energy efficiency solutions, and future eec developments mike newell energy efficiency manager

Energy Efficiency Solutions,and Future EEC Developments

Mike NewellEnergy Efficiency Manager

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Energy Efficiency Solutions

HeatStreetsPowergen PAWSFridgeSaversPowergen HeatPlant

Ground Source Heat PumpsWhisperGen

Micro Combined Heat and Power (mCHP)Energy Advantage

Environmental and Energy objectives

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Power in Good Hands

Powergen offers a wide range of products and services within the energy field and we believe we have an important role to inform and in the case of new technology lead the market

Energy Products e.g Energy Saving Plan / StayWarm

First to launch a mCHP product to the UK market

TV Ads focus on Energy EfficiencyPowergen PAWS – Pocket Affordable Warmth

SoftwarePowergen WarmFront

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HeatStreets

HeatStreets is a street by street approach to alleviate fuel poverty in private sector homes by targeting the Local Authority and Powergen funding at specific households

HeatStreets has been developed over 4 years in Derwentside and has subsequently been rolled out over the whole of Sunderland City

HeatStreets has 3 main objectives:1) To target a LA budget towards measures in households

defined by the LA as priority2) To maximise the opportunities for energy efficiency

improvement in the targeted area3) To deliver maximum financial leverage from the LA funding by

combining with Powergen, local residents and Warmfront For every £1 contributed by the local council, £3 comes

from other sources

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Customer Proposition Grants are targeted at 3 specific levels to facilitate the installation

of cavity wall and loft insulation, draught proofing, hw cylinder jackets etc

A) Grant A- for every priority household –(those on a means tested benefit or in fuel poverty)

B) Grant B- for households ‘over 60’ not on benefitC) Grant C- for households ‘under 60’ not on benefit

The able to pay rates are comparable with Powergen’s national scheme

Household Criteria

Customer LA Powergen

On benefit NA Y Y

Over 60 no benefit

Y Y Y

Under 60 no benefit

Y NA Y

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Funding: ExampleGrant LA Powergen Customer Total Homes

A £200k £200k nil £400k 1200

B £50k £50k £100k £200k 600

C nil £150k £300k £450k 1500

W Front nil nil nil £250k 700

Total £250k £400k £300k £1.35m 4000

Assuming a split of fuel rich (C grants), Warm Front and Council funded work (grants A & B) as above the following can be expected

Based on Sunderland HeatStreets SchemeThis enables the LA to target specific customer needs in the local

community

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Targeted Funding

There is no ‘fixed’ investment required from the LA, a project will be formulated around available budgets

A LA budget of £250k would improve 4000 homes and help to remove 1900 vulnerable households from Fuel Poverty

This approach can be used Borough wide or just to target particular estates

Grant penetration with this method means measures are required at 1 in 4 i.e. a 25% take-up of measures

Each household could save up to £240 per year on Heating costs

(based on CW and LI installed in an uninsulated 3 bed Semi-Detached house

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Pocket Affordable Warmth Survey

Identifies the "fuel poor" after a five minute doorstep assessment

Pocket survey provides:NHERSAPAnnual running costsAffordable Warmth Index (AWI)Predicts fuel povertyCO2 emissionsOnly minimal data is required

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FridgeSavers

National scheme to offer A rated Fridges and Fridge freezers to customers on benefit who own an old inefficient fridge

In partnership with Currys

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Powergen HeatPlant

Ground Source Heat Pump designed for the social housing sector

Also a possible solution for off gas network fuel poor.

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What is a ground source Heat Pump

A heat pump collects and concentrates solar energy stored naturally in the ground

Heat Pumps can operate over a variety of mediums, air to air, air to water and water to water

The pump distributes this heat through the domestic heating and hot water system in the same way as a conventional boiler

The heating is “low grade” i.e operates at around 50oC

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How HeatPlant works

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The benefits of HeatPlant

Environmental Up to 50% lower CO2 emissions 100% sustainable technology with 20 year lifetime for

the HeatPlant and 50 years for the ground loopEconomic

Provides full space and water heating for around 75% of the cost of conventional gas boiler

No need for annual Gas safety checks No need for additional immersion heating 1kWh of electricity can extract over 3kWh of renewable

energy

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HeatPlant Installation

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HeatPlant Installation

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HeatPlant Installation

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Powergen HeatPlant unit

The unit is 450mm wide, 550 deep and 800mm high and would fit under the surface in a kitchen

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HeatPlant ComparisonSystem Annual fuel cost Annual CO2

(Oct 2003) (SAP 2003)Ground source heat pump £215 1.6 tonnesNatural gas boiler (condensing) £300 2.9 tonnesNatural gas boiler (non-condensing) £345 3.3 tonnesLPG (bulk) (non-c.) £500 4.3 tonnesLPG (bottle) (non-c.) £6704.3 tonnesOil (35sec) (non-c.) £3004.4 tonnesElectricity (storage + panels) £510 6.5 tonnesHouse coal (closed stove + back boiler) £3806.6 tonnesSmokeless solid (closed stove + back b.) £515 7.5 tonnesGSHP@ Braddock House £187 1.3 tonnes

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HeatPlant Progress to date

92 installations to date 62 over 4 sites in Nottinghamshire 6 on a site in Worchester 24 on one site in Cornwall – 16 of which were

retrofitWe have raised the profile of a technology that is installed in tens of thousands in Europe and hundreds of thousands in the USA

Gordon Brown reduced VAT on GSHP in the last budget

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What is Micro CHP?

