government policy and demand side management to aid the uptake of renewable technologies

Government Policy and Demand Side Government Policy and Demand Side Management to aid the Uptake of Management to aid the Uptake of

Renewable TechnologiesRenewable Technologies

Chief Scientific Adviser’s Energy Research Chief Scientific Adviser’s Energy Research Review Group: Review Group: ““Window and insulation refits could reduce Window and insulation refits could reduce

building-related emissions significantly...”building-related emissions significantly...” Royal Commission on Environmental Royal Commission on Environmental

Pollution Report: Pollution Report: ““Every house should have an energy label and Every house should have an energy label and

energy efficiency standards for new buildings, as energy efficiency standards for new buildings, as set out in the building regulations, should be set out in the building regulations, should be drastically improved over the next few years.” drastically improved over the next few years.” “Further incentives are required, as are new and “Further incentives are required, as are new and strengthened regulations.”strengthened regulations.”

60% carbon reduction by 2050 (1.25% p.a.).60% carbon reduction by 2050 (1.25% p.a.).

Current Documents Current Documents

Greenhouse gas abatement is delivered through the Greenhouse gas abatement is delivered through the energy system – therefore energy policy will give energy system – therefore energy policy will give preference to this objective.preference to this objective.

““the pursuit of secure and competitively priced the pursuit of secure and competitively priced means of meeting our energy needs, subject to the means of meeting our energy needs, subject to the achievement of an achievement of an environmentally sustainableenvironmentally sustainable energy system”energy system” (PIU (PIU

2002)2002)

Therefore low-carbon options are to be encouraged.Therefore low-carbon options are to be encouraged.

““Improving energy efficiency is broadly consistent Improving energy efficiency is broadly consistent with all the major objectives of energy policy”. with all the major objectives of energy policy”.

Least cost. Least cost. Minimum regrets. Minimum regrets. The centre of new energy policy?The centre of new energy policy?

Energy Policy Direction…Energy Policy Direction…

Policy Instruments Selection:Policy Instruments Selection: Economic or market-based instruments.Economic or market-based instruments.

Direct regulation Direct regulation e.g. strong barriers & small energy costs.e.g. strong barriers & small energy costs.

Policies of other kinds.Policies of other kinds.

Broad Efficiency Policy Principles:Broad Efficiency Policy Principles: Include externalities in energy costsInclude externalities in energy costs Target barriers to reduce costs and overcome Target barriers to reduce costs and overcome

market failuremarket failure Encourage energy efficiency innovationEncourage energy efficiency innovation

Policy DesignPolicy Design

The Performance and Innovation The Performance and Innovation Unit: The Energy ReviewUnit: The Energy Review

UK specific issuesUK specific issues:: Energy security (no pressing problems envisaged)Energy security (no pressing problems envisaged) Long term incentives requiredLong term incentives required Large carbon emissions reductions (multi-lateral)Large carbon emissions reductions (multi-lateral) Economic instruments for C emissions to all sectors, Economic instruments for C emissions to all sectors,

enabling C trading beyond the electricity industry.enabling C trading beyond the electricity industry. Institutional barriers to RE and CHP addressed.Institutional barriers to RE and CHP addressed. Creation of SEPU, bringing together all dimensions Creation of SEPU, bringing together all dimensions

of energy policy in the UK of energy policy in the UK

Energy Energy (Mtoe/year)(Mtoe/year)

PercentagePercentage

DemandDemandBenefit Benefit

(£M)(£M)

DomesticDomestic 17.417.4 37.237.2 50005000

ServiceService 3.83.8 21.021.0 11901190

IndustryIndustry 8.68.6 23.823.8 13801380

TransportTransport 19.319.3 35.035.0 47004700

TotalTotal 49.149.1 31.431.4 1230012300

Domestic & Service energy savings Domestic & Service energy savings £6 £6 bn.bn.

Minus the investments required.Minus the investments required. Net gain Net gain 0.25% of GDP by 2020. 0.25% of GDP by 2020.

PIU Efficiency PotentialPIU Efficiency Potential

The Energy White Paper and it’s The Energy White Paper and it’s ImplicationsImplications

Immediate priorities of energy policy via:Immediate priorities of energy policy via: energy efficiency & renewable energyenergy efficiency & renewable energy

New efficiency targets required for buildings and New efficiency targets required for buildings and vehicles. vehicles. (buildings: 20% improvement by 2010 + a further 20% (buildings: 20% improvement by 2010 + a further 20%

improvement by 2020)improvement by 2020)

Step changes in RE generated electricityStep changes in RE generated electricity UK 10% by 2010 and 20% by 2020UK 10% by 2010 and 20% by 2020 Scotland 18% by 2010 and 40%Scotland 18% by 2010 and 40%?? by 2020 by 2020

Implications of a 40% Scottish Implications of a 40% Scottish RE TargetRE Target

3.6GW or 3.6GW or 6.9GW6.9GW of new RE capacity of new RE capacity(1800 – 3450 very large wind turbines)(1800 – 3450 very large wind turbines)

1.1. Macro level Macro level (£?? network expansion required)(£?? network expansion required)

2.2. Distributed level Distributed level (£? capacity and network issues)(£? capacity and network issues)

3.3. Imbedded technologies Imbedded technologies (£? building integration (£? building integration

issues)issues)

Likely that all three options will be usedLikely that all three options will be used

EC Directive on the Energy EC Directive on the Energy Performance of BuildingsPerformance of Buildings

Principal ObjectivesPrincipal Objectives::

• Promote improvements of the energy performance of buildings Promote improvements of the energy performance of buildings through cost effective measures.through cost effective measures.

