Monday 16 March 2015 COPYRIGHT BUROHAPPOLD ENGINEERING. ALL RIGHTS RESERVED

Transcription

1 CORNWALL ENERGY ISLAND: THE ECONOMICS Monday 16 March 2015

2 WHERE ARE WE NOW? THE CORNISH ECONOMY A creative culture with spectacular natural and social assets But some fundamental weaknesses* Low remuneration due to low skilled jobs Low productivity Can reconfiguring the energy economy of Cornwall help to address these issues? * Identified in Cornwall LEP EU Structural Investment Fund Strategy, June 2014

3 WHERE ARE WE NOW? THE CORNISH ENERGY ECONOMY

4 WHERE ARE WE NOW? THE CORNISH ENERGY ECONOMY

5 IF THE ENERGY ECONOMY WAS RECONFIGURED THIS COULD BE CHANGED

6 HOW BENEFITS ARISE A: Bigger Energy Sector B: Cheap Energy / Efficient Buildings C: Common Local Ownership D: Resilience and Carbon Jobs Skills Local tax revenue (business rates) Innovation / R&D Potential for exports (of expertise, R&D etc) Improves position of fuel poor Potential improvement in health More local spending on other things Increases competitiveness of county Community / shared ownership vehicles Income generation Social cohesion Social enterprise opportunity Local income multipliers Resilience in the face of energy price shocks Resilience in the face of interrupted supplies Positive contribution to national and global climate change mitigation

7 JOB CREATION & SKILLS DEVELOPMENT Design / Construction / installation / commissioning of renewable assets Home / office refurbishment to improve energy efficiency Operations and maintenance of assets over longer term Supply chain Manufacture of components / parts Project management / consultancy Greater local spending Service / tourist sectors Retail

8 LOCAL SPENDING EFFECTS LOCAL SPENDING LEADING TO GREATER BUSINESS ACTIVITY More money spent on local goods and services due to: Increased employment so more local wages Savings on energy bills so more disposable income Higher revenues for land owners MORE REVENUE FOR LOCAL GOVERNMENT Through increase in business rates from greater business activity BUSINESS STARTUPS AND RELOCATIONS INTO CORNWALL Due to greater resilience in the face of energy shocks Due to up-skilled workforce

9 SOCIAL IMPACTS Enhancing community capacity by owning and operating energy assets that can generate income Community group activity focused on shared ownership of renewable assets and on shared energy savings / demand management activities etc Reducing fuel poverty Embedding innovation, R&D and skills through new job creation

10 LOCAL JOB CREATION POTENTIAL UNDER THE GREEN COMMUNITIES SCENARIO 500 Nos. jobs in Cornwall 250 Context*: 10,000 renewable energy (RE) jobs + 16,000 retrofit jobs in the South West in 2012 Projected 16,000 RE jobs by 2020 Potential 34,000 RE jobs by Demand reduction Solar PV - Rooftop Solar PV - Ground mounted District heating CHP Batteries Deep geothermal Onshore wind Offshore wind * Source: South West Renewable Energy Progress Report 2014, Regen SW

11 LOCAL GVA POTENTIAL UNDER THE GREEN COMMUNITIES SCENARIO 12 GVA per annum m 6 Context: Estimated 47,000 GVA/FTE renewable energy sector (2010) Estimated 33,000 GVA/FTE energy efficiency sector (2010) 0 Demand reduction Solar PV - Rooftop Solar PV - Ground mounted District heating CHP Batteries Deep geothermal Onshore wind Offshore wind * Source: The Economic Contribution of the Renewable Energy and Energy Efficiency Sectors in the South West of England, DTZ, 2010