Fergus Ewing MSP Minister for Energy, Enterprise & Tourism

Mike Thornton Chair of Expert Commission on District Heating

CHP and District Heating – developing a community role

Dave Gorman and David Somervell, University of Edinburgh  Social Responsibility and Sustainability www.ed.ac.uk/sustainability Old carbon intensive ways need to go Decentralised Energy:

UoE invested 2005: 1.6MWe £12million in CHP engine CHP 2002-2005 for George Sq

2003: 526kWe £5m Grants CHP engine for + Pollock Halls £7m 7% Loan Repaid by 2010 2004: 2.7MWe CHP engine for Cut 8,500 tCO2/yr £1.5m saving/year King’s Bldgs Pollock Halls of Residence in 2003 526kWe engine lowered into JMCC The King’s Buildings in 2004 1,730kWe generator craned into KB George Square / Central Area in 2005 1,603kWe engine + Trigeneration

• GE Jenbacher 612 Engine … plus a 75 cubic metre Thermal Store … and a 600kW Absorption Chiller George Square: Trigeneration

- Heat Map • = DH loads • = Gas Htg • = Electric Htg Power Map • = GS Private • = H/P Private • = Grid Elec LRC / EDC / UoE / Citigen Plan 1994?

Partly realised 2005/14 Prospect for mutual benefit at Little France

1MWe CHP serves NRIE+NMS The University Edinburgh is … • Experienced in developing CHP / DH schemes • Ambitious to develop other University projects • Committed to collaborate with our community • Open to opportunities to deliver public good • Seeking strategic fit, governance and leadership • Aware of significant organisational challenges

Aberdeen Heat & Power (AH&P)

Janice Lyon - Director

29th April 2014

Leadership Event on Heat and District Heating

Aberdeen Heat & Power Delivering Affordable Warmth . Aberdeen Heat & Power (AH&P) Background

• Company set up in 2002 as independent not-for-profit company, to develop and manage CHP schemes “for the benefit of the people of Aberdeen”.

• Focus on multi storey blocks and adjacent Council buildings

• Aims: • Deliver affordable heat to hard to heat properties • Reduce fuel poverty • Reduce ’s carbon footprint

Aberdeen Heat & Power Delivering Affordable Warmth . Results to date………. Reduced fuel poverty • Through provision of affordable heat heating costs per household have reduced by up to 50%. • No-one with new heating now in fuel poverty

Reduced carbon emissions • Compared to electric heating – district heating from CHP reduces domestic carbon emissions by 40% • Reduced in operating costs and carbon emissions from public buildings Improved standards of housing • Multis are much warmer • Reduced turnover • Eliminated dampness • Improvements in health • Much reduced level of complaints

Aberdeen Heat & Power Delivering Affordable Warmth . Developments to date

• We have had a steady and continuous development programme since 2002.

• So far: • 28 of the 59 multis have new affordable heating, • plus 3 low rise sheltered housing schemes • and 12 public buildings

• We are currently on-site to supply heat to 11 more multis – completion due April 2015

Aberdeen Heat & Power Delivering Affordable Warmth . Stockethill

Aberdeen Heat & Power Delivering Affordable Warmth . Stockethill

Hazlehead

Aberdeen Heat & Power Delivering Affordable Warmth . Seaton

Stockethill

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Aberdeen Heat & Power Delivering Affordable Warmth . Seaton

Stockethill

Hazlehead

Aberdeen Heat & Power Delivering Affordable Warmth . Seaton

Stockethill

City Centre

Hazlehead

Aberdeen Heat & Power Delivering Affordable Warmth . = Current Projects

Seaton

Stockethill

City Centre

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Torry Aberdeen Heat & Power Delivering Affordable Warmth . = Current Projects = New Projects

Seaton

Cairncry Stockethill

City Centre

Hazlehead

Torry Aberdeen Heat & Power Delivering Affordable Warmth . = Current Projects Tillydrone = New Projects = Potential 2-5 years

Seaton

Cairncry Stockethill

City Centre

Hazlehead

Torry Aberdeen Heat & Power Delivering Affordable Warmth . = Current Projects Tillydrone = New Projects = Potential 2-5 years = Long term Seaton = Energy Centres

Cairncry Stockethill

City Centre

Hazlehead

Torry Aberdeen Heat & Power Delivering Affordable Warmth . The Future……….

• Subsidiary company District Energy Aberdeen Ltd (DEAL) set up as a heat retail arm to develop connections to non- Public Sector properties and identify infrastructure developments.

• Continue to extend the DH network at a pace which is financially and practically viable

• Build partnerships and agreements for future connections

• Review alternative fuel technologies to “bolt on” the front end

• Multiple CHP stations around the City linked into one city-wide heat network

Aberdeen Heat & Power Delivering Affordable Warmth . Our Aims are being met…..