A direct replacement for the boiler in a central heating system

It burns gas to produce heat just like a boiler, but...

At the same time it generates FREE electricity

Some of the electricity you use in the homeAny surplus is purchased by Powergen

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Micro CHP concept

Micro CHP replaces boiler in conventional central heating system

ELECTRICITY12%

HEAT80%

EXHAUST8%

ELECTRICITYIMPORT/EXPORT

GAS 100%

micro CHPunit

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What are the benefits of mCHP?

Environmental benefits Reduces Carbon emissions

Social benefits Helps to eliminate fuel poverty particularly helpful

in the solid walled properties where an efficient heat source is critical

Economic benefits Reduces fuel bills by around 20%

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The Powergen product

Whispergen MkIV unit8kWt (heat output)1.2kWe (electrical)

500x600x850mmSame as small fridgeFits under worktop

54dBA noise levelSimilar to freezer

Annual service Same as boiler

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Example case study house

138m2 total floor areathree storey - living on mid floor

built 1998insulation to Building Regulations

usage pattern continuous occupancycopious showers

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Original heating system

Wall-hung boiler in kitchen (mid-floor)

Y-plan (3-port valve)Single zone7-day programmerroom/cylinder thermostat

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Economics (of case study home)

Annual gas bill £ 550 Annual electricity bill £ 450 Annual gas consumption kWh 35 000 Annual space heat kWht 18 000 Annual DHW kWht 6 000 Annual electric consumption kWh 6 000 Generation kWhe 3 400 Projected savings £ 150-200

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The Powergen offer

Powergen supply and install the WhisperGen unit in your home

Direct debit monthly payment covers the cost of:

Installation Electricity Gas

And we buy back any surplus electricity you generate!

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Boiler replacement offer

Applies to householders wishing to replace existing (defunct) boiler

Installation cost is fixed at £3000 including VAT regardless of complexity

May require changes to existing system April 2003 Building Regulations may require

upgrade of complete system to include cylinder insulation, controls, TRVs

Installation type depends on heat loss of house <6kW: standard installation 6-8kW: PIC, Programmable Intelligent Controller*

*£250 cost to Powergen-no charge to customer

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Householder benefits

Monthly budget account spreads the cost of energy over the year

“State of the Art” heating systemNo worries about repairsReduces electricity bills Doing your bit for the environment and saving money!!

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Energy Advantage

New Product for the Social housing sectorIt will enable you as the stock manager to plan ahead, and get real support from Powergen to deliver your targets.

Energy suppliers could be accused of concentrating too much on their own objectives.

Energy Advantage facilitates the delivery of the landlord’s obligations.

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Energy Advantage

To find out more contact:lisa.sims@powergen.co.ukchris.banks@powergen.co.uksarah.proffitt@powergen.co.ukd.ward@powergen.co.uk

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The Challenge of EEC II

EEC II – 2005 – 2008Market Transformation

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EEC II – 2005 – 2008

EEC II like EEC I is still primarily a Carbon saving programme

The Energy White paper called for around 1 MtC from the new EEC

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Market Transformation

Cavity Wall Insulation will be the single most important measure in EEC II

The energy white paper referred to 4.5 million cavity wall installations between 2005 and 2010 which equals 750,000 per year

What do you think is the current rate of installation as measured by the insulation industry?

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Transforming the insulation industry

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CWI installations / year in 1000's

CWICWI req

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Transforming the insulation industry

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CWI installations / year in 1000's

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Transforming the insulation industry

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CWI installations / year in 1000's

CWICWI req

EEC II wouldRepresent 1.74 million CWI

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The EEC II Challenge

This represents a 50% year on year growth in the insulation industry during EEC II

And if we fail Ofgem will have the powers to fine Suppliers for not delivering their targets

We are all familiar in our roles at work with having to deliver targets in our performance driven economy

S.M.A.R.T Specific Measureable Achievable Realistic Time period

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Is EEC II at SMART target?

Is EEC II Achievable?Is EEC II Realistic?

Few of us I believe would be happy to accept a target where the ability to deliver is outside our control

mike.newell@powergen.co.uk