• Promote the convergence of building standards towards those of Promote the convergence of building standards towards those of Member States which already have ambitious levels.Member States which already have ambitious levels.

Measures to include:Measures to include:• Methodology for calculating the energy performance Methodology for calculating the energy performance • Application of performance standardsApplication of performance standards• Certification schemesCertification schemes• Inspection/ assessment of heating and cooling plantInspection/ assessment of heating and cooling plant

EC Directive on the EC Directive on the Energy Performance of BuildingsEnergy Performance of Buildings

Timescales:Timescales:• Published 4Published 4thth January 2003 January 2003• Implemented in member states by 4Implemented in member states by 4th th January 2006January 2006

By 4By 4thth January 2009 January 2009• Energy performance certificates(Article 7)Energy performance certificates(Article 7)• Inspection of boilers (Article 8)Inspection of boilers (Article 8)• Inspection of Air conditioning system (Article 9)Inspection of Air conditioning system (Article 9)

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Need for Demand Side ManagementNeed for Demand Side Management

• Traditional supply systems (thermal power Traditional supply systems (thermal power stations) managed and scheduled to meet stations) managed and scheduled to meet demand.demand.

• Stochastic intermittent technologies Stochastic intermittent technologies (renewables) unpredictable in magnitude and (renewables) unpredictable in magnitude and time of occurrence.time of occurrence.

• Therefore, demand needs to be controlled to Therefore, demand needs to be controlled to ‘‘Best FitBest Fit’ supply availability’ supply availability

• Issue: without compromising user functionality.Issue: without compromising user functionality.

Mechanisms for Demand Side Mechanisms for Demand Side ManagementManagement

• Energy efficiency reduces magnitudes associated Energy efficiency reduces magnitudes associated with demand but not time of occurrencewith demand but not time of occurrence

Typical Demand

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• Load management and scheduling: reduces Load management and scheduling: reduces magnitudes and alters the time of occurrence to one magnitudes and alters the time of occurrence to one favourable to supply system favourable to supply system

Managed demand

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• Load Management: Introduces a level of control Load Management: Introduces a level of control into the demand profile, reducing magnitude.into the demand profile, reducing magnitude.

Control strategies: ON, OFF or Control strategies: ON, OFF or PROPORTIONAL – dependent on load type and PROPORTIONAL – dependent on load type and operational requirements.operational requirements.

• Load Scheduling alters time of demand occurrence Load Scheduling alters time of demand occurrence in an effort to eliminate ‘in an effort to eliminate ‘Peaks and TroughsPeaks and Troughs’ and ’ and produce a flatter profile.produce a flatter profile.

• In practice a combination of Load Management and In practice a combination of Load Management and Scheduling needs to be employed.Scheduling needs to be employed.

Managed demand

Demand

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• ThermalThermal: Space or water heating (long time constants): Space or water heating (long time constants)Levels of control: Levels of control: ON, OFF & PROPORTIONALON, OFF & PROPORTIONAL User Impact: User Impact: LowLow

• PowerPower: Requires load type segregation based on : Requires load type segregation based on Prioritisation Prioritisation

High level/ priorityHigh level/ priority: No or very little manipulation: No or very little manipulationMedium level/ priorityMedium level/ priority: Proportional control: Proportional control

Low level/ Low level/ prioritypriority : On, Off & Proportional: On, Off & Proportional

Loads Favourable to Demand Side Loads Favourable to Demand Side ManagementManagement

DSMc algorithm

supply - demand

invoke DSMc

algorithm

despatch

cascade control

trading algorithm

prescriptive

responsive

<<0>>0 {0}

dump/store

technology option

DSMc electrical targetsDSMc electrical targets Load No control On/off Proportional Time Controllability Water heater X X Hour/ Min HighWashing machine X X Hour/ Min HighTumble dryer X X Hour/ Min HighDishwasher X X Hour/ Min HighFridge-freezer X Min HighTowel rail X X Min HighElectrical appls. (with charger) X X Min HighLighting X X Min/ Sec HighElectrical appls. (thermal output) X X Sec High

Electric oven/ hob X X Min MediumSlow cooker X X Min MediumElectrical heating X X Min MediumAir conditioning X X Min MediumElec. blanket X X Min Medium

Microwave X Sec LowExtractor fan X Sec LowHairdryer X Sec Low

Elec. apps. (instantaneous) X NoneEntertainment X None

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2015 scenario2015 scenario: impact of EE : impact of EE (@35% & 6% (@35% & 6% penetration)penetration) and EE+DSMc and EE+DSMc (space and (space and hot water heating only)hot water heating only) on feasibility of on feasibility of a 2.5MW wind clustera 2.5MW wind cluster

Winter Transition

Summer

Demand with EE with EE & DSMc Supply