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Hastings Borough Council Sustainable Energy Options Study June 2017 – Summary report Prepared by Tim Crook, Hazel Williams and Amy Brimmicombe Version First issue, Revision 0 Date 16 June 2017 SUSTAINABLE ENERGY OPTIONS STUDY For Hastings Borough Council

Sustainable Energy Options Study June 2017...The table below outlines the ten scheme types that we assessed in our study, highlighting the relative merits and risks of each one. In

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Page 1: Sustainable Energy Options Study June 2017...The table below outlines the ten scheme types that we assessed in our study, highlighting the relative merits and risks of each one. In

Hastings Borough Council Sustainable Energy Options Study June 2017 – Summary report

Prepared by Tim Crook, Hazel Williams and Amy Brimmicombe

Version First issue, Revision 0

Date 16 June 2017

SUSTAINABLE ENERGY OPTIONS STUDY For Hastings Borough Council

Page 2: Sustainable Energy Options Study June 2017...The table below outlines the ten scheme types that we assessed in our study, highlighting the relative merits and risks of each one. In

Hastings Borough Council Sustainable Energy Options Study June 2017 – Summary report

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Contents Glossary of terms .............................................................................................................................................................................................................................................. 3

Introduction ...................................................................................................................................................................................................................................................... 3

Summary of recommendations (generation, storage and Demand Side Response) ....................................................................................................................................... 4

Wind energy assessment .................................................................................................................................................................................................................................. 5

Vertical Axis wind turbines ......................................................................................................................................................................................................................... 12

Ground mounted solar array opportunities ................................................................................................................................................................................................... 14

Solar Carports ............................................................................................................................................................................................................................................. 23

Rooftop Solar opportunities ....................................................................................................................................................................................................................... 26

Storage ............................................................................................................................................................................................................................................................ 29

Demand side response ............................................................................................................................................................................................................................... 41

Heat Network Opportunities .......................................................................................................................................................................................................................... 42

Investment support .................................................................................................................................................................................................................................... 45

Air Quality ................................................................................................................................................................................................................................................... 45

Investment options ..................................................................................................................................................................................................................................... 45

Energy procurement and billing ..................................................................................................................................................................................................................... 48

Local supply .................................................................................................................................................................................................................................................... 49

Becoming an electricity supplier ................................................................................................................................................................................................................ 50

White label.............................................................................................................................................................................................................................................. 50

Fully licensed supplier ............................................................................................................................................................................................................................ 52

Licence lite .............................................................................................................................................................................................................................................. 52

Licence exempt ....................................................................................................................................................................................................................................... 52

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Local supply models linked to local generation .............................................................................................................................................................................................. 52

Sleeving ....................................................................................................................................................................................................................................................... 53

Private wires ............................................................................................................................................................................................................................................... 54

Microgrids ................................................................................................................................................................................................................................................... 55

Energy local model – an aggregated time of use tariff with local generation ........................................................................................................................................... 55

Local tariffs ................................................................................................................................................................................................................................................. 56

Community energy ......................................................................................................................................................................................................................................... 57

Electric vehicles .............................................................................................................................................................................................................................................. 59

Investing outside the area .............................................................................................................................................................................................................................. 62

Project funding ........................................................................................................................................................................................................................................... 63

Key performance indicators ....................................................................................................................................................................................................................... 63

Appendices ..................................................................................................................................................................................................................................................... 64

Appendix A: Constraint mapping for wind resource assessment........................................................................................................................................................... 64

Appendix B: Constraint mapping for ground mounted solar assessment.............................................................................................................................................. 65

Appendix C: Ground-mounted solar additional sites constraints analysis ............................................................................................................................................. 66

Appendix D: Heat Network Assessment Methodology .......................................................................................................................................................................... 72

Appendix E: Heat Network Assessment Methodology ............................................................................................................................... Error! Bookmark not defined.

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Glossary of terms AONB Area of Outstanding

Natural Beauty DSO Distribution service Operator HBC Hastings Borough Council RHI Renewable Heat Incentive

BEIS Dept. for Business, Energy and Industrial Strategy

DUoS Distribution Use of System HIU Heat Interface Unit RO Renewables Obligation

BOA Biodiversity Opportunity Areas

EFR Enhanced Frequency Response

HNDU Heat Network Delivery unit ROI Return on Investment

BRE Buildings Research Establishment

ESCo Energy Supply Company LDO Local Development Order SSSI Site of Special

CESCo EV Electric Vehicles OLEV Office for Low Emission Vehicles STOR Short Term Operating Reserve

CfD Contract for Difference FCDM Frequency control by demand management

PCC Plymouth City Council TRIAD Term describing the three TNUoS (Transmission Network Use of System) period

DNO Distribution Network Operators

FFR Fast Frequency Response PEC Plymouth Energy Community UPS Uninterruptible Power Supply

ECO Energy Company Obligation

FiT Feed in Tariff PVGIS PV Geographical Information Systems (software)

VAWT Vertical Axis Wind Turbine

Introduction Regen was commissioned in Spring 2017 to undertake a high-level assessment of the sustainable energy investment opportunities available to Hastings Borough

Council (HBC). The HBC estate was assessed for energy generation options that could help lower energy bills and provide investment opportunities. In addition, the

borough as a whole was examined to identify any key sustainable energy opportunities. This report sets out the opportunities that are most likely to be of interest to

the council.

The report includes high level costings of the opportunities identified. These costings only include CAPEX and do not take account of site specific factors. They are,

therefore, purely illustrative numbers to enable comparison between opportunities.

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Summary of recommendations (generation, storage and Demand Side Response) Hastings has a number of opportunities in clean energy generation and grid management services that could be explored as new business opportunities for the

council. The table below outlines the ten scheme types that we assessed in our study, highlighting the relative merits and risks of each one. In general, we found that

there are potentially viable schemes for rooftop solar, ground-mount solar and heat networks that merit further investigation by the council. There is less likelihood of

viable wind or electricity storage schemes.

The study was conducted at a high level, using demand and generation data where available and employing industry benchmarks and estimates where site specific

information was not available.

Opportunity Illustrative CAPEX Site(s) Level of Council investment

Return on investment

Social/economic/ environmental benefit

Risk

1 Large scale wind (0.5-1.0 MW)

£1,750,000 East Ore, Pebsham High High High Very high

2 Vertical axis wind (0.25 MW)

£1,500,000 Seafront High Low Low High

3 Ground mounted solar (up to 10 MW)

£400,000 - £8,000,000 Pebsham, Ingleside High Medium Medium Medium

4 Rooftop solar (up to 580 kW)

£30,000 - £589,000 Multiple sites Medium Medium Medium Low

5 Storage – stand alone Potentially very limited opportunity to invest

No specific sites found Low Medium Medium High

6 Storage – onsite high demand, no generation

Around £350,000 No specific sites found Medium Medium Low High

7 Storage – mains backup Around £350,000 No specific sites found Medium Low Low High

8 Storage – small scale Around £5,000 to £20,000 for single small scale installation

No specific sites found Low Low Low Low

9 Demand side response

Aggregated sites – see report from CLS

Low Low Low Medium to high

10 District heat networks (0.25 – 2 MW)

£500,000 - £3,000,000 Summerfields Leisure Centre Conquest Hospital Stonehouse Drive social housing

High High Medium Medium to high

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Wind energy assessment Technical viability assessment of wind energy

potential

To find any areas of unconstrained land with

potential to develop wind turbines, we applied

the assumptions from the national resource

assessment methodology commissioned by

the Department for Energy and Climate

Change in 2010. We followed this

methodology for the assessment of medium

scale potential, with some additional

considerations relating to features of the

Hastings area.

For large scale turbines (greater than 2 MW), a

buffer of 600m from buildings is necessary for

noise mitigation. This excludes the entire local

authority area due to the level and density of

development, shown in Figure 1 . Therefore,

this assessment has focused on the 500 kW

scale, as this requires only a 400m buffer from

housing.

Figure 1: Wind assessment: 600m housing buffer

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Constraint mapping

Considerations Explanation

An exclusion area was applied to the following key features:

• Roads (Motorway, Primary, A & B): 100m buffer

• Railway: 100m buffer

• Rivers (surface water): 50m

For roads and railway: safeguarding against the unlikely event of a turbine falling over

Given 500 kW hub heights vary greatly, approximate turbine topple height plus 10 percent.

Adjusted from 150m for greater than 2 MW turbines

For rivers: avoiding blades extending over the waterway

The following types of historic area were considered:

• Ancient scheduled monuments with 200m buffer

• Historic Parks and Gardens

Protecting the historic environment in line with national policy

Areas with the following environmental designations were considered:

• Local Nature Reserves

• National Nature Reserves

• Sites of Special Scientific Interest

• Special Areas of Conservation

• Special Protection Areas

• Ramsar sites

• RSPB Reserves

Protecting the natural environment

Areas with landscape designations were considered:

• Areas of Outstanding Natural Beauty

• National Parks

Protecting designated landscapes

Wind speed below 6 m/s at 45m excluded Minimum wind speed considered necessary for turbines to be economically viable.

400m dwelling noise mitigation buffer 400m is an estimated distance to protect homes from noise from wind turbines. Specific sites

could be closer than 400m to housing if the site conditions allow it – e.g. there are hills between

the turbines and the homes.

Unavailable areas removed Areas where housing development or employment land is planned.

Unfeasible areas removed Small areas of land that are, for example, inaccessible or on steep slopes were removed from the

unconstrained area at the end of the process.

Installed capacity per km2 – one turbine per area identified It is unrealistic on a large scale to have a wind farm of 500 kW turbines; higher capacity turbines

are more likely to be used. 500 kW turbines are more appropriate for small sites with one or

possibly two turbines.

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Additional constraint maps of Hastings can be found in Appendix A.

Due to the level of environmental and landscape

designations in the area, we have not excluded

areas with such designations, but considered their

restrictions alongside available wind resource.

Although more challenging, it is feasible to

develop in such areas; however, this is highly

dependent on the local planning context and

community support.

The available resource is shown in Figure 2,

alongside the historic, landscape and

environmental designations in the area.

Three key areas of available wind resource remain:

• Combe Valley Countryside Park

• North of Breadsell Lane

• East Ore has available resource.

Council owned land with potential for wind projects

The two sites identified on council owned land, East Ore and Combe Valley Park (also known as Pebsham Countryside Park), were also highlighted in the Element

Energy Study. The available resource areas are illustrated in Figure 3.

Figure 2: Available wind resource alongside environmental and landscape designations

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For several reasons, these sites will be challenging to develop. The

resource area at East Ore is in a local nature reserve and AONB. There

is a Site of Special Scientific Interest (SSSI) and Special Area of

Conservation for Hastings Cliffs next to the resource area. Due to the

level of environmental designation constraints in this area and the

visual impact of developing on top of the Hastings Cliffs, local support

would be critical for this site to proceed – and likely to be difficult to

secure.

Wind resource in the Combe Valley Countryside Park area is in close

proximity to the Combe Haven SSSI. This designation by Natural

England identifies a rich diversity of habitat types including alluvial

meadows, nationally uncommon grassland types and blocks of ancient

woodland. Extensive habitat protection makes developing a site here

more challenging as the impact of the resource areas surrounding the

SSSI would need to be considered.

The available resource is within 2km of the Churchfields Industrial

Estate and 2.5 to 3 km of the Castleham Industrial Estate, which

provides a potential opportunity for private wire with existing

commercial demand.

The resource area to the South of Combe Valley Park is also located

next to Pebsham landfill site which has opportunity for solar

development; a co-location site could be developed here.

Site opportunities on Council owned land

The potential capacity and generation figures and costings for the two

sites on Council owned land are shown below:

Figure 3: Available wind resource at East Ore and Combe Valley with environmental designations

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Site name CAPEX Potential installed capacity kW

Illustrative annual generation kWh

Annual income (Sales and FiT)

Simple payback (excl. finance costs and inflation) yrs

Carbon savings – grid offset tonnes CO2/yr

Cost per annual tonne CO2 saving

East Ore £3,500,000 500 1,182,600 £314,000 11.2 yrs 993 £3,523

Pebsham Countryside Park

£5,250,000 1,000 Up to 2,365,000 £470,000 11.2 yrs 1,490 £3,523

Additional resource area

There are several additional small sites suitable for single

turbines in the area north of Breadsell Lane. This area is

not on Council owned land, but it is worth noting a project

could develop here. Particularly as there is opportunity for

a private wire agreement with nearby commercial demand

at the Castleham and Churchfields Industrial Estates within

2km of the wind resource. The additional resource areas

are located in an Area of Outstanding Natural Beauty;

therefore, any application will need careful consideration

of local opposition.

