The Triple Challenges of Carbon Reduction, Energy Security and Cost of Future Uk Energy Supplies Institution of Mechanical Engineers Park Farm, Hethersett: March 19th 2015 Recipient of James Watt Gold Medal Keith Tovey (杜伟贤) MA, PhD, CEng, MICE, CEnv : Reader Emeritus in Environmental Engineering , Norwich Business School, University of East Anglia, Norwich 1 The Triple Challenges of Carbon Reduction, Energy Security and Cost of our Future Energy Supplies Some of the Key issues • What are key issues of Energy Security, particularly in the next few years with older stations closing and UK now dependent on over 50% of its gas from imported sources and also two thirds of its coal? • What might the future electricity generation mix look like? • How does UK energy mix compare with that of other countries? • What contribution might “Fracking” provide for security for electricity generation? • To what extent would variable renewables such as wind cause issues on the secure supply of electricity? • What are the cost implications of the options available? • What is the impact of support for renewables on the price of electricity? 2 • Are the lights likely to go out over the next few years? Arctic Sea Ice Cover 1979 - 2012 Minimum Summer Sea Ice in 1979 ~ 7.01 million sq km • Red line outlines extent for reference • Minimum Summer Sea Ice in 2012 ~ 3.44 million sq km a loss of 51% in 33 years • Significantly lower in 2012 than average minimum • Source http://www.nasa.gov/topics/earth/features/2012-seaicemin.html • 3 Wholesale Cost of Electricity Wholesale Electricity Prices 12 p/kWh 10 8 Oil reaches $130 a barrel UK no longer self sufficient in gas Langeled Line to Norway Severe Cold Spells 6 4 2 UK Government Projection in 2003 for 2020 0 2001 2003 2005 2007 2009 2011 2013 2015 wholesale prices updated to 4th March 2015 Weekly volume weighted average Wholesale Prices Wholesale prices are 2.2 times what they were in 2004 4 Variation in Wholesale and Retail Electriity Prices Electricity Price Indices (2001 = 100) 600 wholesale 500 retail 400 300 200 100 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 In recent years, electricity retail prices have varied much less than wholesale prices. However in recent months retail prices have risen above long term wholesale trends. 5 What are causes of price rises in recent years? • In period 2004-13, Electricity Bills for average household have risen from ~ £288 to around ~£577 or ~100% * How much can be attributed to support for Renewables under the Renewable obligation? • Support for All Renewables in 2013-14 was £2.60 billion **. However 304,500,000 MWh was supplied representing an increase of 0.853 p/kWh in retail price of electricity • At typical domestic unit prices of 13.4p per kWh this represents and increase of just 6.4%. • Of this the impact of onshore wind on bills in 2013-14 was 0.254p per kWh or ~ 1.9%. For offshore the figures are 0.325p and 2.4% respectively. • Wholesale prices had risen from 2p in 2004 to 4.5p per kWh by end of 2014. * Data from Quarterly Energy Prices from DECC Website ** OFGEM Annual Report 6 CO2 Emissions and Electricity (kg/kWh) 1 0.8 EU Developing OECD Oil Producing World Average 0.550 UK 0.6 France 0.4 0.2 Switzerland Norway Sweden Brazil France Austria Belgium Spain Russia Qatar Italy Japan UAE UK Netherlands Germany USA Mexico Denmark Saudi Arabia Libya China Australia India Poland 0 Overall: UK ~500 gm/kWh: France ~80 gm/kWh Saudi Arabia ~700 gm/kWh * Extracted from IEA Statistics in Jan 2014 – data relate to 2010 7 7 Electricity Generation Mix in selected Countries UK Switzerland Russia Coal France Norway Brazil Oil Hydro/ Tidal/Wave Germany Sweden Japan China 2010 Poland Saudi Arabia USA UK-2013 India Gas Nuclear Other Renewables Biofuels/Waste 8 Impact of Electricity Generation on Carbon Emissions. Approximate Carbon Emission factors during