Generative AI for Technical Writer or Information Developers
Sgcp13mackenzie
1. Industrial Energy Efficiency – the role of
Government
Niall Mackenzie, Head, Industrial Energy Efficiency Programme, DECC
5th Annual Smart Grids & Cleanpower 2013 Conference
5 June 2013 Cambridge
www.cir-strategy.com/events/cleanpower
3. 3
The Carbon Plan (December 2011) sets out the
Government’s plans to meet the fourth carbon
budget, showing how doing so sets us on a
plausible pathway to 2050
In the next
decade…
…the UK will complete the easy wins we have already begun,
focusing on energy efficiency. We will also prepare for the
future by demonstrating and deploying low carbon
technologies
Up to 2030 and
beyond…
… emissions from hard-to-treat sectors will need to be
tackled – such as industry, aviation, shipping, and agriculture,
while buildings and transport make use of decarbonised
electricity supplies
During the
2020s…
…key technologies in low carbon heat and ULEVs will move
towards mass roll out. A range of solutions for decarbonising
‘hard-to-reach’ sectors like agriculture and industry will need to
be tested
4. For the fourth carbon budget we have set out
ranges of ambition for four key technology
areas that are consistent with 2050, deliverable
and cost-effective
4
• Up to 2.5 million solid walls
insulated by 2030
• Around 1.9 million other energy
efficiency installations
• Up to 5.2 million solid walls
insulated by 2030
• Around 7.2 million other
energy efficiency installations
• 20% of new cars are
electric or plug-in by 2030
• Overall new car fuel efficiency =
70gCO2/km by 2030
1.6 million renewable heat
installations by 2030, delivering
87 TWh of low carbon heat
(alongside 10 TWh via district heating)
8.6 million renewable heat
installations by 2030,
delivering 165 TWh of low
carbon heat
(alongside 38 TWh via district heating)
Domestic
retrofitting
Low carbon
transport
Renewable
heat
Carbon intensity of generating
electricity falls to 100 gCO2/kWh
by 2030
Carbon intensity of generating
electricity falls to 50 gCO2/
kWh by 2030
Low carbon
power
• 50% of new cars are electric
or plug-in by 2030
• Overall new car fuel efficiency
= 50gCO2/km by 2030
Low end of ambition High end of ambition
5. UK emissions & projections 1990 – 2030
What existing policies will deliver
Source: DECC Updated Energy Projections 2012
Carbon budgets
5
6. A key component of our strategy is to
reduce demand by promoting energy
efficiency
6
Misaligned
financial
incentives
Embryonic
Markets
Information
Under-
valuing
energy
efficiency
The benefits of greater energy efficiency include:
§ Economic growth and productivity
§ Savings for customers
§ Emission reductions
§ Sustainable and secure energy
The Energy Efficiency Strategy, published November
2012, has set out the four barriers in the UK economy to
achieving these benefits as well as those actions that we
are taking to address them
The Green Deal addresses each barrier:
§ It drives the market for suppliers and installers
§ The bill payer funds the measure taken
§ Trustmark and impartial assessment report
§ ‘Golden rule’ means that expected savings cover
costs
7. Industrial Energy Efficiency Programme
Delivering reductions across half of all UK emissions
Aim: To improve energy efficiency and reduce emissions from large energy users while
improving UK industrial competitiveness
Scheme Participants Projected impact
EU Emissions Trading System
Covers 46% of UK emissions
1,100 large industrial emitters
in the UK (12,000 across the
EU) and all airlines
243 mtCO2e
reduction 2012-20
Covers 4% of non-traded emissions
2,000 large electricity users
outside of the EU ETS
20 mtCO2e
reduction 2012-30
Climate Change Agreements
Cover 2% of UK emissions
9,000 energy intensive facilities
– from steel manufacture to
poultry farming
~ 11% improvement in
energy efficiency 2008-20
7
8. EU ETS emissions/projections 2008-2030
Existing policies and measures
Source: DECC Updated Energy Projections 2012
Emissions above the EU ETS cap
mean allowances have to be
bought, emissions below the cap
lead to allowances being sold
8
9. The EU ETS remains critical for EU
carbon reduction but needs reform
• Future role of EU ETS – UK sees EU ETS as at the core of EU
carbon reduction
• Increased ambition – UK continues to press for a move to a 30% EU
carbon reduction target by 2020
• Commission “backloading” proposals – will remove allowances from
market in short term and sustain carbon price
• “State of the European Carbon Market in 2012” publication from the
Commission - medium term structural reform – active debate now
beginning in Europe - Govt has started the dialogue with UK industry as
how to reshape the ETS.
9
10. Climate Change Agreements – a successful
Government - industry partnership
• Voluntary agreements open to energy intensive industries
• Participants receive up to 90% reduction in Climate Change Levy if they
meet energy efficiency targets agreed with Govt
• Agreed Targets – industry has committed to deliver 11% improvement
between 2008 and 2020 – sector specific targets agreed and shared out to
installation level
• Target setting based on penetration of technology to date, technical
potential and agreed basis of commercially viable potential – more detail
will be published shortly
10
11. Heat is the single biggest consumer of
energy in the UK, & it’s mostly fossil fuel
11
Commerci
al
Industrial
Domestic
HeatOtherUKEnergy
Gas
oil
solid
resistive
Gas
oil
solidresistive
Gasoil
resistive
Heat supply (2008)
Source: DUKES
0 TWh
712 TWh
12. March 2012: Strategic framework for heat
• Main message of Strategic Framework: without changing the way we produce
and consume heat, we will not meet our carbon reduction target or our renewable
energy target.
