Electricity network constraints and the 2024 New Build Heat Standard: research
Research looking into the network constraints issues associated with the electrification of heat for domestic new build developments. The focus of the work was on connection costs for these developments, how the cost is defined, and apportioned to the relevant stakeholder.
1 Introduction
1.1 Project context
The 2024 New Build Heat Standard will require all new homes in Scotland to use heating systems which produce zero direct emissions at the point of use from 2024 onwards. Many of the established zero emissions approaches to space and water heating use the electricity network, which in itself has been significantly decarbonised in Scotland through the growth in renewable generation. Therefore, electrically powered heating will play an important part in decarbonising heating in Scotland.
Space and water heating demand make up a significant proportion of the energy requirements of a home. Meeting this energy requirement through electricity rather than the gas network will require additional electricity network capacity, which will have cost implications for the new developments and can change the business models that will be adopted to develop housing and establish energy infrastructure.
The Scottish Government commissioned Ricardo Energy & Environment (Ricardo) to undertake research into the network constraints issues associated with the electrification of heat for domestic new build developments. The focus of the work is on connection costs for these developments, how the cost is defined, and apportioned to the relevant stakeholder. It is important for the cost implications of the decarbonisation of heat to be understood, so that the Scottish Government, the building developers, and the energy sector can take these into account as part of their business plans when considering the implementation of the 2024 standards.
This report provides the results of the research undertaken by Ricardo to support with the Scottish Government's implementation of the 2024 New Build Heat Standard.
1.2 Requirements of the project
The purpose of the assessment was to address the key questions shown in
Table 1‑1 below. The sections of this document where each question is addressed is also referenced.
| Project question |
Document section |
|---|---|
| What are the main business models for establishing energy network assets for new developments? Including contractual arrangements, revenue streams, apportioning risk and ownership, and the key decision factors. |
Section 3 |
| What is the total cost associated with network infrastructure for various new build examples? How is this apportioned between housing developers, IDNOs, DNOs, home buyers, tenants, and the general public? |
Section 4 |
| How do these costs compare between a 'traditional'/business as usual development and a fully electrified development for heat requirements? |
Section 4 |
| How are decisions made, and by whom, regarding the potential trade-offs between building design, fabric efficiency and onsite generation and storage technologies on the one hand, and electricity network connection/upgrade costs on the other? |
Section 3 |
| Are there any examples of innovative projects/demonstrators (including international) where technology has been optimised (e.g. smart enabled) to minimise network costs? |
Section 5 |
| Are there other key considerations for developers, DNOs and IDNOs specifically, in relation to the 2024 standards and network constraints that are not covered in the questions above? |
Section 6 |
| How do the answers to the previous questions differ between a development using an IDNO and one where the network will be directly adopted by the local DNO? |
Section 3 |
Contact
Email: 2024heatstandard@gov.scot
There is a problem
Thanks for your feedback