powerpoint presentation · 51% of respondents were not comfortable sharing near real-time energy...
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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
31
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
37
• 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
Mission: Equity for all in the
transition to a low carbon
economy- the role of community energy
Emma Bridge
Community Energy England
44
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
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
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
78
• 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
79
• 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
81
• 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
