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Keynote Speech Caroline Season, Senior policy advisor, low carbon energy, Defra

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Title: Keynote Speech Caroline Season, Senior policy advisor, low carbon energy, Defra


1
Keynote Speech Caroline Season, Senior policy
advisor, low carbon energy, Defra
Sponsor
2
  • Caroline Season
  • Defra, Renewables Low Carbon Energy
  • Email Caroline.Season_at_defra.gsi.gov.uk
  • Telephone 020 7238 4765

3
Agenda
  • Stern Report on Climate Change
  • 2007 Energy White Paper
  • EU Renewable Energy Directive and developing
    the UK Renewable Energy Strategy
  • Role of Geothermal in meeting UK energy and
    carbon targets
  • Call for Evidence on Heat
  • Key new initiatives

4
Stern Review
30 October 2006 Sir Nicholas Stern, Head of the
Government Economic Service and Adviser to the
Government on the economics of climate change and
development, presents his report to the Prime
Minister and the Chancellor of the Exchequer on
the Economics of Climate Change
  • Key messages
  • Given the costs of impacts, taking urgent action
    is good economics spend now (around 1 GDP) to
    save significantly more later
  • Even with strong action to reduce greenhouse gas
    emissions adaptation must be a crucial part of
    development strategy
  • Policy requires urgent and international action,
    pricing for damages from greenhouse gases,
    supporting technology development and combating
    deforestation

http//www.hm-treasury.gov.uk/independent_reviews/
stern_review_economics_climate_change/sternreview_
index.cfm
5
Energy White Paper Meeting the Energy
Challenge
  • 23 May 2007 - Energy White Paper sets out how we
    will face our two long-term energy challenges to
    2050
  • Tackling climate change by putting ourselves on
    a path to cutting CO2 emissions by some 60 by
    about 2050, with real progress by 2020 and
  • Ensuring secure, clean and affordable energy as
    we become increasingly dependent on imported fuel
  • We commit to conduct further work into the
    policy options available to reduce the carbon
    impact of heat and its use in order to determine
    a strategy for heat.


http//www.berr.gov.uk/energy/whitepaper/page39534
.html
6
Renewable Energy Strategy (RES)
  • May 2007 UK takes key role in securing
    agreement among EU Heads of Government to a
    binding target of 20 of EUs energy
    (electricity, heat and transport) to come from
    renewables by 2020
  • November 2007 PM announces plans for a 2008
    consultation on how the UK would achieve its
    renewables target and to publish a Renewable
    Energy Strategy in Spring 2009
  • January 2008 Commission issues its proposals,
    in the form of a draft Renewable Energy Directive
    (RED) and proposes the UK takes a 15 renewable
    energy target as its contribution
  • This targets covers UK electricity, heat and
    transport it is for the UK to decide how to
    apportion the split between the three (subject to
    the final agreed EU target on renewable transport
    fuel.)

http//www.berr.gov.uk/energy/sources/renewables/s
trategy/page43356.htm l
7
How can Geothermal energy contribute?
  • At very high temperatures and deep boreholes
    electricity could be potentially produced
  • Hot Dry Rock geothermal energy research
    continues in Japan, Europe, Australia and USA
  • 2006 USA (MIT) feasibility study looked at
    developing 100GW geothermal electrical capacity
    by 2050
  • At much lower temperatures, geothermal heat can
    be used for heating space and water in domestic
    and commercial buildings, and for low-temperature
    processes
  • Ground source heat pumps commercially available
    from manufacturers including Dimplex UK, Kensa,
    NIBE Energy, Ochsner Warmepumpen, Radiant Heating
    Solutions, Unico Climate Control and,
    Worcester-Bosch Group

http//geothermal.inel.gov/publications/future_of_
geothermal_energy.pdf (MIT report)
8
Renewables Obligation (electricity) Banding
proposals
9
Heat
  • Almost half of all UK's carbon emissions arise
    from the use of heat - for space and water
    heating, cooking, industrial process heating,
    industrial drying and similar purposes
  • Yet, compared to decarbonising UK electricity we
    are at a much earlier stage
  • Currently around 5 of UK electricity is from
    renewable resources, and the RO is expected to
    take this to 15 in 2015
  • But just 0.6 of UK heat supplies is renewable
  • Unlike electricity, there is no existing
    national network that can be used for easy
    distribution of renewable heat
  • Consumers are used to buying fuel (gas, oil or
    coal) or electricity and converting these into
    heat in boilers or electric heaters in the home
    or workplace change is viewed as painful, time
    consuming and risky!