Project economics

The reduction in subsidies for wind has reduced the

business case:

• the Renewables Obligation closed a year early for

onshore wind (May 2016).

• the Feed-in Tariff (for schemes up to 5 MW) has

been reduced dramatically for all scales. Current

tariff rates can be reviewed herei.

i https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates

Figure 4: Additional resource available North of Breadsell Lane

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• Contracts for Difference (the scheme which is replacing the Renewables Obligation) is not suitable for onshore wind.

However, costs are falling – so projects are starting to emerge that are viable without subsidy. For example, Good Energy is planning to develop the Big Field wind

farm in Cornwall without any subsidy. The main revenue stream now for grid connected projects (that are not owned by a utility) is a Power Purchase Agreement

(PPA) with a licensed supplier. A supplier will offer a price for the generation, contracted for a number of years (usually relatively short-term). Single or twin, large

turbine schemes are also continuing to be developed where the energy can be used on or near site through a private wire arrangement.

Planning is the main constraint on onshore wind

Despite promising economics, wind is likely to remain difficult to deploy due to planning issues. Gaining planning permission has always been a major hurdle for wind

projects and care has to be taken in siting schemes appropriately and engaging the community positively. Recent policy updates mean that planning is now a very

significant barrier for onshore wind. On 15 June 2015, the Secretary of State published a Written Ministerial Statement (WMS) that states:

When determining planning applications for wind energy development involving one or more wind turbines, local planning authorities should only grant planning

permission if:

• the development site is in an area identified as suitable for wind energy development in a Local or Neighbourhood Plan; and

• following consultation, it can be demonstrated that the planning impacts identified by affected local communities have been fully addressed and therefore

the proposal has their backing.

The majority of local and neighbourhood plans do not identify areas for wind development, meaning that in effect, according to national policy, wind cannot be

developed. In practice, the impacts of the WMS will depend on the local planning authority’s attitude to wind – some areas are continuing to approve schemes.

However, the WMS has been used to overturn one Inspector’s decision on a medium scale (50 kW) turbine on the grounds that the community’s concerns had not

been adequately addressed.

Next Steps

This resource assessment is useful to inform understanding on the potential for wind energy in Hastings. It demonstrates that locations with potential for medium or

large-scale wind are limited and that there are significant issues with sites identified.

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Potential delivery models:

The results of this assessment could also be refined through consultation with wind developers who would swiftly be able to evaluate the potential for sites at these

locations, by applying their own site finding processes. This would provide the Council with an even more informed assessment of the potential for medium and

large-scale wind in the area. Potential delivery models to explore include:

• The Council could develop the sites itself, putting up 100 per cent of the costs of all stages of the development and getting the maximum financial reward.

Although a development company would be employed to undertake the project, this would require significant upskilling/staff development to oversee and

manage the project, and all the project risk is borne by the Council. Bristol City Council undertook this approach with its two 2.5 MW turbine project.

• The Council could work in partnership with a wind developer, who takes on some of the project risk. The level of investment by the Council and the returns it

receives will be dependent on what relationship it negotiates with the developer.

• The Council could work with a community group to develop the sites. This would enhance community buy-in to the project, for example if the local

community is able to purchase shares in the project. The Council could consider working with a dedicated community energy developer for this approach,

such as Energy for Allii or Communities for Renewablesiii.

Local plan requirement:

If the Council wants to pursue onshore wind projects, it needs to consider allocating areas for wind within its local plan.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

1 Large scale wind (0.5-1.0 MW)

£1,750,000 High – Potential for Council to invest 100 percent of costs

High – provided project succeeds. A PPA or private wire arrangement would need to be negotiated.

High – potential for significant carbon savings and community benefit fund to be created, as well as opportunities for community investment

Very high – the risk that the project fails at planning is very high in the current climate and given the issues with local landscape and environmental designations.

ii http://energy4all.co.uk/ iii http://www.cfrcic.co.uk/

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Vertical Axis wind turbines HBC suggested that the seafront in Hastings could provide a viable location for vertical axis wind turbines (VAWT), helping to lower carbon dioxide emissions, and

provide a highly visible statement on commitment to clean energy.

Based on five turbines sited on the seafront:

Technology CAPEX Potential installed capacity kW

Illustrative annual generation kWh

Annual income (Sales and FiT)

Simple payback (excl. finance costs and inflation) yrs

Carbon savings – grid offset tonnes CO2/yr

Cost per annual tonne CO2

saving

5 x 55kW VAWT (4Navitas)

£1,500,000 installed

275 483,450 £77,255 19 yrs 199 tonnes £7,580

Vertical axis wind turbines provide an alternative aesthetic design to standard tri-blade turbines, VAWTs are more suited to lower wind speeds and urban

environments. Whilst still not common, new VAWT installations are appearing in the UK despite stringent planning requirements that have reduced new onshore

wind planning applications to a trickle.

However, on purely technical grounds there are still concerns about the performance of VAWTs, focused on reliability and the purported capacity factors. Specifically,

coastal locations will have a saltier atmosphere than inland sites, resulting in high rates of corrosion on mechanical devices. This will at the minimum increase the

maintenance burden on coastal VAWT’s, and at worst significantly shorten their lifespan and reduce performance. We have applied a capacity factor of 15% based on

input from an industry expert. This is around half of what might be achieved for a large scale horizontal axis turbine. In addition, the economic environment for wind

turbines has suffered in recent years, with cuts to the feed-in-tariff and increases in grid-connection costs.

Due to the high-profile nature of the suggested site, operational VAWTS could provide a strong statement of commitment to sustainable energy by the council. But on

techno-economic grounds, VAWTs do not offer the best returns of the energy options assessed in this study, and carry an element of risk: if they do not perform as

well as planned this will be very noticeable.

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Next steps

As with horizontal axis turbines, the Council would need to consider allocating areas for wind to enable vertical axis turbine planning applications to be approved

without the risk of being overturned. The Council could consider discussing the project with VAWT providers. We would advise seeking testimonials from customers

for each model of VAWT considered as performance will be linked to the specific design.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

2 Vertical axis wind (0.25 MW)

£1,500,000 High – relatively high costs. In particular, cost of planning and development for wind projects tend to be the same regardless of scale so are disproportionate in relation to small turbines

Low – low capacity factor gives low generation and therefore relatively low income streams against cost.

Low – low generation means carbon savings limited and low ROI limits potential for community benefit or returns on community investment

High – Risk of failure in planning significant due to current planning context (although local opposition and noise issues likely to be reduced compared with HAWT); risk of high profile site

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Ground mounted solar array opportunities The ground-mounted solar opportunities considered are over 250 kW in scale.

Constraint mapping

The potential large scale solar resource in Hastings was assessed by mapping constraints to identify areas with potential for solar farms. These constraints are listed

below and were compiled through discussions with solar developers and our experience of completing similar resource assessments for other local authorities.

Consideration Explanation

Only areas within 2 km of the 33 kV (or higher) electricity grid lines included Proximity to the grid reduces the cost of grid connection. High grid connection costs tend to make solar projects economically unviable.

50m buffer to houses applied To allow for the space taken by gardens and access roads and to reduce immediate visual impact.

Designated environmental areas considered

• Local Nature Reserves

• National Nature Reserves

• Sites of Special Scientific Interest

• Special Areas of Conservation

• Special Protection Areas

• Ramsar sites

Protecting the natural environment. Solar projects can, and have, been built within both designated landscapes and environmental designations.

Landscape designations considered

• Areas of Outstanding Natural Beauty

• National Parks

Protecting designated landscapes

Agricultural land grade 3 or above removed

Best and most versatile areas for food production

Urban and other developed land (industrial areas) removed

It is unlikely that there will be space for ground-mounted solar.

Physical constraints Roads, railway lines, rivers, water bodies, flood zone 3 areas and woodlands where development is generally not feasible.

Unfeasible land such as very steep slopes removed Solar farms are most suitable where topography is relatively flat to minimise visual impact and access issues.

Constraint maps of Hastings can be found in Appendix B.

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The resource areas shown in figure 5 were also removed from the available resource due to their location on potential development sites. For reference the resource

covers LRA1, LRA2, LRA3 an area allocated for housing development and LRA7 is an allocated employment site.

Figure 5: Solar resource and HBC Local Plan site allocations

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Figure 6 shows the extent of the potential resource area available. The areas identified are those that remain once all the constraints listed above have been applied;

an area totalling 0.51 km². To identify sites for the Council, the viable resource areas have been mapped alongside Council ownership details in GIS to identify possible

projects.

Council owned land with potential for solar projects

The Pebsham landfill site has a good opportunity for ground mounted solar. The area has a range of site opportunities with the largest resource area on the former

landfill site 16.7 ha, which could accommodate a 5 MW solar array. For this area, the technical feasibility would need to be examined by developers in more detail.

Figure 6: Solar resource and HBC land ownership

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There are several other ground-mount solar schemes on former landfill sites which have received planning permission, including Broadpath Landfill (Viridor), a 5MW

site in Devon and Westbury Landfill (Viridor) and a 3.5MW site in Wiltshire. Both sites are yet to reach commissioning stage due to the technical challenges of

installing solar arrays on unstable land. There is also opportunity for smaller 0.5 – 2 MW arrays on the surrounding land.

There is resource available near Castleham Industrial estate, which would provide private-wire opportunity with the near-site commercial demand. The site area

totals 2 ha and could accommodate a 1 MW solar array. This resource area is quite limited and would also require development on an existing playing field –

something that is likely to generate opposition.

The tables below provide a high-level appraisal of the opportunities and constraints that exist to large scale ground mounted solar for the resource areas on Council

owned land.

Site specific constraint analysis

Site reference (see Figure 6 for mapped resource)

Site location (UK grid reference)

Approx. site size

Site status and suitability

Designations: environmental and planning constraints

Local Plan policy consideration Hastings Borough Council Planning Strategy (February 2014)

Potential scheme size (kW)

Pebsham landfill site 1

TQ 77162 09348

16.7 ha Ground condition/stability issues anticipated for site 1 due to location on former landfill site, would need detailed technical feasibility assessment by developer. Agricultural land class 4 (poor).

Ecology: Combe Haven SSSI (148 ha) is designated for habitat conservation purposes – 40m east of site 1 Heritage: Two Grade II listed buildings within 1km (Pebsham Farmhouse and Ruin of St Mary’s Chapel) Flood Risk

Flood Zone 3 lies 220m north of site 1

Relevant policy due to proximity:

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact. Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley. These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

5,000

Pebsham landfill site 2

TQ 76818 08789

5.3 ha Located on grade 3 (good to moderate) agricultural land

Heritage: Four Grade II listed buildings within 1km (Pebsham Farmhouse, Ruin of St Mary’s Chapel, the Bull Inn and Glyne Farmhouse)

2,000

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Flood Risk Flood Zone 3 lies 20m north

Pebsham landfill site 3

TQ 76893 09807

2.3 ha Located on grade 4 (poor) agricultural land

Ecology: Combe Haven SSSI - 30m north of resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 1.5km north Heritage: Two Grade II listed buildings within 1km (Pebsham Farmhouse and Ruin of St Mary’s Chapel) Flood Risk Flood Zone 3 lies 30m north of site

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

500

Pebsham landfill site 4

TQ 76758 09650

2 ha Located on grade 4 (poor) agricultural land

Ecology: Combe Haven SSSI - 30m north of resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 1.5km north Heritage: Two Grade II listed buildings within 1km (Pebsham Farmhouse and Ruin of St Mary’s Chapel) Flood Risk Flood Zone 3 lies 50m north of site 4

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

500

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Land at Ingleside site 5

TQ 78231 11942

2 ha Located on existing playing fields

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 90m from resource area Heritage: Listed Buildings Three Grade II listed building within 1km of site 5 (Stonebridge Farmhouse, Park Farmhouse and Church of St Leonard)

Relevant policies include: Policy HN10 – Amenity Green Spaces The Council will protect Private Open Space, Allotments and Local Green Spaces used and/or managed by the local community, as identified on the Policies Map. Planning permission will only be granted for development which would result in the loss of an identified amenity green space in the following circumstances: It can be demonstrated that the land no longer has any visual, recreational, amenity or ecological value; or An area of equivalent size and value is provided in the locality in compensation. Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

500

To calculate potential installed capacity for each site as shown in the table above, for the purposes of this high-level appraisal, an approximate ‘rule of thumb’

calculation was used. It has been assumed that a scheme with an installed generating capacity of up to 1MW could be achieved for every two hectares of land

available. This assumes solar deployment across an unconstrained site where the total area could be used for development. This calculates the maximum theoretically

available resource, from this maximum potential we have used a more realistic project capacity installation figure for each site to calculate costings. The presence of

site-specific constraints could reduce the available development area further.

