West Midlands Regional Energy Strategy

Transcription

1 West Midlands Regional Energy Strategy Engagement Event 6 March 2018

2 Agenda Overview Current Energy Activities - View from the LEPs Black Country Greater Birmingham and Solihull Coventry and Warwickshire Energy Innovation Zones Business Case Development Developing an Energy Innovation Cluster 1030 Break Workshops (facilitated table discussions) Summary and next steps 2

3 Our 3 LEP/WMCA regional energy strategy will be the culmination of over three* years work Devolution deal and formation of the WMCA Green Commission and Energy Capital Climate Change Action Plans Birmingham City Council Coventry City Council Black Country Green Growth Group LEP and Combined Authority Strategic Economic Plans * Actually

4 With funding from BEIS, regional universities, Climate-KIC and the Catapult, five workstreams are converging WM Mayoral Commission on Regional Energy Policy Black Country Mapping and Stakeholder Engagement Energy Innovation Zone Investment Cases Governance and implementation structures (Energy Capital) Consolidation into overall strategy 2018 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Local Industrial Strategy National Industrial Strategy 4

5 Our new Mayor, LEPs and Combined Authority see Energy as key to economic growth The pace of industrial and commercial development roll outs Regional energy infrastructure Speed of new market development for energy-intensive products and services e.g., cars, buildings Competitiveness of industry (industrial energy costs) Attractiveness of the region to skilled workers (domestic energy costs) Breakdown of electricity costs for a medium-sized Black Country manufacturer (November 2017) Renewables and Nuclear investments 26% Levies 1% Transmission system 8% Market management 3% Distribution system 21% Metered units 39% 5 Supplier costs and margin 2%

6 There are fundamental reasons why this needs to be led regionally Local energy resources - fuels - renewables Global energy technologies - readiness - innovations Other regional infrastructure - digital - water and waste - transport Energy market regulation - local structures - national structures Regional energy infrastructure Legacy assets - costs Environment - policy - local concerns Regional geography - climate - physical challenges Key Political control Largely givens Local energy demand patterns - spatial plans - development densities and mix 6

7 We are a diverse region with varying challenges and opportunities, but shared ambitions and optimism Clean air Global, national and local carbon emission targets Low carbon transport Fuel poverty High energy costs for manufacturing Substantial waste streams Commercialisation of innovation Productivity and skills High value manufacturing Specialist foundries and castings Advanced automotive (Tier 1) Aerospace Rapidly expanding JLR Innovation World class universities Catapults ~50,000 jobs; 10,000 companies Energy infrastructure Centre of UK electricity and gas networks and industries 2.1bn GVA (strategic sector) Dense and diverse urban market 6.7bn p.a. energy spend 1.5bn p.a. energy infrastructure 2.5bn p.a. housing Rural context Attractive place to live 7

8 EIZs are geographically-bounded zones encouraging energy systems innovation and investment to meet local needs Local governance addressing local needs while delivering regional and national competitive advantage by deploying emerging technologies and business models Specialist risk vehicles where necessary Dedicated and focused resource Potential regulatory flexes and value capture mechanisms Potential risk funding (investment ahead of demand) via ECO and growth deal(s) Targeting M short-term additional investment across the region 8

9 So we ve created a political structure to support regional leadership in making energy decisions Governs and manages growth deal; business led, like a LEP Board WMCA (Strategic Economic Planning Board) Chair of Energy Capital Board sits on SEP Board Reports into Economic Development Portfolio Supports establishment and funding of EIZs, and represented on governance, but local LAs are in control of the EIZs once established. Energy Capital Board Energy Capital Executive Midlands Engine BEIS Hubs etc South Coventry Local EIZ Partnership Boards Black Country Central Birmingham UK Central EIZ Partnership Boards are democratically accountable to the relevant Local Authority. They procure local energy infrastructure and energy systems innovations competitively and make their own decisions on this to meet their local needs. Energy Capital and the WMCA provide devolved powers, regulatory support, funding and expertise. Full-time roles on WMCA/LEPs payroll, reporting into WMCA structures Working groups with partners, dealing with: Regional energy infrastructure planning Innovation Economic development, incubation and inward investment Energy costs 9 9

