Berkshire Economic Strategy Board Climate Berkshire

Berkshire Economic Strategy Board

Climate BerkshireFuture Investments in Renewable & Low Carbon Power Generation

Keith Richards12th July 2010

www.tvenergy.orgkeith.richards@tvenergy.org

Phase I and II study

• Completed December 2009• Reviewed current evidence base• List of potential renewables projects• Wind, wood and waste ‘big hitters’• Role for solar technologies too + others• Importance of the leadership role of LAs• Draw in private sector too

Recommendations

• Develop a strategic approach including councillors, planners and influencers – meeting

• Show lead – 20% on-site renewables target for council properties by 2020

• ESCo or other vehicle for financing projects and managing a portfolio

• Information campaign e.g. with schools, also business and home owners

Further project based studies

• Urban bioenergy (Reading)• Rural bioenergy (West Berkshire)

Reading Civic Area

• Assessment of existing energy demand surrounding Reading Civic Centre • Civic centre, police station, magistrates courts, offices, hotels, larger retail• Opportunity for central CHP and district heating?• Central plant within underground service area• District heat network 1.3km• Advanced technology option:• Biomass CHP 70kWe 280kWth, boilers 2MW using locally supplied woodfuel• Baseload heat demand from hotels, cooling via absorption chiller• High investment costs – distribution pipe network, hard dig• Successful scheme dependent on civic centre re-development, and significant public sector investment using low 3.5% finance rate

Coley High Rise

• 267 flats within 3 high rise towers• All electric heating – high cost, poor control, high carbon emissions • Majority Reading BC tenants • Opportunity for central heat supply to new radiator systems • Biomass heating plus possible gas CHP for baseload as hot water demand• Gas CHP 135kWe 215kWth, biomass boiler 1MW using locally supplied woodfuel• Retrofit of heating systems within flats presents significant challenge• Successful scheme dependent on suitable site for energy centre• Capital cost £2.2m, economics favourable with12% project IRR • CO2 emissions savings 2,800tonnes/yr

New Development Sites• Future major new build sites within Reading Borough• South Reading - Worton Grange, Berkshire Brewery, North of Manor Farm Road• Central Reading - North of Reading station• Mixed development, significant new residential build • Central CHP, heat and cooling, woodchip, district energy• Phased development, increase energy supply & network over time • Gas/ biomass CHP, biomass boilers, gas boilers • Developer contribution to offset % of scheme capital costs• Projects IRR around 7% - public sector finance may be required•Project economics dependent upon future technology costs, ESCo/ developer negotiations, gas & electricity markets

Rural District Energy

• Develop a methodology to assess candidate communities

• Select a lead community and carry out a feasibility study

• Financial analysis and way forward• Use methodology to evaluate across Berkshire?

Rural District Energy (Wood)

• Off gas grid• >3 significant heat sinks• A clear anchor load• Co-located• Diversity of load• Age of buildings• Community interest• Existing projects• Local fuel supply

Candidates

• Bradfield• Brightwalton• Compton• Kintbury• Stratfield Mortimer

Brightwalton DE Scheme?

SchoolSocial Housing

Village Hall Church

Small Scale District Energy Scheme (Austria)

Brightwalton

• Scheme may be expandable • Sovereign Housing Assoc. very interested• Old stock, address fuel poverty issues• Two private (large) thatched properties also

interested in joining• Look to establish a ‘Community ESCo’• 50% capital from grants? • HA plus private buy in/ shares?

International Energy Agency Conference 2011

• Task 29 socio-economics lead addressing bioenergy and alleviation of fuel poverty

• DECC involvement etc• Seeking case studies/ exemplars from HAs and

LAs• Maidenhead HA big programme starting on

renewables ...... Ditto Sovereign• Reading and Oxford LAs very interested

2010 Developments

• Change of government/ policy (ongoing)

What is known ….

• Positive stance and targets will likely be increased (Carbon 20% t0 30% redn 2020?)

• Fiscal incentives ‘FIT’ and ‘RHI’ to be retained BUT.....

• Relevant grants have been removed• Regional resources removed• Regional planning and strategies removed• ‘Localisation’ agenda to be pursued with

more power to local government

Feed in Tariff

• Introduced 1st April 2010• Marketed as ‘Green Cash Back’ • PV, AD, Hydro, Wind, MicroCHP pilot• Paid on all electrcity generated• Up to 41.3p/kWh for PV (buy in 13p/kWh)• A further 3p/kWh for units exported• Halved the payback for PV

Renewable Heat Incentive

• First fiscal assistance for renewable heat – expected to be retained

• Recognising the importance• Biomass, ASHP, GSHP, solar thermal• Will commence 1st April 2011?• Up to 9p/kWhth for small biomass?• Up to 18p/kWhth for solar?

Changed regional and local outlook

UK Government80% reduction in

carbon emissions by 2050

(Previous) Regional Emphasis

• DECC require a return to a standard approach to understanding renewables

• Evaluating the ‘evidence base’ for renewables

• Creating scenarios for 2020 and 2031• Establishing new targets for delivery of

renewable heat and power• Decentralised energy theme

The Methodology

Renewable energy production as % of consumption

1.2%

1.8%2.3%

3.1% 3.1%

1.2%

1.8%2.3%

3.1% 3.1%

1.2%

1.8%2.3%

3.1% 3.1%

1.2%

1.8%2.3%

3.1% 3.1%

8.6%

1.2%

1.8%2.3%

3.1% 3.1%

5.4%

0%

5%

10%

15%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

HIGH GROWTH - Full success

HIGH GROWTH - Part success

HIGH GROWTH - Low success

MEDIUM GROWTH SCENARIO

BUSINESS AS USUAL

15 %

Assessment scale

Geographical Scale• Regional, county and where

possible district level assessment

• Separate assessment of potential within designated areas

Timescale• Assessment for 2020

(Government target) and 2031 (Regional Strategy)

216

10

4,500

4

36

8

100

50,000

100

‘Drax biomass’Electrical

Equivalents

100,000

Outputs• GIS and tabulated local data enabling

better understanding of potential (by County)

• Comparison tables allowing technology/ resource choices to be made

• Support to produce locally generated targets in tune with local priorities

• Support to planning/ decision making

Focus for the future

• Large projects ( multi MWe or MWth) will be handled by utility type organisations

• Small to medium scale e.g. community should be the focus

• Own buildings, schools, leisure centres .....• Look for synergies with NHS, MoD, Police

across the County maybe• District energy, CHP (wood and waste) plus

opportunities for early action e.g. PV

Financing• How best to seize the opportunity presented by

the FIT (and RHI)?• Invest and own using own capital .... generate

revenue streams • Borrow .... e.g. Public sector 3.5% rate ....• Partner (Public or Private) ... maybe• Form a bespoke ESCo and collaborate with

other LAs/ partners • Other (e.g. take a fee for access to roof space)

TOTALS kWh kWh Export kWh Total Gen/

  Gen Export % tot Import kWh used Total %

Jan 108 41 38.0% 1160 1268 8.5%

Feb 111 58 52.3% 672 783 14.2%

Mar 257 163 63.4% 440 697 36.9%

Apr 366 225 61.5% 408 774 47.3%

May 333 199 59.8% 303 636 52.4%

Jun 364 247 67.9% 284 648 56.2%

Jul 126 88 69.8% 101 227 55.5%

Aug            

Sep            

Oct            

Nov            

Dec            

  1665 1021 61.3% 3368 5033 33.1%