Decentralised Energy

Major London District Heating Scheme refurbished

March 2014: Some welcome news that E.ON are refurbishing the engines of their Smithfield-based Citigen Combined Heat and Power (CHP) district heating systems. The following Edina press release sets out 4 new major gas-fired CHP engines will be installed this year and commissioned by the beginning of 2015. Edina helpfully provide some background to the scheme:

A City of London case study on the network is available here.

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Joining the dots…

March 2014: CIBSE article on CHP and district heating in London “With the Government and planners keen for developers to look at district heating for communal heating schemes, the technology is on the up and up. But size matters with heat networks are are some schemes too small to reap the benefits?”  Good article – raising some real concerns over what technical and financial concerns should be considered when pushing district heating – with contributions from the GLA and Islington Council: read the full article here.

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We are now at DEfLon 1…

March 2014: A paper presented at February’s GLA’s Investment & Performance Board sets out the Environment Team’s priorities for this year (2014/12). Amongst the range of initiatives being taken forward are a number targeted on energy:

  • Spatial energy masterplan – to identify where and what type of energy infrastructure is required to close the energy gap and provide London with a resilient and competitive energy system.
  • Decentralise energy for London – the DEfLon programme will focus on creating a pipeline of decentralised energy projects and overcoming market barriers to give access to the retail electricity market
  • Biodiesel from used cooking oil – to help decarbonise London’s bus fleet by using biodiesel from used cooking oil (UCO) or other waste products.
  • Mayor’s Business Energy Challenge – advice and awards programme to support businesses saving money through improving energy efficiency.

The issue of a new ‘spatial energy masterplan’ for London is particularly interesting, and something discussed at in an earlier investment board meeting as part of the GLA’s work on developing the capital’s first Long Term Infrastructure Investment Plan.

The newly name DEfLon programme is likely to be a successor to the existing DEPDU support team which itself followed on from DEMaP, highlighting the importance of bringing forward decentralised energy projects in the capital.

A second paper presented to the Board provides detail on funding commitments for the Environment team. Amongst these is mention of £10k to continue updating the London Heat Map which also – interestingly – mentions that “The Heat Map has enabled £133m investment in on-site heat networks alone in 2012-13“.

The biodiesel report will most likely build on the findings of a study commissioned by the GLA in 2013 ‘The market for biodiesel production from used cooking oils and fats, oils and greases in London‘.

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Could you warm to a district heating scheme?

March 2014: As part of work Which? are helpfully taking forward on consumer protection rights issues for people connected to district heat networks, Which? held an online discussion on consumer attitudes to district heating. Though the thread started some time ago in 2013, contributions from unhappy customers signed to a number of new networks in London are still raising their issues as of only a few days ago.  Schemes in Dalston, the Olympic Village, and an unnamed SE London scheme are referenced (some of which are copied below). It should be said that one commenter does also mention “The Pimlico district heating scheme has been running for many years without any consumer issues.

“Hi. I have just recently moved into a 2 bed new build in Dalston, East London a year ago. I have now received my first E-On bill for our heating and it comes in at a whopping £579 / 3600kWh (and this is just for 10 months). Whilst I normally welcome any energy saving initiative, I am left ultimately baffled why…”

“I have been living in a building in SE London with such a scheme for nearly two years now. Our heat bill is never below £45 per month, even in summer when it’s only used for showers for 2 people. In the summer months half of our monthly heating bill is made up of the service charge!”

“I live in an apartment block in London which operates such a scheme. Whilst this is my main residence I only occupy the apartment four nights per week. My average bill is circa £36 per month. Only £5 of this is the actual usage, the remainder being standing charge and VAT.”

“Me and my partner moved into a 1-bed apartment in the Olympic Village, London at the end of November and we have just challenged the DH supplier (East London Energy) about the costs. Many residents were shocked, as we were, to receive high bills. We were only told at the last minute that the DH scheme would be how our heating/hot water would be supplied, and while I’m all up for it in principle, I feel that the companies supplying it are ripping us off. We’re paying about £40 per month and we’ve had the heating set at 10 degrees a lot of the time.”

