Downloads / Energy in a Low carbon economy

Heat delivery in a low carbon economy

Mr Jamie Speirs, Imperial College London The delivery of heat to end users is a strategically important part of any transition to a low carbon economy. Recent scenario modelling suggests that electricity will play a majority role in the delivery of heat and other energy services to end-users by 2050 (CCC 2008;DECC 2009;UKERC 2009). There are, however, significant issues associated with delivering a future energy system with such high utilization of electricity. This paper examines the implications of what may be described as the “all-electric” future with regards to: (i) growth in build rates associated with increasing electricity generating capacity; (ii) problems in the management of power flows and the transmission and distribution network with respect to peak electricity demand, which will be significantly increased under all-electric assumptions; (iii) implications for power flows associated with intermittency given the high penetration of renewables (Poyry 2009); and (iv) consequences for end-users through the required modification of homes, including the installation of heat pump systems, under-floor heating and insulation (Boardman 2007;EST 2009). Several of these issues are already of critical concern in the Read more…

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Heat delivery in a low carbon economy - Paper.pdf 422.97 KBHeat delivery in a low carbon economy - Presentation.pdf 994.33 KB
22nd
Sep
2010

The TIAM-UCL Global Energy Systems Model: Critical Comparison of UK and Global Climate Decarbonisation Trajectories

Mr William Usher, Energy Institute, University College London Given the limited progress achieved at COP 15 in Copenhagen, UK based policy makers and international negotiators have a need to understand the economic, environmental and technological implications of meeting CO2 emission reductions at least cost under differential levels of domestic and international policy ambition.  However, there is currently a large difference between the stated ambition in carbon reduction levels of the UK and other countries. The UK has set an ambitious long-term mitigation target of 80% CO2 reduction over 1990 levels by 2050. This can be achieved  solely through domestic reduction or in conjunction with purchasing emissions credits on the international market.  The carbon price on the international market is heavily influenced by regional and country-specific climate policy ambition. Whereas the UK has committed to a legally binding CO2 emissions target, major economic powers, such as the USA and China, have committed only to modest reductions in the carbon intensity of GDP. This paper analyses the economics of domestic CO2 reductions to meet UK’s long-term target under four global scenarios that Read more…

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22nd
Sep
2010

Prospects For LNG To Contribute To The “20-20-20” Targets As A Transition Fuel

Mr John Holding Given the EU targets – set some 3½ years ago now  – which are to be met by 2020: A reduction in EU greenhouse gas emissions of at least 20% below 1990 levels 20% of EU energy consumption to come from renewable resources A 20% reduction in primary energy use compared with projected levels, to be  achieved by improving energy efficiency - collectively known as the “20-20-20” targets – a question that naturally arises is whether there is a role for LNG (Liquefied Natural Gas) as a transition fuel or even as a component of the ultimate solution. LNG as a globally transportable, fungible fuel offers the same attributes as natural gas with the added advantage of freeing the dependence from established fixed gas pipeline supplies – e.g. Russian gas into Europe. But gas is a hydrocarbon, so it contributes to GHGs, however, it is relatively “clean” having the lowest Carbon Coefficient of all naturally occurring hydrocarbons. Consequently there are numerous opportunities for gas – hence LNG – to substitute for dirtier fuels. It appears that LNG could Read more…

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Prospects For LNG To Contribute To The “20-20-20” Targets As A Transition Fuel - Paper.pdf 908.59 KBProspects For LNG To Contribute To The “20-20-20” Targets As A Transition Fuel - Presentation.pdf 402.28 KB
22nd
Sep
2010

Making the least reactive pay: A consumer penalty/reward mechanism for Demand Response programs

Dr Jacopo Torriti, University of Surrey The orthodox approach for incentivising Demand Response (DR) programs is that utility losses from capital costs, installations and planning DR should be recovered under financial incentive mechanisms such as the Cost Recovery Mechanisms and the Lost Revenue Mechanisms. These mechanims aim to ensure that utilities have the right incentives in place to implement DR activities. The national smart metering roll-out in the UK means that utilities will already recover the capital costs associated with DR technology and recoup them through higher bills or upfront fees. This paper introduces a penalty/reward mechanism focusing on consumers. The utility DR planning costs are still recovered through payments from those consumers who do not react to price signals. In addition, those consumers who react to price signals, hence shifting loads, will be rewarded by paying less for their electricity consumption. Because real-time incentives to residential consumers tend to fail due to the negligible amounts associated with net gains (and losses) for the individual consumer, in the proposed mechanism the regulator determines cumulative benchmarks which are matched against responses Read more…

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Making the least reactive pay - Paper.pdf 492.4 KB
22nd
Sep
2010

