Scotland & District Heating

November 2012

INDEX

Government and Policy

District Heating Schemes / Projects in Scotland

Scottish Landscape (Company and Housing)

Funding and Finance

Scotland – The Heat Challenge

Scotland – Renewable Generating Hub

Scottish Development International

UK – The Heat Challenge

Scottish Development International (SDI)

• Scottish Development International

(SDI) is the specialist inward

investment and trade development

agency for Scotland

• It is a join venture between the

Scottish Government and its two

economic development agencies,

Scottish Enterprise and Highland and

Islands Enterprise

• Single point of contact for all

international business development

needs

Scotland – Renewable Generating Hub

Most ambitious renewable electricity targets in the world

• 100 %of electricity from renewables by 2020

(Source: Scottish Government)

Unrivalled natural resources

• 25% of Europe’s tidal resources

• 25% of Europe’s wind resource

•10% of Europe’s wave resource(Source: Scottish Government)

Investment

• Over £30 billion of investment is planned over the next decade, to deliver up to 10GW of electricity from Scotland’s offshore wind sector

• Over the past year, Scotland has attracted significant inward investment to boost capabilities in offshore wind R&D / manufacturing: Mitsubishi Power Systems Europe

Gamesa

Samsung Heavy Industries (SHI)

Areva

UK – The Heat Challenge

UK Market Size

• 1-2% of Heat Demand currently met by district heating

• 38% of the UK district heating schemes utilise renewable fuels of some form. The majority of these are biomass boilers, with some use of biogas or municipal waste

• Over 53,000 homes currently have their heat supplied by district heating (1%), with another 46,000 homes expected to connect to networks over the next five years (Source: UK CHPA).

• District Heating Market Potential - 2009 Study

13.9% of the of UK heat demand were met by Disrict Heating =

• 26million meters squared of commercial space

• 3.3 – 8 million domestic homes(Source: Poyry “Potentail Costs of District Heating)

Scotland – The Heat Challenge

Half of all energy consumed in Scotland is to deliver Heat

• Typically in UK heat is generated at individual premises (domestic boilers)

Target to deliver 11% of heat demand to be met by renewables by 2020.

• Decarbonise electricity generation by 2030, largely decarbonise heat sector by 2050;

Progress to renewable heat target: 2.8% 2010, 3.8% 2011

Heat Project Pipeline

• 153MW installed capacity from large projects under construction in Scotland will provide further 1,105GWh of renewable heat (delivering 5.6% heatfrom renewables by 2020)

• Additional projects need to be planned and delivered to read 11% target

Source: Renewable Heat in Scotland, 2011, Energy Saving Trust

Scotland – The Heat Challenge

Source: UKERC Website

Scotland – The Heat Challenge

Government and Policy

Demand Pull

Fuel Poverty

• Scottish Government aim to ensure that by November 2016, so far as is reasonably practicable, people are not living in fuel poverty (10% household income on fuel) in 2010 this impacted 25% homes across Scotland (Source: Scottish Government Housing Data).

New building

• All new homes to be zero carbon from 2016 across the UK

• Builders can fund community energy projects, such as wind farms and district heating schemes, to meet their zero-carbon obligations. (Source: Allowable Solutions for Tomorrows New Homes)

Emissions Reduction Targets

Support for District Heating

• Expert Commission on District Heating

• Scottish Heat Partnership Project

• Agenda for Cities / Scottish Cities Alliance – Sustainability Group

Government and Policy

Policy on Heat Sources

Energy from Waste

• Scotland Zero Waste Plan – Ban items that can be reused or recycled sent to landfill by 2020 (Source: Spice – Waste Scotland Regulations 2012)

•EfW can generate enough heat for 110,000 and power for 170,000 (Source: Scotland’s Zero Waste Plan)

• EfW plants only eligible for ROS where station is a qualified CHP generator (Source: Renewable Heat Support Scottish Government)

• Part of Planning Permission submission to have Heat Plan (utilisation) for EfW

Biomass

• Considering removal of subsidy for biomass electricity only plants

• Maximum threshold for biomass CHP plants

• Max10MW for electricity only biomass plant

• Above 10MW ROS support given only if plant is CHP plant (Source: Renewable Obligation Banding Review 2011 – 2012)

Funding and Finance

Green Investment Bank – £3billion capital to fund green economy

REIF – £103 million fund support investment in key areas in Scotland's Renewable sector

National Infrastructure Plan - £70million to support private sector manufactures

Renewable Heat Incentive – subsidy scheme to boost investment in renewable heat technologies for individual, communities, industry.

Warm Homes Fund - £50 million fund that will invest in green energy projects to help heat homes across Scotland

Green Deal - designed to help business and home owners to employ more green technologies in their properties whereby green technology installed at no up front costs and pay back through energy bill saving.

ECO – Energy Company Obligation, will focus on providing energy efficiency measures to low income and vulnerable consumers and those living in 'hard to treat' properties

District Heating Loan Scheme - £5 million fund for district heating schemes

District Heating Schemes / Heat Projects in Scotland

Aberdeen

• City Council in 2002 to develop and operate district heating and CHP (Combined Heat & Power) schemes in the city (Aberdeen Heat and Power)

• The scheme supplies 1200 flats in multi story blocks and 8 public buildings. (Stockethill, Hazelhead, Seaton)

• Reduced carbon emissions -45%

• Reduced fuel costs to tenants 50%

• Award Winning

• Expansion: £1m extension of underground mains towards the City Centre to provide heat to public buildings en-route by the end of 2012

Stockethill Energy Centre

Seaton High Rise Flats

District Heating Schemes / Heat Projects in Scotland

Laying Pipes at WyndfordWyndford Housing Estate - Glasgow

Glasgow

• Sustainable Glasgow

•Wyndford Estate – Cube Housing Association.

• Built 1963; 1,900 homes in 17 tower blocks

• Electric night storage heaters

• Identified district heating as best route forward to tackle fuel poverty

• Gas Fired CHP provides hot water and electricity for 1,527 homes and 363 privately owned properties.

Scottish Company Landscape

VELUX

VELUX UK Sales and Marketing – Headquarters Glenrothes, Fife, Scotland

Sister company, Fife Joinery Manufacturing – UK arm of VELUX located in Glenrothes also.

1954

VELUX

Thank You

Questions?

David.Reid@scotent.co.uk