Download pdf - Camco Presentation_CRIF Event_15th Nov

Cambridgeshire Renewables Infrastructure Framework

Cambridgeshire Renewables Infrastructure Framework:How can Cambridgeshire secure £6billion of low carbon energy infrastructure by 2031?

Duncan Price, Director, Camco

Smartlife Centre 15th November 2011

Cambridgeshire Renewables Infrastructure Framework 1

The CRIF project so far

• Cambridgeshire’s renewable energy baseline has been estimated

• Cambridgeshire’s renewable energy potential has been assessed, looking at a range of renewable energy technologies

• We have canvassed opinion on how to deliver this potential across all sectors – community, public sector and commercial -through a number of workshops

• We have developed delivery pathways to identify how key issues/opportunities can be overcome/developed

• We will provide an action plan for each sector to help implement these delivery pathways


Cambridgeshire’s challenging carbon objectives

2

What is Cambridgeshire's potential?


Substantial infrastructure is needed

Number of installations associated with delivery of each scenario

3


Significant investment opportunity

Investment potential for each scenario in £millions

4


Significant investment opportunity

Investment potential for each scenario in £millions

5


What is the potential for each pathway?

6

0

200

400

600

800

1000

1200

1400

1600

Public sector Community Commercial

Dep

loym

ent po

tential (GWh)

Deployment potential by pathway

Wind >=6 turbines

Wind <=5 turbines

Biomass

ASHP

GSHP

SWH

PV


Renewable electricity potential is very large

7


Renewable heat constitutes the greater challenge

8


Cambridgeshire is progressing well

9


Modelling renewable energy deployment potential

10

Inputs Scenario 1 (low)

Scenario 2 (medium)

Scenario 3 (high)

Scenario 4 (high without wind)

Discount rate 9% 7% 6% 6%

Energy price [1]

DECC - 'low' energy prices

DECC - 'high' energy prices

DECC - 'high high' energy prices

DECC - 'high high' energy prices

Financial incentives (FIT/RHI)

lower than current tariff rates current rates

current rates (FIT/ RHI designed to give fixed return & will adjust to energy prices)

current rates (FIT/ RHI designed to give fixed return & will adjust to energy prices)

Project deployment rate (wind/biomass/EfW) 8% 15% 30%

30% (0% for wind)

Green policy support (for building integrated technologies) Low Medium High High


Deployment options for renewable energy

11


S. Cambs and Hunts have largest resource

12


District heating potential lies in Cambridge and Huntingdon

13


Energy efficiency and renewable energy can close the carbon ‘gap’

14


Conclusions

• Cambridgeshire is doing well – especially renewable electricity

• There is potential for more – solar, biomass, heat pumps, wind

• All technologies are needed – heat and electricity

• Somewhere between medium & high scenarios delivers by 2031

• Also closes carbon gap to meet pro-rata 4th carbon budget

• Significant investment potential – up to £6.1 billion for high scenario


Thanks

Duncan Price

DirectorCamco

t: +44 (0)20 7121 6150 m: +44 (0)7769 692 610e: [email protected]

172 Tottenham Court Road LondonW1T 7NS United Kingdom

www.camcoglobal.com

Renewable energy delivery pathways


There are three delivery pathways

Community Public Sector Commercial

17


Community deployment vision and potential

• PV• 145MWp, 1,150,000m² of panels

• 460 non-residential buildings and 30,400 houses (14%)

• £640m capex, £150m NPV

• Solar water heating• 42,600m² of panels on 8,500 houses (4%)


18

• Communities have strong incentive to invest in renewable energy

• Communities have access to a range of funding sources

• Communities are maximising learning from leading practice

• Communities are managing energy projects effectively

• Heat pumps• 43,000 or 15% of houses


• Wind• 75MW or 30 turbines



Community sector pathway






Public sector deployment vision and potential

• PV• 39MWp, 300,00m² of panels

• 180 non-residential buildings and 7,500 houses (18%)