electricity generation including fuel extraction, fabrication and transport. Fuel Approximate Comments emission factor per kWh Coal Oil ~800-900 Depending on grade and efficiency of power station ~600g Conventional Steam Station Gas (CCGT) ~400g Most modern stations may be as low as 380g Nuclear 5 – 10g Depending on reactor type Overall UK including transmission * Depending on grade and efficiency of power station Gas (Steam) Renewables • ~900 – 1000g ~0 ~541g* For wind, PV, hydro Varies on hour by hour basis depending on generation mix Transmission/Distribution losses UK ~ 8%: India ~ 24% DECC Guidance for reporting July 2014 9 Options for Electricity Generation in 2020 - Non-Renewable Methods Generation Type Potential contribution to electricity supply in Predicted Cost in 2020 2020 and drivers/barriers 2011 (*) Dec 2013 (*) 8.0p 0 - 70% (at present 25- Available now (but Gas CCGT [5 - 11]/kWh 8.5p/kWh 35%) gas is running out) Billion Cubic Metres * Energy Review 2011 – Climate Change Committee May 2011 120 * Energy Generation Costs: DECC 2013 Central Projection Impact of 100 temporary switch to coal generation 80 60 40 20 0 Actual UK production Actual UK demand Projected production Projected demand Actual Production Actual Demand Import Gap 1998 2002 2006 2010 2014 2018 Gas supply has become critical at times – e.g. at end of March 2013 – down to 6 hours supply following technical problems on Norwegian Pipeline. 10 Options for Electricity Generation in 2020 - Non-Renewable Methods Generation Type Potential contribution to electricity supply in Predicted Cost in 2020 2020 and drivers/barriers 2011 (*) Dec 2013 (*) present 25- Available now (but gas Gas CCGT 0 - 70% (at 35%) is running out) 8.0p [5 - 11] 8.5p/kWh Long construction 5 - 10% (France 75 - times (capital cost for 7.75p 9.25p nuclear 80%) - (currently 18- Hinkley increased [5.5 - 10] (Hinkley)/ fission from £16 billion to 20% and falling) /kWh kWh £24.5 billion nuclear not available until 2040 at earliest not until unavailable Nuclear New Build assumes one new station is2050 completed each yearimpact after 2020. fusion for significant 14000 Installed Capacity (MW) [7.5 – 15p] Available now: Not "Clean Coal currently ~40% but viable without Carbon - unlikely 9.5 – 13.4p/ Projected Coal"10000 scheduled to fall Capture & kWh before 2025 Actual Sequestration 8000 * * 12000 New Build ? 6000 4000 2000 0 Energy Review 2011 – Climate Change Committee May 2011 1950 1960 1970 1980 1990 2000 2010 2020 2030 Energy Generation Costs: DECC 2013 Central Projection 2040 11 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation 2011 (*) Gas Dec 2013 (*) 2020 and drivers/barriers Type 8p Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for p/ kWh ** Wind MW turbines] commercial exploitation +/- 0.8p 1.5MW Turbine At peak output provides sufficient electricity for 3000 homes – operating for 12 years On average has provided electricity for 700 – 850 homes depending on year * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 12 Options for Electricity Generation in 2020 - Renewable Potential contribution to electricity supply Predicted Cost in 2020 Generation May 2011 (*) Dec 2013 (*) in 2020 and drivers/barriers Gas 8p Gas 8.5p Type On Shore Wind Off Shore Wind ~8.2p 7.923 – 8.25 ~20% [~15000 x 3 available now for p/ kWh ** MW turbines] commercial exploitation +/- 0.8p some technical 11.49 – 12.5p development needed to 20 - 40% 12.0p/ kWh +/- 2.5p reduce costs. ** * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) Scroby Sands has a Load factor of 28.8% - 30% but nevertheless produced sufficient electricity on average for 2/3rds of demand of houses in Norwich. At Peak time 13 Ipswich sufficient for all houses in Norwich and Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for +/- 0.8p p/ kWh ** Wind MW turbines] commercial exploitation some technical 11.49 – Off