10 Proposed responsibilities (Executive governed by Board, working through working groups and partners) Regional strategy delivery EIZ identification, development, support Securing and supervising major funding streams Advising the WMCA on energy infrastructure decisions [Securing and] use of devolved powers Liaison with government and government-sponsored bodies such as Midlands Engine, National Infrastructure Commission, BEIS, Ofgem Ensuring effective integration of energy systems planning into regional infrastructure plans 10

11 Potential working groups (examples only) Strategic energy infrastructure investment and planning Liaison with WPD, NG, Cadent, Ofgem, BEIS Links to spatial plans, transport, waste, environment Innovation WM Innovation Alliance ILCWG (i.e., not duplicating..) Major innovation bids Cluster development and skills Climate KIC developing international bid Partner with relevant bodies (incl. Growth Hubs, universities) Supply chain development and support (e.g., existing ERDF programmes) Energy costs and productivity Analytical/horizon scanning activity working with EEF, others About feeding continuous awareness of market/customer needs into the process 11

12 This is designed to work consistently within wider regional and national frameworks Midlands Energy Activities Facilitating Bodies Delivery Structures Energy Research Accelerator Co-ordination of energy research activity across regional universities BEIS Regional Energy Hub Resource to support LEPs in delivering energy strategies Exchange of best practice Secondments Support Democratically Accountable Local Political Structures Energy Leadership Boards Public-Private-Academic Partnerships, Finance, Strategic Local Governance Executive Delivery Teams Management, delivery and capacity according to local needs Local projects and initiatives 12

13 High-level implementation timeline April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June Mayor and Government West Midlands Combined Authority Agree recommendations Allocate core funding Devolve powers Establish new Energy Capital Board Detail Growth Deal Formally designate EIZs Negotiate Growth Deal with Government ECO and Growth Deal Support for EIZs Growth Company Promotion Identification of further EIZs Individual Pilot EIZs Establish local EIZ partnership boards Detail investment cases Approvals from OFGEM and BEIS Pilot EIZs launched Energy Systems Catapult Refine EIZ model and roll out nationally Capture learning and transfer best practice 13

14 Next steps Individual consultations with potential partners Regional Commission and Strategy launch events 27/28 March Mayoral roundtable for partners and inaugural board meeting Establish working groups and EIZs More information: Matthew Rhodes, Chair

15 Powering Growth: Black Country Energy Strategy Andrew Cripps 6 th March 2018

16 Approach Context for our work Cost of energy District heating and energy from waste PV and battery storage Conclusions / next steps Powering Growth Page 16

17 Context Powering Growth Page 17

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19 What does an energy strategy aim to cover? Resilience: making sure there is enough energy Affordable: supporting local businesses to compete in their markets and reduce consumers fuel poverty Sustainable: moving towards a zero carbon future Identify opportunities: What can be done in the short term that is most economic? What should be planned for in the longer term? How will we take advantage of them? Where are the investment opportunities now and in the future? Powering Growth Page 19

20 The starting point: data Buildings VOA for commercial buildings DECs for public buildings Residential energy from meters at postcode levels Planned growth HQE zones (High Quality Employment) Current businesses Focus here on larger businesses in sectors with higher energy use Previous and ongoing studies District heating / energy from waste Powering Growth Page 20

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22 What does all this tell us? A lot of what I think you all know: Generally built up area relatively spread out domestic energy demands A lot of large roof areas of interest for PV Businesses still along canals and rivers Metals remain a key sector Planned growth areas Mapping is the basis of the analysis that followed Powering Growth Page 22

