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

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Renewable heat constitutes the greater challenge

8


Cambridgeshire is progressing well

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Modelling renewable energy deployment potential

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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

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S. Cambs and Hunts have largest resource

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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

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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%)


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• 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

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• 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

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• 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

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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



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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?



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The scale of the challenge


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

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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



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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

Education

Camco Presentation_CRIF Event_15th Nov