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Additional considerations for all sites

Constraint analysis Comments

Cumulative considerations

Relevant solar development planning permissions within the vicinity of the site: No large-scale ground-mounted solar applications identified on Hastings planning portal.

Proximity to electricity grid and capacity opportunities

All sites are within 2km of the electricity grid, either at 132kV or 33kV level. UKPN’s DG mapping tooliv highlights the Hastings area as a flexible distributed generation (FDG) zone. These areas are set up due to constraints such as capacity, voltage or reverse power flow issues the cost of connection is very likely to be higher than expected. This is because it will include a significant element of reinforcement work in order to overcome these technical challenges. Operating an Active Network Management solution, the FDG connection offering aims to provide a point of connection within the existing network without the need for/or ahead of reinforcement. The customer must be willing to accept temporary reduction to their export to ensure the network is kept within operational limits and the constraint is not breached. The South-East zone opening date is yet to be announced, further details are available on the UK Power Networks website.v

Potential energy tariff available

If the installed generating capacity was less than 5 MW, a FIT rate of 0.35p per kWh and an export rate of 5.03p per kWh could be achieved (tariff rates published by BEIS).

Site opportunities on Council owned land

The potential capacity and generation figures and costings for the sites on Council owned land are shown below (note, these do not include feasibility or development

costs):

Site name CAPEX Potential installed capacity kW

Illustrative annual generation kWh

Annual income (Sales and FiT)

Simple payback (excl. finance costs and inflation)

Carbon savings – grid offset tonnes CO2/yr

Cost per annual tonne CO2 saving

Pebsham Landfill site 1

£4,000,000 installed

5,000 5,080,800 £254,040 15.7 yrs 2,134 tonnes £1,874

iv http://dgmapping.cloudapp.net/site/?q=user/login v https://www.ukpowernetworks.co.uk/internet/en/our-services/documents/FDG_EOI_South_East_v2.0pdf

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Pebsham Landfill site 2

£1,600,00 installed

2,000 2,032,320 £101,616

15.7 yrs 854 tonnes £1,874

Pebsham Landfill site 3

£400,000 installed

500 508,080 £52,739

7.6 yrs 213 tonnes £1,874

Pebsham Landfill site 4

£400,000 installed

500 508,080 £52,739

7.6 yrs 213 tonnes £1,874

Land at Ingleside site 5

£400,000 installed

500 508,080 £52,739

7.6 yrs 213 tonnes £1,874

Additional sites

There are an additional 10 solar resource areas which are not located on council owned land, but do offer opportunity for solar developments that the Council could

potentially invest in, should the landowner and a developer be willing to bring these sites forward. Constraints analysis of the additional 10 sites can be found in

Appendix C.

Economics

Subsidies for ground-mounted solar have been stopped/ reduced substantially, with:

• the early closure of the Renewables Obligation for large scale PV in March 2015

• the early closure of the Renewables Obligation for sub-5MW PV in March 2016

• the Feed-in Tariff cut to less than 1p per kWh for ground-mounted PV. The latest tariffs can be reviewed on the Ofgem website.vi

• and Contracts for Difference unlikely to support further solar PV projects under current proposals (some solar projects were successful in the first round).

From now on – unless there are changes to the CfD scheme – PV projects over 5 MW will have to be built without subsidy, generating income through PPAs or private

wire agreements. For schemes over 500kW, we have assumed that FiT support is not available.

Global costs for PV have reduced and are continuing to reduce and PV projects are starting to become economically viable again. Projects with viable economics are

most likely to combine the following factors:

• low cost of finance – i.e. access to cheap capital/loans, such as local authority funding, crowd-funded equity

• lower financial returns are acceptable, e.g. for community investments

• onsite or near site energy use to enable private wire

vi https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates

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• large scale to make the most of economies of scale

Community energy groups may be more likely to be in a position to enable projects that combine some of these factors – e.g. crowd sourced finance, prioritisation of

social rather than financial returns and the ability to work with local partners to establish private wire connections. For example, Wadebridge Renewable Energy

Network in Cornwall worked with South West Water on a 100 kW array to provide power to the Nanstallon Sewage Treatment Works.

Next Steps

Selecting an appropriate business model for delivery

This assessment demonstrates that there are areas of land with potential for solar and that these have not yet been developed. An initial step would be to discuss

these site with potential developers.

The Council should consider its approach to developing solar at the sites identified. Potential approaches include:

• The Council could develop the sites itself, putting up 100 per cent of the costs of all stages of the development and getting the maximum financial reward.

Although a development company would be established to undertake the project, this would require significant upskilling/staff development to oversee and

manage the project, and all the project risk is borne by the Council.

• The Council could work in partnership with a solar developer, who takes on some of the project risk. The level of investment by the Council and the returns it

receives will be dependent on what relationship it negotiates with the developer.

• The Council could work with a community group to develop the sites. This would enhance community buy-in to the project, for example if the local

community is able to purchase shares in the project. The Council could consider working with a dedicated community energy developer for this approach,

such as Communities for Renewablesvii or Mongooseviii

Publicise areas with potential

The mapped areas are also useful to prompt landowners and communities to think about whether there are opportunities for solar on their land, or in their area. The

information in these maps could inspire landowners and local communities to look in more detail for opportunities in their area. The Council could actively promote

the results to landowners and communities for this purpose. Other sites may still come forward outside these areas.

vii http://www.cfrcic.co.uk/ viii http://mongoose.energy/

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Local Development Order

The Council could consider reducing the planning costs for ground mounted solar in the area by issuing a Local Development Order (LDO) for solar at the sites

identified in this study. This means that projects at these sites would not have to submit full planning applications. Swindon Borough Council has used this approach.

It has identified sites with potential for ground mounted and car port mounted solar and issued LDOs for development at each site.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

3 Ground mounted solar (up to 10 MW)

£400,000 - £8,000,000

High - Potential for Council to invest 100 per cent of costs

Medium Medium – carbon savings could be relatively significant dependent on the scale, potential for community benefit fund likely to be limited by current project economics, there is potential for community investment

Medium – key risks are checking the suitability of the landfill site for solar, getting planning permission and in negotiating a PPA or private wire arrangement.

Solar Carports Solar carports are becoming an increasingly popular opportunity area, as the unexploited area above a surface or multi-storey car park can be used to generate

energy. The shelters are specially designed to capture the maximum amount of energy from the sun throughout the day. Using BRE’s Solar car parks guidance notesix,

we have assessed the opportunities for solar carports in Hastings.

Solar carports can benefit from a range of revenue streams in addition to power sales. Using energy on-site for lighting or setting up a private wire agreement to

nearby end consumers will result in greater income than selling the power at wholesale price. Locating solar carports and EV charging points at the same site offers an

additional revenue stream and installing both technologies at the same time can save on cabling and trench costs. As the EV market continues to develop nationally,

there is going to be an increasing need for EV infrastructure to support demand. Solar carports, alongside EV charging points, can mitigate the network upgrade costs

that are required to support future numbers of fast and rapid charging points. EV chargers’ revenue (based on speed of charge) fast charging 7-22kW (3-4hrs charging)

offers up to 25p/kWh and rapid charging units 43-50kW (80 per cent charge in 30 mins) 40p/kWh. Solar carport business models assume a revenue of £480/unit/year

for a fast charger and up to £48,000/unit/year for a rapid charger (used in prime locations with a high customer turn around e.g. Hastings town centre).

ix https://www.bre.co.uk/filelibrary/nsc/Documents%20Library/BRE/89087-BRE_solar-carpark-guide-v2_bre114153_lowres.pdf

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Existing examples of such sites include the two 150 kW projects developed by SunGift Solar on Exeter County Council multi-storey car parks. The Council benefit from

FIT payments and energy bill savings, as well as supplying the free EV charging points in the car parks. Surface car park developments include the Harvey Hadden

Sports Village completed by EvoEnergy in September 2015 and owned by Nottingham City Council.

Opportunity sites

The most suitable sites are long double rows of car parking adjacent to high energy users (hospitals, retail parks and large commercial premises). We assessed sites

covered by HBC ownership in GIS, the majority of car parks are smaller sites or underground. Sites outside of Council ownership could be encouraged to develop, for

example at Conquest Hospital, Summerfields Leisure Centre or the large supermarket car parks (Tesco, Asda, Morrisons) although standard rooftop solar on the

buildings is currently more affordable at these sites.

• Priory Street Multi-storey Car Park – can supply onsite demand, annual building consumption of 185 MWhx. Although this site is similar in size to the shopping

centre multi-storey, the layout of the carpark makes installing carports here slightly more challenging. However, bespoke design could significantly improve

the use of space at this site and therefore a more detailed assessment by an experienced developer.

• Priory Meadow Shopping Centre Multi-storey Car Park – nearby demand at Priory street shopping centre.

• Cornwallis Street Car Park – smaller site, but not multi-storey; therefore, installation costs are reduced.

Site CAPEX Illustrative capacity kW

Annual estimated generation kWh

Annual income (Import avoidance and FIT)

Simple payback (excl. finance costs and inflation) yrs

Carbon savings – grid offset tonnes CO2/yr

Cost per annual tonne CO2 saving

Annual income with EV charging unit (Import avoidance, FIT and rapid EV charging unit)

Simple payback (excl. finance costs and inflation) yrs

Priory Street multi-storey car park £210,000 150 162,000 £19,292 11 83.3 £ 2,521 £20,179 11

Priory Meadow Shopping Centre multi-storey car park £350,000 250 270,000 £14,877 24

Consumption figure for this site unknown Privately owned car park on HBC owned land £15,004 24

Cornwallis Street car park

£180,000 (reduced cost for surface car park) 150 162,000 £8,926 20

Consumption figure for this site unknown £9,053 21

x CLS energy annual consumption figures

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Due to low FIT rates, the most viable option for solar carports is where generation can be used onsite.

BRE have produced a solar carpark financial modelxi, which considers the annual on-site energy use and export revenue alongside additional non-solar revenue

streams such as EV charging points. As the method behind this model is not directly comparable, we have calculated simple payback above for comparison with other

technology opportunity areas. We would recommend using this tool to develop a business case if HBC wish to peruse opportunities for solar carports in Hastings.

xi https://www.bre.co.uk/nsc/page.jsp?id=3435

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Rooftop Solar opportunities This assessment focusses on Council owned properties including third-party operated buildings. Accurate m² floorspace data was not available for council owned sites,

therefore we have selected buildings for rooftop PV based on:

• recommendations of suitable sites from HBC’s building surveyors

• assets which have high energy demand

• satellite mapping overlaid with council ownership details

Key criteria for the assessment were:

• Roof pitch – solar panels are best positioned at an angle of 30 to 40 degrees. Roofs with pitches steeper than 40 degrees are not suitable for panels as the

panels do not capture enough energy from the sun at steeper angles. Flat roofs are often suitable as panels can be propped on frames to the right angle and

direction.

• Building orientation – buildings with pitched roofs need an orientation of between south west and south east to ensure that panels can capture enough energy.

Orientation of buildings with flat roofs is not an issue.

• Overshadowing – panels are less suitable for placing where roofs are overshadowed by neighbouring buildings or foliage. The efficiency of solar panels is

reduced dramatically by any shading.

• Conservation areas and listed buildings – in conservation areas and for listed buildings planning permission is required for solar panels. This does not mean that

buildings in these areas or that are listed are always unsuitable for panels, but in assessing opportunities for panels it is a useful factor to note.

