Challenge
In view of the Government target for 12% of heat generated to come from renewable sources by 2020, there is a need to accelerate uptake of renewable heat solutions from a very low baseline (0.6% in 2008). Although several studies were available that demonstrated the potential for renewable heat from the supply side, there was a lack of understanding of heat demand from a consumer perspective. Carbon Trust Enterprises Ltd. wished to review the low carbon and renewable heat market from a customer demand perspective and provide the evidence base from which to identify potential opportunities to accelerate the market.
Approach
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Existing data from multiple sources was analysed and validated to provide an overview of the potential size of the market
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The market was segmented into customer groups, primarily based on procurement characteristics. For each segment, data was gathered on multiple variables, such as the scale of heat demand; typical site characteristics; end user characteristics; and incumbent supply characteristics (fuel and equipment)
- A detailed drivers and barriers analysis was carried out for each segment. This, together with a comparative economic analysis of the incumbent and low carbon heat supply, was used to determine the potential for low carbon heat uptake in the short and long term
- A series of potential interventions (tools) were generated that would help to accelerate the market between 2010 and 2020
- The resultant understanding of customer demand, available technology, potential interventions, and client capabilities was used to generate specific recommendations to support increased uptake of low carbon and renewable heat solutions over a range of timescales.
Outcome
Three recommendations are under consideration for a pilot phase.
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