Pitfalls in decarbonising heat: A misalignment of climate policy and product energy labelling standards

• Published in: Energy policy 2019-08, Vol.131, p.390-398
• Main Authors: Armstrong, P.M., Bhagavathy, S.M., Kang, R., McCulloch, M.
• Format: Article
• Language: English
• Subjects: Alternative energy sources; Bias; Carbon intensity; Carbon sources; Case studies; Climate policy; Conversion; Decarbonising heat; Demand side management; Domestic hot water tanks; Electricity; Electricity generation; Electrification; Energy consumption; Energy costs; Energy policy; Energy product labelling standards; Energy sources; Environmental policy; Heating; Heating systems; Hot water; Intelligence; Intermittent; Labeling; Labelling; Laboratory tests; Misalignment; Power; Ratings & rankings; Renewable energy; Renewable energy sources; Residential energy; Technology; Water heating; Water tanks; Waterworks
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2019.04.012

There is considerable potential to decarbonise household energy consumption through the electrification of heating systems which can absorb excess renewable power and mitigate power network constraints through intelligent control. However, current standards discourage low carbon electricity sources through outdated assumptions; predicated upon a traditional electricity network which had higher emissions. Consequently, the implementation of product Energy labelling across Europe is biased against electric space and water heating systems in favour of gas. This paper examines the impact of this bias through a case study of the European Union's product labelling directive for domestic hot water systems. Laboratory testing of a market leading electric water tank and an A rated instantaneous gas boiler has demonstrated efficiencies of 87.4% and 72.9% respectively. In spite of this, the labelling directive assigns a C rating to the tank. This is due to a conversion coefficient (CC) within the directive's calculation based on an average electricity generation efficiency of 40% without a similar coefficient for gas. This paper advocates the removal of the CC factor from the directive to normalise the comparison, thus promoting a technology uniquely suited towards absorbing intermittent renewable energy sources with negligible costs. •Current standards discourage low carbon electricity through outdated assumptions.•Bias due to the use of conversion coefficient (CC) for electricity generation.•Higher efficiency electric HWTs have a lower ranking than less efficient gas boiler.•HWT can help integrate more renewables at minimal incremental cost.•Recommendation of removal of CC to unlock the potential of HWT.