Fergus Ewing MSP. Minister for Energy, Enterprise & Tourism

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2 Fergus Ewing MSP Minister for Energy, Enterprise & Tourism

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4 Mike Thornton Chair of Expert Commission on District Heating

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6 CHP and District Heating developing a community role Dave Gorman and David Somervell, University of Edinburgh Social Responsibility and Sustainability

7 Old carbon intensive ways need to go

8 Decentralised Energy: UoE invested 12million in CHP m Grants + 7m 7% Loan Repaid by 2010 Cut 8,500 tco 2 /yr 1.5m saving/year 2005: 1.6MWe CHP engine for George Sq 2004: 2.7MWe CHP engine for King s Bldgs 2003: 526kWe CHP engine for Pollock Halls

9 Pollock Halls of Residence in 2003

10 526kWe engine lowered into JMCC

11 The King s Buildings in 2004

12 1,730kWe generator craned into KB

13 George Square / Central Area in 2005

14 1,603kWe engine + Trigeneration GE Jenbacher 612 Engine

15 plus a 75 cubic metre Thermal Store

16 and a 600kW Absorption Chiller

17 George Square: Trigeneration

18 Heat Map = DH loads = Gas Htg = Electric Htg

19 Power Map = GS Private = H/P Private = Grid Elec

20 LRC / EDC / UoE / Citigen Plan 1994? Partly realised 2005/14

21 Prospect for mutual benefit at Little France 1MWe CHP serves NRIE+NMS

22 The University Edinburgh is

23 Experienced in developing CHP / DH schemes Ambitious to develop other University projects Committed to collaborate with our community Open to opportunities to deliver public good Seeking strategic fit, governance and leadership Aware of significant organisational challenges

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25 Aberdeen Heat & Power (AH&P) Janice Lyon - Director 29 th April 2014 Leadership Event on Heat and District Heating Aberdeen Heat & Power Delivering Affordable Warmth.

26 Aberdeen Heat & Power (AH&P) Background Company set up in 2002 as independent not-for-profit company, to develop and manage CHP schemes for the benefit of the people of Aberdeen. Focus on multi storey blocks and adjacent Council buildings Aims: Deliver affordable heat to hard to heat properties Reduce fuel poverty Reduce Aberdeen City Council s carbon footprint Aberdeen Heat & Power Delivering Affordable Warmth.

27 Results to date. Reduced fuel poverty Through provision of affordable heat heating costs per household have reduced by up to 50%. No-one with new heating now in fuel poverty Reduced carbon emissions Compared to electric heating district heating from CHP reduces domestic carbon emissions by 40% Reduced in operating costs and carbon emissions from public buildings Improved standards of housing Multis are much warmer Reduced turnover Eliminated dampness Improvements in health Much reduced level of complaints Aberdeen Heat & Power Delivering Affordable Warmth.

28 Developments to date We have had a steady and continuous development programme since So far: 28 of the 59 multis have new affordable heating, plus 3 low rise sheltered housing schemes and 12 public buildings We are currently on-site to supply heat to 11 more multis completion due April 2015 Aberdeen Heat & Power Delivering Affordable Warmth.

29 Stockethill Aberdeen Heat & Power Delivering Affordable Warmth.

30 Stockethill Hazlehead Aberdeen Heat & Power Delivering Affordable Warmth.

31 Seaton Stockethill Hazlehead Aberdeen Heat & Power Delivering Affordable Warmth.

32 Seaton Stockethill Hazlehead Aberdeen Heat & Power Delivering Affordable Warmth.

33 Seaton Stockethill City Centre Hazlehead Aberdeen Heat & Power Delivering Affordable Warmth.

34 = Current Projects Seaton Stockethill City Centre Hazlehead Aberdeen Heat & Power Torry Delivering Affordable Warmth.

35 = Current Projects = New Projects Tillydrone Seaton Stockethill Cairncry City Centre Hazlehead Aberdeen Heat & Power Torry Delivering Affordable Warmth.

36 = Current Projects = New Projects = Potential 2-5 years Tillydrone Seaton Stockethill Cairncry City Centre Hazlehead Aberdeen Heat & Power Torry Delivering Affordable Warmth.

37 = Current Projects = New Projects = Potential 2-5 years Tillydrone = Long term Seaton = Energy Centres Stockethill Cairncry City Centre Hazlehead Aberdeen Heat & Power Torry Delivering Affordable Warmth.

