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The Election: Will it be a Brave New World?

  

WHAT MIGHT THE GENERAL ELECTION MEAN TO THE INDUSTRY?

WILL IT BE A BRAVE NEW WORLD OR JUST MORE OF THE SAME?

 

 

Chris Goggin reviews the NetZero policy statements espoused by both of the main political parties this side of the General Election and considers the viability of these plans and  gives a summary of the key issues regarding investment, infrastructure and cost evaluated against the trajectory of the international energy market and realistic domestic requirements.

 

 

A potential change of government is thought to be likely after the forthcoming General Election. If a change of direction in UK governance is introduced a redrafting of every major UK policy will take place. One area of legislation that remains an important pillar of political discussion is the question of energy – its supply, its price, its security and its impact on NetZero.

To provide a brief overview: the current opposition believes that renewable generation should be expanded far beyond the present government’s ambitions. Nuclear expansion will also be pursued whilst all North Sea drilling contracts will be honored. However, the opposition’s long-term plan is to shelve oil and gas usage in favour of carbon reducing alternative energies.

A more detailed look reveals discrepancies between the opposition and the current government’s approach to all critical areas of UK energy. However, additional renewable energy integration into the UK grid is reliant upon electrical grid upgrades that assist in renewable grid connections. Both political parties have separate plans for UK electric grid upgrading, later visited in this article.

Solar power will be tripled from 15.6 GW to 50 GW of installed capacity, whilst onshore wind will be more than doubled from 15 GW to 35 GW. Green hydrogen targets will also be doubled from 5 GW to 10 GW. Existing nuclear projects will also be completed alongside the completion of smaller nuclear projects such as the construction of small modular reactors.  Clean offshore wind production will be quadrupled to 55GW by 2030.

Although the opposition has pledged to increase investment into hydrogen and CCUS (Carbon Capture & Storage) it has not been highlighted how this strategy would best result in a mutually beneficial outcome. For instance, the opposition has not stated whether they will purchase or invest in privately owned hydrogen projects or construct their own hydrogen projects.

A cornerstone of the opposition’s energy policy will be the creation of GB Energy which has been recently described in The Guardian as:

“a state-owned investment vehicle and company working alongside and often in partnership with the existing private sector suppliers. The plan is for it to be largely invisible to households, not offering electricity directly to consumers but financing and helping to build low-carbon infrastructure, from windfarms to – potentially – nuclear reactors.”

GB Energy will have access to £8.3 billion of capital to assist in the completion of strategic objectives. £3.3 billion will be directed towards the construction of localized smaller power projects whilst £5 billion will be invested into larger projects and supply chains. This money will be raised through the taxing of North Sea fossil fuel companies.

Both UK political parties believe that decarbonising the national electricity grid remains a priority that will enable cheaper customer costs and increase clean energy usage across the entire UK. However, they are yet to agree on an appropriate pathway that secures beneficial economic and societal benefits.

The opposition believe decarbonising the UK energy grid by 2030 can be achieved through capacitating £116 billion of investment, whilst the current government’s plan is to extend the 2030 timeline to 2035 and absorb £104 billion of additional subsidy. Time and finance are central issues to both strategies. Both approaches have been labelled as viable and non-realistic, according to which political party an individual subscribes to.

A financial breakdown report was commissioned by Policy Exchange, a research institute that aims to influence domestic and international policy. The report was completed by an independent energy market analytics company – Aurora Energy Research

The current opposition will require huge amounts of capital investment to achieve their aim of decarbonising. Aurora has calculated that £15.6 billion a year until 2030 is required (total £93.5 billion) and a further £4.4 billion a year from 2031 – 2035 (£22.5 billion) equating to a total of £116 billion over the next 11 years.

In contrast current government plans to decarbonise the UK’s power grid by 2035 will require £8.2 billion a year of additional investment until 2030 – a total of £49.3 billon. A further £11.1 billion a year of additional investment from 2031 – 2035 a total of £55.3 billion. The total accumulative investment over 11 years will amount to £104.6 billion over the next 11 years.