“My prices via EON in SE London:
standing charge: 85.871p/day (31 days=£26.61)
usage: 7.29p/kWh
VAT @ 5%
My spend with EON (district heating only, electricity is on top of that through a different supplier) in 2012/13: £814.84 for a 2 bed flat.”

“Here at Olympic Village we are trying to get through to the Olympic Development Authority and East London Energy who have set their costs too high to be sustainable for the consumer. At the moment, still waiting for something meaningful from them to show they’re taking our concerns seriously enough.”

Which? are now following up their 2013 work  – see ‘District heat users – are you happy with your service?

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Energy & Climate Questions to the Mayor

January 2014: This month the Mayor has been asked questions in relation to:

the Mayor’s meetings with energy ministers; KPIs under the Mayor’s Climate Change Mitigation and Energy Strategy; establishing a London Energy Cooperative; ECO funding in London; the number of energy suppliers signed up to the Mayor’s MoU; the Mayor’s support for the Energy Bill Revolution’s Cold Homes Week; Kew Gardens decentralised energy scheme; London avoiding the ‘capacity crunch‘; solar installations on GLA buildings; the underheating of Londoners’ homes; the RE:NEW programme energy efficiency targets; the Mayor’s concerns over Government ‘Allowable Solutions‘ proposals; insulation industry jobs; Excess Winter Deaths; insulation projects stalled under ECO; the stalled Affinity Sutton insulation project; RE:NEW targets; retrofitting and planning restrictions; renewable energy installations on the GLA estate; GLA funding to Capita to manage the RE:NEW programme; British Gas funding to ECO; the Mayor’s High Level Electricity Working Group; LED streetlighting projects; CO2 savings achieved under RE:NEW; delayed CO2 savings under RE:NEW; the Climate Change Leaders for a Low Carbon London fuel poverty project; planning CO2 target requirements; meetings with DCLG; biofuel and London buses; GLA Environment Team budgets over next two years; Mayor’s application to the Government’s Green Deal Communities Fund; and tendering for License Lite services.

Previous months questions to the Mayor can be found here.

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£10m Urban Community Energy Fund launched

January 27 2014: The Government’s new Community Energy Strategy is being launched today and press reports have highlighted that it will include a new £10m Urban Community Energy Fund (UCEF).  This mirrors the existing Rural Community Energy Fund, and is clearly welcome news for London-based community-led energy projects.

This fund will be open to non-rural communities and will provide up to approximately £150,000 of funding for feasibility and pre-planning development work to help projects become investment ready. The funding will be available in two stages:

  • Stage one will be a grant of up to approximately £20,000 for feasibility of renewable energy projects.
  • Stage two will be a loan of up to approximately £130,000 to support pre-planning development work, planning applications and to develop robust business cases to attract further development.

No details as yet to when the Fund will be launched or how long it will operate for. Hopefully this will all become apparent later today…

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Decentralised Heat and Power Points to London’s Energy Future

January 2014: Still a few days left to see BBC’s excellent Inside Out London programme. The first half covers the increasing levels of energy theft being observed by energy companies and -18 minutes in – the programme looks at potential future solutions to the provision of more affordable heat and power in London.

The growth in local energy solutions, such as combined heat and power (CHP) plants and the introduction of new district heating schemes are highlighted, including recent projects installed in Islington (Bunhill CHP) and the heat network constructed from the SELCHP waste to energy scheme, which transports low cost heat to 2,500 households in Southwark with an approximate 22% reduction in heating charges.

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Huge budget cuts planned to Mayor’s environment programme?

20 December 2013: The Mayor today published for consultation his budget for the GLA group for 2014-15 (press release).
The budget document states that a “new look GLA business plan has been published which includes a set of key performance indicators (KPIs) covering all main Mayoral policy and programme activities to be delivered by the GLA.” It’s welcome to see that amongst the 10 “major GLA programmes supporting the Mayor’s ambitions” [p7]  a key deliverable will be “retrofitting more of London’s homes and public workplaces, saving carbon and cutting bills”referring to the RE:NEW and RE:FIT programmes respectively.

Page 14 of the document also states that:
“The Mayor is continuing to work towards improving London’s environment.
Energy supply and master planning is key to delivering sustainable development for London’s economy. Investment will continue through a Decentralised Energy programme to help bring decentralised energy projects to the market.”