23 Energy costs Thanks to my colleague Ryan Burrows Powering Growth Page 23

24 Approach In the study we considered the following issues What do we pay for energy? How does it compare to other countries? How does the cost build up? What can be done about it? Not enough time here to cover this except in headlines Powering Growth Page 24

25 Powering Growth Page 25

26 UK China USA Japan Germany Poland India France Italy pence per kwh Average industrial electricity prices in 2016 showing tax component (BEIS) Price excluding taxes Tax Component IEA median We note that tax here is not including the UK green levies Powering Growth Page 26

27 Energy cost split Energy charge 230,885 Distribution 79,227 Levies 125,990 Total 436,102 Powering Growth Page 27

28 What can be done about the cost of energy? Lobby for regulation change? E.g. Germany has a privilege system that reduces costs for energy intensive industry Energy efficiency Demand management Collective purchasing Private wire with DH (later) PV and or Energy storage (later) Powering Growth Page 28

29 District heat and energy from waste Powering Growth Page 29

30 Energy from Waste Electrical generation earns incentives Heat take off possible Dudley & Wolverhampton Municipal Waste Incinerators New actors in market based on industrial waste - Mostly in Sandwell Powering Growth Page 30

31 Dudley EfW Reverts to Council control 2023 DH Network to town centre - Council buildings - Dudley College - Private businesses - Council residential Powering Growth Page 31

32 Electrical private wire Option to provide industry with lower price electricity Needs extensive private wire network - Costs - Operation & maintenance - Regulation: Class exemption Ownership of wire Generation limit LA restrictions EfW Plant Powering Growth Page 32

33 Wolverhampton EfW Reverts to Council in 2023 City Centre - Council & University buildings. - Other connections Molineux road en route. - Potential expansion south within City centre. Council & University major electrical connections Powering Growth Page 33

34 Discussion on DH / EFW Other schemes could also be built Will people join in? Can we make them? Who will fund? Powering Growth Page 34

35 PV and energy storage Powering Growth Page 35

36 Photovoltaic power PV panels are appearing everywhere Field based arrays are starting to be built without subsidy They will be widespread in the future Powering Growth Page 36

37 Building based makes sense here Powering Growth Page 37

38 Powering Growth Page 38

39 Options with no capital Some businesses are now offering to do this for free They propose to Survey your building and loads Install panels, Become your energy supplier Worth a look? They have economies of scale, experience But they are also making money Powering Growth Page 39

40 Optimum sizing Any single business will right-size the PV array But this will not use all the space resource Black Country might consider using much of the space 500 buildings with 2500 m 2 arrays ~ 180 MW ~ 180 million investment Powering Growth Page 40

41 Future Falling costs will likely see everywhere Thin film PV will help when roof is not strong enough Need to work with DNO on connections and storage Powering Growth Page 41

42 Electrical Storage Powering Growth Page 42

43 Summary for battery storage Cost is still relatively high for everyone to use But may be a good opportunity today for some specific users who can take advantage of income from electricity services Be wary of changing incentives if everyone tries to store at night it won t be cheaper any more Potential interface and complexity with electric vehicles Powering Growth Page 43

44 Next steps Powering Growth Page 44

45 Conclusions / next steps Feed into this workshop Seek active engagement with WPD to address connection challenges Develop plans and policy approach for Energy from waste and other district heating Consider additional local support for energy efficiency, collective buying and demand management Consider major fund to invest in electrical infrastructure, rooftop PV and battery storage Powering Growth Page 45

46 GBS LEP energy network opportunities Birmingham: Greater Icknield & Icknield Port Loop Langley & Peddimore Selly Oak Tyseley Others linked to major developments Solihull: Solihull Town Centre UK Central Hub Others opportunities were identified during masterplanning study: Cannock East Staffordshire

