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Projects: Projects for Investigator
Reference Number NIA_WWU_028
Title Bridgend Future Modelling - Phase 3 - Required Policy Changes
Status Completed
Energy Categories Fossil Fuels: Oil Gas and Coal(Oil and Gas, Other oil and gas) 50%;
Fossil Fuels: Oil Gas and Coal(Oil and Gas, Refining, transport and storage of oil and gas) 50%;
Research Types Applied Research and Development 100%
Science and Technology Fields SOCIAL SCIENCES (Economics and Econometrics) 25%;
SOCIAL SCIENCES (Politics and International Studies) 50%;
ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 25%;
UKERC Cross Cutting Characterisation Sociological economical and environmental impact of energy (Policy and regulation) 100%
Principal Investigator Project Contact
No email address given
Wales and West Utilities
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 September 2015
End Date 01 December 2015
Duration 3 months
Total Grant Value £42,240
Industrial Sectors Technical Consultancy
Region Wales
Programme Network Innovation Allowance
 
Investigators Principal Investigator Project Contact , Wales and West Utilities (100.000%)
Web Site http://www.smarternetworks.org/project/NIA_WWU_028
Objectives To research whether current energy policies (e. g. RHI) allow us to move to a low carbon energy future & consider the impact on costs and reliability of supply. A report that examines current policies and details potential considerations e. g. incentives, grants, loans and taxation on carbon emissions that may facilitate a low carbon energy future for GB.
Abstract The future of gas debate has become critical in deciding future investment policy and asset lifespans and as such is impacting investment decisions and in future, will impact negotiations for funding allowances within the regulated timelines (Mid-point being 2017 and the next price control period being post 2021). The DECC (Department of Energy and Climate Change) heat strategy has a vision of gas heating being replaced by lower carbon sources, such as air source heat pumps (ASHP) and heat networks. Heat networks can utilise a carbon heat source such as gas (via a Combined Heat and Power (CHP) unit), which provides a more efficient solution than central generation of electricity and individual gas boilers. As an alternative, it can utilise a low carbon heat source. This may be waste heat from perhaps a local industrial process or more likely, from geothermal energy or from a local water course using a very large heat pump. These latter options come with a high additional up front cost. Phase 1 research and modelling on a bottom up basis of the Bridgend network has revealed that with current government policies little or no change to the provision of heat will occur due to the high cost the consumer or building owner would face and with little prospect of payback in a reasonable time. Phase 2 research explored consumer willingness to pay in relation to changing energy sources and estimated tolerable payback periods from a series of real projects that have been proposed historically going back nearly 25 years. It detailed the parameters and variables available to planners and policy makers needed to influence consumers. It explored the scale of these parameters and considered any other factors than might influence consumers, detailing the likelihood and frequency of these occurring. This Phase 3 project aims to understand what home energy policy would be required that would satisfy the consumer willingness to pay criteria above. In order to encourage consumers to switch to lower carbon energy sources, one option is to set financial incentives and penalties related to energy use and the installation of lower carbon heating systems. Examples of current and previous policies that have been utilised are: ; A one off up front contribution, for example, £5k contribution to the purchase price of an electric vehicle, or free loft insulation. ; A payment for each kilo watt of energy displaced by a lower carbon or more efficient system, for example, an incentive similar to the renewable heat incentive (RHI). ; A carbon tax levied through the unit price of the fuel, for example, the fuel duty escalator. The scope of this proposal excludes the more radical policies such as banning carbon fuelled heating appliances, but less dramatic mandatory improvements in efficiency have been used before, such as the requirement to only fit condensing boilers, mandated levels of home efficiency for new homes or Euro 5 engines in cars. These have achieved public acceptance as they have not been unreasonable and have paid back the extra cost over the lifetime of the object.Note : Project Documents may be available via the ENA Smarter Networks Portal using the Website link above
Publications (none)
Final Report (none)
Added to Database 09/08/18