powerpoint presentation · 51% of respondents were not comfortable sharing near real-time energy...

People Living in Water Poverty and Fuel Poverty

Jess Cook

A future for all: making the

retail energy market work

for everyone

NEA Conference Session 3

Our advice and advocacy roles make each

other stronger

Provides unique insights into the

problems people face, with real-

time data. We use this to advocate

for evidence-based policy changes

that will help consumers the most.

Provides insight into the organisations

and systems consumers deal with and

into emerging risks for consumers. This

helps us provide advice and support

that is up-to-date and effective

7 in 10 of the problems clients come to us with are solved with the help of our advice.

But the most common reason for people not being able to solve their problem is

issues with other systems or organisations and their policies and practices.

The costs of new investments to

transform and decarbonise the energy

system currently exceed £15 billion a

year. This will almost all be paid for

through consumer bills.

Citizens Advice will tackle the issues

faced by today’s consumers and

advocate for fairer outcomes for the

consumers of the future.

As the country’s leading advice provider,

we will ensure household and micro-

business consumers can access the help

and support they need to resolve their

problems and take advantage of an

evolving energy market.

Advocacy and advice for

current and future energy

consumers

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51%of respondents were not

comfortable sharing near

real-time energy data

Consumers should retain access to,

and control over, their energy use

data by default

households live in GB

private rented homes

Innovators should consider how incentives for

new energy technologies can be split between

tenants and landlords. Regulatory barriers to

this should be minimised

4.5m

energy issues were raised

with Citizens Advice in the last

year

Policymakers and regulators should ensure

regardless of how people receive their energy,

they always have access to advice and redress

186,000

UK adults don’t have a saving or

investment product

The government should explore provision of grants

and low-interest loans for new energy technologies

1 in 4

UK adults are non-internet users

Energy service providers should offer non-digital

ways of signing up, staying in contact and managing

services

5.3m

UK adults are not internet users

Energy service providers should

offer non-digital ways of signing

up, staying in contact and

managing services

5.3m

of respondents were not comfortable

sharing near real-time energy data

Consumers should retain access to,

and control over, their energy use

data by default

51%

UK adults don’t have a saving or

investment product

The government should explore

provision of grants and low-interest

loans for new energy technologies

1 in 4

GB households live in private rented

homes

Innovators should consider how

incentives for new energy

technologies can be split between

tenants and landlords. Regulatory

barriers to this should be minimised

4.5m

186,000 energy issues were raised

with Citizens Advice and there were

1.15 million energy page views in the

last year

Policymakers and regulators should

ensure regardless of how people

receive their energy, they always

have access to advice and redress

1. Enable all consumers to choose from a good range of

supply models

1. Make information about products and services

transparent and accessible

1. Protect vulnerable consumers and ensure people are

not penalised for loyalty

1. Put consumers in control of their energy outcomes

How to ensure the market works for everyone

Presented by: Gillian Cooper

citizensadvice.org.uk/energypolicy

@CAenergypolicy

We are the official consumer body for energy

We use research and evidence from the people who contact our advice service every

day to understand the problems facing energy consumers in Great Britain

We help solve these problems by engaging with industry, changing policy and

supporting consumers to navigate the market

Citizens Advice Energy

NEA Annual Conference

Mission: Equity for all in the transition to a low carbon economyInsight from the Smart Systems and Heat Programme

Richard Halsey

Director

September 2019

What is Energy Systems Catapult?

© 2019 Energy Systems Catapult 29

Mission: Unleash innovation and open new

markets to capture the clean growth opportunity

A place to develop and test new ideas

Research

Digital

Supporting

innovators

Systems

engineering

Modelling and

simulation

Trials

Bridge the gap between

stakeholders in the sector

Established and overseen by

Innovate UK. Independent from

Government. Not for profit

Hubs in Birmingham

and Derby

Innovation experts

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© 2018 Energy Systems Catapult

The Challenge of Decarbonising Heat

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Space Heat

CAPACITY

(GW)

Space Heat

PRODUCTION

(TWh)

CLOCKWORK PATCHWORK

© 2018 Energy Systems Catapult

Consumers aren’t choosing low carbon heat today

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of homes have low

carbon heating today

prefer gas central

heating given the choice

© 2018 Energy Systems Catapult

And we face significant barriers to choosing low carbon heat

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Subsidies?

Smart controls?

Which supplier?

Intrusive?

Will I like it?

Is it reliable?

Disruption?

Will I be locked in?

Which technology?

Which installer?

Maintenance?

Financing?

Capital costs?

Retrofit?

Will it work?

Running costs?