• Our Carbon Plan and almost all modelling work says that we will need to have
near zero carbon heating for buildings by 2050. Industrial heat will need to
cut its emissions down to around one third of current levels.
• For buildings, this should be achieved by 1) energy efficiency measures like
Green Deal and smart meters; 2) Renewable heat (mostly heat pumps) starting
with most cost effective ie off the gas grid; 3) heat networks (district heating) in
cities, with mix of different heat sources and heat customers.
• For industry, this requires 1) efficiency improvements, but limits to what more
can be done in some sectors; 2) fuel switching to bio or electricity (as the grid
decarbonises); 3) industrial carbon capture and storage
Committed to produce a Heat Policy paper “within 12 months”.
12
13. • 73% of industrial energy demand is for
heat
• Industry consumes 20% of all UK
energy as heat
• Heat is integral to industrial processes:
melting, drying, pasteurising, distilling
• Heat use is concentrated among six
key sectors
• Industry uses natural gas, coal/coke,
electricity, biofuels and other (eg
refinery gases, coking gas)
• Need up to 70% abatement by 2050
-‐
5
10
15
20
25
30
35
TWh
Energy
Consump1on
in
UK
Industry
by
Sector
and
Fuel
Electricity
Natural
Gas
Oil
Solid
Fuel
March 2013: “The Future of Heating:
Meeting the Challenge”
Chapter 1: Industry
14. Energy Efficiency
Some scope to improve efficiency
but much already implemented – eg
under Climate Change Agreements?
Fuel Switching
Hydrogen, electricity, biomass
technically feasible but innovation
and implementation barriers.
Industrial CHP
Scope for more investment but what
barriers exist/incentives needed
Efficient, Low Carbon Heat in Industry
Meeting the challenge
Industrial Carbon Capture and Storage
Scope for CCS in iron and steel; chemicals; cement; oil refining. Costs are
uncertain. Technology uncertain - transfer from power sector? Need to use shared
transport and storage infrastructure.
15. Efficient Low Carbon Heat in
Industry – our commitments
• Sector-specific ‘low carbon roadmaps’ for key industrial sectors, with BIS
and industry – focusing on the most heat and CO2 intensive sectors.
Runs over 2 years; Commitment from sectors
Currently: DECC/BIS project planning and procurement
• Developing further evidence on supporting CCS for industry - we will
complete a techno-economic study by the end of the year with BIS; and to
explore options for further supporting industrial CCS innovation incl through pilot
demonstrations.
• European Regional Development funding working with BIS to influence the
£600m to support low carbon industry.
• Recoverable waste industrial heat – building our evidence and investigating
how to incentivise harnessing waste heat from industrial processes, alongside
the 2014 RHI policy review. Selecting a contractor, reporting by end of the year.
• Direct Fired Renewable Heat – explore support through the RHI 2014 review
16. 67% of industrial heat demand is in six key sectors. To date analysis
suggests
• Oil refining: 9 sites in UK, complex sites, biggest heat demand, 40%
emissions from process, use CHP extensively, could use biomass (?), CCS
suitable
• Iron and steel: 7 sites in UK (3 blast furnaces, 4 EAF), big heat demand,
highly integrated process, no potential for renewables (?), CCS suitable
• Food and drink: 1000’s of businesses, 2nd biggest heat demand but not
energy intensive, use CHP widely, could use biomass.
• Pulp &paper: 50 sites in UK, lowest heat use, 50% use CHP, could use
biomass.
• Non-metallic minerals (including ceramics, cement and glass), multiple
sites, direct fired heat use – no RHI, no CHP, CCS for cement
• Chemicals: 100’s of businesses and processes, often clustered, CHP
suitable, CCS suitable.
Follow up work with sectors will start soon
Efficient, Low Carbon Heat in Industry:
Sector by Sector approach
17. The Renewable Heat Incentive: a first
of its kind
• The first scheme of its kind to provide support for the installation of renewable
heating technologies – opened in November 2011
• 2049 applications to date: 1367 Accreditations
• Heat generated and paid for under the scheme: 236GWh
• Currently consulting on revisions to tariffs
17
Technology
Current tariffs (1), (2)
Reviewed tariffs
(proposed for 2014/15)
Biomass
Boilers
Small
(up to 200kW)
Tier 1: 8.6, Tier 2: 2.2
NO CHANGE
Medium
(200 to 1MW)
Tier 1: 5.3, Tier 2: 2.2
Large
(1MW and above)
1.0
2.0
GSHPs
Small
(up to 100kW)
4.8
7.2 (3) – 8.2 (4)
Large
(100kW and above)
3.5
Solar Thermal
(up to 200kW)
9.2
10.0 (5) – 11.3
