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(part 2) Last week @BristolEnergy were the first company to trial selling heat as a service in our Lab. es.catapult.org.uk/news/bristol-e…
Our experience in our trials is that most consumers really like this. They like the control and they quickly begin to understand how what they pay relates to what service they get, and adjust accordingly. That is a long way from the current low level of understanding of energy.
Such service offerings can also work for companies: offering a better product, building trust with your customers. Crucially, heat-as-a-service-type models could allow businesses to design and deliver better integrated low carbon heating solutions as part of a monthly package.
This may help with the capital problem we are going to face with heat, how do you get people to pay for all they kit they need (assuming there is finite subsidies, which, I can tell you from experience, there is).
4.Understanding local context and planning are essential.
Different parts of the country have very different heating and energy systems. We need to understand those conditions to understand what technology fits a particular area's characteristics.
Different parts of the country have very different heating and energy systems. We need to understand those conditions to understand what technology fits a particular area's characteristics.
Is the area suitable for heat networks? Does the local grid have enough capacity to deal with a sudden increase in heat pump use? Is the local gas network ready for a switch to hydrogen? What are the types of buildings in an area?
Our work found very different solutions suited different areas. es.catapult.org.uk/news/local-are… Note: getting the data on local energy systems was hard. We need a low-cost, open-data approach to local area energy data. The Energy Data Taskforce (led by @Laura_Sandys) looking at this...
Making the planning system more mindful of energy is essential if we are to decarbonise heating cost-effectively. It can help better engage communities on the changes that will be needed. It can also ensure that the different approaches “add-up” for the UK as a whole”
5. Need for policy. So while all of the above may help improve consumer heat experiences and make it more likely that low carbon technologies will deliver good outcomes, the necessary pace of decarbonisation on heat requires a robust policy driver.
RHI has had many critics, sometimes unfairly. Regulation on products and buildings and support for energy efficiency are as essential as ever (see @hal_harvey on regulation like performance standards being an essential driver of innovation vox.com/energy-and-env…).
Carbon pricing and cap and trade both have their supporters and in post-Brexit world *may be* an opportunity to think again about these instruments.
What about an obligation on suppliers to reduce emissions over time?
What about an obligation on suppliers to reduce emissions over time?
A bit like fuel efficiency standards we have on cars, but for carbon in our energy use. We are planning more work on how such an obligation might work in the coming weeks....
Such a mechanism would be technology-neutral. For the first time you would line up incentives for all the exciting rival ‘low carbon heating’ technologies to compete on a level-playing field.
Because as @MLiebreich found in this excellent thread – and we find every day from our work with the UK’s best innovators innovators – there are loads of brilliant heating tech and ideas out there.
@SunampLtd @CeresNews @ITMPowerPlc @QBot_UK @worcesterbosch @calor @verv_energy @MyRadbot @parityprojects @ErdaEnergy are all trying new, low carbon stuff. There are many more...
This is not just a heat pumps vs H2 world (although both remain very plausible large-scale options). Markets, properly incentivised to cut carbon, can help reveal which propositions work best for consumers, and what infrastructure and technology is needed to deliver this.
But you also need to give decision-makers the confidence that if they introduce a new market design, there are commercial ideas which are close to market, and that consumers will not just accept, but welcome. Which is why we are testing alternatives, such as heat as a service.
The Netherlands is already leading the way with its plan (see this excellent tweet thread from @Sustainable2050 for details)
@beisgovuk release of its work on improving the evidence base for low carbon heat is a huge step forward, gov.uk/government/pub…
@beisgovuk release of its work on improving the evidence base for low carbon heat is a huge step forward, gov.uk/government/pub…
Reminder: 1. Start with the consumer, not the technology. Low carbon alternatives will require powerful consumer propositions that match, if not exceed, current expectations. 2. Digitalisation offers significant potential (and some risks, will talk about that another time).
3. Heat as a service could be a powerful proposition 4. Understanding local energy systems is essential 5. Heat decarbonisation will require significant market changes/policy drivers.
If you want to come work with us/learn more, get in touch @EnergySysCat. We are here to help innovative companies work through the thorniest of problems and create new markets.
Let me know what we are getting wrong and what I have missed (as if you need an invitation)….
Let me know what we are getting wrong and what I have missed (as if you need an invitation)….