Considerations • Map council properties

• Map conservation areas and listed buildings

• Use aerial photography (where available looking at oblique angles rather than direct overhead view) to assess the roofs for suitable pitch, orientation,

access and for whether they are located in the conservation area or are a listed building.

• Where possible measure the roof space that appears suitable for panels. Used a 90 per cent factor as an assumption of useable roof space. This provides

a buffer to the edge of the roof and assumes a low amount of rooftop furniture. Therefore, this represents a relative maximum feasible available roof

area based on a desktop assessment. There may, however, be additional rooftop furniture that could reduce this factor further.

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• Record findings

• Calculate potential income figures

Installed capacity

kWp/m² - To calculate potential installed capacity, we used a figure of 160W/m². This figure is based on discussion with developers and is suitable for flat

roof installations.

Irradiance level – using PVGIS we assessed the potential generation per kW installed on each roof.xii

Potential energy

tariff available

FIT rates as of May 2017 were used to calculate income. The current tariff can be reviewed at the Ofgem websitexiii.

Installation Scale FIT income rate p/kWh

Standard solar photovoltaic receiving the higher rate

0-10 4.14

10-50 4.36

50-250 1.99

Standard solar photovoltaic receiving the middle rate

0-10 3.73

10-50 3.92

50-250 1.79

Standard solar photovoltaic receiving the lower rate

0-10 0.48

10-50 0.48

50-250 0.48

Standard large solar photovoltaic

250-1000 1.63

1000-5000 0.48

Stand-alone solar photovoltaic 0-5000 0.35

Lower rate - system provides power to building AND building does not have EPC A-D

Medium rate - system owner has 25 fit registered PV installations

Higher rate - neither of the other two applies

xii http://re.jrc.ec.europa.eu/pvgis/ xiii https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates

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Site Opportunities

Using the method discussed above the following sites were identified as having opportunity for rooftop solar:

Site CAPEX Illustrative capacity kW

Annual electricity demand kWh

Annual income (Import avoidance and FIT)

Simple payback (excl. finance costs and inflation) yrs

Carbon savings – import offset tonnes CO2/yr

Cost per annual tonne CO2 saving

30-36 Theaklen Drive £349,488 349.49 179,986 £19,834.49 8.8 81 4314

Castleham Road 1-10 £506,880 506.88 258,508 £28,487.67 8.9 116 4357

Castleham Road 20-31 £589,536 589.54 315,401 £34,757.27 5.3 142 4153

Castleham Road 68-71 £422,784 422.78 226,189 £24,926.08 5.3 102 4153

Castleham Road 79-86 £268,560 268.56 143,679 £15,833.49 5.3 65 4153

Summerfields Leisure Centre £144,288 144.29

38597 £12,060.02

12.0 17 8307

Hastings Museum £31,824 31.82 55326 £6,835.83 6.6 15 2057

Aquila House £35,712 35.71 237544 £25,246.02 8.4 17 2057

Stade Hall £34,560 34.56 10715 £3,056.70 11.3 5 7167

Fairlight Place Farm £57,168 57.17 29,441 £3,244.46 8.8 13 4314

Brunel Road 9-12 £177,840 177.84 75,670 £8,338.94 10.7 34 5222

Robsack Community Centre £76,896 76.90

39,985 £4,406.45

8.7 18 4273

Castleham Business Centre (East) £61,488 61.49

31,051 £3,421.87

9.0 14 4400

Castleham Business Centre (West) £104,256 104.26

53,170 £5,859.40

8.9 24 4357

Note, only Summerfields Leisure Centre, Hastings museum, Aquila House and Stade Hall had electricity consumption data available. The other buidlings were assumed

to consume 50% of the total generated by the rooftop solar schemes.

Next Steps

The Council should consider its approach to developing solar on its properties. There are a range of potential delivery models:

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• Undertaking a bulk purchase to install projects on roofs. The Council invests and receives a return from the FIT, potential PPA arrangement and reduced

electricity bills.

• Leasing roofs to a commercial developer (this model may be difficult to secure at present given current economics). The Council does not invest but receives

free electricity and potential lease fee.

• Leasing or giving roofs to a community group to develop. The Council does not invest but receives free electricity and potential lease fee.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

4 Rooftop solar (up to 580 kW)

£30,000 - £589,000 Medium – there a range of potential levels of investment

Medium – Short payback periods for some sites

Medium – potential for community investment, carbon savings dependent on level of deployment

Low – rooftop solar can be permitted development (if it meets the criteria); it is a technology with low levels of public opposition; FIT payments are guaranteed and index linked

Storage Energy storage, and other forms of flexibility including Demand Side Response (DSR), are expected to play an increasingly important role in the future of the UK’s

energy system. Energy storage is a technology area that is well placed to support the needs of the changing energy system, specifically around flexibility, balancing

and security of supply. Storage could potentially help to reduce system costs, as well as providing a range of balancing services to network operators.

Energy storage, in the form of pumped hydro, has been a feature of the UK energy system for some time. In the last year, however, UK network operators have seen a

significant growth in the number of connection agreement applications received for storage projects.

The storage market is still developing and the number of business models that currently are economically viable are limited. Cost reductions and regulatory changes

are needed to unlock the full potential of energy storage. For full information about the energy storage market and business models, read Regen’s white paper,

Energy Storage: Towards a Commercial Model.xiv

1. Stand-alone opportunities (Balancing services – response and reserve business models)

xiv https://www.regensw.co.uk/storage-towards-a-commercial-model

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Large scale battery storage units that offer services to the National Grid could be hosted on the Council’s land. This type of project focusses on bidding into National

Grid’s Power Responsivexv Programme to create revenue. There are currently 24 potential revenue streams under the Power Responsive Programme, for example, a

project might bid into Enhanced Frequency Response (EFR) or Firm Frequency Response (FFR), Short Term Operating Reserve (STOR) or enter in the Capacity Market

auction process.

Potential financial benefits:

- Balancing services to National Grid or in future to DSO

Requires:

- Site capable of hosting large scale batteries in shipping containers, often brownfield, although greenfield is possible

- Grid connection

- Contract with National Grid (or potentially UK Power Networks in future) to offer services

xv http://powerresponsive.com/

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Sites with potential:

We used satellite mapping overlaid

with the Council’s land holdings to

identify site opportunities which had

sufficient space and were in close

proximity to the grid. Figure 7

illustrates the land owned by the

Council, which could host a large-scale

battery project.

Pebsham Landfill site is located in the

west of Hastings and shown as part of

the HBC owned land in the map. The

site is now closed, repurposing for

balancing services could be a useful

revenue stream for the Council,

particularly if the ground-mounted

solar opportunity at the site proves

unworkable.

Issues:

- Competition in the market: significantly more projects bid into the latest Capacity Market and EFR auctions than contracts were available. Competition means

that margins are currently low and that there is a low success rate for projects.

- Complexity of the market means that it would be difficult for the Council to tackle this type of project without a partner, meaning that the Council will receive

a lower proportion of the potential income.

Figure 7: Balancing services opportunity sites (UKPN network and HBC owned land)

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- Risk in the market: income streams are fixed for a relatively short amount of time through the various balancing service contracts. There is therefore a high

risk that even if a project is successful in the first instance at gaining a contract, it may not be successful in the future, leaving a project without an income

stream.

Next steps

The Council could explore low risk approaches, such as hosting a project and receiving a rent, rather than investing equity for a return. The first step would be to

discuss the potential opportunities identified with a storage developer.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

5 Storage – stand alone Potentially very limited

Low – based on the Council leasing land

Medium Medium –community impacts are limited, but can enable shift of demand to times of lower carbon intensity

High – risk is that project fails to secure revenues from the Power Responsive Programme in the long term

2. Commercial and industrial high energy user behind the meter

Where the Council has significant electricity demand, there may be opportunities to install batteries that provide a range of functions to the Council’s buildings and

services. These fit into 3 sub-categories, all based on medium/large scale battery storage.

a. Sites with high electricity demand but no onsite generation

If the Council is half-hourly metered and exposed to non-commodity charges at different times of day, a battery could be used to store electricity at times when

electricity is low cost and discharges it at times of peak cost. This is known as price/time shifting or network peak charge avoidance, a practice that would mean the

Council avoids paying peak fully delivered electricity prices, for example by avoiding using electricity from the network during red band DUoS charge and TRIAD

penalty times. The benefit would be a saving on electricity bills. Costs might be in the region of £350,000 for a project connected to a large Council building, with

aggregators predicting IRR rates of around 9.5 percent – although there are risks that this rate is not realised.

There may be opportunities to combine this type of storage project with a project that provides balancing services. Regen are referring to this as ‘partitioning’, where

a proportion of the storage project’s capacity is used for i.e. onsite network peak charge avoidance and the remainder is reserved for the provision of balancing

services to the network. There is also the potential to partition some storage capacity to be reserved for mains backup provision in this scenario.

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Potential financial benefits:

• Energy purchased at cheaper times of day (network peak charge avoidance)

(Potential balancing services to National Grid or in future to DSO, through an aggregator)

Requires:

• Asset with high electricity demand at peak times

• Half Hourly supply contract exposed to peak delivery charges

• Space close to asset for a battery (scale will depend on scale of electricity demand)

Sites with potential:

Considered the high energy consumption sites listed in CLS annualised electricity consumption figures.

• Aquila House and White Rock Baths (The Source) had the highest annual consumption figures. Both sites are located on the sea front meaning space is too

limited to develop a large storage project here

• The Museum and Art gallery (Johns Place Museum) and the Summerfields Leisure centre currently have no onsite generation and development of rooftop

solar has more favourable opportunities on other Council buildings; therefore, it would be useful to develop a demand profile for the electricity consumption

at both sites to assess suitability for storage for price/time shifting.

Issues:

- This opportunity is currently limited by the relatively low cost of electricity against the relatively high cost of storage, meaning it is viable only at a relatively

large scale.

- There is a risk that changes in network charging and wholesale electricity prices affect the business model – this effect could be positive or negative. For

example, Ofgem is consulting on removing the TRIADS, which would affect the potential benefits of being able to shift demand away from these periods.

Recommendation:

• Discuss opportunities identified with an aggregator company.

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Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

6 Storage – onsite high demand, no generation

Around £350,000 Medium Low - currently

limited by the

relatively low cost

of electricity against

the relatively high

cost of storage

Low – carbon savings and community impacts are limited

Medium to high – risk is that changes in network charging and wholesale electricity prices affect the business model – this effect could be positive or negative.

b. Sites with electricity demand and large scale onsite generation

In the current market, co-locating generation, demand and storage represents the type of project with lower risks and greatest opportunity and potential payback for

the Council.

For sites with both onsite demand and onsite generation, storage can play a role in enabling the Council to make best use of the energy generated on site. A battery

could store electricity generated onsite at times of low onsite demand or at times when grid electricity is low cost; it could then discharge at higher use or higher cost

times. This will mean that the Council is able to both maximise use of the energy generated onsite, reducing the need to purchase electricity from the grid overall and

that it can shift when it needs to purchase electricity to lower cost times.

In order to assess the potential for this type of project, the profile and scale of demand and generation need to be compared. It may be that the site is already self-

consuming the vast majority of energy generated on site. E.g. an office building that is occupied from 9am to 6pm with relatively high use could consume close to 100

percent of energy generated from a small solar array. With a larger generation asset or where demand is high outside of daylight hours, it may be that there is excess

electricity being exported to the grid.

As with option 2a, the battery could also potentially be used to provide balancing services to the grid and to avoid peak network charges by charging from the grid at

low cost times if necessary. This would need to be through an aggregator.

Potential financial benefits:

• Less energy purchased from grid as use of onsite generation is maximised (maximise self-use)

• Energy purchased at cheaper times of day (cost sensitive self-consumption and network peak charge avoider)

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• (Balancing services to National Grid or in future to DSO)

Requires:

• Site with onsite energy demand and onsite generation, where demand occurs at different times to generation or where generation is greater in scale than

demand.

• Grid connection agreement for the storage asset

• Space in proximity to site for storage asset

Sites with potential:

• The Council does not currently own any large-scale generation.

• Site 5 (Land at Ingleside) identified in the ground-mounted solar resource assessment is located within 1km of council demand at the industrial area at

Castleham. However, due to the medium size of the solar project (500kW) and type of near-site demand (commercial/industrial), there is unlikely to be many

time periods where generation exceeds demand.