The approach undertaken by the current opposition when compared to the present Govt party focuses on the expanding of renewables, hydrogen and nuclear in a shorter span of time at increased financial expense.

We need to keep in mind also that future energy policy by both UK political parties is dependent on wider international energy market conditions and geopolitical influences. There is no doubt that there are no easy or quick answers to the question of providing energy to both commercial and domestic markets.

Rinnai follows all news and developments connected to national and international energy policy, investment and legislation. Rinnai will continue to provide updated information and data-driven knowledge to all UK customers on events that could potentially affect cost and energy options.

CLICK HERE to join the Rinnai newsletter for the

lastest updates on policy, legislation and energy matters

 

 

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON AND DECARBONISATION

PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC

AND OFF-GRID HEATING & HOT WATER DELIVERY 

CLICK HERE FOR MORE INFORMATION ABOUT H3

 

  • Rinnai’s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions.
  • Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.
  • Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
  • Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
  • Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s.
  • The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

RINNAI FULL PRODUCT AVAILABILITY 24/7

FOR NEXT DAY DELIVERY of ALL HOT

WATER HEATING UNIT MODELS INCLUDING 48-58kW UNITS-

SAVINGS OF

20%                REDUCTION of opex cost

30%                REDUCTION of initial cost

15%                REDUCTION in carbon

75%                REDUCTION of space

CLICK HERE for the Rinnai Website

Or email engineer@rinnaiUK.com 

Or CLICK HERE for more information on the RINNAI product range

 

 

 

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HOW TO DECARBONISE THE GRID?

 

POLICY EXCHANGE REPORT HIGHLIGHTS SEPARATE, DIFFERENT APPROACHES

 

 

Chris Goggin of Rinnai reviews a recent report that details three separate routes to the decarbonisation of the UK national energy grid. The report highlights a present government plan and an opposition strategy – does either methodology  ensure beneficial results which delivers NetZero?

 

 

The recently released report “Decarbonising the Grid Three Scenarios for Achieving Net Zero Power” presents three pathways that explore different routes towards providing clean and cheap energy to the 60 million-plus UK population. An independent energy market analytics company – Aurora Energy Research – was commissioned to review each pathway. The reviewers have provided their interpretation of feasibility of the proposals.

 

The three scenarios are:
  • Net Zero 2030 plans under the opposition
  • Net Zero 2035 guided by the current government.
  • “Business-As-Usual” model, which follows the current trajectory of policy development and market conditions.

 

This article will ignore the “Business-as-Usual” model as this would also fall under current government plans. These paths focus on Net Zero status being achieved in 2030 and 2035 and what action must be undertaken to realize this ambition.

 

The report was commissioned by Policy Exchange, a research institute that aims to influence domestic and international policy by highlighting ideas and attitudes associated with each political party. Funding comes from donations and supporters.

 

Our industry needs to be mindful of the details here – societal goals are driven by the need for NetZero and a sustainable energy future. Politicians set policy, the industry is at the metaphoric coal face here, in delivering a healthy future of heating, hot water provision and clean air,

 

The main argument of this report states that the British energy grid is better placed to decarbonise in the year 2035 using the current Government’s plan rather than 2030 under the opposition’s strategy. However, there are objectives that both parties agree upon in principle, such as the expansion of capacity in renewables.

 

Both parties will seek to enhance production and distribution of onshore and offshore wind, solar as well as hydrogen. Additional funding will be directed towards CCUS (Carbon Capture Underground Storage) whilst nuclear energy manufacturing and deployment will also be scaled up.

 

Differences in approach is evident in the separate timeframes each party believe can deliver feasible and tangible results. The opposition plan is to decarbonise the grid by 2030 whilst the current government say that 2035 would be more appropriate.

