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Network April 2016

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NETWORK / 15 / APRIL 2016 Denmark is often cited as an exemplar of how district heating can be a large- scale, effective solution to demand for domestic heat. Many MPs attending Utility Week's round table had just returned from a trip to see this market in action and Ian Manders, a heat net- works consultant and policy adviser working for the Danish embassy in London, was among the attendees. Denmark's leadership in district heat- ing has evolved after politicians de- cided in the 1970s to end dependence on oil as a primary heating fuel and put local authorities in charge of local energy planning. Today, over 60% of heat supplied to buildings in Denmark comes from district heating – 98% in Copenhagen – and heat is established as a utility in its own right. Two key points were identified as enabling this market maturity: • strong local decision making for a national way forward, and • robust regulation of heat markets, including consumer protection. U n d i s p U t e d L e a d e r Does Denmark deserve its reputation as a heat trailblazer? GET TO: Utility Week Live 2016, May 17-18, Birmingham NEC Heat is on the agenda at Utility Week Live on 18 May, the same day attendees can attend a Network launch event, 12.30 -1.30pm at the Pumping Station. www.utility- weeklive.co.uk address heat challenges. They lamented the closure of the Zero Carbon Homes initiative and said that any scope the Energy Company Obligation might have had to improve clarity on the future of heat has disappeared with the scheme's increasing focus on fuel poverty. Policymakers and influencers at the table generally held up their hands in the face of these criticisms but promised that heat is now a matter of increasing interest in government. A recent trip to Denmark – where local government has successfully been empowered to develop heat – seemed to have opened the eyes of many MPs to the opportunities presented by the UK heat market. Any attempt at a similar devolution of decision making in the UK will have to be supported by upskilling of local council staff, and a broader public education effort since, as Tim Rotheray, chief executive of the Association for Decentralised Energy, pointed out, heat is a uniquely "user led" energy vector. This means a fit-for-purpose policy approach to heat will need to support a multiplicity of technical solutions which consumers are able to comprehend and access. Policymakers and industry players must therefore find ways to support consumer decision making in a way that helps them make the right energy choices for their own, and perhaps their community's needs. Good Electricity Transport Heat Scottish energy consumption 2013 Energy system transition 21% 25% 54% Source: Scottish Government decisions will be based on a complex set of factors, but it must appear easy for consumers if they are to engage. Work has already begun in industry to respond to this challenge, as reported on page 36. Regardless of how and where decisions are made however, it became clear during discussions at this round table that more independent information is needed about the cost and practicality of implementing technical solutions for heat. Some GDNs – Wales and West Utilities was vocal – have produced significant findings in this arena as a result of Decc-funded initiatives. Even in pointing to these findings, chief executive Graham Edwards acknowledged that more research was required by organisations or bodies who could not be accused of "having an agenda". Imperial College in London was recognised as a centre of expertise that could help fill the percieved shortfall of independent analysis and help establish a sound evidence base for the cost implications of a variety of heat scenarios. Whatever source or range of sources is selected to provide independent insight into heat scenarios however, closing remarks at this round table also emphasized that evidence must be taken in the round and with the whole energy system in mind. The potential for cross- over with current explorations of electricity system architecture was discussed with interest. N Primary fuels l Coal l Biomass l Natural gas l Biogas l Oil l Waste to energy Natural gas transmission Transmission Distribution Key to symbols Vaerktype Central electricity generating plant Local CHP plant District heating plant without electricity

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