Planning for urban energy. Sarah Cary PhD February 2017

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1 Planning for urban energy Sarah Cary PhD February 2017

2 Background Head of Sustainable Places at British Land Broadgate, Regents Place, Paddington, Canada Water PhD in Planning from the Bartlett in 2015 on how cities, and in particular planning processes, can integrate energysharing networks into central urban areas and large scale regeneration 2

3 What is District (or decentralised) Energy? District energy systems are a highly efficient way to heat and cool many buildings in a given locale from a central plant. They use a network of underground pipes to pump steam, hot water, and/or chilled water to multiple buildings in an area. 3

4 Policy 5.5 Decentralised energy networks Strategic The Mayor expects 25 per cent of the heat and power used in London to be generated through the use of localised decentralised energy systems by 2025 LDF Preparation Boroughs should develop policies and proposals to identify and establish decentralised energy network opportunities. Boroughs may choose to develop this as a supplementary planning document... Boroughs should... c. develop energy master plans for specific decentralised energy opportunities... d. require developers to prioritise connection to existing or planned decentralised energy networks where feasible. 4

5 Summary Delivering District Energy Not easy. Who owns, who builds, who operates an unregulated, expensive, and monopolistic infrastructure in a complex urban setting? Keys to Success: 1. Leverage spatial and land use planning and development control. 2. Collaborative, transparent approach to procurement and long term utility partnership. 3. Political awareness and support. 5

6 Benefit Warm homes, cool commercial spaces with 25% reduction in cost to end-user 30% reduction in emissions -> zero carbon emissions (fuel dependant) Improved air quality Long term fuel flexibility Smart energy grid 6

7 Government policy tools such as regulation, incentives, capacity building are not sufficient. Creating new district energy systems requires integration with land use planning, politics, and collaborative negotiations at a local level. CASE STUDIES 7

8 Case studies 8

9 London, Elephant and Castle Policy entrepreneurs amidst conflict and change Masterplan (2004) Zero carbon growth Developer obligations Public led concession procurement (2008) Recession and re-planning Withdrew from negotiations (2011) Lend Lease now procuring for smaller area. 9

10 1. Planning s focus on specific locations: Creating certainty for collaboration Local Plan process In spatial plans: concept and location In land use plans: energy masterplanning Suggest pipe routes Identify energy centre location(s) Provide technical guidance Pipes in the ground requires spatial coordination. Roads, bridges, development timing. 10

Barcelona, Districlima Extending urbanisme in 22@ In the end the problem is not an energy problem to be solved it is an urbanism problem that has to be solved.

11 Barcelona, Districlima Extending urbanisme in In the end the problem is not an energy problem to be solved it is an urbanism problem that has to be solved. How to develop the network, how to open the streets to install all the pipes and link the programme to urban development timelines. Technical Director, Barcelona Energy Agency 11

12 2. Planning s capacity to regulate: Resources for others to negotiate and bargain The 22@ Infrastructure plan, a SPD to the area masterplan, identified land for energy centre, piperouting, and technical standards for waste, telecoms and energy connections for all development Matched infrastructure with land use plans Supplemented with incentives and levies in development control Created customers for negotiation with utilities companies gives them certainty to invest 12

13 Burlington, Vermont, USA The challenge of moving from talking to negotiating We manage a process that came up with a bunch of these ideas... Our office is unique in the city government in that we are largely independent of the mayor... Head of Planning, City of Burlington Wood fired electricity station downtown Political unwillingness to intervene in utilities Municipal authority and planning commission are structurally separate 13

14 3. Institutional structures affect the capacity of planning Legal capacity, history, traditional ways of working The content of plan and the ability of planning organisations to initiate governance networks for DHC e.g. the range of topics that can be controlled through development approval Relationships with others, particularly local politicians and alignment with local government activity 14 Planning s relationship with political leaders structures it s ability to support new energy infrastructure

15 Toronto, Deep Lake Water Cooling Hierarchy in the shadow of the network 15

16 4. It helps to control the energy source, and to have the capacity to lead the procurement Local government control over a fuel source Finding a friendly large-scale infrastructure funder Regular forum for talking about district energy, separate from negotiating about cost and contracts Previous experience with district energy Positive negotiations, ideally supported with cheap fuel 16

17 Lerwick, Shetland Where actors wear many hats If you do a sort of Shetland plc calculation it probably stacks up Local Councillor and Trustee 17

18 5. Importance of local elected officials Successful cases had supportive politicians over time Searched out finance, convene discussion, provide authority to policy, intra-departmental bargaining I ask, what is a MUSCO? How can I explain this to residents? Does it smell?...what is the benefit to the Council? Local Councillor, Southwark New utilities are a big deal - they need political support 18

19 THOUGHTS ON LONDON EXPERIENCE 19

20 Broadgate, Canada Water London Policy goals established No political leadership technical discussions only This is new and difficult for colleagues to understand We re not sure how to sell it to commercial customers 20

21 Recommend - GLA Awareness raising sessions local councillors and key stakeholders. Focussed around opportunity areas More than one keep talking Consider managing prices establish consumer board, work with current providers? At the very least, broker template contract arrangements for large developments 21

22 Recommend local authorities Integrate into local plan and any land use masterplans locate site for energy centre Identify first pipe routes and physical constraints Coordinate with other utilities Mandate connection and purchase within defined area Olympic example 22

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24 BACKUP SLIDES 24

25 Research structure District heating & cooling Environmental policy goal Network governance Institutional context Tools and skills available to planning 5 case studies 3 delivered 2 attempted schemes 33 interviews In-depth 25

26 Planning Typology Structure and capability of local government Barcelona Napoleonic urbanism tradition Powers defined in national law Mix of control between city, metro and state; dual political / executive structure with strong mayoral oversight Partial ownership of waste incineration Burlington Land use zoning Fiscal federalism: national dictate capability of local Mayor- council form of government Organisational boundaries between planning and management Partial ownership of local electricity generation and distribution Lerwick British Powers defined through national legislation Council committee system Ownership of waste incineration London British Powers defined through national legislation Mix of control between borough, mayo; council committee system No utility ownership or control Toronto Metropolitan land use management Metro constrained by provincial legislation and funding Mayor-led ranked committee system Control electricity distributor, water company and district heating 26

27 Barcelona Burlington Lerwick London Toronto Fuel Relationship to other fuels History with DHC Heat from waste City mandate that price from Very minor one small incineration. Existing. DHC network is cheaper than scheme. Low cost. Municipal reference case. Significantly influence. cheaper than fuel oil. Gas CHP; purpose built. Heat from wood incineration. Low cost. Municipal influence. Heat from waste incineration. Low cost. Municipal control. Gas, then biomass CHP. To be constructed. Lake cooling. Free and renewable. Municipal influence. Also gas GHP; purpose built. Gas only recently arrived. Not that cheap for domestic, unclear if DH cheaper for institutional. No gas. Cheaper and better than electric boilers and radiators. Confused and changed through project. Unclear if DHC cheaper. Gas cheap. Electricity prices rising fast. Therefore fixed price cooling attractive. None. Recent utility crisis reduced preference by voters for city to get involved in infrastructure. None. None. TDHC experience. Councillors & customers understand the idea. Customers perceived DH reliable if expensive. 27

District Heating. Local knowledge, global expertise

District Heating. Local knowledge, global expertise District Heating Local knowledge, global expertise Understanding the challenge In the UK, electricity is typically generated at large power stations remote from the areas they supply. The remote location