Tag Archives: Decentralised Energy

Connecting Decentralised Energy to London’s Electricity Network

September 2011: Back in May Ofgem issued an ‘open letter’ requesting views from the distributed generation (also commonly called decentralised generation) industry of their experience of connecting projects to the local electricity network. Ofgem’s letter sets out that they:

“consider  that the efficient development  of distributed generation  could play an important role in addressing a number of key policy issues.   These include helping the UK to achieve its targets for reduced carbon emissions as well as improving the  security of energy  supply and  addressing  fuel poverty issues. To this end,  we have endeavoured to ensure that  those seeking to connect  distributed  generation to the network  do not encounter any unnecessary barriers resulting from the way that the electricity distribution networks are operated and regulated.”

The increased use of decentralised energy is a key element of London’s energy strategy, and the Mayor has established a target for 25% of London’s heat and power to be sourced by localised DE schemes by 2025.

Ofgem have now published a useful ‘High Level Summary’ of responses which highlights the difficulities that DE operators experience when bringing forward a project. This includes the:

  • Limited and inconsistent distribution network data available to generators
  • Costly processes ranging from connection assessments to legal fees
  • Prohibitively complex grid code requirements placed on these smaller distributed generation systems.

No regional aspects are highlighted in the findings – that is – is it any harder/easier to connect DE to London’s electricity distribution system (operated by UK Power Networks in the main and also SSE in SW London) than anywhere else, however, if London is to significantly increase its use of DE, the numerous barriers identified by smaller generators that currently exist need to be removed.

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PwC considers ‘negawatt’ trial

17 August 2011: Business Green article on how PricewaterhouseCoopers (PWC) is considering taking part in UK Power Network’s Low Carbon London demand reduction project through managing the output of its onsite biofuel CHP system at their HQ near Tower Bridge.

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Proposals for a North London Decentralised Energy Network

August 2011: Enfield have released their plans for the development of one of the largest “green developments in the country“. The Meridian Water development aims to create 5,000 new homes, 3,000 new jobs, three schools, a nursery, doctors’ surgery, shops, parks, open spaces, leisure facilities, a police drop in centre and significant improvements to transport links on the 90 hectare site at the heart of the Upper Lee Valley. As well as playing a major part in regenerating Edmonton and its surrounding areas, the £1.3 billion project aims to be low carbon, becoming one of the main hubs within the proposed North London Decentralised Energy Network.

Details are set out in Enfield’s Meridian Water Masterplan Consultation document which set outs that:
“Meridian Water presents an extraordinary opportunity for a site-wide district heating network which takes advantage of the proposals for a Borough wide decentralised energy network that builds on the infrastructure assets of the Lee Valley. The nearby energy centres and industrial corridor creates the prime opportunity to capture the released heat from these operations to deliver secure, low cost, low carbon energy and heating to businesses and homes in Meridian Water and beyond.”

The deadline for response to the consultation document is 5th September 2011

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District Heating Good Practice: Learning from the LCIF

August 2011: Two London schemes are profiled in the Homes and Communities Agency’s (HCA) Low Carbon Infrastructure Fund (LCIF) programme ‘lessons learned’ report published today. The Fund was set up in 2009 to provide funding for the district heating infrastructure needed to link housing schemes to new and existing low carbon CHP plants.

  • LCIF funding provided £3m to develop the spine heat network for the Greenwich Peninsula. The Greenwich Peninsula, with its proposals for more than 10,000 new homes, is part of a larger, mixed-use scheme including commercial, retail, educational and leisure uses. The full combination of works includes two significant CHP pipework ‘spines’ which capture all significant development areas on the Peninsula
  • Cranston Estate, Hackney where £0.5m grant funding was provided to install a district heat pipe for the retrofitting of a CHP plant, providing electricity and heat to three high-density housing estates.
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Olympian effort made to get utilities ready for the Olympics

August 2011: Utility Week feature article looking at the efforts to provide low carbon heat and power to the Olympics.

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Royal Marsden CHP

27 July 2011:  The Royal Marsden Hospital in Sutton has announced that it will be installing a Combined Heat and Power plant (CHP) on site. The capacity of the gas-fired CHP unit isn’t given, but further information on the project is provided on the following press release from MITIE, the engineering company leading the development.

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London Plan Energy & Climate Policies

26 July 2011: After close to two years of consultation, London’s new spatial strategy has been published by the Mayor. The London Plan  forms part of the development plan for Greater London and London boroughs’ local plans need to be in general conformity with the London Plan. Its policies guide decisions on planning applications for new developments and strategies by councils and the Mayor. Chapter 5 of the strategy focuses on London’s response to climate change and building on previous versions of the London Plan (2004 and 2008), which achieved a significant impact on the carbon efficiency of new development, the new London Plan sets out a number of requirements. These include:

  • CO2 savings of 25 per cent more than national building requirements at a minimum on all new developments
  • As previously, all major development should provide detailed energy assessments on how these emission savings are to be made
  • In contrast to the Government’s recent climb-down in its definition of ‘zero carbon’, London Plan Policy 5.2Da requires energy assessments to include separate details of unregulated emissions and proposals for how these emissions are to be reduced
  • When preparing LDFs boroughs should identify opportunities for reducing CO2 emissions from the existing building stock, and also identify and establish decentralised energy network opportunities.
  • With the aid of the London Heat Map, boroughs should develop energy master plans for specific decentralised energy opportunities.

