Using District Energy to Deliver Decarbonisation of Heat in the UK

Transcription

1 Using District Energy to Deliver Decarbonisation of Heat in the UK

2 Who are we? What is District Energy? National Approach to District Energy Example Municipal Energy Project Sutton Decentralised Energy Network

3 Who are we? Non Trade not for profit association, working together to: Offer guidance to other organisations, particularly LA s Raise awareness of district energy as a low carbon solution and the benefits that it can deliver Members of the UKDEA gain the tools and support that they need to develop and expand their schemes Started in 2010 with 6 Founder Full Members (mainly local authorities) Now over 100 members and growing rapidly - all major district energy schemes in the UK are represented by the UKDEA We want to show that district energy works at all scales not just large high density urban areas

4 Our Work Our Work Streams include: Free help and advice to members Members are happy to help each other and often work together on issues Consultation responses and Government engagement making sure DE stakeholders views are effectively represented Technical R&D Design and Information Notes Information & Raising Awareness Guides for organisations seeking to develop DE in the UK.. Our first APP is to be launched shortly Customer Protection - important industry wide issue

5 Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your scheme What is District Energy?

6 The Basics Question - what is it? Answer - linking of two of more buildings together via a network of heating pipes from one or possibly more heat sources Question - why do we use the term district energy? Answer - because it can mean both heating and cooling networks. Cooling networks are often used in city centres for air conditioning When heating is used on it s own it is called District Heating or it can also be called Community Heating

7 The Basics cont d Question - what runs in those pipes? Answer - hot water at similar pressures and temperatures as you use in your own home or office heating system Question what buildings are suitable? Answer any but best are those with a greater heat load, i.e. housing, leisure, care homes etc Question how much is there in the UK? Answer Around 2% of homes in the UK are supplied with heat from an external source and this is growing rapidly

8 Key Components Heat Source Distribution Systems the buried network of pipes Consumer Interface HIU or thermal substation or metering station The Customer the Building

9 What do these distribution systems look like? Highly insulated pipes known as Pre-insulated pipework Plastic systems are suitable for most smaller projects and are available in 100m coils Steel pipes are used on larger systems Heat Losses < 1 C per km Reliability ~ 100% Networks last for > 50 years

10 District Energy is Technology CHP Agnostic Many possible generation technologies but select the best one for your scheme Energy from Waste Facilities Consider: What is available in your area Space constraints for plant and fuel deliveries Scale Development timescales the energy source can always be changed but once connection opportunities have been missed they are difficult to recover Gas fired CHP Waste Heat from industry Possible Sources of Energy Geothermal and ground source or water source heat pumps Biomass, i.e. wood boilers, anaerobic digestion

11 What makes a good district energy scheme?

12 Key Components of a Successful Framework? Anchor Load a development or series of buildings which can act as the catalyst for the scheme High Energy Density reduces capital costs for a given energy consumption and increases viability Range of Consumers - differing consumption profiles can deliver a flatter heat demand across the day increases utilisation of LZC heat sources Cost Effective Heat sources what LZC ones are available at low/no costs - any waste heat? A series of Stakeholder Champions people who want the scheme to succeed irrespective of the obstacles encountered A contracting structure that brings this together and can be delivered.

13 Why District Energy the benefits? One of the best ways to deliver substantial carbon savings in an urban area Ideal when there is a source of waste heat If not, there are many potential generation technologies which can be used.. e.g. gas fired CHP By connecting several buildings, economies of scale can be achieved Prevents token projects & greenwash Make sure you look over the fence what else could be connected? An energy generation heart transplant can be made at least once or even twice in the life of the network as new technologies become viable Future proofing - whatever thermal energy sources are available in the future can be plugged into the network If buildings operate in isolation this cannot take place On a whole life cycle costing basis, DE can also deliver significant cost savings Brings stability in a changing legislative environment...

14 Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your scheme National Approach to District Energy

15 Is this a new concept? Government were encouraging local authorities to develop district heating schemes the government is still encouraging local authorities to develop district heating schemes 2015 percentage of heat supplied by networks ~ 2%

16 2010 -> Amber Rudd Secretary of State for DECC (Carbon Connect Launch Event 2015) heat is the Cinderella of the energy world whose time has come to go to the ball

17 Government & Industry Approach in last 5 years Since reformation of Department of Energy (DECC) government has focused on heat in last 4 years Two heat White papers and 10 pages on heat in UK Infrastructure Paper published in January 2015 DECC have a Heat Focus we now have a Heat Infrastructure Team and a Head of Heat Infrastructure Local Authorities are best placed to lead projects and 9.6M awarded to 100 LA s (20% of all in UK) to explore the development of 180 projects. Round 5 of funding has just been launched Independent Consumer Regulation CODES of Practice Sustainable District Heating is on the agenda!

18 The game changer in the next 5 years Municipal Energy Companies? It will be different and challenging with new business models emerging into a sector with very limited experienced resource! UKDEA have carried out detailed analysis to map the potential at 14% of heat in the UK DECC now use this figure as their target The economic climate has changed, many LA s want to retain any benefits from the development of the these schemes for the LA The role of the LA has changed they now have much wider powers There are many authorities already leading the way, i.e. LB Sutton, LB Enfield forming local authority owned companies to take their schemes forward purchasing heat from third parties selling heat to private sector developers This is a brave new world but LA s need to keep in mind why they want to be involved and what are the risks.

19 Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your scheme Example Project Sutton Decentralised Energy Network

20 Local Authorities as Heat Shippers?

21 Innovative New Structures? SDEN Outline Project Structure London Borough of Sutton Opportunity Sutton Ltd Contract with Viridor for heat supply Sutton Decentralised Energy Network (SDEN) Ltd Heat Sale Agreement to Schroders & Felnex Occupiers including customer service standards etc.. Contract for Gas supplies to back up boilers on Felnex Site Contract for Electricity Supplies to Felnex boilers for pumps etc.. Land and Asset Protection Agreements with Network Rail Land agreements for pipework with Viridor/Thames Water - Construction Contract for Network - Operation Contract for Network and Back up Boilers - Residential Customer Services and Metering and Billing Contract

22 Simon Woodward Chairman