The potential demand for bioenergy in residential heating applications (bio-heat) in the UK based on a market segment analysis

Abstract

How large is the potential demand for bio-heat in the UK? Whilst most research has focused on the supply of biomass for energy production, an understanding of the potential demand is crucial to the uptake of heat from bioenergy. We have designed a systematic framework utilising market segmentation techniques to assess the potential demand for biomass heat in the UK. First, the heat market is divided into relevant segments, characterised in terms of their final energy consumption, technological and fuel supply options. Second, the key technical, economic and organisational factors that affect the uptake of bioenergy in each heat segment are identified, classified and then analysed to reveal which could be strong barriers, which could be surmounted easily, and for which bioenergy heat represents an improvement compared to alternatives. The defined framework is applied to the UK residential sector. We identify provisionally the most promising market segments for bioenergy heat, and their current levels of energy demand. We find that, depending on the assumptions, the present potential demand for bio-heat in the UK residential sector ranges between 3% (conservative estimate) and 31% (optimistic estimate) of the total energy consumed in the heat market.