Shore 12.5p development needed to 20 - 40% 12.0p/ kWh Wind +/- 2.5p reduce costs. ** Micro Hydro Scheme operating on Siphon Principle installed at Itteringham Mill, Norfolk. Rated capacity 5.5 kW Hydro (inc. mini - micro) * * 5% technically mature, but limited potential 11p for <2MW projects Energy Review 2011 – Climate Change Committee May 2011 14 Energy Generation Costs: DECC 2013 Central Projection Not Costed Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p 7.923 – 8.25 On Shore Change ~20% [~15000 3 available Climate Report 2011xsuggests that 1.6 now TWhfor (0.4%) in ~8.2p p/ kWh ** Wind turbines] commercial exploitation 2020 - ~ 2.0 GW. MW But 2.1 GW already installed (Oct. 2014) +/- 0.8p some technical 11.49 – Off Shore 12.5p development needed to 20 - 40% 12.0p/ kWh Wind +/- 2.5p reduce costs. ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects Photovoltaic <5% even assuming 10 GW of installation available, and costs are 25p +/-8 13-15p 5.0 – 12.0 p coming down – but low (2012 /kWh ** load factors projection) * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 15 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 To available nowoffor provide 5% UK electricity +/- size 0.8pof p/ kWh ** Wind MW turbines] commercial exploitation needs will require an area the someand technical 11.49 – Norfolk Suffolk devoted solely Off Shore 12.5p development 20 - 40% 12.0p/ kWh to biomass needed to Wind +/- 2.5p reduce costs. ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects <5% even available, and costs are 25p +/-8 5.0 – 12.0 p Photovoltaic assuming 10 GW of coming down – but low 13-15p (2012 /kWh ** projection) installation load factors Sewage, Landfill, Energy Crops/ Biomass/Biogas available, but research needed 9 - 13p ??5% but could be Not Costed in some areas e.g. advanced larger with depending on gasification. Questions over significant imports technology sustainability * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 16 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for +/- 0.8p p/ kWh ** Wind MW turbines] commercial exploitation 11.49 – Off Shore development needed to 12.5p 20 - 40% 12.0p/ kWh Wind reduce costs. +/- 2.5p ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects Photovoltaic BIOMASS Wave/Tidal Stream <<5% even assuming further research needed to 10 GW of installation bring down costs significantly ??5% Questions over sustainability currently < 20 technology limited MW ?? 1000 major development not 2000 MW (~0.1%) before 2020 * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 25p +/-8 (13-15p) 9 – 13p 5.0 – 12.0 p /kWh ** Not Costed 19p Tidal Not Costed 26.5p Wave 17 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for +/- 0.8p p/ kWh ** Wind MW turbines] commercial exploitation 11.49 – Off Shore development needed to 12.5p 20 - 40% 12.0p/ kWh Wind reduce costs. +/- 2.5p ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects Photovoltaic BIOMASS 5.0 – 12.0 p commissioned /kWh off ** Not Costed Questions over sustainabilityEday9–– Sept 13p 2007 25p +/-8 <<5% even assuming further research needed to Open Hydro 10 GW of installation bring down costs significantly (13-15p) ??5% Alstom Device seen at Hatston April 2013 Wave/Tidal Stream currently < 20 technology limited MW ?? 1000 major development not 2000 MW (~0.1%) before 2020 * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 19p Tidal Not Costed 26.5p Wave 18 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for Severn Barrage/ Mersey Barrages +/- 0.8p frequently p/ kWh ** Wind MW turbines] commercial exploitation have been considered 11.49 – Off Shore development needed to war12.5p e.g. pre – 1970s, 2009 20 - 40% 12.0p/ kWh Wind reduce costs. +/2.5p Severn Barrage could provide ** 511p for 8%but of UK electricity needs Hydro (mini technically mature, <2MW Not Costed 5% micro) limited potential In Orkney – projects Churchill Barriers Photovoltaic +/-8 per annum <<5% even assuming further research needed~80 to 00025p Output GWh 12.3p 10 GW of installation bring down costs significantly (13-15p) Sufficient for 13500 houses in - Costed there are onlyNot 4000 in 9 – 13p Orkney. Controversy in bringing currently < 20 MW technologycables limited south. 