Issues:

• Technology costs are relatively high, compared with bill savings at present, meaning payback periods are long. It works best at the larger scale.

• The project is dependent on securing a connection agreement from UK Power Networks (UKPN)

Recommendation:

No current opportunities identified. Review potential if further generation projects come forwards.

c. Sites requiring mains back-up

Sites requiring an Uninterruptable Power Supply or in need of mains back-up could consider switching from using a diesel generator to using a battery. Again, there

may be opportunities to partition a battery so that a proportion is available as back up and a proportion used to provide balancing services or peak shaving.

Potential financial benefits

• Unlikely to provide significant financial benefit at present as costs of battery storage higher than diesel generator.

• Benefit is in the form of carbon savings from switching away from diesel

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Requires:

• A site with a requirement for an Uninterruptable Power Supply (UPS) or other form of mains backup

Issues:

• Extended or repeated power cuts could lead to the situation where there was insufficient charge remaining in the battery to provide power. This could be

hedged against by oversizing the battery, but this adds significant cost. The Council would need to consider whether this risk is acceptable depending on the

usage of the asset. Feedback from another Council considering this option is that for their asset (data servers) this represented an unacceptable risk and

therefore if battery storage were to be installed it would have to be alongside a diesel generator, meaning that the business case was not viable.

Recommendation:

• Consider the need for mains back up at Council sites and whether extended back up is required and run comparative business case against equivalent diesel

generator option.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

7 Storage – mains backup Around £350,000 Medium Low – currently limited by the relatively low cost of electricity and diesel backup against the relatively high cost of battery storage.

Low - carbon savings and community impacts are limited

High - Extended or repeated power cuts could lead to the situation where there was insufficient charge remaining in the battery to provide power. This could be hedged against by oversizing the battery, but this adds significant cost.

3. Small scale

Batteries are currently being sold that are suitable for domestic or small-scale commercial use, e.g. the Tesla Powerwall or Powervault’s system. In the present

market, these are being installed by customers with solar PV already installed or at the same time as a new PV installation. As with sites with electricity demand and

large scale onsite generation, these enable consumers to maximise their use of the electricity generated on site by capturing excess generation for use later in the day

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and potentially to shift when they need to purchase electricity to lower cost periods, e.g. if they are on a time of use tariff. It works particularly well for householders

with PV as they tend to have low demand in the middle of the day when their PV is generating.

This type of storage project might be suitable for installation alongside rooftop solar on the Council’s buildings depending on the demand profile of the building. The

Council could also consider a roll-out scheme with a social housing provider.

Potential financial benefits:

• Less energy purchased from grid as use of onsite generation is maximised (maximise self-use)

• Energy purchased at cheaper times of day (cost sensitive self-consumption and network peak charge avoider)

Requires:

• Site with onsite energy demand and onsite generation, where demand occurs at different times to generation or where generation is greater in scale than

demand.

Sites with potential:

• Several of the sites considered in the rooftop solar assessment, including Summerfields Leisure Centre, Hastings Museum, Aquila House and Stade Hall which

were found to be the most suitable for rooftop PV, could be explored in more detail with developers costing the site for small-scale solar alongside storage.

Issues:

• Technology costs are relatively high, compared with bill savings at present, meaning payback periods are long.

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Recommendation:

• This is a low risk option, although paybacks will be limited. The Council could request quotes for storage alongside any rooftop solar it commissions.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

8 Storage – small scale Around £5,000 to £20,000 for single small scale installation

Low – costs are relatively low dependent on scale of roll out

Low – ROI is based on electricity bill savings, which with current low prices are likely to be limited

Low – carbon savings and community impact limited

Low – proven technology

4. Co-located with stand-alone electricity generation

There is potential for large scale generation assets, e.g. solar arrays and wind turbines, to be co-located with storage. This could enable generators to store electricity

during peak generation/low demand periods for release onto the network at higher price/demand periods. In addition, where there are issues with obtaining a grid

connection that is sufficient to export peak output from a generation asset, storage may be able to smooth the generation profile, resulting in lower grid connection

needs.

Potential financial benefits

• Obtaining a better price for electricity generated (Generation time and price shift/price arbitrage)

• Reducing grid connection costs/constraints (PV generation peak shaving)

• (Balancing services to National Grid or in future to DSO, Capacity Market)

Requires:

• Large scale generation project

• Sufficient space to accommodate container sized batteries

• Changes to market economics

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Sites with potential:

• No current opportunities as there are no operational large scale (+250kW) sites in the local authority area.

• Future opportunity if any of the additional sites identified in the wind and ground-mounted solar resource assessment progress.

Issues

• At present, energy storage projects are only being co-located with generation assets to take advantage of space at the site and for ease of planning, rather

than because the business model makes financial sense. As electricity prices and the market change, this business model may be unlocked.

Recommendation:

• If sites are identified with potential for stand-alone generation, consider whether the storage economics have changes sufficiently to make this a viable

model.

• Regen will be looking in-depth into the business models around storage co-locationxvi over the summer, working with some key industry partners at how co-

location could work technically, financially, commercially and legally.

5. Future potential:

Ofgem recently consulted on changes to network charging, including how storage projects are charged. Changes to the charging regime may make stand-alone

storage business models more accessible, opening the market to a greater number of projects.

Similarly, National Grid currently has 24 revenue streams available under Power Responsive programme. It is planning to streamline and simplify these, again

potentially opening the market to a greater number of projects and actors.

When Distribution Network Operators (DNOs) become Distribution System Operators (DSOs) they will need to procure their own balancing services, with potential

local opportunities created. For example, Western Power Distribution is currently looking at opportunities to procure enhanced reactive power services in the future

for its licence areas and have instigated a trial to procure flexibility services in the East Midlands, called Flexible Powerxvii. The Council could explore with UK Power

Networks (the local DNO for Hastings) whether they intend to pursue a similar route.

xvi https://www.regensw.co.uk/co-location-storage-paper xvii http://www.flexiblepower.co.uk/

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Storage costs are predicted to continue to fall substantially going forward, reducing payback periods and the risks associated with balancing service income streams.

Similarly, the technology is set to develop in the near future. In particular, with lithium ion batteries there are issues with the operational lifetime of the battery.

Flow batteries, flywheels and compressed air storage are currently high cost options, but with investment in research and development, costs are likely to fall. Also,

other technologies such as supercapacitors or hydrogen conversion could come to the fore as technology research develops.

6. Summary of storage business models and operating modes

Figure 8 Storage operating modes

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Demand side response According to National Grid, “demand side response involves a voluntary, deliberate change in energy consumption to increase, decrease or shift demand in response

to a signal.” For example, by adjusting the use of lights, appliances, heating, ventilation and air-conditioning, fridges and freezers, back-up or distributed generation,

pumps, motors and compressors and other manufacturing processes. National Grid pays for DSR services through its Power Responsive Programme; DSR projects can

bid to provide the following balancing services:

• Short Term Operating Reserve (STOR)

• STOR Runway

• Firm Frequency Response (FFR)

• Frequency Control Demand Management (FCDM)

• Fast Reserve Services

DSR is different from demand reduction, in that it involves a short-term temporary change in demand, rather than a long term permanent shift. The speed and length

of response required depend on the balancing service that is being provided.

Opportunities:

The Council has relatively low overall demand from across its estate. It would need to work through an aggregator to provide balancing services. Automation

controls would need to be installed to enable demand shift in response to signals.

Potential financial benefits

• Revenue through an aggregator for providing balancing services

Requires

• Sites with relatively high demand that is not time critical, e.g. swimming pools, freezers

Sites with potential:

Sites that host equipment suitable for DSR services will be highlighted in the site survey undertaken by CLS in parallel with this study.

Issues

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• As with storage projects, accessing the balancing services market there is significant risk in the market: income streams are fixed for a relatively short amount

of time through the various balancing service contracts. There is therefore a high risk that even if a project is successful in the first instance at gaining a

contract, it may not be successful in the future, leaving a project without an income stream.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

9 Demand side response

Low Low – investment would be in the automation required. Costs could potentially be provided by the aggregator

Low – Revenues are shared with an aggregator

Low – carbon savings and community impact are limited

Medium to high -

accessing the

balancing services

market means

income streams are

fixed for a relatively

short amount of time.

Heat Network Opportunities Heat networks can represent strong investment opportunities for local authorities, due to the longevity of the assets, long-term income generation and opportunity

to adopt a low carbon technology. Local authority led heat network projects can also attract match funding from the Heat Network Delivery Unit, a government

department focused on increasing the number of heat network projects being delivered.

Hastings has a number of assets that have been looked at in the past with regards to supporting a heat network, namely a large anchor load at Conquest Hospital, and

another near the town centre at Summerfields Leisure Centre.

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Non-domestic properties in Hastings, with new development sites overlaid

In addition to these two networks, there is potential to generate and supply heat clusters of social housing, such as the three high rise blocks of flats at Stonehouse

Drive.

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Specifically, we examined:

• The energy demand of the HBC estate and whether standalone biomass or heat pumps systems could provide an income generation

• Where clusters of anchor loads and housing coincide to produce areas of high density demand

• The Conquest hospital site, both on its own and in combination with the proposed, nearby developments (for heat pump and biomass led schemes)

• The Summerfields leisure centre site, both on its own and in combination with the proposed, nearby developments (for heat pump and biomass led schemes)

Of the schemes we modelled, several opportunities may warrant further investigation:

Technology / Site CAPEX Illustrative annual generation kWh

Annual income (Sales and RHI)

Simple payback (excl. finance costs and inflation)

Carbon savings (against LNG)

Cost per annual tonne CO2 saving

Biomass network: Summerfields Leisure centre and the proposed Whiterock development

£5m 9,130,000 £422,000 11.1 1561 £3000

Heat Pump led network: Summerfields Leisure centre and the proposed Whiterock development

£6m 9,130,000 £550,000 10.9 39 £155,142

Biomass network serving Conquest hospital alone

£0.8m 15,000,000 £64,000 12.4 2569 £307

Heat pump led network serving Conquest hospital alone

£3.7m 15,000,000 £809,000 4.6 -3988 N/A

Heat pump led network serving Summerfields leisure centre alone

£0.4m 2,170,000 £106,000 4.2 399 £1,104

Note: analysis assumes that Summerfields pay just 1.5p/kWh for gas, as indicated by surveys undertaken by CLS ltd. We have also assumed that Conquest hospital are able to purchase gas at this price

too.

We would also recommend that HBC make enquiries with Amicus Horizon regarding the flats at Kennedy Court, as there could be potential for a small-scale heat

network serving these properties.

These schemes are based on very high-level modelling, making assumptions about potential new development makeup and income streams. It can be seen that heat

pump schemes report much lower carbon emissions savings than biomass equivalents, due to the relatively high carbon emission factor for grid electricity. The carbon

savings could of course be boosted by purchasing 100% green electricity, although this can still command a higher price.

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Investment support Heat networks can receive significant financial support from the UK government, provided the schemes meet certain criteria. For most schemes being proposed by

local authorities, up to 70% of the costs for a feasibility study can be supplied through the Heat Networks Delivery Unit (HNDU)xviii, a specialist team housed by the

Dept. of Business, Energy and Industrial Strategy. A recent pilot project was also exploring how more significant investment could be made available to scheme leads.

We expect this mechanism to be continued, providing low cost finance to local authorities and potential private sector companies to initiate heat network projects.

The funds hosted by the HNDU are available to eligible schemes, regardless of how the heat is proposed to be generated. For schemes that will use renewable forms

of heat, there is an additional financial incentive available, the Renewable Heat Incentive (RHI).

Provided the heat network scheme uses heat pumps, biomass, or biomethane as a primary heat source, all the heat delivered to connected homes and businesses can

attract a payment from the government. These payments rely on the useful heat being delivered to customers to be metered. The financial support available through

the RHI can be significant, particularly on schemes meeting a consistent baseload.

Air Quality Second to gas, biomass is often the most economically viable heat generating technology used for heat networks. However, there is increasing public awareness and

concern about air quality, particularly in our urban centres, that is decreasing the limits on particulate and Nitrogen Oxide emissions from combustion technologies.

Certainly, in London, biomass energy plants are now next to impossible to install due to new air quality standards.

