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Decentralised Energy. Supporting Climate East Midlands in the development of local renewable and low carbon energy. Ben Lynch & Barry Knight – Carbon Trust Alison Crompton & Kirsten Elder - AECOM 28 th February 2011. We cut carbon now by - PowerPoint PPT Presentation
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Decentralised EnergySupporting Climate East Midlands in the development of local renewable and low carbon energy
Ben Lynch & Barry Knight – Carbon TrustAlison Crompton & Kirsten Elder - AECOM
28th February 2011
Our mission is to accelerate the move to a low carbon economy
We cut carbon now by
Providing specialist advice and finance
to help organisations cut carbon
Setting standards for carbon reduction
We cut future carbon emissions by
Opening markets for low carbon
technologies
Leading industry collaborations to
commercialise technologies
Investing in early stage low carbon
companies
Introduction Context of Decentralised Energy The DE Programme CT Experience and UK Market Internal Engagement Policy Development Next Steps
Agenda
Timeline and National Policy Context
Code level 1 – Part L 2010
Code level 2 – Part L 2010
Code level 3 – Part L 2010
Code level 4 – 25% < Part L 2010
Code level 5 – 100% < Part L 2010
Code level 6 – Zero Net CO2
Emissions
*Code Level 6 includes both regulated and unregulated emissions and the definition of ‘zero carbon’ is currently being redefined
East Midlands in Context
4.5 million people20% population growth by 202778,000 GWh total energy demand (excl transport)800 GWh from renewable energy (2007) ie 1%41 Mtonnes CO2 p.a. (10.3% of UK emissions)7% CO2 reduction since 1990
We can no longer consider a single building or single energy sources
Energy sharing is a key element
Advantages of Decentralised Energy
• Improved security and diversity of supply• Decarbonised local energy supply in line with
national policy objectives• Decoupling of economic growth and development
from CO2 emissions
• Use of strategic infrastructure to provide wider benefits to businesses and community
• Strengthening of the region’s position as a low carbon economic area
Key Questions
•What is your understanding of Decentralised Energy?
•Have you identified opportunities for potential Decentralised Energy schemes within the authority?
•What are the key issues for you in developing Decentralised Energy projects?
Programme Aims
Aim 1: Provide bespoke support to improve knowledge across the East Midlands on Decentralised EnergyAim 2: Carbon Trust to act as an independent advisor in discussions with financers and delivery partnersAim 3: Facilitate collaborative learning between Local Authorities and provide a knowledge hub for shared learningAim 4: Develop the business case for investment in DE across the East MidlandsAim 5: Create a lasting relationship between the Carbon Trust and participant authoritiesAim 6: To achieve CO2 reductions in the East Midlands, at lower unit costs through the development and delivery of a planned approach
Political Support and CommitmentEngage with key internal stakeholdersCapacity Building
Win Hearts & Minds:• Raise awareness and understanding of DE• Engage Senior Members• Establish internal working group• Secure DE as relevant priority for the borough• Engage key stakeholders
Policy Development
Strategy and Policy
•Identify strategies to facilitate the implementation of DE •Ensure consistently worded DE policies (e.g. waste, housing, energy, planning, LDF, Core Strategy)
• Using DEMaP methodology, accumulate heat loads into clusters
• East Midlands DECC Study - Strategic analysis of the region for renewables and decentralised energy (report due March 2011)
• Produce a viable heat load profile for CHP/DH project opportunity
• Identify key stakeholders - public and private sector
Heat Mapping
Detailed Feasibility Studies
Viability Options Analysis
•Feasibility studies, engage stakeholders to identify infrastructure routes and constraints
•Test operation scenarios and CHP sizes, identify anchor loads and lead organisation
Procurement Strategy
Procurement and Contracts
•Identify SPV options for borough and stakeholders•Advice on options for heat tariffs, use of electricity•Licences, revenues and ownership issues, maintenance contracts, risks and liability•Standard Heads of Terms, MoUs, Contract templates etc.
Developing the business case
Resource Commitment
•Identify and secure budget to carry out options •Appraisal and feasibility study for DE projects •Develop implementation programme•Secure internal resource to deliver the DE project
Partnering and Delivery
Develop ESCo Model and Delivery Vehicle• Inter-dependent on (1)• What are the ESCo objectives, and how
should the model reflect this?– Maximise revenue– Tackle fuel poverty and other social
objectives?– Reduce public sector energy costs?– Finance– Risk
Coventry City Potential Savings
Coventry study area’s total heating demand is 350,000 MWh/yr
A city-wide Coventry district heating scheme, to provide heating to 35% of homes and businesses, would save
22,000 tonnes CO2/year (40% of total Council carbon footprint)
Planners’ Toolkit
Assists planning officers to determine compliance with low carbon energy generation policies and help the developer submit a compliant application
Developed by Carbon Trust, Encraft and planning officers from Coventry, Solihull and Warwickshire districts
Introduction Context of Decentralised Energy The DE programme CT experience and UK Market Internal Engagement
Agenda
Project sponsor – choosing the right person
Which skills will this person have?– Technical– Planning – policy or development– Financial– Communications– Knowledge of local businesses
No one person will have all of the skills so it will be important to recognise that he/she will need to draw upon others to augment their own skills
Choosing the right person
Someone who wants the roleSomeone who has the time – it is part of their day jobSomeone who will be able to form a Working Party and who will report to a Senior Level Steering Group
Also required...
• Able to secure political will• Understand who the key internal stakeholders are• Understand the wider need for engagement• Secure long-term commitment
To be discussed at Workshop No.1 (April)
Discussion
• To what extent is there Corporate buy-in and commitment to developing and implementing projects to reduce CO2 emissions?
Introduction Context of Decentralised Energy The DE programme CT experience and UK Market Internal Engagement Policy Development
Agenda
PPS1 & Climate Change Supplement
Expects local authorities to encourage the uptake of decentralised, renewable and low carbon energy generation through the LDF
Draft PPS: Planning for a Low Carbon Future
Replacement for PPS22 and Climate Change Supplement
– Reduced role of energy targets– Emphasis on delivery of local
heat networks through local policy
– Where is it now...?
Household Energy Management Strategy
Former Govt strategyNew focus on DH by removing barriersEncourages better use of surplus heat through carbon pricing
Continued support by Coalition Govt?
Regional Level
Regional Spatial Strategy PoliciesLZC capacity study– Commissioned by East Midlands Councils– DECC requirement– Identifies potential renewable energy resource– Identifies areas of interest e.g. heat density
Next step...turning opportunity into delivery
Policy Development - Powers & Incentives
“Localism, Localism, Localism”!
The Localism Bill 2010-2011“The Bill will devolve greater powers to councils and neighbourhoods and give local communities more control over housing and planning decisions”
The Localism Bill 2010-2011“The Bill will devolve greater powers to councils and neighbourhoods and give local communities more control over housing and planning decisions”
Policy Development - Powers & Incentives
Community Infrastructure Levy
General Powers of Competence
Community Energy Fund
Carbon Buyout and Developer Contributions
Discussion
At what stage of development is your LDF Core Strategy? e.g. submitted to Secretary of State.
Do you have policies in place relating to climate change and/or the reduction of CO2 emissions?
If yes:
– Do they apply on-site energy targets for the generation of renewable energy?
– Do they relate to low carbon energy such as CHP and/or district heating?
– Have these policies been adopted or do they form material consideration?