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NETWORK / 31 / JUNE 2016 M a n a g i n g H e at S y S t e M D e c a r b o n i S at i o n The report in brief tHe tHree optionS: Repurposing the gas grids with hydrogen Advantages l Minimum disruption through streetworks or in customer premises. l Natural gas storage can also be repurposed. Disadvantages l Hydrogen production is more expensive than natural gas – electrolysis is very expensive and only available on a small scale – steam methane reformation depends on carbon capture and storage. l Hydrogen-ready domestic appliances must be installed. Recommendations l Set product standards to ensure new gas appliances are hydrogen ready. l Develop safety standards for the use of hydrogen as a domestic fuel. l Develop a "switch over" communication plan to prepare customers. l Develop pilot schemes for both production options. Electrification Advantages l Decarbonisation of electricity is well under way. l Heat pumps are suitable for less densely populated environments. l Direct heating is suited to well-insulated properties, particularly flats and maisonettes. Disadvantages l Disruption and cost of heat pumps could be a significant barrier to adoption. l Local networks may have to be upgraded to accommodate even modest penetrations of heat pumps. l Storage, demand-side management and backup solutions must be considered at the design stage. Recommendations l Consider a pre-emptive mains reinforcement programme to prepare for future electrification, especially for areas off the gas grid. l Develop system design for varying levels of heat electrification. l Consider regulating against the installation of new or replacement gas boilers in areas zoned for electrification. District Heating Advantages l Supply heat efficiently and at low cost to municipal buildings, offices and leisure centres. l Also suitable in less populated areas as part of community energy schemes as well as for flats and maisonettes in multi-storey buildings. Disadvantages l Sources of low-carbon heat production are limited, and only at small scale. l Heat networks are unregulated – regulation would help lower the high cost of capital that makes many schemes so expensive. Recommendations l Extend existing legislation and regulation for customer protection. l Introduce statutory development powers and a system to regulate assets for district heating. l Consider regulating against the installation of new or replacement gas boilers in areas zoned for district heating, although an interim solution will be needed to bridge any delay before district heating becomes available. Imperial College London's report, Managing Heat System Decarbonisation, compared the impacts and costs of transitions in heat infrastructure. It concluded that there is "no silver bullet" to the problem. Instead a combination of three solutions – repurposing the gas grids with hydrogen, electrification and heat networks – will be required to meet the UK's future low-carbon heating needs. Each solution has its advantages and disadvantages but, used in the right situation, could make a vital contribution. The report therefore also makes a range of recommendations to aid the development of each solution. High-level recommendations u Early preparation of an appropriate combination of approaches, with delivery through long-term infrastructure programmes, will make the decarbonisation more manageable. u A variety of decarbonisation options will be needed. u Decisions should be made locally rather than seeking a single national- level approach. u Current government arrangements for gas and electricity are not fit for purpose for the emerging heat sector. u The National Infrastructure Commission would be the natural home for establishing a national overview and framework. u Ofgem could be given the responsibility of regulating investment delivery and ongoing operations. u Local authorities could be in charge of the planning and rollout of individual building and heating solutions. u Decisions should be made by the appropriate governance institutions to let private sector network operators deliver timely investment. u Energy-efficiency investment in buildings is needed to reduce the scale of the space-heating challenge. Source: Imperial College London