UK Krystyna Dawson BSRIA June 2014 Policy long term impact on - - PowerPoint PPT Presentation

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UK Krystyna Dawson BSRIA June 2014 Policy long term impact on - - PowerPoint PPT Presentation

Heating trends by 2020 UK Krystyna Dawson BSRIA June 2014 Policy long term impact on dwellings Europe Reduction of CO2 emissions Reduction of energy consumption Efficiency of products & systems Integration of products


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Heating trends by 2020 UK

Krystyna Dawson

BSRIA

June 2014

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Excellence in Market Intelligence

11/02/2010

 Reduction of CO2 emissions  Efficiency of products & systems  Integration of products & systems

Policy long term impact on dwellings – Europe

 Reduction of energy consumption

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Excellence in Market Intelligence

Share of RES & Fracking

3 France Italy Spain Poland Germany UK Belgium Share of RES in electricity generation

2012:17% 2020: 27% 2012: 11% 2020: 38 % 2012: 11% 2020: 31% 2012: 20% 2020: 26% 2012: 27% 2020: 36% 2012:10% 2020: 19% 2012: 8% 2020: 21%

Substantial amounts available Permits issued Lots of uncertainty about environmental impact and economic viability Ambitious targets, High cost

Energy Efficiency, Management, Control,

at the top of the agenda.

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Market drivers until 2020

  • Tightening energy

efficiency legislation

  • Growing energy prices.

0.00 0.10 0.20 0.30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

  • Incentive programs

2010 2012 2013 2014 2011 2015 2020 2018

Directive 2010//31/EU

National min. energy performance requirements Energy saving target applying to multi-dwelling All new public buildings must be nearly 0 energy All new buildings are nearly 0 energy

  • Efficiency

requirements set at system level

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ErP - Impact on products

  • Increase in Combined & Hybrid

systems

Eco Design

A +++ ≥150% A ++ ≥125% A + ≥98% A ≥90% B ≥82% C ≥75% D ≥36% E ≥34%

Cogeneration Gas HP Condensing boilers Non- condensing boilers Ground /Water to water HP Air to water HP

From 26/9/2015 products with Label D to G are no longer allowed to be sold

  • Enhanced Controls

Fuel cell

Labels mandatory from Sep. 2015

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  • Dramatic decrease in sales of

non-condensing boiler

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Combining systems

Product label

High efficiency gas boiler Solar thermal system (VT) Temperature controls System label example:

89% 6% 4%

+ +

System efficiency 99%

A + ≥98%

System label

Separate labelling for Space Heating and SHW.

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Excellence in Market Intelligence

UK energy efficiency path

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Source: ZERO CARBON HUB

UK journey to zero carbon homes

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Financial incentives for products

  • RHI for residential segment

introduced April 2014

  • Feed-in-tariffs reviewed 2015
  • Green Deal improved from 2014

General Assumptions HVAC2020 UK

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Base Case Scenario

Drivers for existing buildings ?

Nearly two years later than planned

Replacement ratio: Predicted life for boilers

  • All gas boilers: 13 years
  • All oil boilers: 15 years

Drivers for new buildings

Legislation:

  • Zero carbon buildings 2018

Energy prices New build level:

  • 2010 – 131,000
  • 2020 – 200,000

GDP growth 2.0% from 2014

?

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99% 0% 1% 0% 0% 95% 2% 3% 0% 0%

UK Heating Technologies

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Total: 1,482,500 units Total: 2,046,900 units Total: 110,000 units Total: 190,000 units

81% 10% 7% 0% 2% boilers heat pumps solar thermals micro chp & FC district heating

2010 2020

Sales to new build

15% 51% 18% 1% 15%

2010 2020

Sales to existing buildings

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2010 (27.17 million dwellings) 2020 (28.45 million dwellings)

Penetration of heat generating products in the existing housing stock

Penetration of Heat Generators

gas boilers 79.7%

  • il

boilers 5.6%

  • thers

10.5% heat pumps 2.1% solar thermal 2.1% gas boilers 81.6%

  • il boilers

5.9%

  • thers

12% heat pumps 0.1% solar thermal 0.4%

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Winning system types

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New residential family houses

ST CB CYL CYL HP HRV HRV CYL HP ST HRV

Gas cond. boiler + Solar thermal system + HRV Gas or electric HP + HRV Electric HP+ Solar thermal systems + HRV

Existing family houses

Gas cond. boiler+ Solar thermal system

ST CYL CB

  • Cond. boiler + A/W electric HP

(Hybrid heat pump)

CYL HP CB CB

Gas cond. boiler + quick recovery cylinder

CYL

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Excellence in Market Intelligence

Heat Pumps / Hybrid HP

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5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f 2015f 2016f 2017f

RHI Spring 2013 RHI Spring 2014 Hybrid HP

100% growth towards 2011 52% growth towards 2011

Development of the UK Heat pump and Hybrid heat pump markets, 2005 - 2017

units

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Excellence in Market Intelligence

Solar thermals

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0.0 20.0 40.0 60.0 80.0 100.0 120.0 Total ST collectors

‘000 m2

The market literally halved between 2011 and 2013

Development of the UK solar thermal market, 2005 - 2017

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Excellence in Market Intelligence

Winning system types

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New multi-dwellings

Communal boiler + CHP + Heat Interface Units District heating + Heat Interface Units CB + Electric HP / Solar thermal system

Existing multi-dwellings

Gas cond. boiler

CB B HIU CHP HP CYL

DH

HIU CB ST or

CB + Solar thermal system

CB ST

Communal boiler + CHP + Heat Interface Units

B HIU CHP

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 2012 2013 2014 2015 2016 2017 Heat Interface Units (Flat Stations) DH connections

HIU – market development

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‘000 units

86% growth

Development of the UK HIU market, 2012 - 2017

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Excellence in Market Intelligence

HIU – drivers & constraints

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71.6 87.6 87.1 86.2 90.9 98.4 100.0 102.0 57.7 47.4 47.4 39.8 37.1 39.6 41.0 42.0 50 100 150 200 2010 2011 2012 2013 2014 2015 2016 2017

Housing completions in the UK, ‘000

1+2 family dwellings flats

  • Positive outlook for housing construction & Building Regulations
  • Fighting fuel poverty will drive refurbishment in social housing
  • The UK preference for hot water storage cylinders –

risk of Legionella take space Low level of sizing and installation skills

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Excellence in Market Intelligence

How about Fuel cells?

European sales of Fuel Cells under 10kWe

Source: BSRIA units

  • 5,000

10,000 15,000 20,000 25,000

2011 2012 2013 2014 2015 2016 2017 2018

PEM FC SO FC

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Market place will be gas dominated until 2020 Energy prices will go up Efficiency of systems & reduction

  • f running cost will

increasingly matter Help towards reducing initial investment cost for renewables will be crucial

Key points for HVAC 2020 future

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Excellence in Market Intelligence

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Thank you

Krystyna Dawson

Senior Manager Traditional and Renewable Heating BSRIA WMI krystyna.dawson@bsria.co.uk