Downloads / Energy policy

Heat: a Challenge or Opportunity for Natural Gas ?

Professor Nigel Brandon , Director of the Sustainable Gas Institute , Imperial College Professor Nigel Brandon, OBE FREng, is Director of the Sustainable Gas Institute at Imperial College London, Director of the EPSRC funded Hydrogen and Fuel  Cell Hub, and Co-Director of the Energy Storage Hub.  He is a Panel Member of the Task Force on Shale Gas, and was previously Senior Fellow to the Research Council Energy programme, and Director for the Energy Futures Lab at Imperial College London.  Prior to joining Imperial College he held research positions with BP and Rolls Royce, and held the Shell Chair in Sustainable Development in Energy at Imperial College from 2005 to 2009. He was awarded the Royal Academy Silver Medal in 2007, the Inst Civil Engineers Baker Medal in 2011, and the ASME Francis Bacon medal in 2014.  

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Heat-challenge-or-opportunity-for-natural-gas-Brandon.pdf 2.28 MB
17th
Oct
2016

Has the Low Carbon Network Fund been successful at stimulating innovation in the electricity networks?

Dr Aidan  Rhodes, Imperial College London, United Kingdom Prof Jim Skea, Imperial College London,United Kingdom Ms Renee Van Diemen, Imperial College London, United Kingdom The UK electricity networks are currently undergoing a period of considerable change, driven by two major causes. The first is the need to incorporate increasing quantities of variable renewable generation at distribution level, as well as to prepare for increasing levels of electrification in heating and transport. The second are the new opportunities arising from the incorporation of ICT technology into the networks, including smart metering, smart appliances, demand-side participation and the development of new business models and services which facilitate active consumer engagement.   Due to these factors, there is currently a period of exceptional innovative activity in the networks sector, with substantial public funding (£81 million p.a) provided through the Ofgem-administered Low Carbon Network Fund (LCNF) and its successor the Network Innovation Competition (NIC). Funding from customer bills is funnelled through network operator-led consortia to assist the development of a culture of innovation in these organisations, a novel mechanism for public innovation stimulus both within the UK Read more…

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Rhodes-Low-Carbon-Network-Find-Innovation.pdf 1.45 MBRhodes-Low-Carbon-Network-Fund-Innovation.pdf 818.93 KB
21st
Sep
2016

Energy Barometer 2016

Deane Somerville, Knowledge Team Manager, Energy Institute The 2016 Energy Barometer Report captures insights from UK energy professionals and enables them to form the energy debate, policymakers, influencers, the industry and the public. Deane Somerville has worked in the Knowledge Team at the Energy Institute for the past three years, and has been involved in the development and production of the Energy Barometer as well as other Knowledge Service products. Prior to joining the EI, he worked in environmental consulting, focusing on contaminated site remediation. Academically, his background is in Geology as well as Energy and Environmental Technology. Deane is a Graduate member of the Energy Institute.  

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Energy_Barometer_2016-Somerville.pdf 1.35 MB
21st
Sep
2016

Effects of the proposed EU ETS Market Stability Reserve

Mr Adam Whitmore, Rio Tinto Paolo Agnolucci, University College London Phoebe Lewis, University College London There is currently a surplus of about 2 billion allowances in the EUETS during the current phase, largely arising as a result of the economic recession in Europe.  In response to this surplus the European Commission has put forward a proposal to establish from 2021 a market stability reserve, with allowances put into or drawn down from the reserve depending on the size of the cumulative surplus of allowances (EC 2014).  This is a significant innovation in the structure and potential operation of the world’s largest carbon market, with no precedent from similar mechanisms elsewhere. Although a number of authors in the academic literature have discussed and advocated the use of price stability reserves, (e.g. Murray et al 2009), a reserve is normally assumed to be activated by the price of allowances reaching a defined trigger level. The design of the EU ETS proposal is novel in that the operation of the reserve is triggered by quantity rather than price.   This mechanism has the Read more…

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Whitmore-The-EUETS-Market-stability-reserve.pdf 263.51 KB
18th
Sep
2014

Electrification of heating: the role of heat pumps

Dr Tina Fawcett, Environmental Change Institute, University of Oxford Russell Layberry, Environmental Change Institute, University of Oxford Nick Eyre, Environmental Change Institute, University of Oxford   Heating accounted for  44%  of UK national energy demand in 2011 (DECC, 2013). It is currently predominantly supplied by natural gas. However, the future of heating  is thought to be very different , with electrification expected on a grand scale. UK 2050 scenarios which meet the 80% carbon reduction target universally include an electrified heat supply. Most commonly, heat pumps are seen as the key technology, delivering 80-90% of heating.  While heat pumps can deliver low carbon energy services, given sufficient supplies of low carbon electricity, their contribution to the other energy policy goals of security of supply and affordable costs are much less certain. This paper will set out the major challenges for widespread adoption of heat pumps in the UK and worldwide, present original modelling work on the effect of heat pump adoption on electricity system peaks globally and for individual countries, discuss these findings in the context of other challenges to Read more…

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Fawcett-Layberry-Eyre-Electrification-of-Heating-v5.pdf 522.11 KB
18th
Sep
2014

