Future scenarios for micro-CHP in the UK as residential building insulation improves

A.D. Hawkes and M.A. Leach, Centre for Energy Policy and Technology, Imperial College London

Keywords

future energy demand, micro-CHP, economics, greenhouse gas, clustered application

Abstract

The economics of micro combined heat and power (micro-CHP) are generally highly dependent on the magnitude of thermal energy demand in the residence being served. Dwellings with larger annual thermal consumption usually benefit most from an economic point of view, with a corresponding environmental benefit through significant reduction in greenhouse gas emissions. This creates a tension between desirable demand-side energy efficiency and introduction of efficient supply-side technology because improving demand-side efficiency through improved building insulation results in this efficient supply-side technology becoming less economically attractive. This paper examines the changes in economic parameters for micro-CHP that are likely to occur under scenarios for changing household thermal energy demand in the UK, and considers the corresponding changes in environmental performance. Options for interconnection of dwellings in order to increase and diversify thermal demand (per micro-CHP unit) are explored and discussed in this context.