38 The Future. Subsidiary company District Energy Aberdeen Ltd (DEAL) set up as a heat retail arm to develop connections to non- Public Sector properties and identify infrastructure developments. Continue to extend the DH network at a pace which is financially and practically viable Build partnerships and agreements for future connections Review alternative fuel technologies to bolt on the front end Multiple CHP stations around the City linked into one city-wide heat network Aberdeen Heat & Power Delivering Affordable Warmth.

39 Our Aims are being met.. We believe we are meeting our start-out ambitions Tackling fuel poverty Providing affordable heat Reducing carbon emissions through use of low carbon technology Installing reliable, efficient and controllable systems for domestic and commercial buildings With Subsidiary DEAL we can continue to grow the network and maintain costs at an affordable level for the domestic sector Aberdeen Heat & Power Delivering Affordable Warmth.

40 Contact Details. Janice Lyon - Director Aberdeen Heat and Power T: lyon23@btinternet.com Web: Aberdeen Heat & Power Delivering Affordable Warmth.

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42 International Leadership and Collaboration Leadership Event on District Heating, April 29 By Morten Jordt Duedahl, District Energy Partnership

43 District Heating Adds Real Value District Heating Lower Price Jobs Less CO2 Energy efficiency 43

44 Technically DH is NOT Complicated Storage DH is fuel agnostic! Pipes, pumps, valves... Heat demand Like your own boiler a lot bigger and a lot smarter!! Moving free heat to a useful place Extremely well proven technology!! 44

45 DH in Denmark 63% of all house holds ( )- 98% in Copenhagen (2012) (up to 75%) Today ~450 schemes 45

46 Denmark s Wake Up Call % oil and coal = import dependence Inefficient energy use Sustainable solutions needed!! 46

47 Consistent Energy Policy Long Term planning Legislation 1976 Electricity Act (CHP, Cost Eff) 1979 Heat Supply Act + RES + WtE 1986 Decentralized CHP 1990, 1993, 2008 Increased biomass (new CHP and conversion) Incentives 1981 Investment grants for biomass DH/CHP 1984, 1992 Subsidies for CHP 1994 Financial support to establish DH on biomass or natural gas 1991 High energy tax and CO 2 tax on fossil fuels Clear business model Non-for-profit Municipal guaranteed loans Support from all levels of society Plan Coordinate Legislate - Support 47

48 The Future A central part of Smart Energy Systems & 2050 targets Integrate surplus wind and solar electricity Individual solar heating Individual heat pump Individual biomass Individual electric heating Individual gas boilers Individual oil boilers Small scale district heating District heating CO2-emission total 48

49 DH Costs less than Natural Gas Heat Prices incl VAT schemes (18,1 MWh 130m2 standard house) All district heating schemes arranged after price Individual NG 0% 95% 100% No of of schemes end users in % ~75% of schemes cost less than natural gas ~95% of end user spend less compared to natural gas Source: Danish District Heating

50 Jobs - Denmark direct jobs ( in 2020) DH companies investment: 450m/ year Export: 560m/year, treble by

51 Jobs Scotland Local jobs from day 1 Construction Operation and maintenance Supply chain Inward investment Keep jobs in Scotland Requires a committed strategy & Skills development!!! Kent - 65m creates 100 jobs in construction and 40 permanent jobs GLA - 150m invested, 55 permanent jobs + supply chain jobs 51

52 Denmark s DH Carbon Footprint 40% lower compared to no DH (heating) 46% lower pr DH unit produced DH production - TJ Energy consumption, Total CO2 emissions DH CO2 emissions/production 52

53 District Heating Adds Real Value District Heating Lower Price Jobs Less CO2 Energy efficiency District Heating projects can: alleviate fuel poverty de-carbonise a town or city help create jobs PWC and SFT 53

54 Scotland Create coherent and consistent framework conditions Show political will Keep a long term perspective Get started! 2020/30/40/5o is just around the corner Understand business models and benefits from these Level playing field against other energy technologies 54

55 Local authorities, NHS, developers... Get all stakeholders together internal and external( ) Set clear objectives( ) Plan Coordinate Legislate Support ( ) Long term (lifetime: 50+ years!) ( ) Today s decisions must not limit tomorrow s developments! 55

56 Scotland: An Emerging DH Market 56

57 District Energy Partnership Mission: Strengthen DH framework conditions Provide: Evidence, Knowledge, Input Active in Scotland and England Free of charge

58 Thank you Morten Jordt Duedahl Head of Secretariat

59 General Discussion led by Mike Thornton

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61 Margaret Burgess, MSP Minister for Housing & Welfare

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