19p Tidal Wave/Tidal ?? 1000 - 2000 MW major development not Not Would save26.5p 40000Wave tonnes ofCosted CO2 Stream (~0.1%) before 2020 BIOMASS Tidal Barrages / Lagoons ??5% Orkney but Questions over sustainability 5 - 15% technology available but unlikely for 2020. ?? Swansea Bay Lagoon * Energy Review 2011 – Climate Change Committee May 2011 * Energy Generation Costs: DECC 2013 Central Projection ** FIT – CfD Auction (February 26th 2015) 26p +/-5 Not Costed Suggested Strike Price 16.8p: Budget 2015 19 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for +/- 0.8p p/ kWh ** Wind MW turbines] commercial exploitation 11.49 – Off Shore development needed to 12.5p 20 - 40% 12.0p/ kWh Wind reduce costs. +/- 2.5p ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects Photovoltaic BIOMASS <<5% even assuming further research needed to 10 GW of installation bring down costs significantly ??5% Questions over sustainability 25p +/-8 (13-15p) 9 – 13p 5.0 – 12.0 p /kWh ** Not Costed currently < 20 MW technology limited Wave/Tidal ?? 1000 - 2000 MW major development not 19p Tidal Not Costed Stream 26.5p Wave (~0.1%) before 2020 Tidal technology available but 26p +/-5 Barrages / 5 - 15% Not Costed unlikely for 2020 Lagoons unlikely for electricity generation before 2050 if then -not to be Geothermal confused with ground sourced heat pumps which consume electricity * Energy Review 2011 – Climate Change Committee May 2011 ** FIT – CfD Auction (February 26th 2015) * Energy Generation Costs: DECC 2013 Central Projection 20 Options for Electricity Generation in 2020 - Renewable Predicted Cost in 2020 Potential contribution to electricity supply in Generation May 2011 (*) Dec 2013 2020 and drivers/barriers Type Gas 8p (*) Gas 8.5p ~8.2p 7.923 – 8.25 On Shore ~20% [~15000 x 3 available now for +/- 0.8p p/ kWh ** Wind MW turbines] commercial exploitation 11.49 – Off Shore development needed to 12.5p 12.0p/ kWh 20 - 40% Wind reduce costs. +/- 2.5p ** 11p for Hydro (mini technically mature, but <2MW Not Costed 5% micro) limited potential projects Photovoltaic BIOMASS <<5% even assuming further research needed to 10 GW of installation bring down costs significantly ??5% Questions over sustainability 25p +/-8 (13-15p) 9 – 13p 5.0 – 12.0 p /kWh ** Not Costed currently < 20 MW technology limited 19p Tidal Wave/Tidal ?? 1000 2000 MW major development not Not Costed Stream 26.5p Wave (~0.1%) before 2020 Tidal technology available but 26p +/-5 Barrages / 5 - 15% Not Costed unlikely for 2020 Lagoons unlikely for electricity generation before 2050 if then -not to be Geothermal confused with ground sourced heat pumps which consume electricity * Energy Review 2011 – Climate Change Committee May 2011 ** FIT – CfD Auction (February 26th 2015) * Energy Generation Costs: DECC 2013 Central Projection 21 Options for Electricity Generation in 2020 - Renewable US-cents/kWh Impact of Atmospheric Emissions on Generation Costs 40 35 30 25 20 15 10 5 0 Pollution Costs Generation coal gas nuclear solar wind Shindell, DT (2015) Climate Change DOI 10.1007/s10584-015-1343-0 On 19th March 2015, Shindell published a paper in Climate Change where he explored the social (mainly health) costs which are not included in normal direct generation costs. 