District Heating Partnerships with the Public Sector

Transcription

1 District Heating Partnerships with the Public Sector

2 ENGIE Group Worldwide 2

3 ENGIE in the UK 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 3

4 ENGIE Urban Energy District energy schemes in the UK North Leeds GSC Edinburgh St James (development) Newcastle Large ESCos & Community Energy CHP, biomass, EFW, geothermal Typically years 300 GWh energy sales per year ~9,000 residential customers (services and energy) >60km networks Midlands Leicester District Energy Birmingham District Energy Coventry District Energy South Southampton Geothermal Eastleigh Whitehill (development) London Olympic Park & Stratford City Whitehall ExCel Arena Bloomsbury Heat & Power Hallsville Quarter Broadwater Farm Equinox, Hatfield Embassy Quarter (development)

5 ENGIE European District Heating & Cooling References Over 250 references (many with Local Authorities) including: No 1 in the world in District Cooling No 4 in the world in District Heating Expansion outside of the Europe: Acquisition of 40% of Tabreed a district cooling company in the Middle East 50 year contract with Ohio State University - >$1bn contract 5

6 District Energy Key challenges and risks Keys Risks / Challenges Upfront capital expenditure Uncertain heat loads and growth Long term operational performance uncertainty and lifecycle costs District energy system expansion/growth On-going heat billing and metering services Customer management and bad debt Potential Mitigation: Partnership with an experienced district energy company

7 Partnership or Contracting Structures Numerous potential structures, such as: Collaboration partnership Long-term concession Joint Ventures: single or multiple entities not always 50/50 Outsource design & build Contract out: operation and maintenance Short-term O&M and metering and billing

8 A JV Structure ESCo ESCo ESCo

9 ENGIE - Urban Energy Public Sector Case Studies

10 City Wide DE Scheme Fully Owned by ENGIE work in partnership with Southampton City Council In operation for > 30 years 70,000,000 kwh energy generated p.a. 11,000 tonnes CO2 saved p.a. Expanded substantially over time - providing heat & chilled water : 50+ commercial consumers 800+ residential consumers Private Wire to ABP Southampton Geothermal Heating Company

11 Parkview Civic Centre RSH Hospital Mayflower Halls Southampton Solent University BBC TV Skandia Life ABP Heat Station West Quay IKEA Carnival Quays DeVere Hotel

12 Coventry District Energy Scheme Key Scheme Parameters: 20 year concession end of term transfers to Coventry CC ENGIE financed and installed network to City Centre ENGIE provide full ESCo services Heat purchased from EfW Plant Large thermal store to accommodate variance (heat and load) Significant expansion potential new connection to Friargate 12

13 City Wide DE Scheme 25 year concession with BCC ENGIE provide full ESCo services 14,000 tonnes CO2 saved p.a. 3 Core Partners Providing heat chilled water & electricity from: 4 Energy Centres 3 now interconnected 7.5MWe CHP Birmingham District Energy Company

14 Broad Street Scheme Council House the ICC the REP & LOB to New Street Station Town Hall Energy Centre Hyatt Hotel 14

15 BDEC Expansion 15

16 0 km of energy network (and growing) 120 million investment 40 year concession Energy price regulation energy centres (district heating & cooling),000 residential customers (and growing) QE Olympic Park District Energy Scheme

17 Contracting Arrangements 40 year Concession Agreement between ENGIE, Stratford City Developments Ltd and ODA (now LLDC). The Concession Agreement: Provides this Area of Exclusivity to ENGIE for the term of the agreement Concession Area Sets out terms whereby heat and cooling is supplied to consumers Regulates heating and cooling connection and operational charges Requires carbon savings to be delivered compared to conventional energy sources Has enabled ENGIE to invest 120M in the scheme 17

18 Newcastle JV Between Newcastle CC and ENGIE 40 year Regenerate Partnership with Newcastle City Council (NCC) joint development of District Energy in the City ENGIE selected preferred bidder; in final stage of contract close Initial project: Science Central; a highprofile new mixed-use development. Initial buildings now in construction. Grant funding sought for the initial project Complex contract structure with separate Asset and Supply companies

19 Case Study Community Energy 8, largely residential district energy schemes in London Medium and long-term contracts Mix of new developments and existing district energy schemes ENGIE responsible for: Operation, maintenance and plant replacement Conversion of primary energy to heat and electrical energy Energy metering and billing One downside is such arrangements do not facilitate investment or expansion

20 Richard Long Business Development Director ENGIE Urban Energy Tel: