Utility Week

UTILITY Week 1st September 2017

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/867611

Contents of this Issue

Navigation

Page 24 of 31

UTILITY WEEK | 1ST - 7TH SEPTEMBER 2017 | 25 Operations & Assets It ain't over 'till it's over Unsurprisingly, not everyone agrees with this thesis. Northern Gas Networks' Keith Owen, head of system development and energy strategy, is not overtly shaken by Lowes' assertion that gas networks are exag- gerating the problems associated with the electrification of heat. He points out that while electricity stor- age technologies are developing apace, the storage capacity provided by even the largest "farms of batteries" is "tiny" compared with the inherent energy storage provided by the gas grid. "Northern Gas Networks alone is sitting on a daily basis with 25GWh of storage," he says. It's an "enormous" storage capacity which must be available in order to accom- modate seasonal heat demand, insists Owen. He also has an answer for Lowes' criticism of hydrogen as an answer for heat decarbonisation. While he accepts that producing hydro- gen via steam methane reformation – as proposed in the H21 project – would not currently deliver a zero-carbon system, he suggests that other techniques such as electrolysis could close the carbon gap. Furthermore, Owen says there is room for further efficiencies to be uncovered the SMR process. But though Owen has ready answers for Lowes, he's not keen to strike a combative pose. It's not about electrification versus gas, he states. "There is no silver bullet here… I think it is far too early in trying to resolve these issues around climate change and emissions to really pin ourselves into one singular pathway because if we get that wrong then the UK – not just from an energy perspective but from an economic perspec- tive as well – is really going to suffer." Energy Networks Association wrote to Utility Week responding to Richard Lowes comments on the scope for decarbonising heat via electrification. T he question of how we decarbonise UK heat demand is per- haps the most difficult energy challenge we face. It is an issue that has received comparatively little public attention and therefore contributions to this important debate are to be welcomed and engaged with in a constructive way. The suggestion that full electrification offers a viable solution to decarbonising heat, which accounts for nearly half of our energy demand, is not a new idea. But it is one which has seen waning support in recent years as the implications have come to be better understood and the merits of a whole system approach have become increasingly clear. The whole system approach considers gas and electricity as well as the interdependence between power, heat, transport and waste. It is an approach which is vital given the scale of the challenge of decarbonising our economy and the uncertainty about how our cli- mate, customer behaviour and new technology will evolve to shape our energy future. Any energy policy which takes a narrow focus in pursuing one solution, as proposed by a full electrification pathway, is dangerous and poses an enormous risk for customers and the future of the UK economy. The case for a long-term role for gas, alongside electricity, in our energy system is clear and relies on far more than meeting peak heat demand in winter; as important a consideration as that undoubtedly is. At peak times 61 per cent of power, and over 80 per cent of heat and power, is delivered by gas through the network. We also have to keep overall use in mind. In 2016 electricity accounted for just 17.5 per cent of the final energy UK consumers used, compared to 29.4 per cent for gas and 47.5 per cent for petroleum-based products. Decarbonisation through electrification alone would mean much more than just meeting our existing electricity needs through low- carbon generation. The relative affordability of gas and the reliability of the gas network as a system for transporting energy are equally important factors in demonstrating the essential role for gas across the system. For most consumers, gas is the most affordable way to provide heat. At just 32p per/day per customer, gas already actively assists some consumers in avoiding fuel poverty. It is also hugely reliable: the average consumer suffers an unplanned outage only once every 140 years. Gas is vital to making our whole system robust. Gas is already supporting decarbonisation by balancing the intermittency of increasing penetration of renewable generation on the electricity network. But looking ahead, the way that we provide heat to homes and businesses and the role of the gas networks will have to change if we are to meet our decarbonisation targets. Given the scale of the challenge, it is likely that decarbonising gas will play an important role, alongside greater electrification in some areas. This is an extract from David Smith's response. The full text can be read it in full at UtilityWeek.co.uk Gas has a long-term role to play in the decarbonisation of the whole energy system. Opinion David Smith, Chief executive, ENA • Lowes also warns that the viability of hydrogen networks is undermined by their reliance on carbon capture and storage, a technology he says has "unknown" costs and "questionable" technical viability. "If we think we've got the answers and we can jump to a mainly electric system right now, then the questions has to be asked, why aren't we doing it?" KEITH OWEN, HEAD OF SYSTEM DEVELOPMENT AND ENERGY STRATEGY, NORTHERN GAS NETWORKS

Articles in this issue

Links on this page

Archives of this issue

view archives of Utility Week - UTILITY Week 1st September 2017