HBC should check their legal (and philosophical) position on supporting an increase in combustion technologies. Being a coastal town, the impact of any new biomass

plant on the air quality of the town is likely to be minimal, but there is still a case to answer on supporting the installation of new combustion in a built-up area.

Investment options Heat networks are extremely long-lived assets that have several constituent parts that can be managed in different ways. Typically, the significant capital costs are the

energy centre, pipework and final connections to homes (the Hydraulic Interface Units or HIUs). However, each of these elements can be owned and operated by a

separate project partner, spreading the project risk and allowing partners to provide specialist knowledge. In practice, the role of the local authority is often one of

project sponsor, providing land for pipe-runs and the energy centre and ensuring key buildings connect to the network. LA’s can, of course, become investors

themselves. This can either be in the physical assets of the network, or potentially as an energy supplier, handling metering and billing.

xviii https://www.gov.uk/guidance/heat-networks-delivery-support

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Figure 9 Typical breakdown of costs for bulk and non-bulk DHN schemes

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Figure 9 shows typical breakdown of costs for two different types of heat network: Bulk schemes, that provide a supply of heat, but are not responsible for the final

connection and Heat Interface Unit, and Non-bulk schemes that must also provide and maintain HIUs. This figure shows the significant extra cost per MWh that

residential networks schemes have over networks supplying non-domestic demands. An HIU has a typical lifespan of about 10 years, whilst the network pipes have an

asset lifetime of 30 years plus, often in reality still being operations 50 years after installation. These different components of the scheme enable project partners to

invest under a variety of conditions.

Potential benefits:

Heat networks can provide long-term return on investment, potential reduction in carbon emissions and a mechanism for addressing energy price increases or fuel

poverty. They can also be a vehicle to stimulate wider improvements such as fibre broadband, as multiple utilities can be installed along with the new heat network

pipes. If a local energy supply company is setup to run the heat network, a greater proportion of the spend on energy can be kept in the local economy.

Requires:

The council to take a lead role in engaging potential stakeholders, notably those responsible for key anchor loads, and consumer groups. The council is a gateway to

lowering risk and providing low-cost finance to any scheme moving forward, but should be clear early on in the process as to the aspirations it has and what level of

involvement it will accept.

Opportunities:

• Engage with Conquest Hospital regarding the status of their existing plant, and potential for providing a host anchor load for a heat network. This could be

expanded once the nearby development begins

• Engage with Summerfields Leisure Centre to establish the condition of their plant and potential for providing a host anchor load for a heat network.

• Engage with Amicus to establish the condition of their plant and potential for providing a host anchor load for a heat network.

• Engage with the HNDU to start the application process for feasibility study funding, on one or more of the above schemes.

In December 2016, a new Devon public sector energy company was launched with county, district and city councils, university and hospital as shareholders.

The aim of this body is to develop new heat networks and energy efficiency schemes within Exeter and its environs. The new body, Dextco, will seek to

procure a private sector partner to start the first scheme at the hospital, intending to use finance primarily from the Heat Network Delivery Unit.i

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Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

10a Heat schemes for a single customer (Summerfields Leisure centre or Conquest Hospital)

£400,000 - £3,700,000

High. Potential to partner

Medium Medium – environmental benefit will depend on the heat generation technology.

Medium. Risk is primarily around ensuring the long term demand for heat and related income. With only one customer, risk is vastly reduced

10b Heat schemes forming the basis of a network for new housing

£5,000,000 - £6,000,000

High. Potential to partner

Medium Medium – environmental benefit will depend on the heat generation technology. Potential for significant social and economic benefits, depending on the cost model employed

Medium to High For a new residential scheme, there is high risk around securing commitment to connect upfront

Energy procurement and billing Reviewing energy procurement is relatively straightforward, and can offer significant savings against low investment. There may be opportunities for the Council to

negotiate a better deal on supply. The Council should consider its purchasing criteria and how these are weighted. Some Councils purchase energy solely on the

basis of price, whereas others are able to take into account service quality, carbon emissions and/or social impact in their purchasing decisions. Alternatives to

purchasing via LASER are available and should be reviewed to get a balanced via of the best approach. For example, Bristol City Council have a dynamic purchasing

system (DPS), which is a flexible framework that is available for other local authorities to use.

Opportunities:

• Renegotiate with utilities/other framework providers based on current demand figures, review these against what is available through the LASER framework.

• Seek a time of use tariff – for this to be successful, the Council should have half hourly meters or smart meters installed.

• Consider signing the Council up to the Sussex Tariff for its own estate use. The Sussex Tariff Invitation to Tender sets out a Tariff that is lower cost and offers

local benefits. If successful, this represents a potential cost saving to the Council, as well as having wider social benefits.

Potential benefits:

Savings on energy bills, plus wider social, economic and environmental benefits of switching to a local or renewable tariff

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Requires:

To put the Council in the best negotiating position, it should review its demand profiles, based where possible on half hourly meter readings, to understand where its

demand peaks and troughs are for each asset it owns. Where there is a lack of data, demand profiles can be estimated based on industry benchmarks.

Recommendation:

The Council should review its energy purchasing and the criteria against which purchasing decisions are made.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

Switching energy supplier - Low – very low cost

Medium – potential for significant savings

Medium – potential for local social, economic and carbon benefits

Low

Local supply Local supply as a concept encompasses a number of non-traditional business models for the supply of energy. Regen’s white paper, Local supply: options for selling

your energy locallyxix gives a comprehensive overview of current and potential local supply business models. Here, we set out models that could have potential

applications for Hastings. The benefits depend on the model under discussion but might include:

• Enabling locally-owned generators to sell power directly to the local community without going through the wholesale market and therefore having more control over the price

• Enabling the economic benefits of energy supply to be maximised locally, through local job creation and keeping the profits in the local economy

• Greater control over energy bills and the ability to pass on savings to customers, helping to reduce fuel poverty

• Helping communities meet their carbon and environmental objectives

• Creating social enterprises that customers can trust

• Building support for local renewable energy projects

• Potential to overcome grid connection barriers through local supply and balancing.

Hastings local authority area has a typical annual energy consumption of 320 GWh of electricity, of which around half comes from domestic customersxx.

xix https://www.regensw.co.uk/Handlers/Download.ashx?IDMF=9b4bd983-7ee6-4b65-b45f-25d22c5f277d xx https://www.gov.uk/government/statistical-data-sets/regional-and-local-authority-electricity-consumption-statistics-2005-to-2011

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Assuming the UK average of 15.4p/kWh for domestic demand and 11.5p/kWh for non-domestic demand, the total electricity bill for Hastings is £43m.

As of 2016, Hastings produced 23 GWh of electricity through 138 Solar PV installations, one landfill gas installation and one sewage gas installation. This puts Hastings

at producing approximately 7% of electricity from local, renewable sources. If this figure could be increased to 10%, Hastings would be keeping an additional £1.2m in

the local economy.

Becoming an electricity supplier

White label The Council could consider becoming a white label supplier. A white label supplier, such as a council or group of councils or community energy group, works in

partnership with a licensed electricity supplier to offer tariffs under a different brand. The white label supplier negotiates their own tariff and can therefore shape it to

meet their own objectives, whether that is profit generation, lower tariffs, investing in local energy efficiency measures or developing its own generation. The white

label supplier will handle much of the customer facing activity and will build the customer base. The licensed supplier will provide the back office functions and will

meet the requirements of metering, balancing and will comply with industry codes.

Ovo Communities is an example of a licensed supplier offering white label arrangements to local authorities and communities. It has established relationships with

Cheshire East Council, Peterborough City Council, Southend-on-Sea Borough Council, and Advantage SW, a south west based social housing provider.

Opportunities: the Sussex Tariff

West Sussex County Council is out to tender to procure a relationship with a licensed supplier to deliver a white label arrangement, the “Sussex Tariff”. The key

priorities of the tariff will be to reduce unnecessary energy spend through lower bills, tackle fuel poverty and support local energy generation. Hastings Borough

Council have signed a letter supporting the project.

If the Council becomes a full partner, they will have the opportunity to market the tariff in the borough for the benefit of residents. New generation in the borough

could potentially be built with a Power Purchase Agreement with the licensed supplier behind the white label.

Other white label arrangements

Alternatively, the Council could decide to negotiate its own white label arrangement with a licensed supplier. The benefit would be that the Council could negotiate

its own priorities with the licensed supplier, potentially including retaining some of the profit, although this is not often a priority for this type of arrangement.

However, if the Sussex Tariff goes ahead with reasonable terms and tariffs, a separate Hastings offering could create confusion in the local market and introduce

potentially unnecessary competition.

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Potential benefits:

• Direct financial benefits to the Council of signing up to the Sussex Tariff or a separate white label arrangement are dependent on the contractual agreement, but are likely to be limited. Often there is a cost to the Council in this type of relationship, rather than an income

• Benefits to local residents through cheaper bills and support for those in fuel poverty

• Potential market for new local generation and potentially greater local support for generation projects as they go through planning, as residents make the link between local generation and their electricity use.

Requires:

• The Council to negotiate an agreement with a provider

• Usually, there is a requirement for a council to commit marketing budget and/or resources to support sign-ups to the tariff

Issues:

This approach can be criticised as a council providing free marketing to a licensed supplier – careful communications around the tariff can overcome this perception.

To make a white label offering work, the Council will need to commit significant resources to marketing it locally in order to achieve sufficient customer registrations.

Recommendation:

The Council should consider partnering with West Sussex County Council on the roll out of the Sussex Tariff.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

Partnering on the Sussex Tariff

Unknown Medium – need for considerable marketing resources

Low – revenue generating opportunities are limited

Medium – potential for local social, economic and carbon benefits

Medium - risks would be reputational if the tariff fails to provide savings or other benefits

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Fully licensed supplier There are other potential routes to the Council acting as an electricity supplier to local residents. The Council could become a fully licensed supplier. For example,

Bristol City Council has set up a separate subsidiary, Bristol Energy, a new fully licensed supply company that aims to deliver the triple bottom line of sustainable

economic prosperity, reduction in social inequality and improved environmental performance.. Similarly, Nottingham City Council has set up Robin Hood Energy. To

become a fully licensed supplier requires a very high level of investment, resource and understanding of the electricity supply market and its codes. It is unlikely,

although not impossible, that a local authority of the scale of Hastings Borough Council would undertake to establish its own fully licensed supply company.

Licence lite Similarly, there is the option for an organisation to supply electricity under a “licence lite” arrangement, which allows generators to become licensed suppliers without

becoming direct participants to onerous industry codes. A Licence Lite supplier has to partner with an existing licensed supplier, a ‘senior supplier’, which accedes to

industry code on their behalf. This approach has not been tested in practice. The Greater London Authority has been exploring it since 2009 but is yet to make it

work. Again, this is not an approach recommended for Hastings Borough Council.

Licence exempt All suppliers of electricity need to either have a licence or an exemption. In theory, supply exemptions are available for suppliers that are providing electricity they

have generated themselves of up to 5 MW in total, of which no more than 2.5 MW can be supplied to domestic customers, roughly corresponding to 500 domestic

customers.

However, government considers that in most cases it is not appropriate to grant exemption from the requirements of a supply licence. This is because it is rarely

considered appropriate for these activities not to be subject to the full terms of the licensing regime.

Alternatively, an exemption can be used for the resale of electricity from a licensed supplier or from onsite generation. This option has been used by some Registered

Social Landlords (RSLs) when they buy power in bulk from a supplier and sell it on to their tenants.

To date, there are no examples of organisations getting an exemption for the sale of their own electricity and this not an approach that Regen recommends for

Hastings.

Local supply models linked to local generation If the Council is successful in developing significant scale renewable electricity projects, there are a number of potential business models for it to consider in

selling/creating economic value for the electricity generated. These are included here for the Council to consider when pursuing generation projects.

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Power purchase agreements (PPAs): Agreeing a PPA with a supplier is the standard way that renewable electricity generators sell their electricity. A supplier will offer

a price for the generation, contracted for a number of years (usually relatively short-term). Together with any feed-in tariff the project receives, this makes up the

main current route for grid connected renewable electricity projects to generate revenue.

Alongside this a corporate PPA also involves a licensed supplier, who guarantees power delivery and assumes responsibility for issuing your power bills.