Envisioning Smarter Power Futures: UK Smart Grid Scenarios

Dr Peter Connor, University of Exeter, Tom Watson, University of Westminster, Nazmiye Balta-Ozkan, University of Westminster, Colin Axon, Brunel University, Lorraine Whitmarsh, Cardiff University, Alexa Spence, University of Nottingham We present a set of socio-technical scenarios for the development of smart grids (SG) in the UK. Our scenarios examine markets and the role of new actors, consumer choices and perceptions, the importance and uses of data and information, policy drivers and barriers, investment decisions, and technological solutions for network assets. Our interdisciplinary programme integrated strong multi-stage stakeholder consultation. The UK offers an interesting test bed for smarter electricity networks in terms of policy, markets, regulation, and technology deployment. Heat and transport are expected to decarbonise through electrification, perhaps doubling demand to 2050; growth in renewable energy may improve security of supply yet introduce substantial intermittent capacity. It is unclear whether these drivers for smartness will be greater than the barriers, and the UK’s broken value chain may be a particular problem. The current network will need to become smarter, but at what rate? How can stakeholders be efficiently incentivised, and Read more…

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Connor-Envisioning-Smarter-Power-Futures.pdf 1.63 MB
18th
Sep
2014

The path to 2050: spending wisely on preparedness ?

Mr George Day, Energy Technologies Institute   Overview   The Energy Technologies Institute’s peer-reviewed model of the UK’s national energy system (the Energy System Modelling Environment or ‘ESME’), enables policy-neutral analysis of optimal energy system choices to meet the UK’s 2050 carbon targets. The ETI has used insights from ESME analysis to underpin its strategy for investing in accelerating key low carbon technologies, as well as developing a broader characterisation of potential future overlapping phases in the UK’s low carbon transition.  The phasing emerging from the ETI’s analysis can be broadly summarised as consisting of: •           An initial ‘preparedness’ phase up to the mid 2020s, characterised by investment in a process of developing and proving a portfolio of the most valuable technology options •           A ‘decide and deploy’ phase from the mid 2020s running to the 2040s, where major  decisions about infrastructure and the energy system will need to be taken, alongside delivery of more substantial investment in the roll out of technologies to cut emissions  in power, heat and transport •           A ‘next generation’ phase from the mid 2030s Read more…

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Day-The-path-to-2050-spending-wisely-on-preparedness1.pdf 651.46 KB
18th
Sep
2014

The new ‘civic’ energy sector: implications for ownership, governance and financing of low carbon energy infrastructure

Mr Stephen Hall, Sustainability Research Institute, University of Leeds Timothy J. Foxon, Sustainability Research Institute, University of Leeds Ronan Bolton, University of Edinburgh   This paper presents findings from comparative case analysis of the UK’s latent ‘civic’ energy sector with the expansion of this sector in Germany. Drawing from evolutionary and institutional economics we discuss the relative importance of local financial structures, regulation and urban political economy, in the delivery of a substantive civic energy sector. We argue that given the correct support, the civic energy sector could take a much more active stake in the prospective UK energy transition, which would materially contribute to delivering a secure and affordable UK low carbon energy future.   The way UK low-carbon generation capacity is delivered is changing. Several studies have shown the reduced dominance of corporate utility ownership, and an increasing diversity of finance actors (PwC, 2010; Nelson & Pierpont 2013). This includes greater participation from institutional investors, medium sized private companies and independent power producers. In parallel, we identify a recent growth of interest in electricity and heat generation, distribution Read more…

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Hall-The-new-civic-energy-sector.pdf 494.7 KB
18th
Sep
2014

Residential Energy Efficiency Programs in the UK: a roadmap to recovery

Dr Jan Rosenow, Ricardo AEA Nick Eyre, Environmental Change Institute, Oxford University   UK residential energy efficiency policy over the last decade is widely seen to have been relatively successful.  Significant improvements have been made to a notoriously old and inefficient housing stock, primarily through the installation of condensing boilers and retrofitting of basic insulation measures in large utility programs.  Energy demand has fallen by 20% in absolute terms.  Despite the success there has always been concern that the rate of deep refurbishment has remained low.  Seeking to address this, the UK Government has made a major change in policy in 2013.  Utility programs have been reduced in scale and are now directed entirely at low income households and the treatment of the oldest (pre-1930s) buildings.  A voluntary loan program with on-bill repayment at commercial interest rates, known as the Green Deal, has become the centrepiece of policy.  Ex ante assessments indicated that this would result in a significant reduction in the scale of energy efficiency activity.  This paper presents an analysis of early program results that are even more Read more…

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Rosenow-Eyre-Residential-energy-efficiency-programmes-in-the-UK.pdf 197.07 KB
18th
Sep
2014

Assessing the future security of the UK electricity system in a low-carbon context

Miss Emily Cox, University of Sussex   In order to meet legislative targets for mitigating climate change, future energy systems will need to become secure, affordable and low-carbon – the so-called ‘trilemma’ of sustainable energy policy (Boston 2013). In the UK, the trilemma has received growing attention as energy security concerns rise up the political and public agenda, driven by declining indigenous fossil fuel reserves and increasing concerns over anthropogenic climate change (DECC 2012; MacKerron 2009; Winstone et al 2007). As part of a growing body of research into energy security and low-carbon energy transitions, this project seeks to assess the future security of the UK electricity system in a low-carbon context.  A new 10-indicator framework for security of both supply and demand has been developed with the specific aim of making projections of the security of a low-carbon electricity system. Drawing upon recent research recommendations, the framework utilises a ‘dashboard’ approach to security analysis which is capable of identifying potential red flags for the future security of a low-carbon electricity system (Mitchell et al 2013). The project seeks to Read more…

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Cox-Assessing-the-future-security-of-the-UK-electricity-system.pdf 1.07 MB
18th
Sep
2014

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