Utility Week

18 | 11TH - 17TH JANUARY 2019 | UTILITY WEEK Operations & Assets Analysis L ocal consideration of energy networks and land use changes have typically taken place in silos, with network operators not even included on the list of non-statutory consultees for planning appli- cations and strategies. Meanwhile, networks typically have considered only the needs of their own infrastructure, and investments within their eight-year licensing periods. However, this will need to change. The UK has a legal obligation to reduce carbon emis- sions by 80 per cent on 1990 levels by 2050. Progress so far has focused on reducing emissions from electricity generation, but experts agree that a stronger emphasis needs to be placed on energy consumed as heat, and for transportation. This will demand significant changes to buildings and energy networks, and this in turn will require better planning to ensure changes are considered holistically, and are carried out as efficiently as possible. In tandem, regulator Ofgem has asked network operators to consider "whole systems outcomes" through the new price control process, RIIO2. Although it is still working out the detail, guidance issued in September states that network compa- nies will have to share information and co- ordinate activities to a "much greater degree than has happened to date". Companies will need to describe the process of engagement they have undertaken to support such co- ordination, and what steps they will take to continue this. Meanwhile, the government's Clean Growth Strategy has highlighted the driv- ing role that local authorities should have in decarbonisation, through their "unique position" of managing policy on land, build- ings, water, waste and transport. "They can embed low-carbon measures in strategic plans across areas such as health and social care, transport, and housing," it states. In response, innovation organisation the Energy Systems Catapult (ESC) has been working on a new approach, known as local area energy planning. This takes a longer- term view that considers how to achieve affordable and secure energy in the context of the whole energy system. The process involves organisations which have not typically worked in partnership col- laborating to consider interactions across systems, such as how alterations to build- ings might influence the energy networks that serve them, the influence of decarboni- sation on future choices, and options to shi demand between different networks. "Local area energy planning is respond- ing to the challenge in decarbonising heat, and the lack of progress that has been seen to date in the UK. Local areas need to take an active role to help accelerate the change that is needed," says Richard Halsey, innovation business leader at the ESC. Stuart Easterbrook, future gas strategy manager at gas network operator Cadent, notes that the options to decarbonise heat – such as replacing fossil gas with biometh- ane, hydrogen or hybrid electric and gas sys- tems – are already known. However, many A whole-systems revolution A new approach to energy planning where network operators and local authorities work in collaboration could be the key to meeting decarbonisation targets, and lowering costs. Catherine Early reports. Key findings The Energy Systems Catapult said its research found that a wide range of heating system options were needed to decarbonise heat in local areas. It said "no single solution was cost effective in any area", however some common themes were identified across local areas regarding heating system options and cost-effective choices. • Development and expansion of heat net- works are a solution for built-up urban areas where the high heat density makes them a cost-effective decarbonisation solution under most future scenarios. • Electric heating through technologies such as heat pumps is more efficient in rural areas. In smaller properties, air source pumps are likely to be most effective, while larger houses may require ground source heat pumps, or high temperature air source heat pumps. Solutions for suburban areas are much more variable. • Smaller, better insulated homes are suitable for a wide range of solutions, while larger homes are harder to heat, with fewer low-car- bon options. There were examples of "hard to heat" buildings such as these in all pilot areas. • Hybrid heating systems, which can switch between gas and electricity at different times to manage peak network loads, may be a valu- able future option as a transition technology, allowing consumers to experience their homes being heated by heat pumps without being significantly different to their current systems. However, hybrid heating systems are an expen- sive option and deliver limited carbon reduction benefits while national electricity generation is still carbon intense. • Biomass was not popular with local authori- ties because of its impact on air quality, the cost and availability of biofuel, and because space constraints for fuel storage meant that it was only likely to be practical for larger homes. Source: Energy Systems Catapult "No-one had a way of bringing together a holistic picture for a real-world area, and create an objective evidence-based plan to reduce CO2 emissions significantly over time." JAMES GREENLEAF, DIRECTOR OF ENERGY MARKETS AND ANALYTICS BARINGA PARTNERS

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