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Liverpool City Region Renewable Energy Capacity Study (Stage 1)

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Liverpool City Region Renewable Energy Capacity Study (Stage 1) < RENEWABLE ENERGY CAPACITY STUDY Liverpool City Region Stage One Report Liverpool City Region Arup Renewalbe Energy Capacity Study - Stage One Report December 09 1 INTroDUCTION 4 CONTENTS 2 SUMMARY OF FINDINGS 8 3 REVIEW OF RENEWABLE ENERGY TARGETS For THE STUDY AREA 11 4 STRATEGIC PLANNING AssEssMENT 16 5 RENEWABLE ENERGY AND THE EcoNOMY 22 6 A REVIEW OF RENEWABLE TECHNOLOGIES 31 7 STRATEGIC REVIEW OF ENERGY REsoUrcE AND ENERGY DEMAND POTENTIAL 36 8 DISTRIBUTED ENERGY POTENTIAL 41 9 BUILDING INTEGRATED ENERGY PoTENTIAL 46 10 ADDITIONAL TARGETED TECHNOLOGY OPPorTUNITIES 49 11 SUB-REGION AND LocAL AUTHorITY OPTIONS APPRAISAL 52 12 coNCLUSIONS AND REcoMMENDATIONs 56 FILE NAME DATE APPENDICES Renewable Energy Capacity 08/12/09 Appendix A Overview of Renewable Energy 62 Study Technologies PREPARED BY SIGNATURE Appendix B Local Authority Policy Review 77 Project Team Appendix C Overview of Policy and NW Renewable 98 CHECKED BY SIGNATURE Energy Study Appendix D Constraints Mapping 103 Mark Anderson Stephen Pimlott Appendix E The North West Renewable Energy Industry 124 APProVED BY SIGNATURE Appendix F Economic Drivers, economic and skills 127 Jane Healey Brown profile Appendix G Consultation with Local Businesses 132 Appendix H Interventions for Developing a Renewable 137 Energy study Appendi I Glossary of Terms 143 Liverpool City Region 3 Arup Renewable Energy Capacity Study - Stage One Report December 09 < 1. INTroDUCTION Liverpool City Region 4 Arup Renewable Energy Capacity Study - Stage One Report December 09 1.1 INTroDUCTION policies and programmes that have implications for The need for action to tackle climate change, reduce the Liverpool City Region and Warrington. The North carbon emissions and improve the security of energy West of England Regional Spatial Strategy (RSS) sets supplies is immediate. Arup was commissioned to out targets for renewable and low carbon energy undertake a Renewable Energy Capacity Study for options and provides the starting point for this study. Liverpool City Region and Warrington in July 2009. 1.2 STUDY ArEA This commission represents the first stage of an The geographic coverage for this project includes ongoing commission and has been prepared to a total of eight local authority areas. Each local help inform the development of Local Development authority forms part of a sub region. The geographic Frameworks and other relevant plans, policies and area for this study covers three sub regions. Each strategies prepared by local authorities in the study sub region is defined in the North West Regional area. Consequently, this stage is aimed at planning Spatial Strategy (RSS) which sets the targets for professionals when developing planning policies and renewable energy generation. The sub regions determining planning applications for distributed and included in this study are: building integrated energy developments. It also aims to provide information that can be used by other • Merseyside: this sub region is made up professionals and stakeholders that are involved in the of the local authority areas of Liverpool, planning, delivery and operation of such infrastructure. Wirral, Sefton, Knowsley and St Helens. • Halton & Warrington: this sub region is made up of There is growing evidence that renewable energy will the local authority areas of Halton and Warrington. play an increasingly important role in the future of the • Lancashire: this sub region contains a number of UK. The unit cost of energy is likely to increase to local authority areas, however West Lancashire is cover the costs that are necessary to de-carbonise the only local authority contained in this study. grid supplied electricity. It is anticipated that this will be achieved through a range of approaches that These local authority areas, with the exception of will involve more efficient and sustainable energy Warrington make up the Liverpool City Region. For generation. Energy price volatility and issues with the purposes of this study we will need to refer to supply are forecast to worsen in future years. The local authorities individually and to their sub regional implementation of renewable energy technology could groupings. However in instances where all eight local potentially mitigate the negative effects of climate authorities are being referred to together we have change and at the same time lead to considerable used the term ‘the study area’. economic benefits. The potential for renewable and low carbon energy has been recognised in a number of plans, strategies, Liverpool City Region 5 Arup Renewable Energy Capacity Study - Stage One Report December 09 Figure 1: Map of Study Areas and is used to determine the