 

The report summarises the 2030 approach as follows:

“Aurora’s modelling shows that NZ 2030 is deemed an infeasible scenario, justified by an insufficient time available to conduct what would be a radical overhaul of the power system, policy, planning systems and investment landscape. The speed required to build critical technologies – including offshore wind, onshore wind and solar – would need to increase to multiple times their historical installation speed, as would investment in grid capacity.”

 

The current political opposition will require huge amounts of capital investment to achieve their aim of decarbonising. Aurora has calculated that £15.6 billion a year until 2030 is required (total £93.5 billion) and a further £4.4. billion a year from 2031 – 2035 (£22.5 billion) equating to a total of £116 billion over the next 11 years.

 

The Aurora reviews state that the definitive feasibility of the 2035 approach: “Reaching the Government’s current target of a Net Zero power system by 2035, though more feasible than a NZ 2030 scenario, will still however require an extensive systems level change and significant policy intervention.”

 

Current government plans to decarbonise the UK’s power grid by 2035 will require £8.2 billion a year of additional investment until 2030 – a total of £49.3 billon. A further £11.1 billion a year of additional investment from 2031 – 2035 a total of £55.3 billion. The total accumulative investment over 11 years will amount to £104.6 billion over next 11 years.

 

The 2035 approach is regarded by Aurora as more achievable due to the rate of introduction required in new and updated technology and policy amendments. The investment landscape is also considered more viable within this timeframe.

 

Both the current government and opposition party are dedicated to decarbonising the energy grid; however, they are yet to agree on an appropriate pathway that secures beneficial economic and societal benefits. The opposition believe decarbonising the UK energy grid by 2030 can be achieved through capacitating £116 billion of investment, whilst the current government’s plan is to extend the 2030 timeline to 2035 and absorb £104 billion of additional subsidy. Time and finance are central issues to both strategies.

 

Rinnai take an active role in reporting and consulting on potential policy shifts in energy related issues that mainstream UK political parties adopt. Rinnai aim to supply UK customers with a balanced reflection on all matters that affect UK energy options, cost and access.

To stay up to date with policy news and

views subscribe to our newsletter

 

 

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON AND DECARBONISATION

PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC

AND OFF-GRID HEATING & HOT WATER DELIVERY 

CLICK HERE FOR MORE INFORMATION ABOUT H3

 

  • Rinnai’s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions.
  • Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.
  • Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
  • Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
  • Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s.
  • The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

RINNAI FULL PRODUCT AVAILABILITY 24/7 FOR NEXT DAY DELIVERY of ALL HOT

WATER HEATING UNIT MODELS INCLUDING 48-58kW UNITS-

SAVINGS OF

20%                REDUCTION of opex cost

30%                REDUCTION of initial cost

15%                REDUCTION in carbon

75%                REDUCTION of space

CLICK HERE for the Rinnai Website

Or email engineer@rinnaiUK.com 

Or CLICK HERE for more information on the RINNAI product range

 

 

 

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RINNAI PRESENTS CIBSE APPROVED CPD ON HEAT PUMP SEASONAL PERFORMANCE FACTORS

 

Rinnai has unveiled a CIBSE-approved CPD on Seasonal Performance Factors, on the efficacy of Heat Pumps, to a focus group of consultants, systems designers and contractors in London. The CPD started as a ‘White Paper’ presenting an innovation in measuring system performance and providing increased detail into the efficiency of commercial heating and hot water dispersal systems. Rinnai’s Sean Ehlen M Eng was the author of the SPF White Paper, and it is freely available to view HERE

 

Rinna’s focus group was well attended and concentrated on introducing an alternative methodology – Seasonal Performance Factor – to evaluate the efficiency of commercial heating and hot water systems. Rinnai’s Sean Ehlen M Eng hosted the presentation explaining his new approach and then took questions. The peer-led focus group arrived at the conclusion that the Seasonal Performance Factor approach provided customers with greater added transparency towards system performance, cost and expectations.