In the current market, there are a number of other local supply routes for generating revenue from renewable electricity projects that may be of interest:

• Private wires

• Sleeving

• Energy local model

• Local tariffs

Sleeving Sleeving or third-party netting is a variant of a standard Power Purchase Agreement (PPA) between a licensed supplier and generator and serves the purpose of

virtually linking an organisation’s generation to its demand, without the need for a private wire. The owner of the generation capacity effectively sells the power to a

licensed supplier in one location by exporting to the grid and then buys it back for its own use at another location.

Potential benefits:

Can result in reduced energy costs (although not necessarily)

Good for corporate responsibility purposes as it allows organisations to demonstrate that they are using energy that they generated from renewable sources

Can help finance if you can guarantee demand and negotiate a long term PPA

Requires:

Ownership of large scale generation project

Contract with a licensed supplier

Issues

Not necessarily a cost advantage as power is wheeled over the public network via a supplier, which incurs a cost

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Private wires Private wire agreements essentially allow an energy generator to sell power to neighbouring premises that they may or may not own without transmitting through

the public network. Private wire contracts require significant capital investment for the cabling, metering and connections but could benefit all parties involved.

Where a private network is to be relied on to transmit the electricity to the end consumer(s), consideration will need to be given to various factors, including the

network design or route, infrastructure and installation costs, land availability, planning constraints, and operation and maintenance requirements.

Through the price negotiations the electricity generator should receive a higher price than it would by selling to the grid, while the end user can buy power for a lower

price than they would otherwise pay. Since the government cuts to renewables subsidies, many developers have looked for private wire opportunities to get a better

price for their energy.

For example, if an end user typically pays £95/MWh for electricity and the generator would normally receive £50/MWh for exporting to the grid, a mutually

acceptable price of £75/MWh might be agreed.

The private wire agreement needs to be the subject of a legal contract.

There may be private wire opportunities from a new ground mounted solar array at Ingleside to the Castleham industrial estate as discussed in the Council owned

land with potential for solar projects section.

Potential benefits:

• Avoid distribution and transmission costs so generator and end user get a better price

• Direct control with no intermediary supplier

• Can still be connected to network for energy spill or top up

Requires

• Identification of a high energy user willing to use electricity at the right time for the generation profile close to the generator.

• Significant capital investment in private wire network

• Guarantee that demand will remain over lifetime of generation plant or that alternative could be found

Issues:

There is a risk that the end user closes or moves their operations, leaving the generator without a revenue stream

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Microgrids An extension of the private wire arrangement is to create a microgrid. In a microgrid, all energy is generated and balanced in a closed circuit that is separate from the

national grid. This gives the local supplier complete control over prices and would enable them to avoid transmission and distribution system charges, which make up

almost quarter of our bills.

However, the cost of setting up a private wire network is high and would require storage and new smart technologies to help balance the system. The actual cost

would depend on the density of the end users and therefore the length of the network, as well as the types of generation technology used. The microgrid would

require a system operator to manage demand and supply and to maintain the network assets. Microgrids are likely to become more common in the UK in the coming

years, however, as yet there are limited examples. This is not an approach that we currently recommend exploring in Hastings.

Energy local model – an aggregated time of use tariff with local generation At present domestic electricity use tends to be sold on a flat tariff. Customers pay the same amount whenever they use it (with a few variations such as Economy 7

with two tariffs). The process whereby suppliers buy and sell power is called settlement. The system for domestic customers is called settlement on a profile. In

contrast, large energy users pay different prices at different times of day; this is call half hourly settlement.

The supplier who sells power to customers has to pay generators different prices at different times of day. If the customer uses power at a time when the power is

cheap for the supplier to buy, this difference in price is not passed on.

The Energy Local proposalxxi is that a group of domestic customers come together under an entity called a Community Energy Services Company (CESCo). Their half-

hourly smart meter readings are grouped together (referred to as ‘virtually aggregated’). This forms one demand curve showing the energy used at different times of

day within a local geography. The households need to be within a local geography that is fed by the same primary feeder network infrastructure.

The CESCo negotiates with a licensed supplier for time of use tariffs for half-hourly settlement of this one demand curve. Customers are no longer settled on a profile,

but on half-hourly data based on what they actually use and when.

Subject to Ofgem agreement, where there is onsite renewable energy, this can be pooled within the CESCo. This means that the power can be used directly, reducing

network charges.

This model is currently being trialled in Bethesda in North Wales, with Co-op Energy as the supplier and a local hydropower plant providing local generation. When

there is excess generation from the hydropower plant, a message is sent to local residents highlighting that the electricity is cheaper. People are encouraged to use

electricity at these times. The result is cheaper electricity bills for customers and a better price for the hydro generator.

xxi http://www.energylocal.co.uk/wp-content/uploads/More_About_the_Energy_%20Local_Concept.pdf

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Energy Local are looking to roll this model out to other locations. It works better with larger scale renewables i.e. not rooftop solar. With rooftop solar, the

requirements for multiple meters that would make the model work are currently costly. In addition, it works well with deployment that can be controlled, such as

landfill gas, as the energy generation can be scheduled for peak periods.

Potential benefits

• Better price for energy generated locally

• Lower bills for local residents

Required

• Local people within a specific geography (fed by same primary feeder) to sign up to the project and to install smart meter

• Local generation, preferably larger scale and with a predictable generation profile

Issues

The trial has been in a small Welsh village with hydropower; there may be issues replicating this model in an urban location with a different form of generation.

Recommendation

Hastings Borough Council consider this model if they take forward large generation projects, for example alongside deployment at the Biffa landfill site.

Local tariffs Suppliers are able to offer local tariffs that are linked to a local generating site. Good Energy has done this with several of their wind sites. This approach can be

effective at building local support for a project and help people make the link between local generation and their own consumption.

The tariff needs to be subsidised in part by the generator in order to keep the price low. This is more straightforward where the electricity supplier is the owner and operator of the generating plant. It would be difficult for the Council to convince a third party licensed supplier to sell energy from a plant that the Council owned at a rate below standard market tariffs, unless the Council could demonstrate that it is able to use its influence to attract significant customer sign-ups to the tariff.

Potential benefits

Community buy-in for a renewable generation project as the community benefits through lower bills

Required

• Generation project

• A licensed supplier willing to negotiate to provide a lower tariff

Issues

It may be difficult to negotiate.

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Recommendation

An approach to consider when developing a generation project.

Community energy Changes to the subsidy and planning regime have had a negative impact on conventional community energy business models. Despite this, many of the groups are

continuing to operate and new groups are setting up. In Hastings, 1066 Energy is currently establishing itself.

The Council could explore routes to work with 1066 to achieve its aims. Examples of potential collaborations include:

• Offering the Council’s roofs or land for renewable project development by the community group

• Supporting the community group to offer energy efficiency and fuel poverty advice to local residents. There may be opportunities for the Council and

community groups to support energy suppliers to deliver their energy efficiency obligations (e.g. ECO) in Hastings.

• Facilitating a relationship between the community group and social housing providers to make use of roof-space or offer energy advice to tenants

• Working with the community group on a district heat project

• Undertaking a local innovation trial in partnership with the UK Power Networks and the community group e.g. Regen worked with Wadebridge Renewable

Energy Network, Western Power Distribution and Tempus on the Sunshine Tariff Trial in Wadebridge, Cornwall.

Pure Leapfrog’s 2014 publication about how local authorities can support community energy still has relevance and is worth readingxxii.

xxii http://www.pureleapfrog.org/filelibrary/Scaling%20Up!%20series/PLF_IntroGuide_LocalAuthorities.pdf

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Plymouth Energy Community is an example of a community energy group with strong backing from the local authority.

Next steps

Regen has been working with the community energy sector since its inception. Regen’s community energy team could support the Council to develop its support for

community energy.

Opportunity Illustrative CAPEX Level of Council investment

ROI Social/economic/environmental benefit

Risk

1 Working with 1066 energy Depends on approach

Depends on approach

Low – financial returns are likely to relatively low

High – the potential for community benefits should be unlocked

Low

Plymouth City Council supported the founding of Plymouth Energy Community in 2013. The members’ co-operative was set up on the back of a manifesto

pledge by Labour Councillors at Plymouth City Council, with a Council development grant and a loan to support the solar share offer. A unique service-level

agreement was formed for the council to provide staffing expertise from their low carbon, business, finance, legal and human resources teams to PEC.

The co-op offers a switching service, affordable or free insulation and boiler schemes, a fuel debt advice service, a home energy team, a volunteering and

training programme and a health service referral pilot project.

Alongside the development of core frontline services, in 2014 PEC set up PEC Renewables, a Community Benefit Society, to fund and build community-owned

renewable energy installations in the city. In 2014, members of the public were invited to buy community shares with a minimum of £50. Over £600,000 was

raised and in addition to a £500,000 loan from PCC, this was used to provide 21 schools and community buildings with free solar panels.

In 2015, a second opportunity was given and another £850,000 raised, again alongside a £500,0000 loan from PCC, another nine solar roofs were built,

including Plymouth’s largest, now crowning the city’s busy leisure hub, Plymouth Life Centre. Towards the end of 2015, PEC teamed up with a local economic

development trust to turn derelict land into a solar array. The race was on to do this before the government cut the subsidies. In March 2016, the 4.1MW

ground-mounted array in Ernesettle was complete and generating enough clean energy to meet the annual needs of 1000 homes.

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Electric vehicles Electric vehicles could potentially play an important role in shaping the sustainable energy aspirations of HBC. The growth of EVs is widely seen as part of the UK’s

continued push to a smarter energy network, establishing a way of capitalising on excess low carbon power generated during the day by solar PV. As of quarter 4

2016, Hasting’s had 68 electric vehicles, representing more than 50% growth on the previous year.

Growth of EVs

Every year the National Grid produce a series of scenarios that provide an illustration of how the UK energy system could change up to 2030. Electric vehicles are

considered as part of this approach. Using the methodology outlined in the Future Energy Scenarios work, a projection of the number of EVs registered in Hastings can

be produced:

Figure 10 Future Energy Scenarios - potential growth of EV ownership in Hastings

The four different scenarios considered relate to how economic and sustainable energy conditions are realised. How each scenario relates to EV is summarised in the

table below.

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Consumer Power

• High growth scenario (but lower than Gone Green)

• 54 per cent of cars sold in 2030 are electric, with over 580,000 sold by the end of 2030.

• R&D investment leads to technology improvements and lower costs

• Strong consumer appetite for EVs and strong economy means greater proportion of population (than under NP and SP) has sufficient access to finance

• But, no government incentives available and public sector infrastructure investments more limited than under Gone Green – purchases are restricted to more affluent customers, and focussed in areas with off-road parking

Gone Green

• Highest overall growth scenario

• 67.5 per cent of cars purchased in 2030 are electric, with over 785,000 sold by the end of the decade

• Significant continued programme of government incentives for EV purchases and ongoing use (e.g. road tax discounts)

• High levels of public sector investment in supporting infrastructure, such as charge points in residential areas that enable householders without off-road parking to invest

• Strong economy and green ambition drives consumers to invest

• R&D investment leads to technology improvements and lower costs

• Legislation restricts the purchase and use of diesel vehicles

No Progression

• Lowest growth scenario

• 13.5 per cent of cars sold in 2030 are electric, with just under 170,000 sales.

• Growth continues at a steady rate based on historic trends.

• The incentive programme is not continued after March 2018.

• Fewer customers have the capital available to invest in new cars, and there is a lack of green ambition and so consumers take longer to discard older vehicles.

• Costs fall more slowly under this scenario and there is not the added driver of reduced road tax, or the stick of restrictions on diesel vehicles.

Slow Progression

• Medium growth scenario

• 31.5 per cent of cars sold in 2030 are electric, with around 367,000 sold in total over the decade.

• Growth is maintained by falling costs, public sector investment, an ongoing government incentive programme and high levels of green ambition.

• But, the weaker economy means fewer consumers have capital available to invest and in general they take longer to discard older vehicles

• Similarly, the slow economy means there is less investment in R&D and costs are reduced more gradually.

• Government incentives are also lower in this scenario than under Gone Green.

The analysis indicates that Hastings could have a fleet of between 1,000 and 4,500 EVs by 2030. By contrast, Hastings currently has just four charging connectors in

close proximity to the borough, all of which are classed as either ‘fast’ or ‘rapid’.

