www.heatingandventilating.net
Hot water cylinders a hidden lifeline for energy storage
As energy security continues to be a cause for concern for the UK, an industry report has identifi ed the potential role of hot water cylinders in balancing demand on the electrical grid
T
he report from the Hot Water Association (HWA), entitled Connected Homes, explores
the potential for hot water cylinders to be used as thermal stores for grid electricity to build resilience in peak periods.
If the nine million cylinders in UK homes were connected through smart controls and used as batteries, the National Grid could unlock 23GWh of energy storage – around half the energy used per day in the UK. Due to the introduction of technologies, like heat pumps, which
require hot water cylinders, this number could increase by 36%, increasing the energy capacity to 40GWh. To make use of this energy storage potential, cylinders will need smart functionalities introduced either via retrofi tting smart controls or brand-new smart cylinders will need to be installed with gas boilers or heat pumps. Heating engineers will be key in the process of making this a reality, as Kevin
Lowe, technical manager at the HWA, said: “Hot water cylinders’ potential role in the energy mix is substantial and there is work to be done to make the most of this opportunity. Installers across the UK installing and maintaining cylinders in homes can play a crucial part in this, as our report highlights, by making existing and new cylinders connected.” The report from the HWA also highlights the need for policy direction
to incentivise the rollout of connected thermal storage in UK homes for homeowners. This is particularly needed to prevent people from changing their hot water system to remove the cylinder completely so the number of cylinders in the UK can increase to build capacity. In addition to incentives to drive more people to install smart cylinders and
retrofi t controls to existing cylinders, the report lays out next steps for improving uptake. This includes making smart controls and cylinders more benefi cial to SAP and EPC ratings in new builds and reducing taxes and levies on off peak electricity to bring more value out of storing energy in a cylinder. Kevin continues: “The key to making this project a reality will be getting
homeowners on side, so policy direction must incentivise adopting smart hot water storage. Whether installing a cylinder with a new heat pump installation, or fi tting controls to an existing one, homeowners may require fi nancial support to make it worth their while. They will also need to understand the benefi ts that thermal storage in their home may provide and in turn prevent them removing an existing hot water cylinder. “If we are to get the up to 40GWh of energy storage that our research predicts
could be achievable in the UK, industry, Government and installers must work together to help homeowners understand these benefi ts.”
DOMESTIC CONTROLS boilingpoint
HPA proposes a Domestic Heat Pump Tariff Discount
The Heat Pump Association (HPA) has published its latest research proposing a Domestic Heat Pump Tariff to tackle one of the key challenges in the acceleration of heat pumps for domestic heating – running costs
A
s the UK Government ambitiously pursues decarbonisation through increased heat pump adoption, the HPA’s report sheds
light on a critical factor impacting the market, the high electricity prices in Great Britain, relative to gas, which is distorting the domestic heating market. Great Britain (GB) has one of the highest electricity to gas price ratios (3.97) in all of Europe, nearly double that of the EHPA recommended ratio of 2. A signifi cant contributor to high electricity
prices is the disproportionate application in Great Britain of Environmental and Social Obligations – often referred to by Government as “policy costs” and known commonly as “levies”. Domestic electricity consumers, bear around 85% of these levies, which means a typical heat pump consumer pays £170 more than an equivalent gas boiler consumer in levy costs per annum. The Government has committed to outlining a clear approach to gas vs. electricity price ‘rebalancing’ by the end of 2023/4 and agreed with the Skidmore Review recommendation that signifi cant progress aff ecting relative prices should be made by the end of 2024. In response to this challenge, the HPA calls on the Government to introduce a temporary Domestic Heat Pump Tariff Discount to counteract the distortion in the domestic heating market caused by levies on electricity bills, which acts contrary to their wider decarbonisation goals. The discount will reduce the price of electricity used for domestic heating
or hot water produced by hydronic heat pumps to an amount equivalent to exempting that proportion of electricity from levies. Starting at 5p/kWh in 2024/25- 2025-26 and rising to 6p/kWh in real terms in 2026/27, the discount is estimated to require a maximum of £533m of discounted costs over three years. The HPA propose that this should be introduced quickly as an interim measure to bridge the gap between today’s situation, and the time when wider electricity market reform is completed. Commenting on the release, HPA chief executive, Charlotte Lee said: ‘Our
research provides a roadmap to address the current distortion in the domestic heating market, which is undoubtedly hindering heat pump deployment. Reducing the price and electricity relative to gas is the sector’s number one policy ask. Action must be taken to change the energy price signals so that the lowest carbon heat is the lowest cost heat, which in turn will accelerate the deployment of heat pumps, and support the government’s decarbonisation goals.’
https://www.heatpumps.org.uk/resources/industry-reports/
DOWNLOAD THE HVR APP NOW
February 2024 35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