Rinnai’s ‘White Paper’ report details the potential limitations of manufacturer-issued efficiency measures for Heat pumps, namely COP (Coefficient of performance) and SCOP (Seasonal Coefficient of Performance). Manufacturers often measure heat pump efficiency using Coefficient of Performance (COP), which is the ratio of useful heat energy produced to the electricity consumed at a specific external air temperature and temperature rise required.

Due to the SCOP rating solely measuring the efficiency of the heat pump unit, this may yield a lack of system congruity when considering the entire system. Consequently, relying on this performance measurement alone can affect the overall system expectations and ultimately the expected carbon reductions.

Instead, the Rinnai White paper has adopted the ‘Seasonal Performance Factor.’ This methodology evaluates all energy utilizing components within a commercial hot water system, therefore, measuring the performance of the entire system as opposed to solely the heat pump.

By presenting this White Paper to UK customers, Rinnai aims to provide information that delivers a concise and true account of commercial hot water heating performance using the ‘Seasonal Performance Factor’ methodology.

Rinnai continues to inform the UK market of details that provide an accurate statement of system performance, while considering the effects on operational expenditure, economic investment, and environmental impact.

Rinnai understands the significance of an investment during a time of sensitive economic constraints and rising energy costs. Rinnai aim to share all information that assists the UK customer in decision making that assists the drive to NetZero and is financially efficient.

 

 

CLICK HERE TO VISIT THE RINNAI WEBSITE

or HERE to EMAIL RINNAI

CLICK HERE For more information on the RINNAI product range

 

 

RINNAI’S H3 DECARBONISATION OFFERS PATHWAYS
& CUSTOMER COST REDUCTIONS FOR
COMMERCIAL, DOMESTIC AND OFF-GRID HEATING &
HOT WATER DELIVERY
                                                   

Rinnai’s H3 range of decarbonising products include hydrogen / BioLPG ready technology, hybrid systems, and a wide range of LOW GWP heat pumps and solar thermal. Also, within Rinnai’s H3 range is Infinity hydrogen blend ready and BioLPG ready continuous flow water heaters which are stacked with a multitude of features that ensure long life, robust & durable use, customer satisfaction and product efficiency.

Rinnai’s range of decarbonising products – H1/H2/H3 – consists of heat pump, solar, hydrogen in any configuration, hybrid formats for either residential or commercial applications. Rinnai’s H3 range of products offer contractors, consultants and end users a range of efficient, robust and affordable decarbonising appliances which create practical, economic and technically feasible solutions. The range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, rDME solar thermal, low GWP heat pumps and electric water heaters.

Rinnai H1 continuous water heaters and boilers offer practical and economic decarbonization delivered through technological innovation in hydrogen and renewable liquid gas ready technology.

Rinnai’s H1 option is centred on hydrogen, as it is anticipated that clean hydrogen fuels will become internationally energy market-relevant in the future; Rinnai water heaters are hydrogen 20% blends ready and include the world’s first 100% hydrogen-ready hot water heating technology.

Rinnai H2 – Decarbonization simplified with renewable gas-ready units, Solar Thermal and Heat Pump Hybrids. Rinnai H2 is designed to introduce a practical and low-cost option which may suit specific sites and enable multiple decarbonisation pathways with the addition of high performance.

Rinnai H3 – Low-GWP heat pump technology made easy – Rinnai heat pumps are available for domestic and commercial usage with an extensive range of 4 – 115kW appliances.

Rinnai’s H3 heat pumps utilise R32 refrigerant and have favourable COP and SCOP.

Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.

Rinnai’s commercial and domestic continuous flow water heaters offer a limitless supply of instantaneous temperature controlled hot water and all units are designed to align with present and future energy sources. Rinnai condensing water heaters accept either existing fuel or hydrogen gas blends. Rinnai units are also suited for off-grid customers who require LPG and BioLPG or rDME.

Rinnai products are i2HY20 certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours. Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question. Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s. More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

 

 

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