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The Future of Heating:
Meeting the Challenge
i-STUTE Breakfast Forum - June 2014
Heat: Meeting the Challenge
• Targets
• Scale of the challenge
• Our plan to meet the challenge
• Conclusions and questions
2 The Future of Heating: Meeting the Challenge
Ambitious targets to reduce emissions
80% reduction in UK’s GGE by 2050
o 34% reduction by 2020
o Buildings will need to be virtually zero carbon by 2050
Binding commitment to increase renewable energy use
to 15% by 2020
o Renewable heat could contribute approx ⅓ of this
target
o To make that contribution around 12% of our total
heat demand in 2020 would have to come from
renewables
3 The Future of Heating: Meeting the Challenge
The heat challenge from a Government
perspective…
4 The Future of Heating: Meeting the Challenge
More energy is used for heating than for electricity generation
....and it causes around a third of UK greenhouse gas emissions
...
What is the plan?
1) Industrial Heat
2) Heat Networks
3) Heat in Buildings
4) Grids & Infrastructure
5 Heat: Meeting the Challenge
Rural areas
Urban areas
Prioritise energy efficiency and
behaviour change measures over the
coming decade – with all practical
cavity wall and loft insulation installed
by 2020.
Develop a package of financial, regulatory and
fiscal/market measures to secure large scale
deployment of heat pumps in homes from 2015.
Heat pumps and district heating
spread to suburban areas
Deployed to
rural areas
Industry
The Challenge Low carbon solutions Heat Strategy-
summary
4
1
3
5 million
buildings
4 million
homes
13 million
homes
4,000
sites
Com
ple
te d
eca
rbo
nis
atio
n b
y
20
50
Up t
o 7
0%
de
ca
rbo
nis
ed
by 2
05
0
7 The Future of Heating: Meeting the Challenge
• 73% of industrial energy demand is heat
• Industrial energy use has gone down
substantially over the past 40 years
• Industry uses natural gas, coal/coke, electricity, biomass and other (refinery gas, coke oven gas, etc)
• Some industrial sectors emit carbon from their manufacturing process itself
Industrial Heat
Progress – Industrial Heat
8 The Future of Heating: Meeting the Challenge
• Draw up sector-specific ‘low carbon
roadmaps’ for each key industrial sector,
working with BIS and industry
• A techno-economic study on industrial CCS
to help better understand the necessary
technologies and costs
• A techno-economic study on the amount of
recoverable heat available from UK heat-
intensive industry to inform the 2014 RHI
policy review
• Development of bespoke support for new
natural gas CHP
Parsons Brinkerhoff
appointed, 5 sectors
underway
Study published,
Teesside City Deal project
also being supported
Study has been
published
70% through project;
will report to Ministers in
early summer
9 The Future of Heating: Meeting the Challenge
Heat Networks
• ~2000 networks serve ~210,000 dwellings and 1700 commercial and public buildings
• Could allow us to benefit from many sources of heat such as: • CHP • Deep geothermal • Large heat pumps • Waste industrial and commercial heat
• Could be cheaper than electrically driven
options
Progress – Heat Networks
10 The Future of Heating: Meeting the Challenge
• HNDU established and allocating
development grants for LAs (£6m - 2 yrs)
• Nov 2013: 1st round of LA funding bids
• 97 expressions of interest from LAs
• 31 applications from LAs, for 54 different
network plans
• Jan 2014: 1st Round winners announced –
26 LAs receive £1.9m
• March 2014: 2nd Round winners
announced - 24 LAs receive £2.1m
• 3rd Round open for applications
11 The Future of Heating: Meeting the Challenge
Heat in Buildings
• Emissions from buildings will need to be near zero by 2050
• ~27 million households in the UK; 1.8 million non-domestic buildings
• Domestic heating accounts for 23% of UK energy demand
• 1970 <25% of homes had central heating – 2010 ~90% of homes have central heating
Progress – Heat in Buildings
12 The Future of Heating: Meeting the Challenge
Further modelling confirms the importance of low carbon heat networks in
areas of dense heat demand, and on-site renewable heating in rural off grid
areas. Some forms of gas heating may still be helpful out to 2050. The role
of biomass and biogas remains questionable
Renewable Heat Incentive: world’s first long-term financial support programme for renewable heat.
RHI for non-domestic properties launched Nov 2011 4,320 accreditations to the scheme with 802 MW of
installed capacity 1.223 TWh of eligible heat have been generated. Over £58 million in tariff payments had been made.
RHPP grants for domestic properties (launched August 2011)
Domestic RHI launched in April
Progress – Grids & Infrastructure
13 The Future of Heating: Meeting the Challenge
We cannot look at the future of heat in isolation. Questions around
natural gas, electricity, biomethane, hydrogen, storage must all be
looked at as whole-system questions.
DECC commencing “whole
system modelling” project
Green Hydrogen Standard
Review of Gas Grid Policy
underway
Winners announced in February
• Examining the strategic interaction
between lower carbon electricity
generation and heat production
• Further research to investigate the
role hydrogen might play across the
UK’s energy system
• Exploring with industry how best to
address the strategic questions
facing the gas network
• Announcing the successful Phase 2
demonstration projects for the
Advanced Heat Storage Competition
In Conclusion
14 The Future of Heating: Meeting the Challenge
• Large scale investment is required – in both heat and
electricity
• New technologies beyond those described today could
emerge
• There is considerable scope for innovation in the
domestic heating market, particularly around new
business models
