 1.5% 461 Decarbonisation is likely to increase costs in the short term, and government policy will partially determine the exposure of different consumers to these capital and supply costs. Of course, short term energy system investments will mitigate climate change and its severe health, social, environmental and economic impacts which will have kwh Gas kwh heat /a

much greater costs. Unlike Covid, there is no vaccine that will stop climate change once it occurs so current investment is needed to obviate future costs. Acknowledgment The author gratefully acknowledges support from UK Research and Innovation (UKRI) through the Heat Decarbonisation Theme of the Centre for Research into Energy Demand Solutions, CREDS, grant reference number EP/R 035288/1. April 2021