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On policy instruments for support of micro combined heat and power

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  • Hawkes, A.D.
  • Leach, M.A.

Abstract

The performance of residential micro combined heat and power (micro-CHP)--a technology to provide heat and some electricity to individual dwellings--is generally dependent on the magnitude of household thermal energy demand. Dwellings with larger and more consistent thermal consumption perform well economically and achieve greater greenhouse gas emissions savings. Consequently, the performance of micro-CHP is dependent on the level of thermal insulation in a dwelling. Therefore, emerging policy approaches regarding energy use in the residential sector, which generally support both energy efficiency measures such as thermal insulation and adoption of micro-CHP, may inadvertently incentivise micro-CHP installation where CO2 reductions are meagre or not cost-effective. This article examines this issue in terms of the changes in economic and environmental performance that occur for three micro-CHP technologies under changing patterns of residential thermal insulation in the United Kingdom. The results of this analysis are used to comment on the structure of policy instruments that support micro-CHP. It is found that simultaneous support for energy efficiency measures and micro-CHP can be justified, but care must be taken to ensure that the heat-to-power ratio and capacity of the micro-CHP system are appropriate for the expected thermal demand of the target dwelling.

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  • Hawkes, A.D. & Leach, M.A., 2008. "On policy instruments for support of micro combined heat and power," Energy Policy, Elsevier, vol. 36(8), pages 2963-2972, August.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:8:p:2963-2972
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    References listed on IDEAS

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    Cited by:

    1. Capuder, Tomislav & Mancarella, Pierluigi, 2014. "Techno-economic and environmental modelling and optimization of flexible distributed multi-generation options," Energy, Elsevier, vol. 71(C), pages 516-533.
    2. Pellegrino, Sandro & Lanzini, Andrea & Leone, Pierluigi, 2015. "Techno-economic and policy requirements for the market-entry of the fuel cell micro-CHP system in the residential sector," Applied Energy, Elsevier, vol. 143(C), pages 370-382.
    3. Zhang, Di & Samsatli, Nouri J. & Hawkes, Adam D. & Brett, Dan J.L. & Shah, Nilay & Papageorgiou, Lazaros G., 2013. "Fair electricity transfer price and unit capacity selection for microgrids," Energy Economics, Elsevier, vol. 36(C), pages 581-593.
    4. Zhang, Jian & Cho, Heejin & Knizley, Alta, 2016. "Evaluation of financial incentives for combined heat and power (CHP) systems in U.S. regions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 738-762.
    5. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.
    6. Athawale, Rasika & Felder, Frank A. & Goldman, Leo A., 2016. "Do Combined Heat and Power plants perform? Case study of publicly funded projects in New York," Energy Policy, Elsevier, vol. 97(C), pages 618-627.
    7. Jin, Xiaolong & Mu, Yunfei & Jia, Hongjie & Wu, Jianzhong & Xu, Xiandong & Yu, Xiaodan, 2016. "Optimal day-ahead scheduling of integrated urban energy systems," Applied Energy, Elsevier, vol. 180(C), pages 1-13.
    8. Allen, S.R. & Hammond, G.P., 2010. "Thermodynamic and carbon analyses of micro-generators for UK households," Energy, Elsevier, vol. 35(5), pages 2223-2234.
    9. Tapia-Ahumada, K. & Pérez-Arriaga, I.J. & Moniz, E.J., 2013. "A methodology for understanding the impacts of large-scale penetration of micro-combined heat and power," Energy Policy, Elsevier, vol. 61(C), pages 496-512.
    10. Ahmed, Asim & Mancarella, Pierluigi, 2014. "Strategic techno-economic assessment of heat network options for distributed energy systems in the UK," Energy, Elsevier, vol. 75(C), pages 182-193.

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