micro-chp organising the future: uk example ian manders chpa 30 may 2008
DESCRIPTION
Micro-CHP Organising the Future: UK example Ian Manders CHPA 30 May 2008. Why is the UK a good prospect for mCHP?. Little competition from District Heating Widespread natural gas network Old houses hard to insulate. Rising Gas Prices. Double price of energy in UK and lose only 10% of demand. - PowerPoint PPT PresentationTRANSCRIPT
Micro-CHPOrganising the Future:UK example
Ian MandersCHPA30 May 2008
Why is the UK a good prospect for mCHP?
•Little competition from District Little competition from District HeatingHeating
•Widespread natural gas networkWidespread natural gas network
•Old houses hard to insulateOld houses hard to insulate
Rising Gas Prices
Double price of energy in
UK and lose only 10% of
demand
emerging in the UK…
• PAS 67 – benchmarking exercise• MCS (“voluntary” Microgeneration
Certification/Accreditation Schemes) re mCHP and CERT - Industry concerns £ etc
• “Positive” Govt (BERR) report 2 June• R3 Project…
CHPA R3 Project
UK micro-CHP “Roadmap” = Industry Delivery Plan
Brings “fragmented” industry together“Confidential” survey of stakeholders4 energy suppliers (utilities)4 appliance manufacturers2 fuel cell developers6 micro-CHP developers
CHPA – some UK member views
• Protection against “cowboys” is provided by UK energy suppliers needing to protect brand reputation
• Very high performance requirements could be prejudicial against some (cheaper) technologies
• Want level playing field with heat RE eg heat-pump
• Believe the market will eliminate weaker products
Next Steering Group• Findings of survey, and other issues eg
• Reputation management• Government relations• Routes to market• Discuss any recommendations• Decide the next steps
CHPA R3 Project NEXT STEPS…
What happens when a new technology is developed?
• Many manufacturers competing• All different types of product whose only
similarity is that they are broadly alike in function• Reliability issues!• Prices high – only attractive to “early adopters” –
usually rich• Product produced at a loss, cost, or v small
margins• Therefore maybe Govt incentives* to encourage
the establishment of the new technology
*Govt incentives usually demand a “standard”
What happens when a new technology matures?
• Many manufacturers drop out, leaving a few “winners”
• Product becomes “standardised” in function and form – and comparable
• And reliable!• Prices drop – available to many• Govt drops incentives as technology
becomes commercially viable
Govt incentives means creating a standard
• Govt thinks this lessens risk eg “Minister, you spent half a million pounds on this product, and it is rubbish”
• Means they can compare products – or so they think
• Provides a threshold to help ration spending