Smart Systems and Heat

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Energy Technologies Institute

www.eti.co.uk

Why? Our Smart Systems and Heat programme is focused on the design of new systems that will enable the delivery of efficient heat and comfort to meet local requirements across the UK.

Heat accounts for over 40% of the UK’s demand for energy, with domestic heating accounting for almost 20% of the UK’s CO2 emissions. The vast majority of domestic heating today is delivered through gas boilers. Their prominence will reduce over time as new approaches to heat supply – including heat networks and heat pumps – are introduced, and demand management – such as the improved thermal efficiency of buildings – increases. We believe that in the future the most practical, cost-effective heating solution in any one area will depend upon a number of factors specific to that individual location. For example, the solution in a local urban area will look different to that in a suburban site, and different again to that for a rural community. These local solutions also need to consider likely developments in the national energy system. Over time, the transition towards the new approaches to heat supply and demand management can best occur with consumercentric technology development and value offerings, within a framework of supporting policy. Focussing on the consumer, our Smart Systems and Heat programme will create future-proof and economic local heating solutions for the UK.

This programme has a projected budget of up to £100m and will run in two phases.

Phase One (2012-2016) Phase One will develop software tools to design location-specific smart energy systems. We will work with Local Authorities to create a small number of designs specific to their communities. We will also undertake a number of consumer behaviour, technology development, business modelling and supply-chain activities to create heat supply and demand management products and services that meet consumer needs.

Phase Two (2016 onwards) Phase Two will see a demonstration of the designed local smart energy system to prove the concept and methodology, importantly proving that the capability and approach can be adopted nationally and providing an evidence base for future supportive policy.

The programme has been split into a number of self-contained work areas covering key consumer, technology, commercial and supply-chain issues. Project partners will help in the delivery of aspects of these work areas. ETI is responsible for effectively delivering, aligning and integrating all work areas, which will be critical to the overall success of the programme. As part of the programme, Hitachi has joined the ETI as a programme associate bringing with them their leading expertise in smart systems design, integration and execution to the ETI and the UK.

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Energy Technologies Institute

www.eti.co.uk

What have we done to date?

£3m

This £3m Consumer Behaviour Study project is being led by PRP Architects, experts in the built environment

Consumer Behaviour Study ●●

Comprehensive behaviour study involving domestic and commercial consumers focusing on heat

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Seeking to identify consumer requirements – now and in the future

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Understanding consumers’ responses to smart energy system proposals

This project will involve thousands of respondents providing insight into consumer requirements for heat and energy services, both now and in the future. Particular focus is being given to identifying the behaviour that leads people to consume energy – in particular heat and hot water. This £3m project is being led by PRP Architects, experts in the built environment. It involves a consortium of academia and industry – UCL Energy Institute, Frontier Economics, The Technology Partnership, The Peabody Trust, National Centre for Social Research and Hitachi Europe. The project was launched in November 2012.

Enabling Component Technologies ●●

Project to identify gaps in the range of potential smart systems technologies

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Aiming to accelerate the development of these component technologies

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Project delivered by a consortium including academia and industry

This project will identify gaps in the range of potential smart systems technologies to accelerate the development of component technologies which are required for any successful deployment and operation of a future smart energy system.

This £500,000 project was announced in February 2013 and is being delivered by a consortium of partners that includes Hitachi Europe, EDF Energy, Element Energy, David Vincent & Associates and Imperial Consultants.

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Energy Technologies Institute

www.eti.co.uk

What have we done to date?

£100k

Hitachi Europe and energy & sustainability consultants DNV Kema are working independently on two £100,000 contracts

Continued

Data Management and Systems Architecture ●●

Project to specify the data system functionality and proposed architecture to fulfil the information and service requirements of a smart energy system

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Functionality will address the question of data security

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Two independent contracts to provide an optimum solution

This project seeks to specify the data system functionality and architecture that would fulfil the information and service requirements of a smart energy system. This includes data security and privacy aspects. Hitachi Europe and energy & sustainability consultants DNV Kema are working independently on two £100,000 contracts that will identify any data system constraints that need to be incorporated into smart energy systems. The project was launched in February 2013.

Value Management and Delivery ●●

Project to quantify how value can be delivered across an entire UK smart systems value chain

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Seek to understand how smart systems can deliver consumer value

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Seek to understand how smart systems can deliver commercial value

This project is studying how value can be delivered across a smart energy value chain – in the context of the UK. It will seek to build a clear understanding of how smart energy systems can deliver combined consumer value alongside commercial value for market participants – producers, suppliers, distributors. This analysis will help to make the commercial deployment of smart energy systems more likely. This £600,000 project was announced in February 2013 and is led by Frontier Economics, a leading economic consultancy.

£600k

This £600,000 project announced in February 2013 is led by Frontier Economics, a leading economic consultancy

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Energy Technologies Institute

www.eti.co.uk

What have we done to date?

£1.1m

This £1.1m project announced in January 2014 is led by Baringa Partners.

Continued

EnergyPath ●●

Software tool to design cost-effective local energy systems for the UK

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Designed in partnership with local authorities

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Demonstrating the capability to create future-proof and economic local heating solutions for the UK

Energy consultancy Baringa Partners have been appointed to design and develop a software modelling tool to be used in the planning of cost-effective local energy systems. This software is called EnergyPath and will evolve to include a number of additional packages to inform planning, consumer insights and business metrics. Element Energy, Hitachi and University College London will work with Baringa to develop the software with input from a range of local authorities, Western Power Distribution and Ramboll. EnergyPath will complement ETI’s national strategic energy system tool ESME which links heat, power, transport and the infrastructure that connects them. EnergyPath is a registered trade mark of the Energy Technologies Institute LLP.