suitability for certain technology options. This is then used to provide an initial indication of whether targets are likely to be met, and provides the basis for indicating the suitability of technologies for each local authority and strategic options. This will ensure that each local authority will eventually have a clear understanding of what targets they should be prioritising, the proportion of each target they should be meeting and which targets will be difficult to meet and the reasons why this is the case. 1.4 IMPorTANT CONSIDERATIONS For THIS STUDY A critical issue when considering the potential for renewable energy is that some technology options that will help reduce carbon emissions are not 1.3 Purpose of the Study strictly renewable. This means that the resource the technology uses to create energy is not a renewable ThisFIGU studyRE 1: ThasHE STUDY been Ar developedEA to provide a sound and robust understandingsource and will, of at some point in time run out. For renewable and low carbon technologies. It does this by providingexample, an insight at present into an effective technology for renewable energy technologies, the key issues associated withcreating them and low how carbon suitable energy is decentralised gas fired they1.3 are P acrossURPos theE OstudyF THE area. STUDY Combined Heat and Power (CHP). Many renewable technologies require specific resources being available to make them This study has been developed to provide a sound It should therefore be recognised that in order to work effectively and be commercially viable. It is not realistic, fair or effective to assume and robust understanding of renewable and low lower carbon emissions and provide secure energy sub regional targets can be split equally between each local authority area. carbon technologies. It does this by providing an supplies, there will be no single solution. Instead Oneinsight of the into main renewable issues that energy this technologies,study begins tothe explore key is the extenta combination to which of each technologies of will be needed in theissues local authoritiesassociated withthat makethem andup the how study suitable area they can meet the targetsorder to set meet in theshort, North medium and long term energy Westare Regional across the Spatial study area.Strategy (RSS) for renewable energy generation.demand. These targets are set at a sub regional scale, but do not provide an indication of what each individual localM anyauthority renewable should technologies be doing to require meet them,specific what the best approachWhen considering would be and renewable and low carbon energy as whetherresources the targetbeing availableand/ or the to renewablmake theme energywork technologies theyalternative relate tomeans are of energy provision, it is essential that feasible.effectively and be commercially viable. It is not measures are also taken to reduce energy use in order realistic, fair or effective to assume sub regional to maximise the carbon reductions that can be achieved Consequently,targets can be this split study equally begins between to address each localthese issues by identifying the relevant targets, establishing the extent to which they are already being andmet optimise through theinstalled effectiveness of low and zero carbon authority area. and anticipated energy schemes. The study also assesses theenergy study areasystems. in terms of potentialOne of resource the main capacityissues that and this energy study demandbegins to and is used to determine the suitability 1.5 APProACHES For IDENTIFYING RENEWABLE for explorecertain technologyis the extent options. to which each of the local ENERGY CAPACITY Thisauthorities is then used that tomake provide up the an studyinitial areaindica cantion meet of whether targets are likely to be met, This study has been developed to provide a strategic andthe provides targets theset basisin the forNorth indicating West Regional the suitability Spatial of technologies for each local understanding of the delivery of renewable energy authorityStrategy and (RSS) strategic for renewable options. energy This will generation. ensure that each local authority will eventually infrastructure across the study area. To achieve this, haveThese a clear targets understanding are set at a subof what regional targets scale, they but should do be prioritising, the proportion of two initial exercises have been completed. These are: eachnot target provide they an should indication be meetingof what eachand whicindividualh targets local will be difficult to meet and the reasonsauthority why should this is bethe doing case. to meet them, what the Identifying Sub regional Renewable Energy best approach would be and whether the target and/ Targets: The starting point for this study has been to or the renewable energy technologies they relate to identify the study area and
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