Combined Heat & Power, District Heating & Cooling, Demand Side Services

Activities for 2017

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.

Activities for 2017 | ADE activities-for-2017

Alongside our overarching work on energy productivity and our 50th anniversary celebrations we will seek to complete the following actions to support the growth of decentralised energy:

Combined Heat and Power and Commercial Energy

  • Publish our full CHP 2030 vision and roadmap report, using quantitative modelling to show the extent of CHP’s benefits to users and to the wider energy system including the potential for commercial and public sector CHP.
  • Continue our campaign for protection of Triad embedded benefit for both exported and on-site supply, worth £170m to CHP generators.
  • Secure increases in distribution network generation credits of up to £20/kW through industry modifications.
  • Develop case for full reform of renewable CHP support schemes so that new CHP projects are investable.
  • Set out a vision for carbon taxation in the wake of Brexit that is simple, transparent and drives the efficient use of gas while protecting businesses competitiveness.
  • Set out an evidence-based case for CHP’s role in improving urban air quality.
  • Improve clarity for on-site supply in Capacity Market Rules.
  • Find new opportunities to increase Association opportunities for members to network with customers and key stakeholders.
  • Secure preferred CHP carbon saving methodology in SAP

District Heating

  • Ensure that the full HNIP scheme opens with the broadest possible eligibility and an open funding round so worthy projects can receive support.
  • Launch the industry backed district heating industry task force to ensure that the heat network market is self-sustaining after 2021.
  • Develop the CP1 Compliance Scheme in Autumn 2017 to provide assurance across the heat network supply chain and to assist Government in identifying high-quality projects to support.
  • Work with the Government to eliminate barriers such as punitive business rates which treat heat unfairly compared to gas and electricity networks preventing many district heating schemes from achieving profitability.

Demand Side Services

  • Build an evidence-based campaign focussed on making the Capacity Market fair for all participants, including through equal contracts and simplified rules.
  • Launch the DSR Aggregator Code of Conduct to ensure customer protection and to protect market reputation.
  • Make the case for reforming balancing services to ensure they are allocated transparently and fairly to demand and supply side users.
  • Protect DSR aggregators from unfair VAT treatment within the Capacity Market.
  • Develop and defend fair methodology for reimbursements between suppliers and aggregators following balancing actions.
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