Amanda Lyne

Chair City Region LEP Low Carbon Economy CommitteeChair, City Region LEP Low Carbon Economy Committee

Andy Bounds

Enterprise Editor Financial TimesEnterprise Editor, Financial Times

Jody Harris

Sustainability Consultant ArupSustainability Consultant, Arup

What?What?What does the government need?

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How?How?Make supply more efficient.

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How?How?Low carbon energy production.

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No wiggle roomNo wiggle room

The Carbon PlanThe Carbon Pland-

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There is plenty more legislationThere is plenty more legislation

There is plenty more legislationThere is plenty more legislation

TargetsEmissionsEnergyEfficiency

LiverpoolLiverpool City Region SEAP

Thank youThank you

Alice OwenAlice Owen

Alice.owen@arup.com

www.arup.comp

Cllr Malcolm Kennedy

Liverpool City CouncilLiverpool City Council

David Morgan

Head of Sustainable Cities E ONHead of Sustainable Cities, E.ON

The ProblemThe Problem

© 2007 E.ON

Decentralised energy and long term partnerships 

The Prize

© 2007 E.ON

Dilemma.....

Our World is increasingly

ClimaticallyE i llincreasingly....... EconomicallyGeopolitically

Chaotic

lG hi ll

ConnectedClustered

SmartlyWirelessly

Socially

GeographicallyDemographicallyOrganisationally( )

© 2007 E.ON

(through the cloud)(into communities)

Regulatory Drivers

2010         2011         2012         2013         2014         2015              2020International Targets

UK Targets

EU ETS

CO₂ Down 5.2%Versus 1990

COP 17Johannesburg

CO₂ Down 11.5%Versus 1990 UK

20‐20‐20 for UK

7 TWh Renewable for Wales

80% of elec. From Renewable for Scotland

4 TWh RenewableFor Wales 

31% RenewableElec. In Scotland

EU ETS

R.O.

F I T

Phase II (7% auction) Phase III (100% auction)

11.1% 15.4%15.4%14.4%13.4%12.4%11.4%ROC banding 1st ROC banding review

Initial tariff Revised tariff U d l iF.I.T.

R.H.I.

C.C.L.

Initial tariff structure

Revised tariffstructure

Under consultation >>>

Initial tariff structure Treasury funded to end of CSR planning period

80% reduction 65% reduction for CCA’sC.C.L.

C.E.R.T.

C.E.S.P.

For CCA’s65% reduction for CCA s

Measures to deliver 293MtCO₂ reduction

Measures to deliver 19.25MtCO₂ reductionGreen Deal

C.R.C.

Building Regulations

easu es to de e 9 5 tCO₂ educt o

Phase IPhase II

Phase IIII

30% CO₂ reductionIn Scotland (50% in 2012)

25% CO₂ reductionIn England & Wales v 2006

44% CO₂ reductionIn England & 55% in Wales v 2006 rb

on20

16

© 2007 E.ON

C.S.H.

In Scotland (50% in 2012) In England & Wales v 2006 In England & 55% in Wales v 2006

Zero Car

Homes 2

Public Housingto level 4

Public Housingto level 6

Sustainable City Partnerships

Approach to Partnering (Strategies and Activities)

Engagement Methods (City Wide Stakeholders) Engagement Methods (City Wide Stakeholders)

Magic Mix (Projects, Communities & Communications)

© 2007 E.ON

Approach to Partnering

Awareness

Education

Alignment

Common Purpose

Engagement

Strong Relationships

ACTION

Common AgendaEducation

Information

Common Purpose

Co‐dependency

Strong Relationships

Partnering Support

Common Agenda

Common Strategies

Collective Intelligence

Collaboration

Trust Building

Reducing Barriers

Joint Decision Making

Joint Review

Communication Best Use of Resources

Shared Intelligence

Reinvestment Model

© 2007 E.ON 13 July 2012, E.ON, Page 22

City Partnerships – How a City Partnership Works

Public Private Collaboration

Governance Board LEP

Public Private CollaborationLow Carbon Action Group

Housing – Business – Transport –C i Ed i P bli S

Identify, Develop and Finance / Obligation Commercial

Community – Education – Public Sector

Prioritise Legal Procurement

Low LowLow Low Carbon Projects

Low Carbon Projects

Low Carbon Projects

© 2007 E.ON

City Partnerships – How a City Partnership Works

The Collaborative approach offers a structure with clear governance to deliver projects effectively and with best value.p j y

Focus; Accelerating local low carbon economy, Accelerating local low carbon economy, Job creation & retention, Fighting fuel poverty & behavioral change,

Freedom; Non exclusive, N l ll bi di Non legally binding, Pool expertise – world class sustainability knowledge,

Financing;Wider access and ability to obtain funding – EU level, LEP level,  Create opportunities for investors – including E.ON

© 2007 E.ON

City Partnerships – Where we operate in the UK

© 2007 E.ON

© 2007 E.ON

© 2007 E.ON

Case study CranbrookCase study – Cranbrook

Largest district heating schemes outside London –a gest d st ct eat g sc e es outs de o dolowering CO2 emissions by 13,000 tonnes each year, with 6,500 new jobs locally

© 2007 E.ON

• Installation and operation of 15 sites by the end of this financial yearby the end of this financial year

• 100 installations, new and retrofit, over the next 4 years

• Each installation represents £1m• Each installation represents £1m investment

• Total heat output across 100 sites is h l b fthe equivalent in carbon savings of decommissioning a small power station

© 2007 E.ON

Energy Performance Contracts (EPC)