Further policy requirements for decentralised energy systems, renewable and innovative energy technologies and the overheating and cooling of buildings are also set out in the Plan.

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New National Planning Policy Framework

26 July 2011: As written about previously, Government yesterday released a draft of its new National Planning Policy Framework (NPPF). This, the Government says, presents a “new, simpler framework for the planning system that safeguards the environment while meeting the need for sustainable growth… replacing the current suite of national Planning Policy Statements, Planning Policy Guidance notes and some circulars …to just 52 pages of policy…and  is a key part of reforms to make the planning system less complex and more accessible, and to promote sustainable growth.”

The Government’s previous detailed guidance document has now been replaced by two paras (152 and 153). The NPPF states that: “… local planning authorities should …recognise the responsibility on all communities to contribute to energy generation from renewable or low-carbon sources… consider identifying suitable areas for renewable and low-carbon energy sources, and supporting infrastructure, where this would help secure the development of such sources… identify opportunities where development can draw its energy supply from decentralised, renewable or low carbon energy supply systems and for co-locating potential heat customers and suppliers. “

This is a draft NPPF, and a series of questions on the proposals set out in it are in the accompanying consultation document, including six specific questions on energy (14c-f,  and QB 4,5). The deadline for responses is 17 October 2011.  A consultation workshop in London is to be held on 7 September 2011. Further details are in:
CLG’s press release, a NPPF summary, the Draft NPPF, and the
NPPF Consultation document, and finally the
NPPF Impact assessment.

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Failed CHP project in Lambeth…

July 2011: More on the disastrous Roupell Park Combined Heat and Power (CHP) scheme in Lambeth…
Boiler scheme could be in even more hot water
Crucial boiler papers lost in town hall error

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Huhne’s great power reform lacks the local dimension

15 July 2011: Stephen Tindale of the Centre for European Reform, a former government environmental adviser and director of Greenpeace UK, blogs for endsreport.com highlighting that the main weakness of both the renewables roadmap and the electricity market reform white paper is the lack of articulation of the potential role of local government.
Stephen and co-author Prashant Vaze have first hand experience of what can be done, having recently published a report, Repowering Communities: Small-scale Solutions for Large-scale Energy Problems, examining in detail how cities, communities and local authorities from across Europe and North America have driven reductions in energy use and rolled out small scale, community level solutions.

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“…the biggest transformation of the market since privatisation.”

12 July 2011: Amongst the myriad new market instruments proposed in today’s Planning Our Electric Future White Paper, most of which are targeted at larger scale generation plant, the Government does briefly turn to look at the opportunities from smaller decentralised (termed as distributed generation in the paper) generating plant. The White Paper states: “Used in the right ways and as part of an evidence-based approach to energy planning, distributed energy technologies have the potential to complement both each other and the wider centralised energy system. They can also be an important tool in engaging consumers in their energy use. In particular, we recognise that integrated, local-level distributed energy systems could be an important step towards a more coordinated approach that includes, for example, transport and waste.”

However, no specific proposals are put forward by Government to support smaller decentralised energy projects – the White Paper just goes on to say that “our proposals have been developed with consideration of all scales of generation. These include the following… both types of Feed-in Tariff (FiT) and the Capacity Mechanism will encourage distributed generation in different ways .”

The ‘Feed-in Tariff with Contract for Difference (FiT CfD)’ – as it’s more fully called – will offer long term power price contracts to generators, reducing the risks associated with market price volatility, and hence help stimulate investment in the development of new generation plant.

The Capacity Mechanism will effectively pay generators to be on standby to help ensure that there is a sufficient margin of generation capacity on the electricity system, hence providing additional stability and guarding against power blackouts. These capacity payments are being introduced as a result of concerns over the numbers of power stations being closed down over the next decade (around one third of UK generation plant – mostly aging coal and nuclear) and also due to the increased levels of intermittent generation being added to the network, predominantly wind power.

It is not clear as yet how the particular challenges faced by smaller decentralised energy schemes will be taken into account as all of the work done in the White Paper relates to larger centralised generating schemes. Though references are made in the White Paper to community-based schemes coming forward, no guidance has been provided on how Government will support such activities. The Government has left the resolution of these issues to be worked out by a new ‘Government Industry Contact Group on Distributed Energy’ to be convened later this year. The group is to “be chaired by Ministers, and will involve a small number of key industry representatives ” which seems to suggest that local authority representatives, key players in supporting the growth of such systems, will not be included on the group…

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Generation Plant Efficiency Needs to be Improved

12 July 2011: Radio 4’s Today programme coverage of the launch of the Government’s White Paper on electricity market reform (to be launched later today) included a short piece on how new generating plant would have to become much more efficient. The gave an example of London’s Citigen Combined Heat and Power (CHP) scheme, operated by E.ON, as a future example of how power stations would have to operate. Citigen is sited deep underground Smithfield’s market providing heat and cooling to a number of city institutions. Listen to the radio piece here.

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