47 Coventry & Warwickshire Energy Innovation Zone Sarah Watson Coventry City Council

48 The Zone

49 The potential

50 The Need An improved power supply is fundamental to the growth of the Energy Innovation Zone

51 Coventry & Warwickshire Energy Innovation Zone

52 June 2011

53 Thank you June 2011

54 Business Cases for Energy Innovation Zones February 2018 Business and Investor Advisory

55 Aims To provide an overview of current status and next steps Agenda 1 Aims and objectives of the project 2 Policy targets, and planning objectives 3 The EIZ opportunities UK Central, Solihull Tyseley and Central Birmingham South Coventry Black Country 4 Energy demand estimates 5 Energy infrastructure options: two scenario approach 6 Key questions West Midlands Combined Authority: Energy Innovation Zones 55

56 Energy Innovation Zones in West Midlands Aims and objectives of the project Analysis is required to understand future infrastructure need at each EIZ For each EIZ an estimate of future energy demand will need to be calculated Identify energy infrastructure to support local priorities and EIZ Estimate the cost of future infrastructure under two scenarios Draw recommendations on the combination of infrastructure measures Prepare the business case and identify the benefits to those located at an EIZ Identify the powers that could be devolved to deliver new infrastructure Final policy recommendations and evidence to WMCA West Midlands Combined Authority: Energy Innovation Zones 56

57 Energy Innovation Zones in West Midlands Opportunities The West Midlands is in a prime position to deliver low carbon infrastructure EIZs are seen as an opportunity to deliver new energy infrastructure, corresponding to local priorities This could be achieved through devolved powers to WMCA Aim of the EIZ will be to encourage competition and infrastructure supply A key aim of the EIZ will be to foster new low carbon technologies and deliver infrastructure ahead of need If successful EIZ development could be rolled-out across the nation Benefits Faster delivery of energy infrastructure Low carbon infrastructure delivered ahead of need Lower system and avoided infrastructure costs Local economic priorities are taken into account Positive jobs and GVA impact West Midlands Combined Authority: Energy Innovation Zones 57

58 Energy Innovation Zones in West Midlands Stage Description Output(s) Status 1 Estimate future development within each EIZ 2 Establish future energy demand in each EIZ 3 Assess the infrastructure required to meet future demand - DROP for each EIZ - Sq.m by building type - Based on DROP inputs, estimate thermal and electrical demand measured in GWh and MW of installed capacity - Demand to be based on good industry practice e.g. CIBSE Guide F. - Energy load curves based on internal data - Local planning guidance an important input to understand local energy targets. In addition, WMCA policy on future energy policy. - Technologies include: solar PV, solar thermal, biomass, wind, GSHP/ASHP and DH - Infrastructure scenario 1): ambitious target to deliver low carbon generation and energy efficient buildings - Infrastructure scenario 2): delivery of low carbon generation and energy efficient buildings, inline with current trends and published targets Draft Draft Under review West Midlands Combined Authority: Energy Innovation Zones 58

59 Energy Innovation Zones in West Midlands Stage Description Output(s) Status 4 Develop a pipeline of projects Estimate capital and lifecycle spend to deliver infrastructure Estimate GVA and jobs impact following new infrastructure investment Identify regulations to be potentially devolved and support WMCA Provide policy recommendations to WMCA along with evidence from the study - Two options which identify the type of energy infrastructure and scale to be delivered. - The main types of infrastructure expected to be delivered include: district heating; PV; GSHP; biomass CHP. In addition, an estimate of the required DH and electrical network to support. - Timeline of the expected roll-out of new infrastructure. - Estimate the cost of two infrastructure options. - The costing analysis will be based on published and internal benchmark data. - Estimate GVA and jobs impact of new infrastructure spend, direct and indirect effects. - Presentation of the devolved regulatory powers which could support competition and deliver infrastructure, ahead of need. - Draft policy recommendations with supporting evidence for WMCA. Under review Under review Under review Under review Under review West Midlands Combined Authority: Energy Innovation Zones 59