10
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11
2008 Call for Evidence on Heat
  • On 31 January Call for Evidence launched by
    BERR with Defra and DCLG. Closed at end March
  • This set out Governments understanding of the
    opportunities and prospects for renewable heat
    and some of the constraints preventing greater
    use of renewable heat
  • It sought views on whether we need new
    incentives to stimulate the development of
    renewable heat what form it might take (heat
    obligation? fixed tariffs? alternatives?) and
    which options provide the most cost-effective
    solutions
  • And requested technical contributions and
    evidence on overcoming constraints, what role
    low-carbon electricity should play in heating and
    how surplus heat can be captured, transported and
    used, especially where we have a well established
    gas network
  • Responses and analysis will feed into the
    Renewable Energy Strategy and into developing our
    wider approach on heat

http//www.berr.gov.uk/files/file43609.pdf l
12
(No Transcript)
13
  • The MAC curve ranks range of technologies from
    the most cost effective to the least.
  • Bars shown below the axis save money or produce
    net benefits to society, even before the effect
    on carbon dioxide emissions is taken into account
  • Width of the bars represents the total potential
    amount of carbon emissions savings that could be
    achieved if all likely opportunities are
    exploited

14
(No Transcript)
15
MAC Curve continued
16
Planning Climate Change
  • 23 July 2007 - 'Building a Greener Future'
    policy statement confirmed our intention for all
    new homes to be zero carbon by 2016 with a
    tightening of the energy efficiency building
    regulations - a 25 improvement in energy/ carbon
    performance in 2010, moving to 44 in 2013 - up
    to the zero carbon target in 2016.
  • 17 December 2007 - Supplement to PPS1 Planning
    and Climate Change, sets out how planning should
    help shape places with lower carbon emissions and
    be resilient to climate change
  • Aims and policies within these statements to be
    fully reflected by regional planning bodies in
    Regional Spatial Strategies, by the Mayor in
    Londons Spatial Development Strategy and by
    planning authorities in their Local Development
    Documents.

17
Excerpt from Planning and Climate Change PPS1
Supplement
Renewable and low-carbon energy generation
  • 19. In developing their core strategy and
    supporting local development documents, planning
    authorities should provide a framework that
    promotes and encourages renewable and low carbon
    energy generation. Policies should be designed to
    promote and not restrict renewable and low-carbon
    energy and supporting infrastructure.
  • 20. In particular, planning authorities should
  • not require applicants for energy development
    to demonstrate either the overall need for
    renewable energy and its distribution, nor
    question the energy justification for why a
    proposal for such development must be sited in a
    particular location
  • .
  • ....
  • expect a proportion of the energy supply of new
    development to be secured from decentralised and
    renewable or low-carbon energy sources.

http//www.communities.gov.uk/publications/plannin
gandbuilding/ppsclimatechange
18
Zero Carbon Buildings and Ecotowns
  • Target for all new homes to be zero carbon from
    2016 and proposed target for new non-domestic
    buildings to be zero carbon from 2019
  • Definition of a zero-carbon home is one where
    there are zero net emissions from all energy used
    in running the home over one year includes
    heating, lighting, hot water and all electrical
    appliances
  • 3 April 2008 - Government published 15 short
    listed Eco-town locations in the consultation
    Eco-towns Living a greener future. This seeks
    the public's views on the vision for eco-towns
    and the shortlisted locations proposed
  • Ecotowns will be expected to deliver outcomes
    against seven criteria including zero carbon and
    environmental standards and design quality
    expected to be up to five eco-towns by 2016 and
    ten by 2020. Each town is to be 5,000-20,000 homes

19
Other initiatives supporting GSHPs
  • Low Carbon Buildings Programme (LCBP) -
    Governments 86m grant programme for
    microgeneration technologies, runs to 2009
  • The Carbon Emissions Reduction Target (CERT
    whereby energy suppliers have a target to promote
    and deliver energy efficiency measures to their
    customers) started supporting microgeneration in
    April 2008
  • Microgeneration installations (including ground
    source heat pumps) became permitted development
    (i.e. removing the need for specific planning
    consent, providing criteria were met ) from on 6
    April 2008
  • Microgeneration Certification Scheme has
    recently been launched and will provide UK
    consumers with independent certification of
    microgeneration products and services
  • Lack of information is a big barrier. The
    expanded Energy Saving Trust Act on CO2 /
    Green Homes Service will include information
    and advice about microgeneration for
    householders.

