The value of microgeneration
support mechanisms can be argued to be of value as a short term
measure to offset perceived imbalances in markets, to reward
genuine, but otherwise unrecognised values for as long as those
market failures persist, but also as a short term expedient to
stimulate the market for a promising technology in the
expectation that this will more effectively add scale and
consequently drive down prices to a sustainable level.
of microgeneration are almost invariably assessed on a rather
simplistic assessment of end-user payback, which considers the
recovery of the initial capital investment from the net income
generated by the microgeneration technology offset by additional
operation and maintenance costs, but takes no account whatsoever
of the benefits or costs, nor indeed of any disbenefits, which
accrue to the wider energy system. Clearly, in
order to optimise utilisation of our constrained resources and
encourage cost effective investment in a sustainable energy
system we need to be able to attribute both costs and benefits
of any given measure appropriately.
identifies a range of energy system values which are not
currently attributed to microgeneration and in particular
examines the value of heat led micro CHP in supporting the
emerging energy system characterised by high levels of
intermittent renewable generation.
It is argued
that the apparently generous FiT (Feed in Tariff), whilst a
pragmatic proxy for these as yet unrewarded values, not only
fails to adequately represent those values for micro CHP, but
also fails to incentivise system optimisation.
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