Local Energy Guide

Local Energy Guide Contents 1. Introduction ..................................................................................... 4 1.1 The Energy Hubs ............................................................................ 4 1.2 Cornwall Insight ............................................................................ 4 1.3 Document Guide ............................................................................ 5 2 Overview of the GB gas and electricity markets ........................................... 6 2.1 Key roles in the GB electricity market .................................................. 6 2.2 Key roles in the GB gas market ........................................................... 9 2.3 Regulation and Governance .............................................................. 10 2.4 Energy Policy ............................................................................... 11 3 Routes to Market and Siting Considerations ............................................... 14 3.1 Introduction ................................................................................ 14 3.2 Public supply ............................................................................... 14 3.3 Private wire supply ........................................................................ 18 4 Revenues ........................................................................................ 21 4.1 Introduction ................................................................................ 21 4.2 Export via the electricity grid ........................................................... 21 4.3 Export privately ........................................................................... 27 5 Mechanisms to Support Local Energy Investment ......................................... 29 5.1 Introduction ................................................................................ 29 5.2 Ownership structures ..................................................................... 29 5.3 Financing ................................................................................... 29 5.4 Support ..................................................................................... 31 5.5 Increasing community involvement ..................................................... 31 5.6 The local planning and policy environment ........................................... 32 5.7 Utilising Renewable Heat Incentive payments ........................................ 32 5.8 RHI replacements.......................................................................... 33 5.9 RTFO ........................................................................................ 34 5.10 Other potential mechanisms .......................................................... 34 6 Outlook for Low-carbon Technology Investment .......................................... 36 6.1 Introduction ................................................................................ 36 6.2 Underlying commercials .................................................................. 36 6.3 Subsidy support ............................................................................ 38 6.4 Network charging reform ................................................................. 40 https://www.swenergyhub.org.uk/ 1 6.5 Other changes ............................................................................. 41 7 Low-carbon technology planning regimes .................................................. 43 7.1 Planning reform ........................................................................... 43 7.2 Solar ......................................................................................... 43 7.3 Onshore wind .............................................................................. 44 7.4 Biomass and other fuelled plant ........................................................ 45 7.5 Electric vehicles (EVs) .................................................................... 46 7.6 District heating ............................................................................ 47 7.7 Heat pumps ................................................................................ 48 8 Useful links and resources .................................................................... 49 8.1 Local Energy Hub resources .............................................................. 49 8.2 Other available resources ................................................................ 50 9 Case Studies .................................................................................... 53 10 Warrington Solar ............................................................................... 54 10.1 Summary ................................................................................. 54 10.2 Description ............................................................................... 54 10.3 Participants .............................................................................. 55 10.4 Financials ................................................................................ 55 10.5 Replicability ............................................................................. 56 10.6 Future outlook ........................................................................... 58 10.7 Grid congestion ......................................................................... 58 10.8 Cannibalisation .......................................................................... 58 10.9 Storage ................................................................................... 58 10.10 EV rollout ................................................................................ 59 11 Energise Barnsley .............................................................................. 60 11.1 Project overview ........................................................................ 60 11.2 Project partners ......................................................................... 61 11.3 Financials ................................................................................ 62 11.4 Results .................................................................................... 64 11.5 Next steps ................................................................................ 64 11.6 Replicability ............................................................................. 64 11.7 Key learnings ............................................................................ 65 12 Mobilising Local Energy Investment ......................................................... 67 12.1 Summary ................................................................................. 67 12.2 Description ............................................................................... 67 12.3 Participants .............................................................................. 69 12.4 Financials ................................................................................ 70 12.5 Replicability ............................................................................. 70 https://www.swenergyhub.org.uk/ 2 12.6 Future outlook ........................................................................... 71 13 Gateshead District Energy Scheme .......................................................... 72 13.1 Summary ................................................................................. 72 13.2 Description ............................................................................... 72 13.3 Participants .............................................................................. 76 13.4 Financials ................................................................................ 77 13.5 Replicability ............................................................................. 78 13.6 Future Outlook .......................................................................... 79 14 Deep Retrofit Energy Model (DREeM) and Energiesprong ................................ 80 14.1 Summary ................................................................................. 80 14.2 Description ............................................................................... 80 14.3 Participants .............................................................................. 82 14.4 Financials ................................................................................ 83 14.5 Replicability ............................................................................. 84 14.6 Future outlook ........................................................................... 85 15 Glossary ......................................................................................... 86 16 Appendix A – BEIS Local Energy Hubs ....................................................... 91 16.1 Rural community energy fund ......................................................... 91 16.2 South West Energy Hub (SWEH) ....................................................... 92 16.3 Greater South East Energy Hub (GSEEH) ............................................ 93 16.4 North East, Yorkshire and Humber Energy Hub (NEYHEH) ........................ 94 16.5 North West Energy Hub (NWEH) ...................................................... 94 16.6 Midlands Energy Hub ................................................................... 95 17 Appendix B – Detailed Summary of Electricity and Gas Functions ...................... 97 17.1 Key differentiators in the gas market.............................................. 100 18 Appendix C - Examples of LA Initiatives Involving Private

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