• Solar water heating• 8,400m² of panels on 1,700 houses (4%)


• Biomass

• 14 installations of 1.5MW

22

• Heat pumps• 8,100 or 20% of houses


• Wind• 27MW or 11 turbines


• Public sector is maximising value of its own hard assets

• Public sector is maximising value from its soft assets


Public sector pathway






Commercial deployment vision and potential

• PV• 160MWp, 1,300,000m² of panels

• 3,200 non-residential buildings


• Solar water heating• 8,300m² of panels on 1,700 or 20% of

buildings


• Biomass• 14 installations of 1.5MW

26

• Heat pumps• 200 or 3% of buildings


• Wind• For wind parks ≤5 turbines, 28MW or 11

turbines

• For wind parks ≥6 turbines, 375MW or 150 turbines

• Total capex £660m, £45m NPV

• Investment opportunities are clearly identified

• Public sector is facilitating investment

• Investment is flowing, projects being developed


Commercial sector pathway






Vision for community delivery pathway

• Communities have strong incentive to invest in renewable energy• Effective hard and soft incentive mechanisms

• Minimisation of risks and barriers to implementation

• Communities have access to a range of funding sources• Availability of applicable finance options for a range of project types

• Gaining access to existing and new funding sources

• Communities are maximising learning from leading practice• Demonstration case studies of successful community energy schemes

• Access to quality impartial ‘self-help’ guidance and information

30


Vision for community delivery pathway

• Communities are managing energy projects effectively• Identification of governance methods and relative benefits of each approach

• Range of delivery options identified

• Investment and delivery opportunities are clearly communicated

3131


Vision for public sector pathway

• Public sector is maximising value of its own hard assets• PV on roofs of offices, schools, hospitals, leisure centres

• PV in social housing – own stock, ALMO and with housing association partners

• Appropriate wind development on public land

• Provision of anchor loads for district heating and CHP

• Renewable energy transition plan for each building

• Demonstration projects for advanced technologies and new approaches



• Public sector is maximising value from its soft assets• Planning policies – LDF, LDO, s106, CIL

• Enabling mechanisms – community energy fund, grant funding

• Public sector led development – de-risking projects, early project promotion

• Political engagement – FIT, RHI and Green Deal policy certainty, tariffs, etc.

• Market development – awareness raising, pipeline development for Green Deal




Vision for commercial delivery pathway

• Investment opportunities are clearly identified• Technical, economic and deployment potential based on WP1

• Benefits of growth agenda are articulated

• Preconditions are clearly understood by public and private sector + community

• Public sector is facilitating investment• Establishing clear public policies and protocols to provide market certainty

• Engaging in constructive dialogue with community

• Using its own assets to lever wider opportunities



• Investment is flowing, projects being developed• Cambridgeshire seen as county with good renewable energy development

potential

• Cambridgeshire demonstrated to be investor-friendly

• Supply chain is in place, levels of risk and return meet minimum commercial requirements

• Constructive dialogue, community benefiting and accepting




PV deployment potential

38


Wind deployment potential

39



40

Case studies


Case study: public sector

• Sustainable Parish Energy Partnership, South Cambs• Network of local voluntary groups; project secured by SCDC

• Objective to reduce energy bills, tackle climate change, build a sustainable future

• Organises events and initiatives e.g. energy shows, home energy thermal image surveys, working with local businesses, community energy generating projects

• Part-time Parish Energy Project Officer organises programme and provides support

• No direct costs, application forms, contracts or binding targets to parish councils

• How can we build on this to create more community energy projects?