© 2019 Energy Systems Catapult

There are key challenges our research found we need to tackle

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Make low carbon heating easy to control

Make low carbon heat systems easy to install

Improve low carbon heating systems

© 2019 Energy Systems Catapult

We created a Living Lab to better understand heating at home

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Commands

from device

Cloud control

and research

database

Home Wi-Fi and

Hub

Boiler controller

and boiler

Room temp/

humidity sensor

Radiator

surface temp

WRV

A room in a

house

© 2019 Energy Systems Catapult

We found everyone enjoys better control,

but use it very differently

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Often adjust

temperature to

try and cut bills

Cool Conservers

Rarely adjust their

heating, keeping it cool

to try and cut bills

Steady and Savvy

Turn it on and off to try and

make sure home is only

warm when someone is in

On-off Switchers

Often adjust

temperature to

get comfortable

Hot and Cold Fluctuators

Hate feeling cold, but

dislike ‘waste’, so turn up

high when they want to

On-Demand Sizzlers

Love feeling cosy and

prefer not to put clothes

on if they’re cold

Toasty Cruisers

© 2018 Energy Systems Catapult

We developed and tested selling Heat as a Service in our Lab

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© 2018 Energy Systems Catapult

We found people preferred different Plans

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• Know what they pay now and

compare prices to this

• Switch frequently, so more

open to something new

• Preferred the FixedTime Plan

to try and control their costs

• But many used lots of Extras

• Enjoyed improved comfort

from zonal new controls

• Most likely to buy a Plan

• Preferred FlexiTime and

enjoyed knowing they could

get the comfort they wanted

• Loved feeling in control of

how much they spent

• Enjoyed haggling to get the

best bargain

© 2018 Energy Systems Catapult

This suggests if business could guarantee we got the comfort

we wanted at home, we might not care how it is delivered

38

© 2019 Energy Systems Catapult

Improving Local Area Energy Planning could help understand

and plan delivery of the infrastructure where we live

39

© 2018 Energy Systems Catapult

Better data could then be used to target and offer us tailored

solutions that prepare our homes for low carbon heat

40

Shows when cannot get

comfort they want

(e.g. lounge feels cold)

Used to design retrofit

that improves comfort

and energy efficiency

Data about

household and

building

Prepares home for low

carbon heating that

suits that area

Supported by

Local Area

Energy Plans

© 2018 Energy Systems Catapult

We are opening up our Living Lab to help others test new

ideas and accelerate innovation

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Understand how we

might practically

transition gas heated

households to low

carbon

Help businesses

learn how to sell

energy services

Learn how to

design smarter

protection for

consumers

Help innovators

test new products

and services

Warmth on

Prescription:

energy innovation

to improve health

Thank You

Richard Halsey

Richard.Halsey@es.catapult.org.uk

@RichardHalsey

Mission: Equity for all in the

transition to a low carbon

economy- the role of community energy

Emma Bridge

Community Energy England

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Community energy

• Community leadership, accountability, ownership and benefit

• Putting people at the heart of the energy system

• 2014 Community Energy Strategy vision: “1m homes powered by

community energy by 2020”

• “Community energy [is] a key cornerstone of the government’s

ambition for the transition to a low-carbon, smart energy system”

• “The future is local”

• “…To achieve the urgent (and just) energy transition we need to

take the population with us”

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What our members need

• A package of practical support that recognises the importance of social impact, such as:o Reinstatement of tax relief for community energy

o Urban Community Energy Fund

o Loan facility/bridging fund for pre-registered projects

o Energy efficiency funding that delivers for genuinely vulnerable people and is available to community energy projects

o Business rate relief

o Reversal of VAT increase

Full list to be released later this month

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Community Energy England

www.communityenergyengland.org

hub.communityenergyengland.org

@comm1nrg @emmabridge_1

info@communityenergyengland.org

https://communityenergyengland.org/pages/join-us

Putting people at the heart of the energy system

Bindi Patel

Head of Scheme

NEA conference, 17 September 2019

Equity for all in the transition to a low carbon economy: the role of heat networks

Putting heat network customers first Heat Trust is all about protecting heat network

customers

We are an independent, non-profit consumer champion for heat networks, that hold suppliers to

account for the benefit of everyone involved.

We make sure customers enjoy the benefits of heating systems fit for the future by setting the

standards they should expect, making sure they are treated fairly and working with suppliers to deliver

high-quality customer service.

Heat decarbonisation

UK Housing Fit for the Future, CCC (2019)

“Aligning infrastructure investment in low-carbon heat with the UK's climate change targets requires the UK

Government to develop a strategy for decarbonised heat.

In the 2020s this should include roll-out of heat pumps in homes that are off the gas grid, with a focus on the 1 million homes using high carbon fossil fuels; a major

programme to build and extend low-carbon heat networks in heat-dense areas (e.g. cities), aiming

for around 1.5 million homes connected by 2030…”

“By 2025 at the latest, no new homes should connect to the gas grid. Instead they should have low-

carbon heating systems such as heat pumps and low-carbon heat networks.”