60 Energy Innovation Zones in West Midlands Tyseley and Central South Coventry Black Country Birmingham - Residential - Commercial - Industrial - Public Review Review Review Review - kwh / sq.m (heat) - kw / sq.m (heat) - kwh / sq.m (electricity) - kw / sq.m (electricity) Review Review Review Review Planning and energy policy On-site generation (renewable/non-renewable) Review Review Review Review Off-site generation (renewable/non-renewable) Review Review Review Review Electricity supply infra Review Review Review Review Heat supply infrastructure Review Review Review Review Review Review Review Review Renewable generation costs Small-scale renewable costs Non-renewable generation costs Energy supply infrastructure costs Review Review Review Review Review Review Review Review Stage 4 generation costs Review Review Review Review Stage 4 infrastructure costs Review Review Review Review Stage / data Data/Output UK Central Stage 1: EIZ development roll out plans covering no. units / sq.m floor space - residential sq.m benchmarks - historic mix of residential build Output: Development roll-out plan Stage 2: energy demand -CIBSE Guide F electricity and heat benchmarks kwh/sq.m - Load curves kw/sq.m Output: energy demand forecast (MWh / MW) Stage 3: energy infrastructure options. Scenario 1: ambitious Scenario 2: steady state Output: two scenarios for energy infrastructure Stage 4: estimate capital and lifecycle cost of two energy infrastructure scenarios Output: cost estimate of energy infrastructure scenarios Stage 5: jobs and GVA impact Output: two scenario estimates of jobs and GVA impact Stage 6: identified regulations to support infrastructure development Stage 7: Recommendations to WMCA Review Review Review Review Review Review Review Review Review Review Review Review West Midlands Combined Authority: Energy Innovation Zones 60

61 MWh heat demand Energy Innovation Zones in West Midlands Part 1) EIZ future development estimate: UK Central: '1) Growth and Infrastructure Plan' Birmingham & Tysely: '2) Adopted Development Plan' Black Country: '3) DY5 Innovation Zone, 4) i54, 5) Wolverhampton Business Park, 6) Lupus Park, 7) Walsall Council' Coventry: '8) Coventry and Warwickshire Gateway, 9) Whitley South Development Plan' Supplementary data collected: No. residential units, floor area (sq.m) commercial and industrial development' historic mix of West Midland housing type (%) and approximate floor areas of residential by type (sq.m). Output: development roll-out plan ('DROP') by EIZ Part 2) Energy demand: - CIBSE Guide F - Energy load curves for residential, commercia (various)l and industrial buildings, Arup Internal Outputs: load curves (MW), electricity and heat 200, , , , , , , , , , Year Commercial Offices Transport Recreational Recreational Domestic Hotels Commercial Offices Industrial Commercial Offices Industrial [Insert] Domestic Industrial Retail [Insert] Part 3) Energy infrastructure options: - Review of existing policy on energy targets and carbon - Reflect the requirements for onsite generation into the EIZ - Identify the bespoke mix of energy infrastructure for each EIZs, reducing energy demand and encouraging local supply. - Quantify the generation and capacity required to support future development Output: two scenarios for EIZ development covering the suitable technologies such as: - Roll-out of projects to support future demand in each EIZ - Infrastructure roll-out measures in MW of capacity and km of distribution network. Part 4) cost estimation (capex / opex MW): Renewable generation: Arup/BEIS (2016) generation and technical cost data Small-scale renewables: PB Power/BEIS (2015) generation and technical cost data Non-renewable generation: LeighFisher/BEIS (2016) generation and technical cost data Energy supply infrastructure: electricity, district heating and gas network infrastructure costs. Arup internal & WPD. Output: capital and lifecycle cost estimate by EIZ Part 5) GVA and jobs impact: - Estimated impact based on devex, capex and opex estimated under part 4) - Positivie impact on GVA, direct and indirect jobs impact, result of increase in ouput from manufacturer, developers and installers (direct) - additional supply chain effect (indirect) - cost components adjusted to reflect domestic supply e.g. planning, grid connection sourced in UK. Output: capital and lifecycle cost estimate by EIZ Part 6) regulations and powers to be devolved Identification of powers and regulations to be devolved and deliver req. infrastructure. Output: draft and final recommendations West Midlands Combined Authority: Energy Innovation Zones 61