20
Help us to shape energy policy
  • Respond to the UK Renewable Energy Strategy
    consultation due to be launched in June
  • Latest details on its developments including
    the consultation document when launched - are
    available at
  • www.berr.gov.uk/energy/sources/renewables/str
    ategy/page43356.html
  • Please feel free to respond to just 1 or 2
    questions on the areas you are interested in
    evidential data and new ideas are particularly
    welcome!

21
  • Caroline Season
  • Defra, Renewables Low Carbon Energy
  • Email Caroline.Season_at_defra.gsi.gov.uk
  • Telephone 020 7238 4765

22
Session 1How Ground-Source Heat Pumps Fit into
the Governments Plan
Sponsor
23
Chair Opening Comments Karl DrageChairman,
Ground Source Heat Pumps Association
Sponsor
24
Dr Penny Dunbabin Energy efficiency analyst,
Department for Environment, Food Rural Affairs
Sponsor
25
EEC and Beyond
CARBON EMISSIONS REDUCTION TARGET (CERT)
GEOTHERMAL DRILLING CONFERENCE 30/04/2008

Penny Dunbabin, Defra
26
CERT 2008-11 where we are now ?
  • Extensive informal consultation since early 2006,
    statutory consultation in May 2007
  • Constructive input from all sectors of the energy
    efficiency industry
  • CERT Order approved by Parliament in January 2008
  • CERT comes into force in April 2008.

27
CERT objectives
  • Energy suppliers must meet targets for reducing
    carbon emissions in the household sector in GB
  • Primary aim to make a significant contribution to
    UK targets to cut CO2 emissions
  • Through priority group of low-income and elderly
    consumers, CERT will lift some people out of fuel
    poverty

28
EEC so far
  • EEC1 (2002-05) will deliver around 1.1MtCO2 a
    year by 2010 and generated an estimated 600m
    investment in energy efficiency
  • EEC2 (2005-08) expected to deliver around 1.8
    MtCO2 annually by 2010 and generate around 1.2bn
    investment in energy efficiency
  • Suppliers achieved savings in excess of overall
    EEC2 target

29
Scale of CERT target
  • Overall target on all suppliers 154 million
    tonnes of carbon dioxide (MtCO2)lifetime
  • Equivalent to annual net savings of 4.2 MtCO2 by
    2010
  • Broad doubling of activity over EEC2

30
CERT activity
  • Measures to improve energy efficiency
  • Microgeneration measures
  • Biomass community heating and CHP
  • Measures for reducing energy consumption

31
HOW DOES IT WORK?
  • Each energy supplier has a target of lifetime CO2
    savings to reach.
  • The supplier can reach this target by any
    approved measure they wish.
  • Each measure (eg insulation, ground source heat
    pump) has a lifetime CO2 saving score attributed
    to it. These scores depend on the size and the
    heating system of the property in which it is
    installed.
  • The system is administered by Ofgem.

32
Priority group obligation
  • Suppliers must focus at least 40 of carbon
    savings on the priority group
  • Represents a 60 increase in activity aimed at
    low-income consumers under the EEC2

33
Priority group composition
  • Those in receipt of income-related and disability
    benefits
  • Those in receipt of child tax credit or working
    tax credit, subject to income, or pension credit
  • Those who are least 70 years old

34
Innovation
  • Government wants CERT to encourage and support
    innovation
  • Two key approaches
  • demonstration action
  • market transformation action

35
Demonstration action
  • To support trials of innovative activity where
    carbon savings cannot yet be attributed for
    example behavioural measures
  • Is an action which is reasonably expected to
    promote a reduction in carbon emissions
  • Suppliers must provide Ofgem with detailed
    information about a proposed project, including
    its estimated cost

36
Demonstration action (2)
  • Ofgem will determine the nominal carbon savings
    to be attributed to the project using a
    translation factor based on the estimated cost of
    promoting and monitoring it (Cost divided by 18
    gives lifetime tonnes of C02 to be credited)
  • Since actual carbon savings will be uncertain,
    suppliers can meet no more than 6 of their CERT
    obligations by demonstration action

37
Market transformation action
  • Continues the EEC2 approach by providing a 50
    uplift for innovative activity to which carbon
    savings can be attributed
  • To ensure that innovative measures under EEC2
    continue to be supported
  • To encourage suppliers to bring forward new
    measures for CERT

38
Market transformation action (2)
  • Uplift applied to actions that were not promoted
    under EEC1 and which achieve a significantly
    greater reduction in carbon savings than similar
    actions
  • Ground source heat pumps, and air source heat
    pumps are eligible for the market transformation
    uplift.
  • Solid wall insulation and micro-CHP are
    specifically included
  • To limit reduction in carbon savings, suppliers
    can meet no more than 6 of their CERT
    obligations by market transformation activity

