Energy” low carbon solutions for commercial, industry and domestic Energy efficiency (cavity, solid wall insulation etc.) British Gas New Energy Biomass Heat networks & community heating Solar (PV & thermal) Heat pumps Building Regs / Code for Sustainable Homes etc Renewable Heat Incentive RHI/RHPP Green Deal Provider Energy Company Obligation (ECO) Customer objectives and building details ? Financing Funding & Regulatory Drivers/Enablers
leading supplier of Renewable Heat: Design, Supply, Contract energy management Design & build projects in 2012 • >20MW of Renewable Heat installed overall in 2012 • Numerous commercial buildings • 1,400+ domestic dwellings on biomass community heating schemes • 60 flat ground source heat pump community scheme • 140 flat biomass & solar thermal community scheme • >1000 domestic heat pumps Solihull Homes Community Heating Solid wall cladding; biomass community heating for 120 flats; tenant billing solution; fuel management; remote control & heat network optimisation. Royal Agricultural College Wood chip boiler and heat network
A vision for the £33bn UK heating market Gas 69% Elec 14% Oil 10% 2 million homes on oil >4 m homes in social housing.1.6 m “dense” housing suitable for district heating Objectives for 2020… Vision for 2050 Drive for energy efficiency UK Gov. target: 12% of heat from renewable sources Commercial and district heating (biomass, heat pumps) Domestic focus on off-grid (oil, LPG, electric) replacement with heat pumps, biomass and solar thermal The start of demand management Drive for energy efficiency 90%+ of heat from renewable sources Biomass mainly in commercial & industrial 50-80% domestic properties heated by heat pumps from low carbon grid Extensive heat networks for dense housing in cities Sophisticated demand management minimises upgrade to grid and peak generation capacity
(5th Feb 2013) • 899 accredited installations • 196MW of accredited installations • £4.6m RHI payments in 2012/13 (v. £70m original budget for commercial) • Huge majority of biomass. • Spend proportion of biomass to date: small/medium/large: 48%; 43%; 9% Above: # of accredited RHI applications Below: MW of accredited installations Total projected RHI spend £m to 2020 by technology
Major reduction in sector awaiting domestic RHI introduction • RHPP data shows 55% reduction over consecutive RHPP periods caused by delay to domestic RHI • Large number of heat pumps & solar thermal in new build and social housing not MCS registered
March/April 2013 Publications due from DECC: • DECC Renewable Heat Strategy • Cost control consultation policy • Biomass sustainability policy • RHI domestic policy • Commercial RHI extentions • Updated GSHP rates [OFGEM letter on heating & cooling eligibility] • Substantial ECO support for district heating CAPEX • guidance from OFGEM expected in March Key areas to watch: • How each technology track their allocated budget =>potential degression on costs • Large biomass rate increase ? • Domestic – will this sector take off from Sept 2013 ? • DECCs view on district heating from heat strategy • Building regulation changes Part L 2013/SAP 2013 • GSHP rates & new commercial ASHP – will this accelerate these markets ?
A growing energy business in the UK and North America £22 bn revenues 12m homes, 1m businesses #1 UK electricity and gas supplier >4m domestic energy service contracts >100,000 gas boilers pa installed Leading installer of smart meters BG New Energy is leading supplier of low carbon solutions Retail Centrica & British Gas (UK retail brand) are the UK’s leading energy utility