22 Our Choices: They are difficult Do we want to exploit available renewables i.e onshore/offshore wind and biomass?. Offshore Wind much more expensive. Solar PV is now mature but also more expensive than on shore wind. Tidal and wave are not options for next 10 - 15 years except as demonstration projects. [technically immature ] If our answer is NO Do we want to see a renewal of nuclear power ? Are we happy with this and the other attendant risks? If our answer is NO Do we want to return to using coal? • then carbon dioxide emissions will rise significantly • unless we can develop significant carbon sequestration within 10 years UNLIKELY – confirmed by Climate Change Committee [9th May 2011] If our answer to coal is NO Do we want to leave things are they are and see continued exploitation of gas for both heating and electricity generation? >>>>>> 23 Our Choices: They are difficult If our answer is YES By 2020 • the UK will be dependent on GAS for around 70% of our heating and electricity The majority of which will be imported at volatile prices from countries such as Norway, Russia, Middle East Are we happy with this prospect? >>>>>> If not: We need even more substantial cuts in energy use. Or are we prepared to sacrifice our future to effects of Global Warming? - the North Norfolk Coal Field? Do we wish to reconsider our stance on renewables? Inaction or delays in decision making will lead us down the GAS option route and all the attendant Security issues that raises. We must take a coherent integrated approach in our decision making – not merely be against one technology or another 24 Impact of Fracking on Electricity Supply to 2030 250 Haynesville Eagle Ford Woodford Marcellus Fayetteville GWh/ Year 200 150 100 50 0 1 3 5 7 9 11 13 15 17 19 21 23 25 Years of Operation Output declines by 95% over first 3-4 years Total output from Fracking Well over 20 years is equivalent to two 3 MW wind turbines 25 bcm Estimates of Total UK Production of Fracked Gas 50 45 40 35 30 25 20 15 10 5 0 2010 DECC EIA Cuadrilla 2020 2030 2040 2050 2060 2070 The most optimistic scenario data from above are used Electricity Scenario assumes • similar split of gas use for electricity / non-electricity demand • 5% improvement in efficiency for CCGT generation plant • Maximum generation from Fracked gas = ~36.5 TWh by 2030 Based on Figure 3.1 in Tyndall (2011b) Report 26 Future Scenarios for Electricity Generation up to 2030 Assume Highest Projection for Fracked Gas Future Demand – Climate Change Committee (2011) estimates • Assuming significant growth in electricity for electric vehicles and heat pumps • Alternative demand – limited growth in electric vehicles and heat pumps. Renewable Generation • Current Projections for Onshore and Offshore wind • 1 million homes/year fitted with PV ~ 40% fitted by 2030 • Severn Tidal Barrage or equivalent completed by 2025 Fossil Fuel/Nuclear Generation • Existing Nuclear / Coal Stations close as published 09/09/2013 • New Nuclear completions at one reactor per year from 2021. • New Coal with CCS as demonstration schemes @ 300 MW per annum from 2020 & 1000 MW per annum from mid 2020s Gas including Fracked Gas will cover any shortfall between DEMAND and COAL + NUCLEAR + RENEWABLE GENERATION 27 Our looming over-dependence on gas for electricity generation TWH (billions of units (kWh)) 600 Limited electric cars or heat pumps 500 Fracked Gas 400 Oil Imported Gas UK Gas 300 Existing Coal 200 Oil Existing Nuclear Existing Coal 100 Offshore Wind Onshore Wind Other Renewables New Coal ? Data for modelling derived from DECC & Climate Change Committee (2011) - allowing for significant deploymentExisting of electric vehicles and heat pumps by 2030.New Nuclear? Nuclear 0 1970 Data for modelling derived from DECC & Climate Change Committee (2011) - allowing for significant deployment of electric vehicles and heat pumps by 2030. 