39
Innovation threshold
  • Ring-fence of 6 applies to a combination of
    demonstration activity and market transformation
    activity open to suppliers how they combine
  • Where a supplier promotes microgeneration
    measures for at least 2 of its obligation, the
    overall ring-fence is increased to 8

40
Priority group flexibility
  • CERT has a new option for suppliers to meet part
    of their priority group obligation. This will
    potentially increase the number of households
    removed from fuel poverty
  • Suppliers can focus measures that are more likely
    to remove households from fuel poverty on those
    households that are more likely to be in fuel
    poverty

41
Priority group flexibility (2)
  • Measures receive an uplift, so more comparable to
    other PG measures to promote
  • ground source heat pumps 245
  • internal solid wall insulation 95
  • external solid wall insulation 175
  • Solid wall insulation must lower the U-value of
    the walls to 0.5W/m2K or less

42
Priority group flexibility (3)
  • Households ground source heat pumps can be
    promoted to private sector households off the gas
    grid solid wall insulation to households on or
    off the gas grid
  • For reasons of equity to all PG consumers,
    suppliers can use the flexibility option to meet
    no more than 12.5 of their PG obligation

43
CERT AND GROUND SOURCE HEAT PUMPS (1)
  • There is no target for any individual technology.
  • Both individual and community ground source heat
    pumps are eligible for CERT support.
  • The carbon saving score depends on the heating
    system displaced. Displacing electric or oil
    fired systems means a higher carbon score.

44
CERT AND GROUND SOURCE HEAT PUMPS (2)
  • Ground source heat pumps are eligible for a 50
    uplift in their carbon score. (Market
    Transformation Activity).
  • If suppliers choose to use the Priority Group
    Flexibility option, then a ground source heat
    pump installed under this option is eligible for
    a 245 uplift in score.

45
For further information
  • The Explanatory Memorandum to the CERT order can
    be found on the OPSI website
  • http//www.opsi.gov.uk/si/si2008/draft/em/ukdsiem_
    9780110805306_en.pdf

46
Supplier Obligation
  • DEFRA is currently looking at future policy in
    this area, notably the Supplier Obligation, which
    will run from 2011-2020.

47
LIST OF SUPPLIERS
  • British Gas
  • EdF
  • E.ON
  • Npower
  • Opus Energy
  • Scottish Power
  • Scottish Southern
  • Telecom Plus

48
Session 1How Ground-Source Heat Pumps Fit into
the Governments Plan
Sponsor
49
Dr John AldrickHead office water
resources,Regulation manager, Environment Agency
Sponsor
50
Ground Source Heat PumpsA regulators perspective
  • Dr John Aldrick
  • HO Water Resources Regulation Manager

51
Environment Agency Policy on Renewables
  • The Agency strongly supports the Governments
    targets for the use of renewable energy. (10 -
    2010, 20 - 2020)
  • BUT
  • The Agency recognises both potential benefits
    environmental impacts of some renewables
  • eg Ground Source Heat Pumps, Hydropower
  • The Agency seeks to work constructively with
    industry to balance the benefits/impacts of
    renewables

52
GSHP - What are the problems?
  • Exploitation of heat not covered directly in
    legislation
  • Impact on the environment
  • Impact on others
  • Heat as a pollutant
  • What are the controls
  • Abstraction licences
  • Discharge consents

53
B
A
Third party abstractions eg other heat pumps
Warm water plume
GSHP system with abstraction and discharge
boreholes. System is in cooling mode. No direct
link between building system and heat-pump system.
Warm water discharged to aquifer.
Heat plume
54
Agency regulatory regime
  • Strong legislative and environmental constraints
    which guide us
  • eg Water Resources Act 1963,1999 Water Act 2003
  • Water Resources permit
  • Abstraction Licence/sec 158 agreement
  • Discharge consent
  • GSHP may require both WR and Discharge permit
  • Most GW abstractions only have WR permit

55
Controls - abstraction
  • Abstraction licence (open loop)
  • Must have a permit if abstraction gt20cu.m/d
  • Volumes specified
  • Time limited licence normally 12 years
  • Need to link abstraction discharge permits
  • conditions or sec 158 agreement (especially
    where resources are under stress)
  • Presumption of renewal
  • Continued need, environmental impact, efficiency
  • Environmental Assessment
  • No abstraction no permit required (closed loop)

