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

l Chief Scientific Adviser’s Energy Research Review Group: l “Window and insulation refits could reduce building-related emissions significantly...” l Royal Commission on Environmental Pollution Report: l “Every house should have an energy label and energy efficiency standards for new buildings, as set out in the building regulations, should be drastically improved over the next few years.” “Further incentives are required, as are new and strengthened regulations.” l 60% carbon reduction by 2050 (1.25% p.a.). Current Documents

l Greenhouse gas abatement is delivered through the energy system – therefore energy policy will give preference to this objective. l “the pursuit of secure and competitively priced means of meeting our energy needs, subject to the achievement of an environmentally sustainable energy system” (PIU 2002) l Therefore low-carbon options are to be encouraged. l “Improving energy efficiency is broadly consistent with all the major objectives of energy policy”. l Least cost. l Minimum regrets. l The centre of new energy policy? Energy Policy Direction…

l Policy Instruments Selection: l Economic or market-based instruments. l Direct regulation l e.g. strong barriers & small energy costs. l Policies of other kinds. l Broad Efficiency Policy Principles: l Include externalities in energy costs l Target barriers to reduce costs and overcome market failure l Encourage energy efficiency innovation Policy Design

The Performance and Innovation Unit: The Energy Review UK specific issues : l Energy security (no pressing problems envisaged) l Long term incentives required l Large carbon emissions reductions (multi-lateral) l Economic instruments for C emissions to all sectors, enabling C trading beyond the electricity industry. l Institutional barriers to RE and CHP addressed. l Creation of SEPU, bringing together all dimensions of energy policy in the UK

Energy (Mtoe/year) PercentageDemand Benefit (£M) Domestic Service Industry Transport Total l Domestic & Service energy savings  £6 bn. l Minus the investments required. l Net gain  0.25% of GDP by PIU Efficiency Potential

The Energy White Paper and it’s Implications l Immediate priorities of energy policy via:  energy efficiency & renewable energy l New efficiency targets required for buildings and vehicles.  (buildings: 20% improvement by a further 20% improvement by 2020) l Step changes in RE generated electricity  UK 10% by 2010 and 20% by 2020  Scotland 18% by 2010 and 40%? by 2020

Implications of a 40% Scottish RE Target 3.6GW or 6.9GW of new RE capacity (1800 – 3450 very large wind turbines) 1.Macro level (£?? network expansion required) 2.Distributed level (£? capacity and network issues) 3.Imbedded technologies (£? building integration issues) Likely that all three options will be used

EC Directive on the Energy Performance of Buildings Principal Objectives : Promote improvements of the energy performance of buildings through cost effective measures.Promote improvements of the energy performance of buildings through cost effective measures. Promote the convergence of building standards towards those of Member States which already have ambitious levels.Promote the convergence of building standards towards those of Member States which already have ambitious levels. Measures to include: Methodology for calculating the energy performanceMethodology 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 Energy Performance of Buildings Timescales: Published 4 th January 2003Published 4 th January 2003 Implemented in member states by 4 th January 2006Implemented in member states by 4 th January 2006 By 4 th 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)

Need for Demand Side Management

Traditional supply systems (thermal power stations) managed and scheduled to meet demand. Traditional supply systems (thermal power stations) managed and scheduled to meet demand. Stochastic intermittent technologies (renewables) unpredictable in magnitude and time of occurrence. Stochastic intermittent technologies (renewables) unpredictable in magnitude and time of occurrence. Therefore, demand needs to be controlled to ‘Best Fit’ supply availability Therefore, demand needs to be controlled to ‘Best Fit’ supply availability Issue: without compromising user functionality. Issue: without compromising user functionality.

Mechanisms for Demand Side Management Energy efficiency reduces magnitudes associated with demand but not time of occurrence Energy efficiency reduces magnitudes associated with demand but not time of occurrence

Mechanisms for Demand Side Management Load management and scheduling: reduces magnitudes and alters the time of occurrence to one favourable to supply system Load management and scheduling: reduces magnitudes and alters the time of occurrence to one favourable to supply system

Load Management: Introduces a level of control into the demand profile, reducing magnitude. Load Management: Introduces a level of control into the demand profile, reducing magnitude. Control strategies: ON, OFF or PROPORTIONAL – dependent on load type and operational requirements. Load Scheduling alters time of demand occurrence in an effort to eliminate ‘Peaks and Troughs’ and produce a flatter profile. Load Scheduling alters time of demand occurrence in an effort to eliminate ‘Peaks and Troughs’ and produce a flatter profile. In practice a combination of Load Management and Scheduling needs to be employed. In practice a combination of Load Management and Scheduling needs to be employed. Mechanisms for Demand Side Management

Thermal: Space or water heating (long time constants) Thermal: Space or water heating (long time constants) Levels of control: ON, OFF & PROPORTIONAL User Impact: Low Power: Requires load type segregation based on Prioritisation Power: Requires load type segregation based on Prioritisation High level/ priority: No or very little manipulation Medium level/ priority: Proportional control Low level/ priority : On, Off & Proportional Loads Favourable to Demand Side Management

DSMc algorithm supply - demand invoke DSMc algorithm despatch cascade control trading algorithm prescriptive responsive <<0>>0{0} dump/store technology option

DSMc electrical targets Load No control On/off ProportionalTime Controllability Water heater XXHour/ Min High Washing machine XXHour/ Min High Tumble dryerXXHour/ Min High DishwasherXXHour/ Min High Fridge-freezerXMin High Towel railXXMin High Electrical appls. (with charger) XXMin High Lighting XXMin/ Sec High Electrical appls. (thermal output) XXSec High Electric oven/ hob XXMin Medium Slow cookerXXMin Medium Electrical heatingXXMin Medium Air conditioningXXMin Medium Elec. blanketXXMin Medium MicrowaveXSec Low Extractor fanXSec Low HairdryerXSec Low Elec. apps. (instantaneous)X None EntertainmentX None

2015 scenario: impact of EE & 6% penetration) and EE+DSMc (space and hot water heating only) on feasibility of a 2.5MW wind cluster WinterTransition Summer Demand with EE with EE & DSMc Supply