1980 1990 2000 2010 2020 2030 Data for demand derived from DECC & Climate Change Committee (2011) - allowing for significant deployment of electric vehicles and heat pumps 28 by 2030. Predictability of UK Wind Generation To what extent would variable renewables such as wind cause issues on the secure supply of electricity? Each bar is an hourly projection 7000 48 hour prediction 24 hour prediction outcome 6000 5000 MW 4000 3000 2000 1000 0 00:30 2nd March 3rd March 4th March 5th March 6th March Graph shows Wind Energy Prediction 48 and 24 hours in advance and also actual output. Predictions are now very good Data abstracted from BMReports Website 2nd – 6th March 2015 29 How Predictable is Wind Energy? 7000 Predictions made for each hour in 2013 had a correlation of 96.48% 6000 5000 4000 3000 2000 1000 0 0 1000 2000 3000 4000 5000 6000 7000 Projected output (MW) Projections made on Day -1 8000 7000 Predictions made for each hour in 2014 had a correlation of 96.91% Actual Output (MW) Actual Output (MW) Projections made on Day -1 6000 5000 4000 3000 2000 1000 Data abstracted daily from BMReports Website. Last occurrence at 08:30 on 15th March 2015 0 0 2000 4000 6000 Projected output (MW) 30 8000 Does Wind Variability cause problems with other generation? 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 06th October 2014 To GB From GB GB Demand 20 22 24 2 Interconnector Flows 3500 3000 2500 2000 1500 1000 500 0 -500 -1000 -1500 Interconnector Flows (MW) Demand (MW) GB Electricity Demand and Interconnector Flows 4 6 8 10 12 14 16 18 20 Time (24 hr Clock) Data abstracted from BMReports Website at 21:30 on 6th October 2014 • • Net Generation in GB rises from 18941MW at 0500 to 38195MW at 0800 an increase of 19254MW in 3 hours. Maximum change in Wind Output in a 3 hour period on day was 2460 MW (on 31 this occasion it reduced the net generation demand change). Variation of Load Factors over last 15 years 100 90 Load Factors for different modes of Generation CCGT Onshore Wind Solar PV Nuclear Offshore Wind Hydro Coal Wave/Tidal Bioenergy 80 70 % 60 50 40 30 20 10 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2010 2011 2012 Since 2012 load factors of Gas, Hydro, Onshore Wind, Offshore Wind and Bioenergy have been comparable close to 30% Load Factor Data abstracted from DUKES (2014) Tables 5.9 & 6.5 2013 32 Generation at the Domestic Level Energy Generation • Average Daily Output (kWh) Solar thermal - providing hot water - most suitable for domestic installations, hotels – generally less suitable for other businesses 6 Output for a 1.25kW PV( Array • Example 2 panel 2.6 sqm ) in Norwich 2011 2012– generates 826kWh/year 2013 2014 2015 (average over 8 years). 5 4 • The more hot water you use the more solar heat you get! • Renewable Heat Incentive available from 2014 3 2 1 0 Jan • Mar May Jul Sep Nov Solar PV – providing - suitable for all sizes of installation Overallelectricity Solar Energy Gain kWh per day • • 5.0 2007 2008 4.5 2009 2010 Area 4.0 required for 1 kW peak varies from ~ 5.5 to 8.5 sqm 2011 2012 3.5 depending on technology and manufacturer 2013 2014 3.0 2.5 Approximate annual estimate of generation 2.0 1.5 = 1.0 installed capacity * 8760 * ~ 0.11 0.5 0.0 hours in year load/capacity factor of 11% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 33 Raising Awareness • A tumble dryer uses 4 times as much energy as a washing machine. Using it 5 times a week will cost ~ £100 a year just for this appliance alone and emit over half a tonne of CO2. • 10 gms of carbon dioxide has an equivalent volume of 1 party balloon. • A Mobile Phone charger: > 10 kWh per year ~ 500 balloons each year. • Standby on electrical appliances up to 20 - 150+ kWh a year - 7500 balloons. (up to £15 a year) • A Toyota Corolla (1400cc): 1 party balloon every 60m. • Filling up with petrol (~£55 for a full tank – 40 litres) At Gao’an No 1 Primary School in Xuhui District, Shanghai --------- 90 kg of CO2 (5% of one hot air balloon) 上海徐汇区高第一小学 How far does one have to drive in a small family car (e.g. 1400 cc Toyota Corolla) to emit as much carbon dioxide as heating an old persons room for 1 hour? School