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Fuel Poverty and Housing Associations

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Fuel Poverty and Housing Associations Plenary 1 Realising our heat vision for Scotland Chair: Jenny Hogan Keynote Address Fergus Ewing MSP, Minister for Energy, Enterprise and Tourism Calum Wilson Forth Energy & SSE Reliable, responsible, renewable heat and power for Scotland Grangemouth biomass CHP plant 18th Jun 2013 5 Overview • Forth Energy • Grangemouth biomass CHP plant • Heat provision • Regulatory challenges • Going forward 6 Dundee 50/50 Joint venture • Developing renewable energy projects, helping to meet Scotland’s 2020 renewable energy and emissions reductions targets Rosyth • CHP plant at Port of Grangemouth granted consent 3 June 2013 Grangemouth •Proposals for plants at Ports of Rosyth and Dundee going through consenting process 7 Grangemouth biomass CHP plant • 200 MW thermal capacity – 23% of Scotland's 2020 target – large Ineos refinery demand – Potential district heating network • 120 MW electrical capacity • Capital investment ~£465m • 300-500 construction jobs, 70 operational jobs • Feedstock – ~0.7 Mte pa wood pellets – Existing global supply chain 8 Heat provision • Strong interest expressed in the supply of 200 MWth of process steam • Potential for recovered heat from flue gases to feed a 19 MWth DH scheme • Heat provision on this scale is challenging – No national heat grid, dedicated heat networks required – Substantial increase in capex to provide process steam – Limited ability to diversify customer base – Considerable regulatory uncertainty Heat offtake is core to the project 9 Regulatory challenges • Scottish Government has confirmed ROS support for biomass CHP plants > 15 MWe • DECC has implemented RHI tariff degression, but not Enhanced Preliminary Accreditation • Biomass sustainability criteria announcements are expected Summer 2013 • CHP Quality Assurance review, including Good Quality CHP definition, is expected Summer 2013 • Indicative CfD strike prices, final CfD form and EMR Delivery plan are due July 2013 • Regulatory certainty is required to allow projects to be financed 10 Going forward • Aiming to achieve stronger project definition • Immediate focus on heat provision • Fuel sourcing and logistics • Address section 36 and deemed planning conditions • Application for Investment Contract • Assess impact of forthcoming regulatory announcements • Challenge is to deliver a viable and financeable project 11 Julie Hesketh-Laird Scotch Whisky Association Realising Our Heat Vision For Scotland The Scotch Whisky Industry’s Contribution 18 June 2013 Julie Hesketh-Laird Director of Operational and Technical Affairs Scotch Whisky Association Scotch at a Glance Today our 101 malt and 7 grain distilleries generate: • £4.3bn worth Scotch exported/annum (£135 a second) • Sent to 200+ markets worldwide • Scotland’s leading food and drink export • We account for a quarter of UK food and drink exports • 80% of Scottish food and drink exports • Over £2bn investment announced Scotch Whisky Industry Environmental Strategy - 2009 • Mitigate GHG emissions and increase energy efficiency • 20% primary energy requirements from non-fossil fuels by 2020 and 80% by 2050 • Manage water requirements effectively • By 2020: – 10% reduction in packaging weight – 40% packaging from recycled materials – all product packaging reusable or recyclable – no packaging operations waste to landfill • Casks to be from oak from sustainable forests • Supply chain collaboration • Annual reporting 15 Drivers for Renewables - A bit more than just ‘PR’! - Consumer confidence - Industry environmental commitments/Scottish and UK Government ambitions - Compelling financial imperative - Shelter from uncertain energy prices - Managing security of supply - Long-term industry and environmental sustainability 16 Burn Stewart Deanston Distillery, Doune • On-site hydro on River Teith • 1,300,000kWh/annum • Drives distillery and exports to the national grid 17 Progress Against Energy Target Target: By 2020, 20% primary energy requirements will be derived from non-fossil fuel; with a target of 80% by 2050 2008: Non-fossil fuels = 3% total energy use 2010: Non-fossil fuels = 6% of total energy use 85% of energy demand is for heat 18 Helius CoRDe Combination of Rothes Distillers • JV of 7 distillers (16 malt distilleries) and Helius Energy • £60m investment • Under commissioning • 6.25MW capacity to national grid • Liquid animal feed 19 AD Renewables in Scotch Whisky Diageo’s Dailuaine Malt Distillery bioenergy plant has proved AD in batch distilling processes The North British Distillery uses AD to fire its boilers Wm Grant & Sons’ Girvan Distillery Diageo’s uses AR to produce steam power and Cameronbridge hot water for use on-site and Distillery uses electricity to export to the grid AD and biomass and aims to provide 98% of the thermal steam and 80% of the electricity for the site Community Heating Schemes The North British Morrison Bowmore Distillery Distillery in on Islay provides heat to the Edinburgh sends its local community swimming pool heat to the local Tynecastle High School Pulteney Distillery in Wick is a key customer of the new Wick District Heating Scheme Renewables Challenges • Perceptions – 76m litres new capacity on line – 20m additional litres planned • Financial challenges – Incentives – Scottish business rates evaluation “Make it easier for companies to do the right thing” 22 Thank You 2009…...... …2020………...2050… .... ...? For more on the Industry’s Environmental Strategy, visit: scotch-whisky.org.uk 23 David Stewart SFHA Renewable Heat and Housing Associations Scottish Renewables, Perth 18th June David Stewart Content • Fuel Poverty and housing association tenants • Drivers for investment in energy efficiency and renewables • Potential for renewable heating in social housing • Issues and challenges • Looking forward Fuel poverty and housing associations • Most energy efficient housing in Scotland • Tenants on low income so vulnerable to fuel poverty • Improvements in housing (double glazing, insulation) • Inflation bursting fuel increases and lower incomes a major challenge Rising Fuel Prices and Fuel Poverty 900,000 800,000 700,000 600,000 500,000 400,000 300,000 Households 200,000 Estimate of Fuel Poor Fuel of Estimate 100,000 0 5 10 15 20 25 30 35 0 % increase in fuel prices Fuel Poverty by fuel type Heating Source Household no’s Fuel Poverty (09 data) Mains gas 1,800,000 25% Electric heating 354,000 37% Heating oil 135,000 45% Other fuel 33,000 38% Drivers to invest in renewables • Fuel poverty and affordability • Climate Change • Energy Efficiency Standards for Social Housing • Culture of investment, asset management and improvement Potential for Renewable Heat • Rural – fuel poverty a greater issue, proximity to biomass • Less potential in urban areas but landlords may take a long term view on fuel prices • Potential for gas powered CHP/District Heating to be converted? Issues and Challenges • Uncertainty about technology that is relatively new • Some negative experiences and horror stories – need for quality to give confidence • Importance of training and tenant engagement (Consumer Futures study) • Funding – high capital costs and complex funding packages Ways forward/next steps • Quality control and certainty – Scottish Procurement’s Biomass Framework; CHPA’s planned Consumer Protection Scheme • Funding – domestic RHI vital for social landlords • Guidance and regulation – Energy Efficiency Standards for Social Housing, District Heating Action Plan, Renewable Energy Roadmap 1. Http://www.youtube.com/watch?v=hGltgWs CIM8&feature=em-share_video_user .
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