62 Energy Innovation Zones in West Midlands Policy, key themes The use of a combination of on-site and off-site sources of energy. Promotion of decentralised energy and connection to low carbon district heating. Incorporation of zero and low carbon generation into buildings, targeting between 10% and 20% of onsite electricity demand. Technologies identified Solar / solar thermal Wind (appropriate areas) Biomass heat Ground source and air source heating Charge points for electric vehicles West Midlands Combined Authority: Energy Innovation Zones 62

63 Energy Innovation Zones in West Midlands: UK Central Local policy Promotion of district, low carbon and renewable energy schemes Major developments to connect to or contribute toward district energy networks Council has an energy hierarchy which includes: Energy efficiency measures Prioritise decentralised energy Energy from renewable or low carbon sources Electric vehicles connection points The Hub development Source: The Hub, Framework Plan (2017), pg.22 West Midlands Combined Authority: Energy Innovation Zones 63

64 Energy Innovation Zones in West Midlands: UK Central UK Central, Development roll-out 000/sq.m Type Commercia l Sq.m Transport Sq.m Recreationa l Sq.m Domestic Sq.m Hotels Sq.m Industrial Sq.m Grand total Sq.m Source: The Hub, Framework Plan (2017) Incl. Birmingham Business Park, JLR Logistics Operation Centre, National Exhibition Centre and Arden Cross Site West Midlands Combined Authority: Energy Innovation Zones 64

65 GWh electricity demand GWh heat demand Energy Innovation Zones in West Midlands: UK Central Forecast heat demand Year Commercial Offices Transport Recreational Domestic Hotels Industrial Retail Forecast electricity demand Based on the available development roll-out data, Arup has estimated heat and electricity demand (GWh) and capacity (MW) Heat demand is forecast to grow from 7GWh to 180GWh over the period 2020 to 2035 Electricity demand is forecast to grow from 3GWh to 80GWh over the period 2020 to Year Commercial Offices Transport Recreational Domestic Hotels Industrial Retail West Midlands Combined Authority: Energy Innovation Zones 65

66 EIZ in West Midlands: South Coventry Local policy Council targeting opportunities for decentralised energy Development encouraged to take advantage of DE Technologies include PV, solar thermal, GSHP/ASHP and where fuelled by biomass or biogas district energy with CHP All major developments classed as >10 dwellings for residential, or 1,000 sq.m for non-residential, a 10% of the development s energy requirements should be provided on-site. West Midlands Combined Authority: Energy Innovation Zones 66 Coventry and Warwickshire Gateway Development Source: Coventry and Warwickshire Gateway, Whitley South Technology Campus, pg. 17.

67 EIZ in West Midlands: South Coventry South Coventry, Development roll-out 000/sq.m Type Industrial Sq.m Retail Sq.m Leisure Sq.m Grand total Sq.m Source: Whitley Business Park and [text] West Midlands Combined Authority: Energy Innovation Zones 67

68 GWh electricity demand GWh heat demand EIZin West Midlands: South Coventry Forecast heat demand Year Industrial Retail Recreational Forecast electricity demand Based on the available development roll-out data, Arup has estimated heat and electricity demand (GWh) and capacity (MW) Heat demand is forecast to grow from 3GWh to 27GWh over the period 2020 to 2035 Electricity demand is forecast to grow from 1GWh to 20GWh over the period 2020 to Year Industrial Retail Recreational West Midlands Combined Authority: Energy Innovation Zones 68

69 EIZ in West Midlands: Black Country Local policy Use of on-site sources, off-site sources or a combination of both should be considered. CHP for large development. All non-residential developments of >1,000 sq.m floor space and all residential developments of >10 units must incorporate generation to meet 10% of residual energy demand onsite Technologies include passive solar energy, solar thermal panels, photovoltaic panels and wind. Business and enterprise innovation zone development Source: DY5, pg.1 West Midlands Combined Authority: Energy Innovation Zones 69