children at the Al Fatah University, 1.6 miles Tripoli, Libya 34 Current and Future Generation Costs 14 p 12 p Effective Renewable Costs ROC banding introduced 10 p 8p 6p 4p 2p 0p 2002 wholesale price coal Offshore Wind 2004 2006 2008 gas All Renewables Solar PV 2010 2012 2014 nuclear Onshore Wind Tidal Stream/Wave 2016 2018 2020 Volume Weighted Average wholesale prices over year Effective Renewable Costs = Wholesale Price + ROC Value 35 The future is our Responsibility In the Next 10 Years • Energy Security and Cost issues in the UK will become just as important as Carbon reduction and at times supply could become critical. • New nuclear and coal will not be available until after 2020 and there will be an increasing dependance on imported gas at volatile prices. • Renewables such as Wind are now very predictable at the 24 hour time scale and can be used strategically with gas generation for a supply which is secure and can respond to demand. • Currently support for renewables is less than 10% of retail prices. • The UK needs a diverse mix of nuclear, renewables and fossil fuels to provide the resources to tackle the Trilema of Climatye Change, Energy Security and the Cost of Future Energy 36 Are there likely to be issues on security in next few years? • • • • Closure of Nuclear Stations Station Type Wylfa Magnox Heysham 1 AGR Dungeness B AGR Heysham 2 AGR Hartlepool AGR Hinkley Point B AGR Hunterston B AGR Torness AGR Sizewell B PWR Capacity Started 490 1971 2 x 580 1983/4 2 x 545 1983/5 2 x 615 1988 2 x 595 1983/4 2 x 610 (430) 1976 2 x 610 (430) 1976/7 2 x 625 1988/9 1188 1995 Closure* 2015 2019 2028 2023 2024 2023 2023 2023 2035 Hinkley Point B and Hunterston are down rated at 70%. Heysham 1, Hinkley Point B, Hartlepool, and Hunterston have all been affected by cracking which may mean up to 4 units out of action until end of December pose questions on extended lives indicated above. * World Nuclear Association – September 2014 37 Are there likely to be issues on security in next few years? • Closure of Coal/Oil Stations Coal Cockenzie Didcot A Ironbridge Kingsnorth Tilbury Oil Fawley Grain Littlebrook D Capacity (GW) 1.2 2 1.0 2 1.1 1 1.4 1.1 Scheduled Closure By end of 2015 or before if 20000 hours running since 1st Jan 2008 has been exceeded Actual Closure March 2013 March 2013 End 2015 March 2013 October 2013 March 2013 December 2012 March 2015 Above stations opted out of the Large Combustion Plant Directive and must close by end of 2015 at latest. On October 6th 2014 – an announced was made that Longannet (2.23 GW) 38 may also close in 2017 even though it complies with the LCPD Are there likely to be issues on security in next few years? Strategies being taken by National Grid Demand Side Balancing Reserve (DSBR) Providing opportunity for large industrial consumers to shed load between period 32 (i.e. 16:00hrs) and period 40 (20:00 hours) over the Triad Period November to February. Consumers will be paid for such action. Planned reduction of 570MW for 2014/15 (or ~ 1% of peak demand) And 1140MW for 2015/16 Modelling of impact has been done on the basis of the Value of Lost Load payments at £17 per kWh – implying total payments of up to £1.15 M per day over the Triad Period Supplementary Balancing Reserve (SBR) provision is also planned – i.e having plant which have been mothballed or closed available for providing capacity. 39 The future is our Responsibility We must take a coherent integrated approach in our decision making on energy – both on supply and demand. We must promote Energy Conservation and develop a coherent generation mix to provide a low carbon, energy secure and affordable future, not only for electricity but also for heat and transport. And Finally Keith Tovey (杜伟贤) “If you do not change direction, you may end up where you are heading.” Lao Tzu (604-531 BC) Chinese Artist and Taoist philosopher 40