• We believe we are meeting our start-out ambitions

• Tackling fuel poverty • Providing affordable heat • Reducing carbon emissions through use of low carbon technology • Installing reliable, efficient and controllable systems for domestic and commercial buildings

• With Subsidiary DEAL we can continue to grow the network and maintain costs at an affordable level for the domestic sector

Aberdeen Heat & Power Delivering Affordable Warmth . Contact Details ……….

Janice Lyon - Director Aberdeen Heat and Power

T: 01224 632181

e-mail – [email protected] Web: www.aberdeenheatandpower.co.uk

Aberdeen Heat & Power Delivering Affordable Warmth .

International Leadership and Collaboration – Leadership Event on District Heating, April 29

By Morten Jordt Duedahl, District Energy Partnership District Heating Adds Real Value

District Heating

Lower Energy Jobs Less CO2 Price efficiency

43 Technically DH is NOT Complicated

Storage

DH is fuel agnostic! Pipes, pumps, valves . . . Heat demand

• Like your own boiler – a lot bigger and a lot smarter!! • Moving “free” heat to a useful place • Extremely well proven technology!!

44 DH in Denmark • 63% of all house holds (1.632.000)- 98% in Copenhagen • + 17.000 (2012) (up to 75%) • Today ~450 schemes

45 Denmark’s Wake Up Call – 1973 • 99% oil and coal = import dependence • Inefficient energy use

Sustainable solutions needed!!

46 Consistent Energy Policy Long Term planning Legislation • 1976 – Electricity Act (CHP, Cost Eff) • 1979 – Heat Supply Act + RES + WtE • 1986 – Decentralized CHP • 1990, 1993, 2008 – Increased biomass (new CHP and conversion)

Incentives • 1981 – Investment grants for biomass DH/CHP • 1984, 1992 – Subsidies for CHP • 1994 – Financial support to establish DH on biomass or natural gas • 1991 – High energy tax and CO2 tax on fossil fuels

Clear business model • Non-for-profit • Municipal guaranteed loans • Support from all levels of society

Plan – Coordinate – Legislate - Support

47 The Future

• A central part of Smart Energy Systems & 2050 targets • Integrate surplus wind and solar electricity

Individual solar heating Individual heat pump Individual biomass Individual electric heating Individual gas boilers Individual oil boilers Small scale district heating District heating CO2-emission total

48 DH Costs less than Natural Gas

Heat Prices incl VAT 2013 385 schemes (18,1 MWh – 130m2 standard house)

All district heating schemes arranged after price Individual NG

0% 95% 100% NoNo of of schemes end users in % % Source: Danish District Heating •~75% of schemes cost less than natural gas •~95% of end user spend less compared to natural gas

49 Jobs - Denmark • 10.700 direct jobs (15.000 in 2020)

• DH companies investment: £450m/ year

• Export: £560m/year, treble by 2020

50 Jobs – • Local jobs from day 1 • Construction • Operation and maintenance • Supply chain • Inward investment • Keep jobs in Scotland

Requires a committed strategy & Skills development!!!

• Kent - £65m creates 100 jobs in construction and 40 permanent jobs • GLA - £150m invested, 55 permanent jobs + supply chain jobs

51 Denmark’s DH Carbon Footprint

• 40% lower compared to no DH (heating) • 46% lower pr DH unit produced

DH production - TJ

Energy consumption, Total

CO2 emissions

DH CO2 emissions/production

52 District Heating Adds Real Value

District Heating

Lower Energy Jobs Less CO2 Price efficiency

District Heating projects can: • alleviate fuel poverty • de-carbonise a town or city • help create jobs PWC and SFT 53 Scotland • Create coherent and consistent framework conditions • Show political will • Keep a long term perspective • Get started! 2020/30/40/5o is just around the corner • Understand business models and benefits from these

• Level playing field against other energy technologies

54 Local authorities, NHS, developers... • Get all stakeholders together – internal and external( ) • Set clear objectives( ) • Plan – Coordinate – Legislate – Support ( ) • Long term (lifetime: 50+ years!) ( )

• Today’s decisions must not limit tomorrow’s developments!

55 Scotland: An Emerging DH Market

56 District Energy Partnership

•Mission: Strengthen DH framework conditions •Provide: Evidence, Knowledge, Input •Active in Scotland and England •Free of charge Thank you Morten Jordt Duedahl Head of Secretariat [email protected] www.districtenergypartnership.com General Discussion led by Mike Thornton

Margaret Burgess, MSP Minister for Housing & Welfare