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Figure 11 Map of fast and rapid EV charging points in Hastings

Opportunities

Local authorities have taken a range of measures to support the growth of electric vehicles in their areas. Some of the actions taken to date are:

• Islington council gives plug-in electric vehicle owners free residential parking permits;

• Milton Keynes council allows plug-in electric vehicles to be parked free of charge at a charging point regardless of whether or not the vehicle is plugged in or

not;

• Brighton & Hove council allows plug-in electric vehicles to benefit from free parking if the owner has a permit;

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• Wandsworth council offers a reduced residential parking rate for plug-in electric vehicle owners;

• Westminster council requires plug-in electric vehicle owners to pay a £75 annual fee over and above fees paid to use a charging point, in order to be

permitted to park at a charging point for free; and

• Newcastle council offers free residential parking permits to owners of electric vehicles and offers owners of any other ULEV a discount on their residential

parking permit.

Requires:

However, the above benefits to owners of EVs are fully dependent on a functional charging infrastructure. The UK’s Office for Low Emission Vehicles (OLEV) is

responsible for running grant schemes for vehicle charging. Local authorities can apply for 75% of the capital costs associated with installing on-street residential

charging points. The maximum amount that can be funded by OLEV per charging point is £7,500, but typically costs will be lower than this. There is currently £1.5m

available for 2017/2018, with funds being allocated to local authorities on a first come, first served basis.xxiii

Recommendation:

We would recommend the council explore a strategy for supporting the growth of electric vehicle infrastructure in Hastings, helping residents and businesses deliver

lower carbon transport. In addition, further investment in EV infrastructure can support the case for PV arrays on suitable council owned sites, by providing an

additional revenue stream and supplying a higher proportion of the energy demand locally. Provision of charging points is the primary step to growing this sector, but

this will not, in isolation, produce a new revenue stream for the council. We would recommend looking at combining EV charging infrastructure with solar car ports, as

a way of extracting maximum value from viable schemes.

Investing outside the area Opportunities for large scale renewables are limited within HBC’s area, due largely to its urban nature. The Council could consider investment in renewable

opportunities outside of the area. One opportunity is to focus on the purchase of existing operational assets, rather than investment in pre-construction projects. This

reduces the returns on offer but also reduces the risk. However, most large scale renewable sites now have long term owners.

xxiii http://www.energysavingtrust.org.uk/travel/electric-vehicles/street-residential-chargepoint-scheme

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The most likely investment opportunities in the next two years are emerging subsidy free solar projects. Most local authorities who have invested in third party

projects have done so with a community energy group rather than straightforward commercial project. The Council’s role could be as a construction finance provider

or to refinance initial high-cost finance once a project is built.

Next steps:

The Council should work with other local authorities and community energy groups in the area to identify if there are projects where it could be a co-investor.

Project funding Regen reviewed its database of funding opportunities for local authorities (see separate Excel spreadsheet). Opportunities that we believe are of relevance to HBC

include:

• Heat Network Delivery Unit Round 7 – Up to 67% of costs related to heat network development work

• EU ESIF – the south east LEP low carbon call is open until January 2018. Local authorities in the south west are undertaking innovative retrofit projects

through their ESIF funding, for example

• European Local Energy Assistance (ELENA) - The ELENA programme covers up to 90% of the technical cost to prepare large energy efficiency and renewables

projects. It comes with the requirement that the investment created is at least 20 times the value of the original ELENA grant, otherwise the grant can be

clawed back. Bristol City Council have made ELENA work for a citywide programme and are looking for partners for follow up work.

• Office for low emission vehicles (OLEV) – 75% funding is available from OLEV for local authorities to put in on road electric chargers in residential areas.

Key performance indicators The Council should use the findings from this report and those from CLS to produce a prioritised action plan. We have included a matrix categorising the

opportunities identified. The Council could consider setting corporate targets for renewables, considering the following potential factors:

• MWs of renewable energy installed/MWh of energy generated

• £s of local investment achieved

• Carbon savings

• Community benefit provided.

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Appendices

Appendix A: Constraint mapping for wind resource assessment

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Appendix B: Constraint mapping for ground mounted solar assessment

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Appendix C: Ground-mounted solar additional sites constraints analysis

Site reference (see Figure 6 for mapped resource)

Site location (UK grid reference)

Approx. site size (ha)

Land classification Designations: environmental and planning constraints

Local Plan policy consideration Hastings Borough Council Planning Strategy (February 2014)

Potential scheme size (kW)

Site 6 (near Pebsham landfill)

TQ 76185 09603

7.04 Agricultural land class 3 (good to moderate).

Ecology: Combe Haven SSSI (148 ha) is designated for habitat conservation purposes – 250m north Heritage: Three Grade II listed buildings within 1km (Pebsham Farmhouse, Adam’s Farmhouse and Boulder Cottage) Flood Risk

Flood Zone 3 lies 189m north

Relevant policy due to proximity:

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact. Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

2,000

Site 7 (near Pebsham landfill)

TQ 76436 09673

2.94 Agricultural land class 3 (good to moderate).

Ecology: Combe Haven SSSI (148 ha) is designated for habitat conservation purposes – 165m north east Heritage: Three Grade II listed buildings within 1km (Pebsham Farmhouse, Adam’s Farmhouse and Boulder Cottage) Flood Risk Flood Zone 3 lies 166m north east

Relevant policy due to proximity: Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact. Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part

1,000

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of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Site 8 (North of Combe Haven)

TQ 76478 10557

4.44 Agricultural land class 4 (poor)

Ecology: Combe Haven SSSI (148 ha) is designated for habitat conservation purposes – surrounding resource area 8, less than 5m Heritage: Five Grade II listed buildings within 1km (Adam’s Farmhouse, Croucher’s Farmhouse, Royal Oak, Upper Wilting Farmhouse and Bynes Farmhouse) Flood Risk Flood Zone 3 lies 50m south and east of site

Relevant policy due to proximity: Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact. Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

1,500

Site 9 (Crowhurst Road)

TQ 76599 11278

3.02 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 660m from resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 85m west Heritage: Ten Grade II listed buildings within 1km (Adam’s Farmhouse, Croucher’s Farmhouse, Royal Oak, Upper Wilting Farmhouse, Bynes Farmhouse, Green Street Cottage/Farmhouse,

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

1,000

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Sampson’s Farmhouse, Stonebridge Cottage/Farmhouse) Flood Risk Flood Zone 3 lies 187m south

Site 10 (Swainham Lane)

TQ 76890 11671

7.2 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 250m from resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 50m north Heritage: Nine Grade II listed buildings within 1km (Adam’s Farmhouse, Croucher’s Farmhouse, Upper Wilting Farmhouse, Green Street Cottage/Farmhouse, Sampson’s Farmhouse, Stonebridge Cottage/Farmhouse, Mayfield’s Farmhouse) Flood Risk Flood Zone 3 lies 136m south east

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

3,000

Site 11 (Swainham Lane)

TQ 76566 11546

2.54 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 730m from resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 15m north

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value

1,000

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Heritage: Eleven Grade II listed buildings within 1km (Adam’s Farmhouse, Croucher’s Farmhouse, Royal Oak, Upper Wilting Farmhouse, Green Street Cottage/Farmhouse, Sampson’s Farmhouse, Stonebridge Cottage/Farmhouse, Hye House and The Furnace) Flood Risk Flood Zone 3 lies 434m south

Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

Site 12 (near Breadsell Lane)

TQ 77510 12096

5.01 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 30m from resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 15m north Heritage: Six Grade II listed buildings within 1km (Green Street Cottage/Farmhouse, Sampson’s Farmhouse, Stonebridge Cottage/Farmhouse, Park Farmhouse) Flood Risk Flood Zone 3 lies 132m south east

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

2,000

Site 13 (near Breadsell Lane)

TQ 78210 12619

1.93 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 20m from resource area Landscape

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify

500

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High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 300m west Heritage: Five Grade II listed buildings within 1km (Stonebridge Farmhouse, Park Farmhouse, Croft Lodge and Beauport Farm) Flood Risk Flood Zone 3 lies 25m south

where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

Site 14 (near Breadsell Lane)

TQ 78239 12899

4.64 Agricultural land class 4 (poor)

Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 20m from resource area Landscape High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 184m west Heritage: Five Grade II listed buildings within 1km (Park Farmhouse, Crowhurst Park, Croft Lodge and Beauport Farm) Flood Risk Flood Zone 3 lies 30m south

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

1,500

Site 15 (adjacent to the A2100)

TQ 78186 13612

1.5 Land class non-agricultural Ecology: Marline Valley Woods is a Local Nature Reserve and designated SSSI for habitat conservation purposes – 135m from resource area Landscape

Relevant policy due to proximity: Policy EN3: Nature Conservation and Improvement of Biodiversity Biodiversity Opportunity Areas (BOAs) have been identified by Sussex Local Nature Partnership at Combe Haven and Marline Valley…These are part of a Sussex wide network of BOAs and identify

500

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High Weald Area of Outstanding Natural Beauty (AONB), which covers 18 per cent of the Borough lies 25m north Heritage: Four Grade II listed buildings within 1km (Crowhurst Park, Croft Lodge, Hemingfold Farmhouse, The Black Horse Pub) Flood Risk Flood Zone 3 lies 435m south east

where the greatest opportunities for habitat creation and restoration lie.

Policy HN9 – Areas of Landscape Value Area of Outstanding Natural Beauty (AONB) and the Combe Valley Countryside Park. Where development proposals have the potential to impact an area of landscape value a landscape assessment will be required to understand the level of impact.

Site 16 (Bexhill Road)

TQ 76496 08082

2.04 Land class urban Heritage: Three Grade II listed buildings within 1km (Glyne Farmhouse, Ruin of St Mary’s Chapel and the Bull Inn) Flood Risk Flood Zone 3 lies next to site, 5m east of resource area

500

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Appendix D: Heat Network Assessment Methodology Assessment of heat network potential in Hastings was undertaken in three tranches:

1. Use of the National Heat mapxxiv to establish clusters of heat demand

2. Assessment of the heat demand from non-domestic buildings that could act as ‘anchor’ loads, in particular those that are under the influence of HBC

3. Proximity checks of anchor loads to planned new

developments, that could support a heat network

Combing the outputs of both tranches provides a solid

basis for which sites may be able to support a heat

network. Without anchor loads, heat networks

retrofitted for residential homes are unlikely to be

viable currently.

National Heat Map outputs

An initial assessment of heat demand in Hastings clearly

shows the highest demand in kWh/yr to be centred on

Conquest Hospital. In addition, there are further areas

of relatively high demand in the town centre and White

Rock areas.

xxiv http://nationalheatmap.cse.org.uk/

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Conquest Hospital Area

The heat map can be used to estimate the types of demand and total kWh demand for a given area. For the Conquest Hospital campus, this roughly equates to:

Sector Heat Demand (kWh) Number of Addresses Heat Density (kWh/m2)

Commercial Offices 39940 2 0.104015567

Education 774256 1 2.016375682

Health 14604588 5 38.0343676

Recreational 310575 2 0.808823991

Residential 2868923 319 7.471466995

Retail 60352 4 0.157174439

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St Leonards

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The heat map can be used to estimate the types of demand and total kWh demand for a given area. For the St Leonards area, this roughly equates to:

Sector Heat Demand (kWh) Number of Addresses Heat Density (kWh/m2)

Commercial Offices 1053601 55 0.99

Education 402400 6 0.38

Government Buildings 939758 3 0.89

Health 776456 20 0.73

Hotels 3479994 47 3.29

Industrial 548181 5 0.51

Other 139423 15 0.13

Postal 53251 5 0.05

Recreational 4040605 42 3.82

Residential 37344392 4930 35.37

Retail 3134638 242 2.963

Transport 370600 23 0.35

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Stonehouse Drive

The heat map can be used to estimate the types of demand and total kWh demand for a given area. For the Stonehouse Drive area, this roughly equates to:

Sector Heat Demand (kWh) Number of Addresses Heat Density (kWh/m2)

Commercial Offices 64882 3 0.94

Education 12471 2 0.18

Postal 17334 3 0.25

Recreational 18418 1 0.26

Residential 3303345 426 48.34

Retail 107402 2 1.57