Effectiveness energy covenants: International evidence

Matthijs De Jong, Erasmus University Rotterdam Several OECD countries use covenants as an important part of their policy to stimulate energy efficiency, carbon reduction and the use of renewable energy. Not much evidence, however, is present about the effectiveness of covenants. Some studies based on micro data find significant effects, others conclude that the effectiveness of covenants is questionable. This study uses yearly (1978-2006) data from 24 OECD countries at the national and sectoral level to analyze the relation between the use of covenants and energy efficiency, carbon dioxide emissions and the use of renewable energy. The database is partly based on public data and partly on a detailed inventory by the authors of the use of covenants in all OECD countries. As also taxes, subsidies and rules are included in the analysis, the study provides also evidence of the relative effectiveness of covenants. It shows that there is very little statistical evidence for the effectiveness of covenants. Many sensitivity analyses, testing all potential relevant assumptions, show that this conclusion is robust. When the covenants are separated in different classes Read more…

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Effectiveness energy covenants: International evidence - Paper.pdf 206.58 KBEffectiveness energy covenants: International evidence - Presentation.pdf 405.49 KB
22nd
Sep
2010

Personal carbon Taxation: its role in climate policy

Dr Tina Fawcett University of Oxford In the UK, there is currently little interest in exploring increased direct personal carbon taxation as a response to climate change. In theory it should be an attractive policy tool, being cheaper and administratively simpler to introduce than personal carbon trading, and more comprehensive than the current patchwork of product, housing, renewable energy and behavioural policies. So why isn’t it perceived as being an important part of the future policy mix, and is this likely to change? This paper reviews UK and European evidence on responses to personal carbon and energy taxes and focuses on three aspects; (1) their effects on behaviour in the short and longer term; (2) social acceptability, and; (3) the political risks involved in introducing increases in taxation. Using historical and current evidence, this review concentrates on energy and carbon taxation of household energy, using experience from transport and aviation fuels where necessary to enrich the analysis. It identifies effective taxation policies, and considers whether these could be extended to make a substantial and sustained contribution to household emissions reduction. Read more…

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Personal carbon Taxation - Paper.pdf 156.02 KBPersonal carbon Taxation - Presentation.pdf 262.89 KB
22nd
Sep
2010

Funding nuclear power and radioactive waste

Professor Gordon MacKerron, SPRU, University of Sussex The UK Government expects substantial new investment in nuclear power as part of its approach to reducing carbon emissions and improving energy security.  It argues that it will not subsidise nuclear power but that it is taking \’facilitative actions\’ to smooth the path to substantial nuclear investment.  Achieving new nuclear investment will require investors to believe that the balance between risk and expected reward is sufficiently positive for them to commit very large sums.  (If each of the designated ten future nuclear sites were to have one reactor each located on them, the total addition to capacity would be c. 16,000 MW at a capital cost that would almost certainly exceed £20 bn.,  possibly by a large margin.) This paper examines the various commercial risks to which nuclear power is subject and concentrates on the degree of comfort that current plans for radioactive waste management will offer investors.  This analysis will examine both current \’physical\’ plans e.g. the need for operators to provide for around 160 years of on-site storage for spent nuclear Read more…

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Funding nuclear power and radioactive waste - Presentation.pdf 305.39 KB
22nd
Sep
2010

Energy efficiency in Liberalised energy markets – implications for a low carbon futur

Nick Eyre University of Oxford Full liberalisation of retail gas and electricity markets in Great Britain was implemented in 1998. At the time, it was recognised that the new market would provide a complex set of new risks, opportunities and incentives for energy efficiency. The most obvious effect – a reduction in prices driven by competitive pressures – would be damaging for energy efficiency; and there would be risks of existing regulatory-driven programmes being discontinued in a competitive market. On the other hand, transparent re-regulation of natural monopolies provided potential new policy levers. And liberalised markets themselves opened new opportunities for market actors to implement energy efficiency. A dozen years on, this paper reviews the actual outcomes. How important was each of these factors? How important has energy market structure and regulation been, compared to other factors, for energy efficiency? The paper seeks to draw some lessons for what might have been done better. And, for a world in which policy makers might be prepared to be intervene more strongly to secure low carbon and energy security goals, it draws Read more…

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Energy efficiency in Liberalised energy markets - Paper.pdf 133.58 KBEnergy efficiency in Liberalised energy markets - Presentation.pdf 214.67 KB
22nd
Sep
2010

Energy in a low carbon economy: new roles for governments and markets

David Newbery, EPEG Cambridge EU climate policy comprises of the Emissions Trading Scheme (ETS) to price CO2, the 20-20-20 Directive to create a demand pull for renewables and the EU SET-Plan to double R&D spending. However there are failures with some aspects of these policies, such as the ETS CO2 price being volatile and too low and the Renewables Directive undermining the ETS as it can reduce the price of EUAs and prejudice other forms of low carbon generation (nuclear). UK energy policy seeks to ensure a secure, affordable and efficient, low carbon energy system and is based in part around the policy lead from the EU. However, the UK also needs to consider how policy can support the transition to low carbon and the wider goals for the energy system. This requires the development of certainty to ensure that timely investment comes forward, including: a need for quick clarity on energy policy; the reduction of unnecessary risk; the replacement of ROCs with tendered FiTs; underpinning and guaranteeing the carbon price; and reform of the market and transmission access.

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Energy in a low carbon economy - Presentation.pdf 366.01 KB
22nd
Sep
2010

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