Heat Networks Code of Practice for the UK: How does it affect you? Dr Barney McManigal Policy Manager

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1 Heat Networks Code of Practice for the UK: How does it affect you? Dr Barney McManigal Policy Manager 18 October 2016

2 Agenda 1. About the ADE 2. District Heating: Benefits 3. State of the market 4. Government s role so far 5. Heat Networks: Code of Practice 6. Compliance

3 ADE vision The voice for a cost effective efficient, low carbon, user-led energy system; a market in which decentralised energy can flourish Areas of focus: Combined heat and power District heating and cooling Demand side energy services CHP Demand side services District Heat

4 District Heating

5 Accessing lower carbon technologies

6 District heating: Benefits Access a wider range of heat generation technologies Generate heat more efficiently, lowering energy costs Reduce labour and maintenance costs Reduce CO2 emissions Security of supply from storage capacity Directly tackle fuel poverty and cold homes

7 Project life cycle

8 District heating in the UK Current: ~4% heat demand Government ambition to grow to 20% of heat demand by 2030, where suitable Heat networks are not the right solution in all places

9 Heat Networks Delivery Unit (HNDU) Created in 2013 to provide specialist guidance to Local Authorities Heat-mapping, master-planning, feasibility studies, project development Over 11m funding Supporting 201 heat projects across 118 local authorities 45 HNDU-supported projects are now seeking up to 480m in capital investment (Heat Infrastructure Investment Pipeline) UK wide: 280 heat network projects ready for investment (up to 2 billion)

10 New funding announced: HNIP The Chancellor said at the November 2015 Spending Review: The Government will provide over 300m of funding on heat networks over the next five years.. leveraging around 2bn of private and local capital investment.. this investment support is expected to lead to the construction of some 200 large heat networks in towns, cities and communities across England and Wales heating commercial offices, public sector buildings like hospitals and schools, as well as flats and houses, by 2025.

11 Common challenges in DH schemes High heat network losses add costs Capital cost cutting ( value engineering ) Poor communication, strategic working between contractor and district heat supplier, and the building manager and network operator Lack of clear communication, transparency between network operators and customers

12 Heat Network Code of Practice CIBSE and ADE developed minimum technical standards for heat networks Published in 2015, sets out obligations for all parts of supply chain CIBSE training schemes available on Code of Practice

13 Key themes of Code of Practice Achieve low heat network heat losses. Achieve consistently low flow and return temperatures. Correct sizing of plant and network. Use of variable flow control principles. Optimising low carbon heat sources.

14 Stage 1 - Preparation and brief Commission projects in accordance with Code of Practice. Agree contracts that are fair and equitable. Define appropriate service levels for the heat supply.

15 Stage 2 - Feasibility Achieve sufficient accuracy of peak heat demands. Identify the most suitable low carbon heat sources. Select suitable operating temperatures. Determine network distrib. routes, pipe sizes and costs. Assess operation and maintenance needs and costs. Conduct an economic analysis and options appraisal. Analyse risks and carry out a sensitivity analysis. Assess environmental impacts and benefits. Develop preferred business structures, contract strategy and procurement strategy.

16 Stage 3 - Design Design or modify suitable space heating and domestic hot water services systems Select suitable building interfaces Achieve an energy-efficient heat network, including measurement of heat losses (should be <10%) Select heat metering, pre-payment and billing systems that are accurate and cost-effective Achieve an efficient heat distribution system within a multi-residential building, reduce overheating risk Design cost-effective and efficient central plant Optimise the use of thermal storage

17 Stage 4 Construction & Installation Reduce health and safety risks to staff, customers and the general public. Achieve a high-quality heat network construction Provide a high-quality hydraulic interface unit (HIU) and building connection construction Reduce adverse environmental impacts of construction.

18 Other sections of the Code Stage 5 - Commissioning: Achieve consistently low return temperatures through commissioning building heating systems/controls Stage 6 - Operation and Maintenance: Regularly check metering; review and maintain water treatment procedures; regular plant maintenance Stage 7 - Customer obligations Provide reports on energy supply and use and bills that are clear and informative

19 How the Code should be used? Developers may specify it as a requirement on the designer or developer Planning Authorities may require that it is followed ESCos may adopt it to demonstrate the quality of their product This creates challenges for procurement, planners, policy makers, etc.

20 Next steps CIBSE and ADE developing a Code of Practice checklist

21 Proposed compliance scheme Compliance Scheme in development to ensure networks deliver a minimum standard Would allow Code of Practice to be implementable in planning, policy, procurement/contract law Based on: Required Code of Practice outputs Key performance outcomes: Heat network loss per dwelling Network flow rates Average return temp at energy centre boundary Average flow temp at energy centre boundary

22 Thank you. Questions? LinkedIn CP1 Heat networks Code of Practice feedback