Governance for increased CHP District Heating diffusion in the UK

Abstract

Combined Heat and Power and District Heating technology systems (CHP-DH) is a network-based infrastructure known to offer a more efficient and more sustainable option for meeting society’s energy needs with reduced emission production in the face of increasing population and energy demand compared to other forms of conventional thermal plants. Specifically, this brings to the fore the potential importance of these systems, their rate of penetration and what factors are militating against their diffusion. The United Kingdom (UK) currently exhibits a low penetration of CHP and particularly CHP-DH systems in terms of contribution to both electricity and heat generation profile with the adoption of these systems failing to meet their potential over decades. This is despite Government commitments to meeting environmental targets for emission reduction and 2020 energy targets from renewable energy by introducing several governance mechanisms. This failure suggests that these mechanisms have not fully captured the potential of CHP-DH systems to achieve these targets. Secondly, it is also not clear that the UK has adequately considered heat energy as a critical aspect of the energy vector to meet its energy target, based upon the limited governance infrastructures to facilitate the efficient generation and distribution of heat. This thesis focuses on investigating the inducing and blocking mechanisms that influence the diffusion of CHP-DH systems in the UK using both a technological innovation system approach and governance theoretical concepts with a view to proposing alternative governance pathways to influence the CHP-DH penetration. Qualitative and quantitative methodologies are adopted here. A wide selection of stakeholders is consulted to identify barriers and assess potential solutions with a view to examining possible strategies for both communities and society at large to harness the potential of CHP-DH in meeting energy, environmental and social targets. The results suggest several governance options that seek to influence the diffusion of CHP-DH systems in the UK. Summarily, it highlights the roles that hierarchies of governance (State and Local Authorities) can play in influencing the diffusion of the technology, with the state to evolve a joined-up policy portfolio to stimulate investment and growth of CHP-DH systems and the LAs as prime movers of the CHP-DH TIS taking up “doers and enablers” roles in the penetration of the technology. Thereby contributing to the energy policy debate by persuading the hierarchies of governance to see CHP-DH systems through the lenses of a network-based infrastructure and consider alternative governance mechanisms that may ultimately enhance the selection environment of CHP-DH systems in the UK.