The ADE's policy and communications teams' activities build and strengthen the market for CHP, district heating, and demand side services, including demand response through addressing policy, regulation and market development. Our work this year is set to include:
Combined Heat and Power
- Protect existing CHP and strengthen role of new build CHP under expected Capacity Market reforms.
- Ensure CHP value is protected and ideally enhanced in HM Treasury Business Energy Tax Review.
- Defend distribution-connected CHP from threats to Embedded Benefit, including National Grid proposals to charge exporting distribution networks.
- Protect CHP recognition in Phase IV of EU Emissions Trading Scheme.
- Secure effective reforms in the Renewable Heat Incentive and Contracts for Difference schemes to provide investment certainty for renewable and EfW CHP plant.
- Produce a report setting out a vision for CHP to 2030.
- Ensure cost of implementation of new European grid codes is minimised for CHP generators.
- Develop and expand educational seminars to improve small-scale CHP installation quality.
- Deliver new measurement approach to show CHP’s value in reducing carbon emissions.
- Work with Ofgem to reform distribution network connection regime to deliver speedier connections.
- Work with Greater London Authority to issues supplementary planning guidance to allow dispersal modelling showing CHP’s true NOx impact.
- Secure the development of a long term investment framework based on the ADE’s policy framework, to be published in early 2016.
- Achieve fair Business Rates for heat networks.
- Ensure a fair assessment of district heating under an expected reform of SAP.
- Promote and extend the use of the Code of Practice for Heat Networks.
- Secure an extension of the Heat Networks Delivery Unit.
- Hold a successful district heating conference with a focus on local authorities.
- Develop new ways to improve the reputation of the industry.
Demand Side Services
- Publish report on the current state of the demand side response market, the size and value of the potential, and what regulation and market barriers need to be addressed to achieve that potential.
- Protect and enhance role of DSR sector in Capacity Market reforms.
- Support reforms and expansions to network balancing services including Demand Turn Up and a bespoke DSR service.
- Work with members and regulators to improve market trust while protecting a growing and innovative market.
- Work with Ofgem to allow demand side response providers to be able to directly access value in the wholesale and balancing markets.