Research Briefing: Low Carbon Heat

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Research Briefing: Low Carbon Heat National Assembly for Wales Senedd Research Research Briefing: Low Carbon Heat www.assembly.wales/research The National Assembly for Wales is the democratically elected body that represents the interests of Wales and its people, makes laws for Wales, agrees Welsh taxes and holds the Welsh Government to account. An electronic copy of this document can be found on the National Assembly website: www.assembly.wales/research Copies of this document can also be obtained in accessible formats including Braille, large print, audio or hard copy from: Research Service National Assembly for Wales Tŷ Hywel Cardiff Bay CF99 1NA Tel: 0300 200 6316 Email: [email protected] Twitter: @SeneddResearch Blog: SeneddResearch.blog © National Assembly for Wales Commission Copyright 2018 The text of this document may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading or derogatory context. The material must be acknowledged as copyright of the National Assembly for Wales Commission and the title of the document specified. National Assembly for Wales Senedd Research Research Briefing: Low Carbon Heat Author: Robert Abernethy, Jeni Spragg and Sean Evans Date: June 2018 Paper number: 18-042 This briefing paper is the third in a series on low carbon energy in Wales. This part focuses on low carbon heat sources, including their role in decarbonisation and an overview of relevant technologies. The Research Service acknowledges the parliamentary fellowships provided to Robert Abernethy and Jeni Spragg by the Engineering and Physical Sciences Research Council, which enabled this briefing paper to be completed. www.assembly.wales/research Research Briefing: Low Carbon Heat Contents 1. Introduction ........................................................................................................... 1 2. Low carbon heat in Wales ............................................................................... 1 UK Committee on Climate Change recommendations ......................................................... 2 3. Energy efficiency and funding schemes .................................................. 4 Improving energy efficiency ............................................................................................................................. 4 Renewable Heat Incentive .................................................................................................................................5 4. Low carbon heat sources ................................................................................ 6 District Heating ............................................................................................................................................................ 6 Heat pumps .................................................................................................................................................................... 9 Domestic heat pumps ............................................................................................................................ 9 Water source heat pumps ................................................................................................................. 10 Heat pumps in other countries ...................................................................................................... 11 Solar hot water ............................................................................................................................................................. 11 Biofuels ............................................................................................................................................................................... 12 Biomass ............................................................................................................................................................... 13 Biogas.................................................................................................................................................................... 14 5. Long term measures ....................................................................................... 15 Hydrogen .......................................................................................................................................................................... 15 Production ........................................................................................................................................................ 15 Converting to hydrogen ...................................................................................................................... 16 Research Briefing: Low Carbon Heat 1. Introduction This Research Briefing is part of a series on low carbon energy in Wales. This paper focuses on low carbon heat sources, including their role in decarbonisation and an overview of relevant technologies. For further information on low carbon energy, refer to the other parts of the series: . Low Carbon Energy in Wales discusses the national and global context for low carbon energy in relation to the energy trilemma, and outlines the policy landscape in Europe, the UK and Wales; . Low Carbon Electricity describes the main low carbon electricity sources; and . Low Carbon Transport focuses on the main options for reducing carbon emissions from transport. Low carbon refers to a reduction in greenhouse gas emissions. These are commonly measured as carbon dioxide equivalent (CO2e) and referred to as “carbon emissions”. 2. Low carbon heat in Wales Low carbon heat is a key component in achieving climate change and renewable energy targets (more information on these can be found in the Low Carbon Energy in Wales research briefing). Heating and hot water for buildings make up 40% of UK energy use and 20% of its emissions. The Environment (Wales) Act 2016 requires the Welsh Government to set greenhouse gas emission reduction targets for 2020, 2030 and 2040, along with carbon budgets for 2016-20 and 2021-2025, by the end of 2018. These will set the trajectory for an 80% reduction in greenhouse gas emissions in Wales by 2050 (compared to 1990 levels). This is a particular challenge in Wales since a large proportion of carbon emissions come from large point sources (known as ’big emitters’) such as refineries, steel works and power stations. Around 55% of emissions in Wales are covered under EU Emissions Trading Scheme (EU ETS) (compared to 40% across the UK). While action is needed reduce the emissions from these large point sources, this is very challenging in some cases, and Wales has limited devolved powers in these areas. Greater savings will have to be made in other sectors in Wales relative to the UK as a whole to compensate for emissions from the ‘big emitters’. 1 Research Briefing: Low Carbon Heat UK Committee on Climate Change recommendations The Welsh Government asked the UK Committee on Climate Change (UK CCC) for advice on designing carbon targets and setting carbon budgets. The UK CCC published this advice in two stages. The first, Advice on the design of Welsh carbon targets, was published in April 2017. The second, Building a low-carbon economy in Wales, was published in December 2017, and provides advice on how carbon budgets should be set, as well as how the targets may be achieved. The UK CCC policy recommendations for Welsh Government include: . Updating building standards to ensure that new buildings have a high standard of energy efficiency and are designed for low carbon heat; . Providing funding and ‘soft’ support for building energy efficiency and low-carbon heat; . Developing a heat decarbonisation strategy for Wales; and . Encouraging the use of waste heat from industry. The second UK CCC report shows that to achieve the Welsh Government target of an 80% reduction in carbon emissions by 2050, emissions from buildings will need to reduce by around 85% compared to 2015 levels (Figure 1). Figure 1 Sectoral emissions reductions to achieve 80% reduction on 1990 levels (Source: UK CCC) 2 Research Briefing: Low Carbon Heat During the Fourth Assembly, the Environment and Sustainability Committee conducted an inquiry into a Smarter Energy Future for Wales. The recommendations of the inquiry included the introduction of “near-zero” carbon emissions building standards and extension of existing Welsh Government retrofit schemes (Arbed and Nest). These recommendations generally align with those provided by the UK CCC for the UK in Next-steps for UK heat policy. This emphasises “low-regrets” policies in the near term, including: . Ensuring new build is energy efficient and designed to accommodate low carbon heating; . Promoting energy efficiency improvements to existing buildings; . Building low carbon heat networks; . Installing heat pumps in buildings not connected to the grid; and . Injecting 5 % biomethane into the gas grid. The UK CCC report includes the Arbed scheme in Wales as an example of the broader benefits of an area-based retrofit programme. Near-zero carbon emissions building standards and extending retrofit programmes have been recommended as priorities in each examination of how to reduce carbon emissions in Wales. Looking further to the future, the UK CCC report highlights the need for the UK Government to make a decision, between 2020 and 2025, to prioritise either heat pumps or a hydrogen gas network for homes currently on the gas network. Either option could be deployed alongside district heat networks and heat pumps for off- grid
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