© 2007 E.ON

City Partnerships – Regenerating & Educating

© 2007 E.ON

City Partnerships – Regenerating & Educating

© 2007 E.ON 13 July 2012, E.ON, Page 32

The Opportunity

© 2007 E.ON

Finding the Way

© 2007 E.ON

Teams and Roles

© 2007 E.ON

Breaking Barriers

© 2007 E.ON

We are All Here

© 2007 E.ON

Strength in Partnership

© 2007 E.ON

Collective Intelligence

© 2007 E.ON

Community Lead Solutions

© 2007 E.ON

Intelligent Games

© 2007 E.ON

Success in Partnership

0.5km6.5MW heat

1.5km160MW heat

© 2007 E.ON

Highways LightingHighways Lighting

Savings Councils & Developers up to 70% on energy with brighter energy efficiencyLED lights

© 2007 E.ON

© 2007 E.ON

44

© 2007 E.ON

Many Thanks

David Morgan

Email: David.a.morgan@eonenergy.com

M bil 07894 297234Mobile: 07894 297234

© 2007 E.ON

46

Alan Jemmett

Director Merseyside Environmental Advisory ServiceDirector, Merseyside Environmental Advisory Service

A Whi tl St T !A Whistle Stop Tour!

- 100% externally funded

- Strong Baseline - CoM compliant

- Single LCR Programme – a co-ordinated responseS g e C og e co o d ed espo se

- Flexibility: for projects, for partnerships, for authorities

- Economies of scale / scaleability

Key Drivers:Key Drivers:

- Decouple economic growth from Carbon emissions

I t t d tf li f j t- Investment ready portfolio of projects

- Increase funding access

- Delivery vehicles

P j t i k d ti- Project risk reduction

- Signal leadership

Single Programme - Wins

R iliJobs ResilienceGrowth

£ Savings CO2 ↓

Efficiency CrossBoundary Health Leadership

SEAP P t 1SEAP Part 1:

- Context & rationale

- Aims & objectives

Potential - 12,000 new jobs targeted for 2015,

half energy sector-related.

SEAP P t 2SEAP Part 2:

- Baseline

- Fossil fuel dominated lower carbon opportunity

- CO2 targetsCO ge s

- Action Plans 1 - 5; 21 actions

- Project opportunities

Potential - project aggregation

14,00040,000 • Between 2005 and 2009 significant

10,000

12,000

30,000

35,000 decrease in energy consumption and

associated CO2e emissions in the City

6 000

8,000

0,000

20,000

25,000 Region.

• Reduced its overall energy

4,000

6,000

10,000

15,000 consumption from 37,297 GWh to

30,181 GWh. A reduction of 19 %.

0

2,000

0

5,000

2005 2006 2007 2008 2009

• Reduced its overall CO2, emissions

from 11,641 kt CO2e to 9,654 kt CO2e.

A reduction of 17%LCR Total Energy GWh LCR Total CO2e (kt) A reduction of 17%.

Enabling Action 2Enabling Action 2 –LCR Special Purpose Delivery Vehicle:

S l f i t t- Scale of investment

- Cross boundary opportunities

- Risk gearing and RoI

L d hi- Leadership

- Shared resources & capacity

Study Feedback

iEnergy Supply Action 1 –Develop energy sector supply chain:p gy pp y

- Support & grow manufacturing & installation supply chain

- Grow micro supply chainG ow c o supp y c

- Address opportunities and gaps e.g. heat pumps

- 3GW capacity potential

- Best use of assets e.g. Daresbury, Stephenson Institutees use o sse s e.g. esbu y, S ep e so s u e

i iUnlocking Delivery

- 12 identified total capital cost >£200m

- 8 District heating schemes with potential for 54MW of combined heat and power

- LCR energy infrastructure value >£500m

- From initial list feasibility investment ready propositionFrom initial list feasibility investment ready proposition

- Multiple players - SP as district network operator, energy companies investors LEP & its members Local and othercompanies, investors, LEP & its members, Local and other Authorities

Study Feedback

Opportunities, deliverables and needs

iDelivery Progress

-Eldonians / Peel / Eon - £34m, 29MW electricity, 69MW heat, energy centreenergy centre

-Knowsley Industrial Park - 9MW heat from gasification CHP, existing loads commercial industry new employmentexisting loads, commercial industry, new employment development, Knowsley corporate response, some deployment challenges

Priority Next Steps:Priority Next Steps:

- CEX support, SEAP into Local Authority approvals

- Low Carbon Economy Committee ownership- Low Carbon Economy Committee ownership

- Capacity to advance projects and bids

- LCEC discussion with LEP for project appraisal/specification

- Build project teams- Build project teams

- Governance via LEP, Low Carbon Committee & Co-ordinated Local Authority ResponseLocal Authority Response

“The Low Carbon agenda is a sustainable economic opportunity as well as an environmental need. Acting in a more sustainable way environmentally creates jobs, market demand and business growth Initiatives like SEAP and achieving the status of Centre for Offshore Renewablegrowth. Initiatives like SEAP and achieving the status of Centre for Offshore Renewable Engineering (CORE) underlines the City Region’s credentials to combine need and opportunity to create many thousands of sustainable jobs.”

Robert Hough, Chair, LCR LEP

Key Messages: M lti l iMultiple winsPartnershipSeeking private sector commitmentSeeking private sector commitmentBuild on our strengths!

More Information

Alan jemmett@eas sefton gov ukAlan.jemmett@eas.sefton.gov.uk

Paul.slinn@eas.sefton.gov.uk

Tel: 0151 934 4950

Pdf copies of the SEAP will be made available on the CLASP website at www claspinfo orgwebsite at www.claspinfo.org

Q&A Panel

Chaired by Andy BoundsChaired by Andy Bounds