Delivering Heat Networks Understanding the Challenge
Total Page:16
File Type:pdf, Size:1020Kb
Delivering Heat Networks Understanding the challenge District heating networks are a key component These challenges and complexities are best of a future low carbon London. They will addressed by bringing together engineering, provide the means to capture and distribute planning, finance and regulatory expertise into heat from a diverse mix of primary as well as an integrated project delivery unit. secondary heat sources to serve homes and businesses. Development of district heating Arup’s multidisciplinary approach to district networks at scale across the capital over the heating project delivery underpins our work next ten years is therefore essential for London in London and across the UK. We support to meet the Mayor’s target of meeting 25% public and private sector clients from early of London’s energy needs from decentralised stage resource assessments and policy advice sources by 2025. through to scheme design, business case and procurement. We work closely with clients at Thanks to previous mayoral programmes such each stage to scope the opportunities, analyse as the London Heat Map and Decentralised the fundamentals and develop practicable Energy Masterplanning (DEMaP), the solutions for bankable projects. challenge today is no longer knowing where the opportunities lie; it is understanding how to deliver them in the face of multiple barriers, including: - long investment horizons; - limited windows of opportunity; - an opaque regulatory framework; - a stigma of poorly performing schemes in the past; and - limited experience among local authorities and developers. 2 Understanding the challenge Delivering solutions The unique working philosophy at Arup – Through our global knowledge management founded on flexibility, transparency and systems, we are able to harness ideas and ability to deliver – is ideally suited to practical experience from projects worldwide. delivering district heating and distributed energy projects. These projects incorporate Our district heating team has so far a wide range of skills available within undertaken around 80 separate engagements Arup, including engineering, planning, across key groupings of energy finance, commercialisation, environmental masterplanning, feasibility studies, business and planning, project management and case and commercialisation, procurement, stakeholder engagement. capacity building, research and guidance. Specialist Skills Technology - Energy resource assessments - Combined heat and power - Energy and low carbon policy - District heating and cooling - Heat mapping - Low temperature heat networks - Techno-economic modelling - Energy from waste - Detailed feasibility studies - Biomass boilers and CHP systems - Detailed design - Lake loop cooling - Financial modelling - Ground source heat pumps - Commercial structuring - Geothermal energy systems - Heat and power purchase agreements - Air source heat pumps - Customer protection schemes - Micro-grids - Risk assessment and allocation - Energy storage - Procurement strategy - Contract specifications - Procurement management 3 Project stages Policy Procurement Financing Development At all stages of a project we build Heat Business capacity, deliver research and guidance, and Mapping Plan develop tools to support delivery. Energy Commercial Business Feasibility Studies Masterplanning Strategy Case Capacity building Development of tools We deliver informal training and ongoing At the start of projects, a standard techno- support to staff within project sponsor economic modelling tool can be developed organisations. For example, by working to enable the team to generate efficient and through project sponsors rather than taking consistent results at the energy masterplanning direct responsibility for project delivery, the stage. We also develop more detailed energy DEPDU service has delivered significant network modelling tools to support more informal training benefits to Council and other complex and detailed project analysis. public sector energy, planning and housing staff across London. Guidance Research We authored the recently published London Heat Network Manual. The Manual is intended to The team has undertaken focused research to support the industry by providing authoritative address key technical and commercial challenges guidance, building on user feedback from which arise on projects. Examples include the previous version of the manual including identifying funding sources and financing technical design principles and concepts for options for district heating investments; the physical infrastructure of a heat network; modelling the potential use of “Licence Lite” to contract and procurement; tariff structures increase revenue from CHP electricity sales; the and customer service standards; and metering price of heat; and the potential for low carbon arrangements. heat networks using alternative heat sources and low temperature networks. 