HEAT NETWORK PARTNERSHIP

DISTRICT HEATING STRATEGY SUPPORT WORKSHOP

THE STRATEGIC APPROACH

Peter North

September 2015

Reducing London’s CO2 Emissions

• 30% of London’s CO2 emissions are attributable to consumption of heat (mostly mains gas)

• Greatest opportunity for CO2 reduction within London is to reduce demand for heat through building retrofit and low carbon, local (decentralised) heat supply.

• Decarbonising electricity supply is better placed as a national action (nuclear, wind, carbon capture and storage)

The London Plan (2011)

Chapter 5 sets out policies in accordance with the hierarchy:

In particular:•Policy 5.2 sets CO2 reduction targets from energy efficiency interventions for both residential and non-residential buildings until 2031 (zero carbon)•Policy 5.5 sets the policy requirements for London Boroughs to identify and establish DE networks, including the development of Energy Master Plans

• Policy 5.6 sets out the policy requirements for development proposal with regards DE

The London Plan is the overall strategic plan for London, to which London Boroughs’ local plans need to be in conformity with.

The Mayor’s Climate Change Mitigation and Energy Strategy - October 2011

• London’s CO2 emissions reduction targets

• Reductions based on 1990 levels:o 2015 (interim target) 20%o 2020 (interim target) 40%o 2025 60%o 2050 at least 80%

• 25% from decentralised energy by 2025

• An £8bn investment opportunity

5

Programme Development Methodology

•Capacity Building

•Heat Mapping

•Policy Support

•Resourcing

Heat Mapping

Energy Masterplanning

Energy Masterplans•Identify larger scale DE opportunities

•Long-term vision for heat network growth

•Develop planning policies to promote connection to heat networks

Deliver Policy Objects•CO2 reduction

•Inward investment

•Anti-poverty

•Fuel poverty

•Income generation

•Energy efficiency

•Business-as-usual

Upper Lee Valley Opportunity Area Energy Strategy

EOn 400MWe Enfield Power

Station (~12MWth potential LP steam)

Johnson Matthey Industrial Plant (potential low

grade heat rejection & existing

CHP)

LWL Edmonton EcoPark (~18-

60MWth; 8-23MWe)

Proposed Gasification

Plant (potential for ~10MWth)

~7.5km

Broadwater Farm

Figure 4.3.1 British Waterways land available

for potential DHN main corridors

Figure 4.3.2 Network Rail land available for

potential DHN main corridors

District Heating Network Option: British

Waterways Corridor

District Heating Network Option:

Network Rail Corridor

• Project defined by the Energy Masterplan• Long-term development plan• Private leadership requires guaranteed major initial heat load (note

industrial loads unreliable), otherwise:• Public involvement:

– Planning policy

– Safeguarding (routes and energy centres)

– Heat load guarantee

– Public finance (3.5% to 6% IRR)

– Public delivery vehicle

– Policy delivery (fuel poverty, carbon reductions etc)

• Continue public ownership, refinance or exit to private sector

Strategic Development

Strategic Principles

Energy Principles– Security of supply– Sustainability– Affordability

Strategic Priorities– Environmental– Growth– Poverty– Affordable warmth– Revenue generation

Approach– Scale– Available energy sources– Heat demand densities– Overarching scheme– Policy evidence base– Phased implementation– Delivery strategy

Conclusions

• Plan big, start small• Public leadership

essential - where more than two entities are involved

• Political support• Senior officers’ agenda• The Champion

• Idea to construction - three to seven years

• Persevere – many blind alleys

References [1/2]

•Mayor’s Climate Change Action Plan, GLA 2007 (http://legacy.london.gov.uk/mayor/environment/climate-change/docs/ccap_fullreport.pdf)•Delivering Decentralised Energy, London First 2008 (http://londonfirst.co.uk/wp-content/uploads/2012/10/DE_report_summary_low_res_FINAL-1.pdf)•Powering Ahead, GLA 2009 (https://www.london.gov.uk/sites/default/files/archives/mayor-publications-2009-docs-powering-ahead141009.pdf)•The London Plan, GLA 2011 (https://www.london.gov.uk/priorities/planning/publications/the-london-plan) •Mayor’s Climate Change Mitigation and Energy Strategy, GLA 2011 (https://www.london.gov.uk/sites/default/files/Energy-future-oct11.pdf) •London Heat Map, GLA 2011 (www.londonheatmap.org.uk) •Decentralised Energy Capacity Study, GLA 2011 (https://www.london.gov.uk/priorities/environment/decentralised-energy-capacity-study)

References [2/2]

•Decentralised Energy Programme, GLA 2011 (http://www.london.gov.uk/priorities/environment/tackling-climate-change/energy-supply) •The Future of Heating – Strategic Framework, DECC 2012 (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48574/4805-future-heating-strategic-framework.pdf) •The Future of Heating – Meeting the Challenge, DECC 2013•(https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/190149/16_04-DECC-The_Future_of_Heating_Accessible-10.pdf) •London Zero Carbon Energy Resource, GLA 2013 (http://www.london.gov.uk/sites/default/files/031250%20GLA%20Secondary%20Heat%20-%20Summary%20Report_0.pdf) •London Heat Network Manual, GLA 2014 (https://www.london.gov.uk/priorities/environment/district-heating-manual-for-london) •London Infrastructure Investment Plan , GLA 2014 (http://www.london.gov.uk/priorities/business-economy/vision-and-strategy/infrastructure-plan-2050)

Peter NorthSenior Manager

Programme Delivery – Sustainable EnergyGreater London Authority

peter.north@london.gov.uk

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