At the same time however, it appears from the draft budget that the ‘Development, Enterprise & Environment’ Directorate is facing a massive reduction in its funding from the Mayor. No separate breakdown for the ‘Environment’ section is provided, but the data (table below) indicates that:

  • The draft 2013/14 budget for this Directorate seems to be have massively overestimated  – the current forecast outturn being 25% lower than predicted. It’s not clear however what is contributing to this huge underspend.
  • The level of underspend must have contributed to a significantly reduced future budget for the department – from a forecasted £31.2m just over a year ago, down to £19.9m for the forthcoming year (a 36% reduction)
  • And the 15/16 plan for the ‘Development, Enterprise & Environment’ Directorate is down to just £10.7m – a 66% reduction from the forecasted 13/14 budget
  • The planned reduction in budget for this Directorate far exceeds all others, some of which – like the Mayor’s Office – will remain static over the three year period.

There’s unfortunately to detail whatsoever within the budget document on the specific environment-team spend, or of future funding going to individual programmes. No further information is provided on the KPIs for the 10 ‘key deliverables’  (as mentioned in para 1 above) – however – future RE:NEW and RE:FIT programme targets to 2016 were recently set out in the Mayor’s draft Housing Strategy. Additionally, an interesting exchange on the Mayor’s retrofit programme RE:NEW was recorded in a November 2013 evidence session on the draft budget to the London Assembly Budget & Performance Committee (see page 17 of transcript) – also copied below:

Continue reading…

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An Energy Master Plan for London?

December 2013: The Mayor announced last week that he has commissioned work to “create the capital’s first Long Term Infrastructure Investment Plan”, which will make a high level assessment of the full range of infrastructure delivery in the city, looking at how it is managed currently and what could be improved. The scope of the plan will cover public transport, roads, energy, water, sewerage, waste, broadband and green infrastructure

As part of this work, a Call for Evidence has been issued setting out five ‘core questions’ (see link for details), open to all to respond to, with a deadline for submissions of 24 January 2014.

The Mayor’s Infrastructure Group has been leading on the development of the plan, and their December 2013 meeting set out a working paper with some further detail on what the plan will consider, including the consideration of climate change and future energy demands on London. Included in this paper are a number of important proposals including mention of developing a London-wide Energy Master Plan and a GLA-led body delivering Green Infrastructure:

  • “To address these issues, and address the implications of climate change, a range of recommendations are being proposed. All need further explorations in terms of feasibility and value for money, but provide a starting point for determining how London may need to respond to its infrastructure needs. The list of draft proposals to date is attached at Annex A; they include:   Develop an Energy Master Plan for London, based on favoured approach of either continued nationally led centralised provision, or a decentralised model based on local energy production from a range of low and zero carbon energy sources. (Favoured approach to be set out in the Infrastructure Investment Plan for London).
  • Create a GLA-led delivery body to deliver green infrastructure projects to reduce the amount of rainwater entering the drainage system. Potentially to be funded from the water companies and developers.”

Potential  concerns over future stresses to London’s electricity system led to the Mayor writing recently to Ed Davey, Secretary of State for Energy, and the formation of the Mayor’s High Level Electricity Working Group.

A strategic outlook on London’s future energy needs (both power and heat) is an absolute requirement of any future London infrastructure plan: much of London’s electricity distribution assets are in need of replacement, London’s population is set to grow significantly to 2020 and beyond, and  the the Mayor’s own target for London to source 25% of its energy needs from decentralised energy will require a significant shift to the introduction of low carbon, localised generation capacity being introduced onto London’s electricity network.

The Long Term Infrastructure Investment Plan for London will be produced in two stages – an interim report (inviting comment) in February 2014 and a final report in Summer 2014.

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London’s District Heating Renaissance

December 2013: A run through some of the exciting decentralised energy developments currently being taken forward in London – as detailed by Energy for London – ahead of the major national Heat13 conference, which took place in London last week.

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Mayor to battle with CLG over London energy and planning policies?

December 2013:  In response to a series of Mayoral Questions (here, here and here) the Mayor has now posted his submission to the Department for Communities and Local Government (CLG) controversial (see here,  here, here and here)  Housing Standards Review report and consultation.

