Micro-CHPOrganising the Future:UK example

Ian MandersCHPA30 May 2008

Why is the UK a good prospect for mCHP?

•Little competition from District Little competition from District HeatingHeating

•Widespread natural gas networkWidespread natural gas network

•Old houses hard to insulateOld houses hard to insulate

Rising Gas Prices

Double price of energy in

UK and lose only 10% of

demand

emerging in the UK…

• PAS 67 – benchmarking exercise• MCS (“voluntary” Microgeneration

Certification/Accreditation Schemes) re mCHP and CERT - Industry concerns £ etc

• “Positive” Govt (BERR) report 2 June• R3 Project…

CHPA R3 Project

UK micro-CHP “Roadmap” = Industry Delivery Plan

Brings “fragmented” industry together“Confidential” survey of stakeholders4 energy suppliers (utilities)4 appliance manufacturers2 fuel cell developers6 micro-CHP developers

CHPA – some UK member views

• Protection against “cowboys” is provided by UK energy suppliers needing to protect brand reputation

• Very high performance requirements could be prejudicial against some (cheaper) technologies

• Want level playing field with heat RE eg heat-pump

• Believe the market will eliminate weaker products

Next Steering Group• Findings of survey, and other issues eg

• Reputation management• Government relations• Routes to market• Discuss any recommendations• Decide the next steps

CHPA R3 Project NEXT STEPS…

More information

ian.manders@chpa.co.uk

Ian MandersCHPATuesday 20 May 2008

What happens when a new technology is developed?

• Many manufacturers competing• All different types of product whose only

similarity is that they are broadly alike in function• Reliability issues!• Prices high – only attractive to “early adopters” –

usually rich• Product produced at a loss, cost, or v small

margins• Therefore maybe Govt incentives* to encourage

the establishment of the new technology

*Govt incentives usually demand a “standard”

What happens when a new technology matures?

• Many manufacturers drop out, leaving a few “winners”

• Product becomes “standardised” in function and form – and comparable

• And reliable!• Prices drop – available to many• Govt drops incentives as technology

becomes commercially viable

Govt incentives means creating a standard

• Govt thinks this lessens risk eg “Minister, you spent half a million pounds on this product, and it is rubbish”

• Means they can compare products – or so they think

• Provides a threshold to help ration spending