The task of decarbonisation couldn’t be more important and is extremely challenging. The challenge is exacerbated by simple assumptions on the cost of decarbonisation pathways based upon the cost effectiveness or efficiency of individual components of energy supply chains. What matters most are the impacts on customer cost as a result of end-to-end energy supply chains.
The APGA study ‘Supply chain analysis methodology for Total Customer Cost’ analyses customer costs based on the entirety of energy supply chains. The study demonstrates the households which continue to use gas will enjoy lower cost heat in the home compared to those that electrify their gas demand, and that renewable gases can deliver a cost competitive solution to gas use decarbonisation for these homes.
While this study challenges the paradigm that electrification is the only approach to decarbonising household gas demand, framing of the methodology is only the first step in confirming these outcomes. Publication of this analysis will be followed by application of the methodology by an independent third party consultant which will include outside views on energy decarbonisation statistics to consider. Details on how you can become involved in the next stage of this analysis can be found within the Study Summary.
Supply chain analysis methodology for total customer cost - Study Summary.
Supply chain analysis methodology for total customer cost - Study Data.
Episode 2: Jordan McCollum - Economics of the renewable gas transition - Hydrogen Symposium 2022.