70 EIZ in West Midlands: Black Country Black Country, Development roll-out 000/sq.m Type Commercia l Sq.m Industrial Sq.m Transport Sq.m Grand total Sq.m Source: Dudley Council, i54 Online, Wolverhampton Business Park, Canmoor and Walsall Council West Midlands Combined Authority: Energy Innovation Zones 70

71 GWh electricity demand GWh heat demand EIZin West Midlands: Black Country Forecast heat demand Year Commercial Offices Industrial Transport Forecast electricity demand Based on the available development roll-out data, Arup has estimated heat and electricity demand (GWh) and capacity (MW) Heat demand is forecast to grow from 20GWh to 80GWh over the period 2020 to 2035 Electricity demand is forecast to grow from 12GWh to 60GWh over the period 2020 to 2035 Year Commercial Offices Industrial Transport West Midlands Combined Authority: Energy Innovation Zones 71

72 EIZ in West Midlands: Tyseley and Central Birmingham Local policy New developments expected to incorporate low / zero carbon forms of energy generation Connect to low and zero carbon energy generation networks.. Developments of >200 residential units and nonresidential developments >1,000 sq.m. consider CHP generation Technologies include: PV, wind, biomass heat or GSHP. Low carbon initiatives include electric vehicles and waste management. Tyseley and Central Birmingham Source: Greater Birmingham and Solihull LEP West Midlands Combined Authority: Energy Innovation Zones 72

73 EIZ in West Midlands: Tyseley and Central Birmingham Tyseley and Central Birmingham, Development roll-out 000/sq.m Type Commercia l Sq.m Transport Sq.m Recreationa l Grand total Sq.m Sq.m ,099 1,221 1,343 1,465 1,587 1,709 1,709 1,709 1,709 1,709 Source: Adopted Birmingham Development Plan 2031.pdf West Midlands Combined Authority: Energy Innovation Zones 73

74 GWh electricity demand GWh heat demand EIZin West Midlands: Tyseley and Central Birmingham Forecast heat demand Year Commercial Offices Transport Recreational Forecast electricity demand Based on the available development roll-out data, Arup has estimated heat and electricity demand (GWh) and capacity (MW) Heat demand is forecast to grow from 46GWh to 215GWh over the period 2020 to 2035 Electricity demand is forecast to grow from 80GWh to 375GWh over the period 2020 to 2035 Year Commercial Offices Transport Recreational West Midlands Combined Authority: Energy Innovation Zones 74

75 Energy Innovation Zones in West Midlands Approach: - Review of existing policy on energy targets and carbon - Reflect the requirements for onsite generation into the EIZ - Identify the bespoke mix of energy infrastructure for each EIZs, reducing energy demand and encouraging local supply. - Quantify the generation and capacity required to support future development Scenario 1: ambitious Ambitious target to deliver low carbon generation and energy efficient buildings Use of carbon intensive generation is restricted e.g. conventional gas boilers and CHP for heating Significant increase in new technology deployment such as batteries and home charging points for electric vehicles Heating and electricity is broadly supplied via solar PV, wind, individual and district heating heat pumps Levels of future energy efficiency in new build, greater than historic trend Scenario 2: steady state Delivery of low carbon generation and energy efficient buildings inline with current trends and published targets Carbon intensive heat and electricity generation is continued to be utilised for the forecast period Limited uptake in new technology deployment such as batteries and home charging points for electric vehicles Heating and electricity is supplied via a combination of solar PV, wind, individual heat pumps and district heating Levels of energy efficiency in new build follows the historic trend West Midlands Combined Authority: Energy Innovation Zones 75

76 Energy Innovation Zones in West Midlands Three questions: What are your key priorities for energy innovation? e.g. electric vehicles, hydrogen networks, batteries. What devolved powers would facilitate the roll-out of new energy infrastructure and technologies? What benefits do you expect to be delivered by an EIZ? West Midlands Combined Authority: Energy Innovation Zones 76