Heat networks in numbers

14,000197

2,000 50%

439,00028%

Source: BEIS

Energy on a local scale

Are heat network providers delivering a good service?

Most are, but some are letting customers down. A sector regulator is required. Ofgem would be sensible.

Agrees with CMA that regulation is needed. Consultation expected this year on how and which entities will be regulated.

Agrees with CMA that regulation is needed. Programme for Government confirmed a new Heat Networks Bill.

Why do we need regulation?

Improve customer outcomes

Reduce investment risk

What does Heat Trust cover?Heat Supply

Agreements / Terms of Service

Customer communications

Faults and interruptions

Vulnerable customers &

Priority Services Register

Billing, back-billing and payments

Complaints procedure and

Energy Ombudsman

What are customers saying to Heat Trust?

TRANSPARENCY OF COSTS

QUALITY AND CLARITY OF INFORMATION

REDRESS PERFORMANCE MONITORING

Summary • No silver bullet to the heat decarbonisation quandary.

• Heat networks provide enabling infrastructure. They are technology agnostic.

• The market is more diverse than gas and electricity market.

• Regulation is welcomed to support industry and protect customers.

• Customers protections should not be diluted.

• Action is needed now. Heat Trust is building an evidence base and provides the foundations for regulation to build on.

• Clear communication on why and how we are decarbonising heat.

• Customer experience must be prioritised.

Thank you!

Contact details

Bindi Patel – Head of Scheme

Joanna Read – Policy and Operations Adviser

info@heattrust.org

www.heattrust.org

Laura Hawkins

NEA Annual Conference 2019

Community FlexOpening up the flexibility markets

Laura Hawkins

Background

The Project

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The Project

Minimum Capacity: 50kW

The NEA are working with SSEN to widen participation in flexibility services to smaller scale businesses and organisations

Navigant are fulfilling the expert support role for the project – helping organisations develop their projects

The Challenges

Matchmaking – Seed Funding – Procurement

Project Lifecycle

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Matchmaking

• Support from NEA to identify suitable participants in the regions

• Workshop during this project – to answer questions, launch the project and allow suppliers and premises to talk about projects

• Ongoing support and engagement from NEA, SSEN, Greater South East Energy Hub and Navigant throughout this period

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Seed Funding/ Consultant Support

Max Support available per project: £2550

Max Consultant time available per project: 16 hours

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• Procurement Support• Based on Company Size and Tender Experience

• 4 simple questions

• Technical Support• Based on Project Capacity, project maturity, technical knowledge

and internal support level

• 5 simple questions

Seed Funding/ Consultant Support

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• PQQ• Simplified documentation and process to register (not without its

own challenges)

• ITT• Simplified documentation and legal contracts

• Open to those successful at PQQ

Procurement Process

Financials – Contracts

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• Flexibility can’t cost more than the reinforcement would have done …

• Funds are different for different locations and all calculated based on NPV of reinforcement delays

Funding Flexibility

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Contracts

• Your contract choice, 3 ways

• £69.50 per 50kW utilised for 1.6 hour event (Drayton)

• £143.50 per 50kW utilised for 4.5 hour event (Coxmoor)

Utilisation Only

• Utilisation - £4960/MWh Availability £150/MW/h (Drayton)

• Utilisation - £140/MWh Availability £38/MW/h (Coxmoor)

Traditional Mix (Utilisation/Availability Mix)

• £33 per kW available (Drayton)

• £69 per kW available (Coxmoor)

Availability Only

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Contracts

• Your contract choice, 3 ways

• Best suited to behaviour signal projects

Utilisation Only

• Best suited to traditional generation projects

Traditional Mix (Utilisation/Availability Mix)

• Best suited to energy efficiency projects

Availability Only

Case Study 1Energy Efficiency – Residential Lighting

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Scenario Bulb type Demand Impact

Baseline Incandescent bulb 60W

Energy Efficient LED 9W

Saving per bulb 51W

COSTS:Cost of LED = £2-£5Cost of 1000 LED = £2000-£5000

NETWORK IMPACT:Assume 1,000 bulbs are deployed in a specific network area linked to a substation.

Maximum peak demand reduction possible through lighting replacement: 1,000 x 51W = 51,000W.

Assumptions:1) All the replaced lightbulbs are on at the same time with no diversity (unrealistic)2) Peak demand aligns with when all these lights are on

In reality, a diversity factor needs to be applied to provide a better view of network impact at a substation. Based on previous studies, a 20% diversity factor is appropriate.

Network impact of deploying 1,000 LEDs = 51,000W x 0.2= 10,200W

BENEFITS:

1. Peak demand reduced by approx. 10kW

2. More than 10kW of load can be accommodated on the network

3. Total energy consumption across the users reduces significantly

* Exact diversity factor will depend on project specifics

Thoughts & next steps