Low carbon combined heat and power (CHP) systems could generate 15GW of electricity by 2050, the equivalent of more than seven large power stations, according to a new analysis.
The figure is contained in study, published today (3 July) by the Association for Decentralised Energy to tie in with its annual parliamentary reception.
This shows that the generation capacity of CHP, capturing otherwise wasted heat and using low carbon fuels, could triple from its current level of 5GW to more than 15GW, the equivalent of more than seven large power stations.
It also says that the number of homes connected to heat networks could be 1.5 million homes by 2030. And this figure could further rise to 5 million by 2050, which is equivalent to almost a fifth of total heat needs.
And achieving comparable levels of flexibility to other leading countries could reduce energy users’ peak power demand by up to 15 per cent, driving down system costs.
ADE estimates that more than half of domestic, a third of commercial and almost a quarter of industrial energy demands can be flexible.
Using this flexibility could also drive down cost and provide new revenues to energy users, worth at least £800 million if peak demand can be cut by five per cent.
The report says the 5.8GW of CHP systems currently operating on 2,000 sites in the UK, provide 6.4 per cent of total UK’s electricity generation and 42 TWh of heat, 7 per cent of total UK heat demand.
However, for the UK to achieve net zero and allow energy customers to fully realise the benefits from this energy revolution, ADE, is calling on the government and Ofgem to allow all homes and businesses to be paid for shifting their energy use to different times of the day, better efficiency, or providing onsite batteries.
It also calls for requirements for new power stations to ensure they capture wasted heat for industry, businesses and heat networks.
Tim Rotheray, director of the ADE, said: “Local energy is growing at pace, and has the capacity to expand rapidly. If government puts customer led energy at the heart of its policy making and works alongside business we can put power back into the hands of customers and meet our net zero in a fair way.
“Saving customers money, and delivering radically cutting CO2 emissions. Now is the time to focus on the role of local energy as key alongside other energy solutions, safeguarding the UK’s energy future.”
Responding to the report, Lord Deben, chair of the Committee on Climate Change, said: “Local onsite generation and energy management will play a central role in delivering the UK’s net zero carbon future.
“Giving customers the power to help drive the UK’s low carbon transition is vital and we need credible UK policies, across government, that inspire a strong response from business, industry and society as a whole.”