The MQ responses highlight that the Mayor has written to CLG’s Secretary of State, Eric Pickles, expressing concerns with proposals for a National Standards set which could limit the GLA’s ability to apply planning policy on housing design and space standards as well as energy standards in new housing“.

The Mayor has also asked Mr Pickles to meet in order “to discuss these proposals, and requested the opportunity to make further comments, once CLG reaches a clearer position on the proposals”.

The Mayor’s submission document sets out that:

  • London developments are already demonstrating that the carbon compliance level could be more stretching without undermining viability.
  • London’s ‘interim’ standards should be retained and continue to be applied in accordance with the London Plan energy hierarchy
  • Disputing the Housing Standards Review view that Government “does not believe that an interim level would be helpful to developers and is not minded therefore to set one in a nationally described standard”, the Mayor responds    On the contrary, the setting-out of a clear strategy and requirements over time in the London Plan, including ‘interim’ targets between Building Regulations and Zero Carbon has effectively created market certainty, allowing developers to innovate and to bring down costs, in a manner that serves government’s intentions from 2016.
  • That the solutions developers are obligated to consider under the London Plan ‘energy hierarchy’ do not lead to technological blind alleys. On the contrary, heat networks are fuel and technology flexible. Rather than creating ‘blind alleys’ they make the transition to zero carbon sources of heat easier” and that
  • In the absence of the [London Plan’s] approach” the Government’s proposed changes would  undermine a key tenet of DECC’s Heat Strategy for cities.

The submission importantly states that: CLG have agreed to meet with GLA officers to discuss interim arrangements which allow the Mayor to maintain London Plan 2013-2016 carbon reduction targets”

A recent assessment of the energy policies under the London Plan – undertaken and published by the GLA – sets out that a significant level of energy-related commitments have been secured including:

  • Equivalent of circa £32m investment secured through energy efficiency measures alone.
  • Circa £20 million of investment in new CHP plant able to produce 29MW of electricity and heat.
  • Circa £133 million of investment in communal heat network infrastructure for ~ 53,000 dwellings
  • Circa 55 permanent jobs created in maintaining heat network infrastructure and associated energy supply plant. Additional jobs will also be created in the supply chain

The House of Commons Environment Audit Committee undertook their own review of the Housing Standards Review document, publishing their results on 20 November. The report echoes the Mayor’s sentiments stating:

  • That local choice in favour of practical, sustainable local solutions will be radically curtailed and replaced with a lowest-common-denominator national standard
  • That the proposed replacement for CSH standards on energy and carbon emissions, the 2016 zero carbon homes standard, has been significantly diluted

and goes further [para 33]:

  • The specifications around the zero carbon homes target have been watered down to such an extent that the proposed standards in Building Regulations now fall some way short of the higher levels of the CSH.
  • There is no guarantee that further dilution will not occur in the run-up to the implementation of zero carbon homes in 2016.
  • DCLG must maintain CSH energy assessments as a tool for local authorities to lever in renewable energy until Building Regulations deliver genuinely zero carbon homes, which was the original target and is defined by CSH level 6.

There’s no information over whether the Mayor has met with Mr Pickles as yet – and CLG have as yet not indicated when they are to finalise and publish their conclusions to the Housing Standard Review’s proposals. However it’s clear that the London Plan’s energy and climate policies have – and are continuing to – create a major shift in the development of more energy efficient buildings in London. Developers, architects and sustainability experts are delivering some of the most innovative green buildings in the world here in London as a consequence of the London Plan, and hence it would be a huge surprise if the Mayor allowed his successful planning policies to be diluted by the Government’s latest – and hugely confused – zero carbon buildings proposals.

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GLA district energy research commissioned

November 2013: The GLA have commissioned research into how district heating systems can work successfully in new developments as energy efficiency requirements continue to increase. The approval document sets out that:

“With the improving standards for insulation and air tightness to retain heat within developments, it is important that communal heating systems within buildings are designed so that they do not contribute towards buildings overheating.

“It is therefore proposed to procure consultants to carry out a study into how communal heating systems, specifically in residential schemes, implemented as a result of policy can be designed to avoid overheating.”

This issue of district heating and overheating was briefly touched upon in research undertaken by AECOM for the Department of Communities in 2012.

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