What is the role of gas in a low carbon energy future? HHIC host fringe event at Conservative Party Conference

5th Oct 2015

 

What is the role of gas in a low carbon energy future? HHIC, together with the Policy Exchange, hosted a fringe event at the Conservative Party Conference.

The event, held on Monday 5th October, welcomed former Energy Minister Charles Hendry as keynote speaker, with Neil Schofield of Worcester Bosch, Richard Howard of Policy Exchange, Mike Foster of EUA and Ben Caldecott of Smith School of Enterprise and the Environment joining the panel too.

Reviewing the future of gas, Mike Foster, EUA’s Chief Executive said “The Coalition Government responded to the energy trilemma - affordability, security of supply and climate change obligations by publishing their “All electric” scenario. In this, power (electricity) would be derived from solar, wind and nuclear with heating demand also met by electric.

However as the UK is in the northern hemisphere, closer to the North Pole than the equator, solar isn’t as efficient; the wind doesn’t always blow and to provide secure supplies our forecasting of weather patterns isn’t that reliable. We will need a backup source of energy to deliver intermittent power generation and gas will offer the answer as it is cleaner than coal.

Aside from this challenge, UK heat demand is seasonal it varies by month, by day, by hour. To meet peak demand the UK would have to have generational capacity to meet the extreme demand from say a cold, dark, still January evening.

National Grid has estimated that the UK requires the equivalent of an extra 30 nuclear power stations over and above existing replacement programme.

Existing electric distribution infrastructure couldn’t cope with demand, so new substations, transmissions; wiring in homes would all need upgrading too.

In the home, Air Source Heat Pumps would be needed costing approximately £7k compared to £3k for a condensing boiler plus radiators would need resizing, possibly new ones fitted and insulation would have to be of the highest standard possible. Solid wall insulation may also be needed in some properties costing up to £18k according to the Energy Savings Trust.

A unit of electricity costs three times that of gas, even after adjusting for efficiency differences in appliances based on an average home, according to the EST, a heat pump costs £140 per annum more than a modern condensing gas boiler and that is before the costs of the electricity infrastructure investment required has been added to bills.

All of this suggests that gas has a very important role to play in the future.

The existing grid caters for the distribution to 85% of homes in the UK and is a secure and cost effective method of delivering energy into the home.

CO2 reductions have taken place since 2005 largely thanks to condensing boilers being fitted these are up to 30% more efficient, but there are still 10 million homes with old boilers.

New forms of heating controls can reduce demand further whilst still maintaining comfort in the home, figures suggests another 4% saving is possible.

Green gas, biomethane or bio SNG injected directly into the grid can replace 30% of the current supply  and off gas grid users will soon be able to buy biopropane LPG.

And crucially there is still plenty of gas available, estimated at well over 200 years’ worth worldwide and shale in Bowland offers the UK an additional 80 years.

We need to be realistic; there is no single solution to solve the energy trilemma that is why the all-electric scenario was flawed. Keeping gas in the mix, allows the UK to balance secure supplies to the home; affordability and will continue to contribute to tackling Green House Gas emissions.