NEDO Smart Communities Technology Deployment. Matt Roberts Director of Asset Management Wigan and Leigh Housing.

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1 NEDO Smart Communities Technology Deployment Matt Roberts Director of Asset Management Wigan and Leigh Housing.

2 We will double our emissions in the next five years because we are doubling our traffic. But if preserving the environment means stopping poor people flying so only the rich can fly, then screw it. Climate Change Question of attitudes Our generation has inherited an incredibly beautiful world from our parents and they from their parents. It is in our hands whether our children and their children inherit the same world.

3 Closer to home Almost 3000 people die each year from problems linked to fuel poverty such as respiratory or cardiovascular disease. It is said the problem is getting worse as energy costs Hills Report (interim)

4 Who are NEDO? New Energy Technology Development Organisation Gov t R and D Promotion of R and D in energy, environmental and industrial technology. Annual budget $2.4billion Smart Communities projects in Spain, France, Hawaii, New Mexico, China and Japan.

5 Why Greater Manchester? March strategic partnership for a Low Carbon Hub Commitment to fast-track the delivery of domestic renewable heat projects. Pioneer City status has opened up funding opportunities Smart Communities Project excellent opportunity for both GM and NEDO

6 Fabric First Decent Homes and investment programmes Subsidy and grant CESP, CERT and ECO Smart Asset planning

7 Behavioural Change Better information, education and awareness to home occupiers Innovative and costeffective incentives Support and reinforce energy saving decisions

8 Domestic Renewable Energy Integrating Renewable Heat Strategy into GM s Climate Change Implementation activities Social Phase out of Housing fossil fuels Sector is key Pilot key technologies to identify optimal solutions Identify business models to accelerate deployment of renewables. Must address fuel poverty

9 Route to Market 1 in 5 of all UK homes are social housing Ability to deliver at scale, over 4m homes Sector use of asset management plans Commitment to carbon reduction Commitment to training and employment Opportunity to stimulate the markets

10 ALMO Involvement Government to Government programme Local Authority Owned stock Wigan and Leigh Housing and Northwards Housing WALH management of 22,654 dwellings biggest social housing stock in Greater Manchester Northwards - 13,713 Manchester City Council homes

11 NEDO / GM Smart Communities Pilot

12 Who does what.

13 Current Electricity Market Dominated by energy consumption with no trading in demand reduction or energy balancing. In the US and the UK a new market is emerging where consumers who decrease their energy demand can earn money from the saved energy by electricity network operators. Nega watts is an emerging term for measuring the amount of energy saved

14 Negawatt power is a theoretical unit of power representing an amount of energy (measured in watts) saved. The energy saved is a direct result of energy conservation or increased efficiency. As electricity cannot be stored demand and generation are real time. Bids and offers lodged up to ½ hour beforehand. A negawatt market can be thought of as a secondary market, in which electricity is allocated from one consumer to another consumer within the energy market. large users of energy lower their usage in return for compensation, which helps take pressure off the grid

15 Commercial Application Large scale commercial facilities with many different energy devices and storage systems are experienced in demand response Domestic storage abilities are small consider aggregation major potential in the UK where dwellings account for some 30% of the total UK energy market

16 What is the Pilot? Trialling a mix of state of the art Air Source Heat Pumps and Solar Thermal panels with heat stores in dwellings. Energy Management ICT platform to manage these heat generators and stores. Aggregate usage of electricity and make up negawatts flexibly and efficiently Management of peaks and troughs from individual dwellings

17 Energy Balancing Concept ICT Energy Management System Demand on grid smoothed Energy ASHP saved and Thermal is measured Store and controlled traded through DNO EMS

18 Time scales Dec 2012 signed Letter of Intent Dec 2012 Workshop in UK for Japanese companies January 2013 procurement briefing in Japan May 2013 appointment of consortium June 2013 commencement of feasibility April 2014 commencement of pilot demonstration project

19 Smart Communities - Potential WALH 22,500 houses, 19,000 heating replacements between 2017 and 2030 so 57+m available from Asset Investment Plan United Kingdom social landlords 4,000,000 dwellings (potentially 3,360,000 between 2017 and 2030: 10,000m GM social landlords - 260,000 dwellings, potentially 210,000 between 2017 and 2030: 630m+

20 Risks Still expensive to install and run Space and layout Distribution system Customer culture / behaviours Poor PR Impact on network

21 Social Housing Strategic Fit Climate change and low carbon Energy prices and fuel poverty Economic Growth Image and reputation Asset Management Financial

22 Opportunities Reduce reliance on fossil fuel. Help address fuel poverty. Stimulate the renewable technology market Create green jobs and training opportunities Address behavioural change through energy management Provide an income stream to support further low carbon projects. Provide more certainty in Asset Planning

23 Thank you