European-wide field trials for residential fuel cell micro-CHP The role of Fuel Cell micro-CHP in delivering UK's energy transition Mike Small, BDR Thermea Group BV Birmingham, 13 March 2017 The research leading to these results has received funding from the European Union´s 7th Framework Programme (FP7/2007-2013) for the Fuel Cells and Hydrogen Joint Undertaking Technology Initiative under Grant Agreement Number 303462

Delivering the energy transition The uncertainty of energy transition Fuel Cell microCHP in achieving UK climate objectives The renewables challenge Achieving volume: best practice Conclusions & Recommendations

Energy transition Our energy future is uncertain and will be characterised by diversity and complexity – including innovative and new technologies

Fuel Cell microCHP in achieving UK climate objectives UK needs to get on track to meet the fourth carbon budget (2023 to 2027). Committee on climate change: “…will require the government to apply more challenging measures.” Advises: energy efficiency innovation in technology replace high-carbon investments with low-carbon investments Climate Change Act focuses on GHG emissions – reduction of at least 80% of 1990 levels by 2050 Fuel Cell microCHP can be substantial cost-effective, component in decarbonisation of the energy system through much more efficient use of today’s energy resources https://www.theccc.org.uk/tackling-climate-change/reducing-carbon-emissions/carbon-budgets-and-targets Meeting Carbon Budgets – 2016 Progress Report to Parliament https://www.theccc.org.uk/wp-content/uploads/2016/06/2016-CCC-Progress-Report.pdf

Fuel Cell microCHP in achieving UK climate objectives Lower-risk / At risk Buildings / Energy Efficiency (Building regulations, incl local planning) (EPBD) Energy efficiency for PE saving (ErP) Incentives - FiT Policy gap Recognise benefit to the wider energy system Upgrade building stock Signals for long-term Fuel Cell microCHP can be deployed to fill the gaps, via stronger policies to deliver residential energy efficiency and to drive low carbon heating in new-build Meeting Carbon Budgets – 2016 Progress Report to Parliament https://www.theccc.org.uk/wp-content/uploads/2016/06/2016-CCC-Progress-Report.pdf

The renewables challenge “Switching 80% of homes to heat pumps would require an additional 105GWs of electricity generation capacity (an increase of 175% above current peak power demand) as well as significant investment to reinforce the power distribution network.” Fuel Cell microCHP can help offset the additional generation and network capacity requirements if electric heat pump penetration is to significantly increase Fuel Cell mCHP can be a tool to optimise an energy system with a much higher penetration of renewables coupled with new electrical demand https://policyexchange.org.uk/publication/too-hot-to-handle/ Too Hot to Handle? How to decarbonise domestic heating policyexchange.org.uk

The renewables challenge + = For our transition to a complex energy system, with increasing penetration of unpredictable renewables, Fuel Cell microCHP: is a valuable demand-side measure for managing grid stability overcomes the challenge of increasing penetration of electric heating is low carbon and renewable when utilising bio-gas and H2 … in an existing, extensive natural gas network contributes towards a cleaner, healthier environment

Achieving volume: best practice Fuel Cell microCHP supports energy security, emissions reduction and renewables integration Japan: consistent support since 2009, for consumers and industry driven 200,000 installations Germany - 2015: €500 mill over 8 years, to deliver 60,000 – 70,000 installations (KfW 433) The dedicated support schemes demonstrate how a political will can encourage consumers to be active in delivering national energy objectives

Further Conclusions Developers and manufacturers have delivered products to the market, in the face of regulatory uncertainty Products are suitable for existing heating systems and customer behaviour The industry players can increase UK competitiveness, with UK-based development collaboration with global partners Whilst the outlook for UK support is uncertain, Japan and Germany are demonstrating what can be achieved to encourage investment to develop reliable, valuable technologies

Recommendations Create a roadmap for the short- and long-term, integrating microCHP into carbon budget scenarios Collaborate with studies such as ene.field and PACE to gain knowledge and to work with industry to develop policy Learn from best practice to create a stable environment that will initiate volume and maintain a stable outlook – for example, creating a successor to the current FiT scheme, post-2019 Utilise FC mCHP to address policy gaps and deliver low-carbon heating and residential energy efficiency Coherent, stable, predictable policy to reduce barriers to ownership The market uptake of Fuel Cell microCHP requires a coherent, steady and predictable policy framework in recognition of the benefits for energy transition

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