Economic Assesment Tool ●●

Modelling framework to help local authorities evaluate energy efficient buildings and networks

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Identifies opportunities and business models

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Compliments the development of EnergyPath

Management consultancy Europe Economics have been appointed to develop a modelling framework that will help local authorities effectively evaluate the benefits of more energy efficient buildings and networks. Working in collaboration with AECOM, who specialise in building data collection and management, the model will provide an evaluation of the benefits for a representative local authority which will allow them to scope out what opportunities and business models they should explore for their particular area dependent on the data produced. This project compliments the EnergyPath software modelling tool which will be used in the planning of cost-effective local energy systems.

Europe Economics have been appointed to develop a modelling framework that will help local authorities effectively evaluate the benefits of more energy efficient buildings and networks

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Energy Technologies Institute

www.eti.co.uk

What have we done to date? Building Retrofitting ●●

Demonstration of novel approaches to domestic retrofit

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Undertaken on a range of property types across the UK

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House types to be retrofitted based on the findings of previous ETI research in its Buildings programme

We have appointed a project team of PRP Architects, Peabody and Vinci to demonstrate novel retrofit approaches in UK domestic properties. The mass-scale retrofit approach being tested here was developed in our “Optimising Thermal Efficiency of Existing Housing” research project, part of our Buildings programme. The aim is to validate the cost, time and energy effectiveness of domestic retrofits across different house types. It aims to identify an economic approach that could be employed to improve the energy efficiency of the vast majority of the existing 26m homes in the UK which will still be in existence by 2050. This project will retrofit five types of domestic properties – a pre 1919 mid-terrace, a pre 1919 detached, a 1919-44 semi-detached, a 1945-64 semi-detached and post 1980 semi-detached.

26m

Continued

This identified delivery mechanism could be employed to improve the energy efficiency of the vast majority of the 26m UK homes which will still be in use in 2050

Key Partners Local Authority Engagement ●●

Engagement to advise all UK local authorities of the Smart Systems and Heat Programme

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Seek partners to help design local smart energy systems

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Seek potential demonstration locations for Phase Two of the programme

We see local authorities as key partners in this programme. This is both to help design the end smart energy system through their insights into both residents requirements as well as the practical implication of such systems – alongside providing the location for demonstration of the local energy solution. Local authorities will be key players in the transition throughout the UK towards new heat supply and demand management approaches.

As part of the programme we are developing a software tool – EnergyPath – that will enable the delivery of efficient heat and comfort to meet local requirements across the UK. We are working closely with local authorities in the design of the tool and the subsequent demonstration of the resulting local heating solutions.

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Energy Technologies Institute

www.eti.co.uk

Key facts and figures These figures are taken from the Low Carbon Innovation Coordination Group Technology Innovation Needs Assessment on Heat

4-9

%

UK suppliers could play a significant role in certain markets with a 4-9% share in some European markets

£14-66

bn

Innovations in heat pumps, heat networks and heat storage could reduce UK energy system costs by £14-66bn to 2050

£50-300

bn

Estimation that the global market turnover by 2050 could grow to £50bn - £300bn

£3

bn

Innovation in advanced daily heat stores, large-scale heat extraction technologies and installation processes offers estimated systems cost savings to 2050 of £3bn

550-600

TWh

Space and water heating (excluding industrial process heat) account for about a quarter of UK energy consumption today, with demand of approximately 550-600 TWh per year

£21

bn

Innovation in heat pump technology and in the design and installation of systems offers estimated systems costs savings to 2050 of £21bn

£6

bn

Innovation in heat networks design and installation and interface with the heat user offers estimated systems cost savings to 2050 of £6bn

£2-12

bn

Innovation in heat pumps, heat networks and heat storage could help create a UK industry with the potential to contribute further economic value of £2-12bn to 2050

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Energy Technologies Institute

www.eti.co.uk

About ETI The Energy Technologies Institute (ETI) is a publicprivate partnership between global energy and engineering companies – BP, Caterpillar, EDF, E.ON, Shell & Rolls-Royce – and the UK Government.

Through its work, the ETI is:

Established in 2007, the ETI’s role is to act as an important link between, academia, industry and government to accelerate the development of low carbon technologies. It brings together engineering projects that develop affordable, secure and sustainable technologies to help the UK address its long term emissions reductions targets as well as delivering nearer term benefits. The ETI makes targeted commercial investments in nine technology programmes across heat, power, transport and the infrastructure that links them. The ETI also undertakes strategic modelling of the UK energy system to determine its investment spend and maps pathways to an affordable low carbon energy system that meets the UK’s legally binding emissions reductions targets at least cost through technology innovation.

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Providing new technology and business concepts

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Generating UK economic development

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Building a better understanding of the UK’s energy challenges

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A force for collaboration

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An informer of policy

It’s industry and government partnership shares risk and creates affordability for the development and demonstration of new low carbon technologies. The ETI’s projects are delivered by consortiums of project partners. These partners include academia, SME’s, major corporates and global companies. The ETI is forecast to spend £400m over its project portfolio by 2017. The nine technology programme areas are:

Offshore Wind

Marine

Distributed Energy

Buildings

Energy Storage & Distribution

Smart Systems & Heat

Carbon Capture & Storage

Transport

Bioenergy

ETI Members

ETI Programme Associate

ETI Project Partners

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For more information about the ETI visit www.eti.co.uk

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