4 Lee Valley Heat Network, Enfield The Lee Valley Heat Network is London’s satellite heat network projects. We provided a largest heat network development project. The wide variety of technical and financial support project encompasses a strategic heat network provided to Enfield including the completion connecting more than 5,000 homes in Enfield of wider vision mapping and support in the with heat recovered from the Enfield EcoPark development of the business plan for the Energy from Waste power station. scheme. The satellite projects include the Alma Estate project utilising heat recovered from a Arup has completed a series of design lake loop to supply the housing estate; analysis and feasibility studies, capex assessment, of a potential steam connection from Kedco to route proving studies, route optimisation Coca-Cola Enterprises; and a biomass boiler led investigations and financial modelling for the development at New Avenue Estate. scheme, the connected sites and a number of A3 A3 Le gend °! Legend °! # Phase 1 # # Alma Phase 1 New Alma Potential Phase 2 # Estate Potential Phase 2 New Avenue Estate Potential Future Avenue Potential Future Anchor Loads and demand clusters Anchor Loads and demand clusters # Meridian Water Phase # Meridian Water Phase Satellite Schemes Satellite Schemes # Alma Estate # Alma Estate Edmonton # Ladderswood # Ladderswood Edmonton Green # New Avenue Green # New Avenue Heat Source Heat Source ! Edmonton EcoPark ! Edmonton EcoPark ! !North # North # Ladderswood Middlesex # Ladderswood Middlesex #Hospital Hospital High Road High Road West & © Copyright Information West & Spurs © Copyright Information Spurs P1 07-04-2014 EBE KC JC P1 07-04-2014 EBE KC JC Revision Date By Chkd Appd Revision Date By Chkd Appd Metres Metres 0 600 1,200 2,400 Tottenham 0 600 1,200 2,400 Tottenham Hale Waltham Hale Waltham Forest Forest 13 Fitzroy Street Meridian Water Phase London W1T 4BQ 13 Fitzroy Street Tel +44 20 7636 1531 Fax +44 20 7580 3924 Meridian Water Phase ! London W1T 4BQ www.arup.com Edmonton Tel +44 20 7636 1531 Fax +44 20 7580 3924 ! www.arup.com Edmonton EcoPark Client EcoPark Client London Borough of Enfield London Borough of Enfield Job Title Job Title LVHN Enfield Phase LVHN Enfield Phase Drawing Title Meridian Water Drawing Title North London Decentralised Meridian Water # North London Decentralised Energy Vision Map # Energy Vision Map Scale at A3 Scale at A3 1:44,600 Olympic 1:44,600 Sources: Esri, DeLorme, NAVTEQ, TomTom, Intermap, Olympic Job No Drawing Status Sources: Esri, DeLorme, NAVTEQ, TomTom, Inteirnmcraepm, ent P Corp., GEBCO, USGS, FAO, NPS, NRCAN, Park Job No Drawing Status 232401 Issue 1.0 increment P Corp., GEBCO, USGS, FAO, NPS, NGReCoABNas,e, IGN, Kadaster NL, Ordnance Survey, Esri Park 232401 Issue 1.0 Drawing No Revision GeoBase, IGN, Kadaster NL, Ordnance Survey, EJsarpian, METI, Esri China (Hong Kong), swisstopo, and Japan, METI, Esri China (Hong Kong), swisstopot,h aen GdIS User Community Sources: Esri, DeLorme, NAVTEQ, TomTom, Intermap, increment P Corp., GEBCO, USDGraSw,in gF NAoO, NPS, NRCAN, GeoBase, IGRNev,ision Figure 7 1.0 the GIS User Community Sources: Esri, DeLorme, NAVTEQ, TomTom, InteKrmadaaps, tienrc rNeLm, eOnrtd Pn aCnocrep .S, uGrEveByC, EOs, rUi JSaGpSan, ,F MAOE,T NI, PESs,r iN CRhCinAaN (H, Gonego BKaosneg,) I,G sNw,isstopo, aFnigdu trhee 7GIS User Community 1.0 MXD Location Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, and the GIS User Community © Arup MXD Location © Arup 5 Projects UK-wide London AP Salads, Europa Nurseries, Kent DEPDU Programme, London We were appointed as Client’s We support the GLA as part of Through our engagement, we are Engineer by P3P Partners to provide the Decentralised Energy Project considering the alternative structures technical and commercial advice on Delivery Unit (DEPDU), which and approaches to the delivery of all aspects of design, installation, aims to facilitate over £95m of DE projects, providing innovative commissioning and operation of distributed energy projects. We solutions in a variety of different this distributed energy project, provided assistance during the contexts. This includes the costs, which comprised the construction prospecting and project framework benefits and the risks associated and development of a new energy stages of the projects, and continues with full public, private or a mixture centre. We were able to provide an to provide support through to of ownership. Arup’s analysis is innovative solution that not only the feasibility, procurement and allowing DEPDU to establish the provided heat and power