56
Controls - discharge
  • Discharge consent
  • Heat is a potential pollutant
  • Heat not in legal definition of pollution
  • Temperature conditions can be put on discharge
    consent
  • Volume not usually specified (but may require
    monitoring where linked to abstraction permit)

57
Control of pollution
  • Pollution
  • Construction issues
  • Drilling through contaminated land
  • Cross connecting aquifers
  • Operation issues
  • Loss of refrigerant
  • Works notice WR or GW

58
Issues
  • Thermal interference
  • Impact on others
  • Cyclic heating/cooling
  • Groundwater modelling of thermal plumes
  • Monitoring of temperature/plume
  • Legal issues
  • Legislation not designed for GSHP
  • When things go wrong?

59
Do we need to do anything?
  • No problem no legislation change
  • 40 years to remove some WR exemptions
  • Improve guidance?
  • Improve modelling?
  • Improve science?
  • Very specialist technical area mainly urban
    sites
  • Mostly London?

60
Similarity to Hydropower
  • Good Practice Guide being developed by
    EA/Hydropower Working Group
  • Aims to
  • provide Agency/developers with a consistent
    approach, common language and practical advice
  • clarify the Agency position and promote awareness
  • But it wont
  • answer all your Hydropower development issues
  • Agency Hydropower Manual(2003) available on
    website

61
Environmental site list audit
  • Checklist indicates factors that need to be
    considered
  • Red boxes need further work
  • Notes provide further guidance
  • Water Resources
  • Conservation
  • Chemical/physical water quality
  • Biological Water quality
  • Fisheries
  • Flood Defence

62
Applicants should expect the Agency to
  • Provide clear guidance on the licensing process
  • Highlight key issues for environmental assessment
  • Have an understanding of ground source heat pumps
  • Provide information it has available
  • Be consistent
  • Provide timely responses, with explanations

63
Applicants should not expect the Agency to
  • collect and analyse supporting data
  • carry out the environmental assessment
  • accept inadequate data or assessments
  • give a binding view based on incomplete
    information
  • design the scheme
  • contravene its statutory duties

64
The Agency expects the applicants to
  • to know their site, its environment and their
    objectives for the scheme (background)
  • consider and design their proposals carefully
  • consider options/alternatives
  • make early contact with the Agency and continue
    such throughout the process
  • appreciate the legislative and other constraints
  • provide quality, focused environmental
    assessments
  • provide appropriately detailed plans and drawings
    to support any applications

65
Session 1How Ground-Source Heat Pumps Fit into
the Governments Plan
Sponsor
66
Jonah AnthonyPolicy director, Micropower Council
Sponsor
67
GeoThermal Live, Peterborough Wednesday, 30th
April 2008
The Road to 2016 Using Merton to Achieve Zero
Carbon
68
Jonah Anthony Policy Director Micropower Council
69
Heat Generating Technologies
70
Electricity Generating Technologies
71
(No Transcript)
72
Why bother with regulation and policy, isnt it
all too complex and costly?
Because it is the key driver for markets in the
home heating sector.
73
Building Regulations the condensing boiler
experience
Source SBGI Published Boiler Sales Statistics
74
Zero Carbon Agenda
  • Zero Carbon Homes 2016
  • Zero Carbon Schools 2016
  • Zero Carbon Public Buildings 2018
  • Zero Carbon Buildings 2019

75
Matrix of policies
76
Merton Rule
  • Allows local authorities to set on site energy
    generation targets for new developments
  • Michael Fallon MPs Bill protects that right in
    law
  • Sends a strong message that we want sustainable
    development

77
170 boroughs in England have now adopted the
Merton rule, or are in the process of doing so
78
Merton Rule
  • Zero Carbon is only an aspiration. Merton Rules
    are actual obligations.
  • Makes developers start thinking about on site
    generation now (and not on the eve of 2016).
  • Raises awareness and understanding (builders,
    architects, planners)
  • Builds up the necessary supply chain and
    commercial relationships.

79
Definitions
  • CLGs Code definition
  • Treasury definition
  • Developers concerns on definition looking at
    changing it

80
No GSHP because developers go for hassle free
buy-out / off-site solution
No GSHP because zero carbon target abandoned
81
Advice
  • Get involved with the policy and regulation
    debates
  • Make it happen now under the Merton Rule
  • Publicise the fact that you have made it happen
    counter myths
  • Increase consumer confidence (responsible
    selling, certification, robust performance
    information)

82
www.micropower.co.uk
83
Session 1How Ground-Source Heat Pumps Fit into
the Governments PlanQ A
Sponsor
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