• Decarbonising Cambridge and Carbon Management, Cambridge City

• Decarbonising Cambridge Study – forms part of evidence base for RE planning policies

• Assessed district heating, biomass, energy from waste, wind, pyrolysis, gasification and anaerobic digestion

• Carbon Trust’s Public Sector Carbon Management Plan Programme participation -to cut the Council’s carbon emissions and make ongoing cost savings

• Projects form the basis of the CM plan e.g. upgrading boilers, replacing inefficient light fittings, energy awareness campaigns – also renewable energy projects e.g. Renewable Heat Incentive projects



• Wind energy policy developed 5-7 years ago

• Policy was successful - willingness of council members to approve wind development given need to reduce carbon emissions

• By 2008-2009, impact on landscape led to interim guidance being produced to inform decisions on wind turbine locations

• Now takes into account key criteria e.g. character of landscape, proximity of settlements, visual impact, etc

Wind Energy Policy, Fenlands District Council



• St Neots District Heating, Hunts• Feasibility studied carried out and detailed

feasibility now underway

• Funding from ERDF and Cambridgeshire Horizons

• Aims to provide local benefit – heat to local businesses; potential extension to housing, colleges, housing and central St Neots, possibly Little Barford Power Station

• Public sector led – so lower return is possible with lower cost of borrowing

• Local enthusiasm for scheme

• Hunts already have some experience of DH feasibility – Northstowe

• How can the public sector share this knowledge and experience?


Case study: commercial sector

• At 38MW, largest straw burning power station in the world; straw is used as fuel to heat water, creating steam to drive turbines

• Total cost £55 million - the company did not expect to show a return on this investment for 15 years

• Non Fossil Fuel Obligation contract through to 2013 - electricity purchased at 6p/kWh

• This security was reassuring for banks when compared with the value of ROCs, which were not guaranteed - but makes new investment under the RO less likely

• Waste heat may be used as energy source for adjacent eco village and Elean Data Campus –what can the public sector do to help deliver this?

• Ely Straw Burning Power Station, East Cambs


Case study: commercial/community partnership

• Coldham Estate, Fenlands• Standalone turbines

• Private ownership

• Savings: 38.5 GWh/year - 9,000 UK homes36,000 tonnes CO2

• Community benefits: Revenue under Section 106 agreement for local projects and regeneration; Fund for education

• Community input: The Co-operative Group worked closely with local community during planning and site construction

• How we can encourage more commercial/community collaboration?


Case study: community

• Gamlingay Eco Hub and Wind Turbine (planned)• Community building owned by Parish Council with community input; funding from

Public Works Loan Board or Community Builders fund

• Income from FiT & energy export; reduced energy bills; new community centre

• Standalone wind turbine proposed, owned by community group; entirely private investment from residents and businesses

• 10% net income to community fund for first 15 years of FiT estimated at £200,000

• How can the public and commercial sectors support more projects like this?



• Waterbeach Biogas (Potential)• Community building

• Savings: potential generation of electricity and heat for the Emmaus community; home to 30 people who were formerly homeless.Potential savings of £14,000/year

• Community benefits: reduction in energy bills; high savings as not on gas grid (currently bottled gas)



• Upwell Park Solar PV Installations• Individual households

• Private ownership

• Funding: Property developer

• Savings: 68 tonnes CO2 per year; electricity generated covers lighting and cooking for each of the 67 bungalows

• Community benefits: free electricity & FiT income passed to tenants of retirement homes

• How can we overcome the proposed changes to the FIT to deliver more schemes like this?



50

The scale of the challenge


Energy efficiency and renewable energy can close the carbon ‘gap’

51


What could the CRIF help achieve?

• Cambridgeshire benefiting from up to £6bn of investment

• Shared understanding of barriers and risks to implementation

• Local businesses are provide goods and services to the sector

• Leading county where people choose to invest

• Consistent and pro-active policy framework is adopted

• The public sector takes the lead

• Action plans for shared decision making



53

Action plans


Example action plan: public sectorIntervention:Using existing buildings as anchor loads


Example action plan: public sectorIntervention:Using public sector assets for RE generation


Thanks

Duncan Price

DirectorCamco

t: +44 (0)20 7121 6150 m: +44 (0)7769 692 610e: [email protected]

172 Tottenham Court Road LondonW1T 7NS United Kingdom

www.camcoglobal.com