77 Energy Innovation Zones in West Midlands Thank you West Midlands Combined Authority: Energy Innovation Zones 77

78 Climate KIC: Support for Energy Capital t Jacqueline Homan Birmingham 6 March 2018

79 Entrepreneurship Programme Pre-seed/ ideation Test business model Customer developmen t First deal Stage 1 Stage 3 Stage 2 Ideation Acceleration Climate-KIC Accelerator Climate Launchpad Greenhouse Expert coaching and workshops Pitch stage Mentoring and networking Working space Access to Climate-KIC partners Financial support Find out more:

80 Greenhouse What is Greenhouse? A pre-incubation programme for students and professionals to explore the entrepreneurial potential of climate positive business ideas. Up to 6 months support, 2500 in funding and a full range of support services. Hosted in 12 cities around Europe.

81 Climate Launchpad What is Climate Launchpad? The world s largest cleantech ideas competition. Climate Launchpad s mission is to unlock Europe s cleantech potential that addresses climate change. 1,000 ideas pitched each year from 35 countries around the world.

82 Climate Launchpad Competition process: Competitive applications via website National selection of 7-20 promising teams Two day national Boot Camp Six follow-up modules + coaching National finals: top-3 competes in Grand Final Grand Final: 6 theme awards, top-3 prize money, top-10 access to accelerator program

83 ClimateLaunchpad "The world's leading green business ideas competition" Participating countries Total: 2606 Number of business ideas submitted Water Management Waste Management Other 15m total funding Funding and revenue Of 728 startups enrolled: 111 received external funding 42 Total generated revenue revenue 6,150,000 Sustainable Transport Sustainable Food Renewable Energy 111 startups Funded CLP startups by sector Green Buildings Land Management

84 Accelerator Our unique Accelerator programme offers structured business and commercial support to European startups in the new climate economy: A real-world business school for entrepreneurs; Rapid development for maximum climate impact; It helps to turn great ideas into successful climatepositive businesses.

85 Accelerator: A Three-Stage Programme Stage 1 Fundamentals Grant: up to 20,000 Stage 2 Validation Grant: up to 25,000 Stage 3 Delivery Grant: up to 50,000 Find your market niche, develop a financial model and figure out how to make money and scale your business. Duration: 3 6 months Are you solving realworld problems? Talk to potential customers and verify your business assumptions. Duration: 3 6 months Get your business ready for launch. Find early adopters and customers, development partners or investors. Form necessary partnerships and prepare for future investment rounds and scaling. Duration: 3 9 months Find out more:

86 Where the Accelerator is available 24 countries and 32 cities An opportunity to work with partners and start-ups outside your local ecosystem.

87 EIT Climate-KIC Accelerator Programme more than 450 more than 1,000 startups supported million raised Ideas incubated Capital attracted m m m m Leverage ratio Spend by CKIC m m

88 v Our start-ups are taking off Top six earners by investment raised Lilium Aviation v 87M Thermondo v 50.5M Tado v 45.2M Volocopter v 30M Ynsect v 12.9M unu v 7.5M

89 Connected Clusters Three year project beginning soon University of Birmingham project lead Edinburgh, London, Frankfurt, Valencia and Birmingham are the cities involved Exploring the tools to accelerate growth of climate innovation clusters Working with policy, regulation, business-to-business interaction Energy Capital will be the key focus for Birmingham

90 Workshop Questions 1. Focus on Energy Capital Working Groups: What is already happening and what working groups already exist? What should the new working groups be doing and what should their scope be? 2. Focus on EIZs: What are your key priorities for energy innovation? e.g. electric vehicles, hydrogen networks, batteries. What devolved powers would facilitate the roll-out of new energy infrastructure and technologies? What benefits do you expect to be delivered by an EIZ? 90