Upper Lee Valley Decentralised Energy Network Pre-Feasibility Study
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Upper Lee Valley Decentralised Energy Network Pre-feasibility Study North London Strategic Alliance July 2011 ULV DEN Pre-feasibility Study PEL285594A Prepared for North London Strategic Alliance 6th Floor Alexandra House 10 Station Road London N22 7TR Prepared by Parsons Brinckerhoff 6 Devonshire Sq London EC2M 4YE 0207 337 1700 www.pbworld.co.uk Report Title : ULV DEN Pre-feasibility Study Report Status : Version 3 Job No : PEL285594A Date : July 2011 Prepared by : James Eland, Rupert Green Checked by : Bruce Geldard Approved by : Dominic Bowers Document History and Status Report Date of Prepared By: Checked By: Approved By: Issue Issue 3rd June 1 (draft) JDTE / RG BJG DWB 2011 8th July 2 (draft) JDTE / RG Uncontrolled Uncontrolled 2011 26th July 3 (final) JDTE / RG BJG DWB 2011 ULV DEN Pre-feasibility Study CONTENTS 1 Executive Summary 14 1.1 Aims and Opportunity 14 1.2 Benefits 14 1.3 Development 15 1.4 Results 15 1.5 Recommended Key Actions 17 2 Introduction 19 2.2 Framework Conditions 19 2.3 Methodology 20 3 Heat sources 21 3.2 Edmonton Incinerator and the North London Waste Authority 21 3.3 KEDCO – Biomass Gasifier 28 3.4 Enfield Power Station 30 3.5 Small-Scale Energy Generation Technologies 34 3.6 Technology progression over project timescales 35 3.7 Comparison of key heat sources 37 4 Heat demands 41 4.1 London Heat Map Database 41 4.2 Dealing with gaps in the data 44 5 Heat networks 45 5.1 Key technical decisions 45 5.2 Potential heat network changes over time 48 5.3 Network Constraints 49 5.4 The River Lea Navigation Towpath 49 6 Electricity Networks and the Sale of Electricity 51 6.1 Electricity networks 51 6.2 Specific electrical supply arrangements 52 6.3 Sale of generated electricity 53 6.4 Electricity Network Conclusions 55 7 Planning: Mechanisms to Facilitate and Implement A DEN 57 7.2 Planning policy framework 57 7.3 Local Policy Analysis 59 7.4 The Next 40 Years 62 7.5 Key mechanisms for DEN implementation 63 7.6 Planning Mechanism Conclusions 64 8 Stakeholder Aspirations 67 8.2 Aspirations Workshop 67 8.3 Questions and Outputs 67 8.4 Option assessment matrix 70 110726 - PEL285594A - NLSA ULV DEN Report v3.0.docx Prepared by Parsons Brinckerhoff July 2011 Page 7 for North London Strategic Alliance ULV DEN Pre-feasibility Study 9 Strategic Development Model 71 9.1 Aims and rationale 71 9.2 Network Extent 71 9.3 NPV analysis for network extent 74 9.4 Network Phasing 78 9.5 Phasing and viability 82 9.6 Key Assumptions 84 9.7 Individual cluster growth 85 10 Carbon Savings 95 10.1 Baseline and additionality 95 10.2 Carbon intensity of heat sources 95 11 Inward Investment and the ULV DEN - SQW 98 11.1 Scope of Work 98 11.2 Local Economic and Business Context 98 11.3 Potential Options for a DEN 99 11.4 Business Clustering Driven by Low Cost or Green Energy 100 11.5 UK and European Experience 100 11.6 Elsewhere in the World 102 11.7 Business and Investment Potential from the DEN 103 11.8 Potential list of opportunity sectors (LTHW network) 104 11.9 Prospective opportunity sectors (HTHW or steam network) 104 11.10 Economic Prospects and Uplift 106 11.11 Inward investment conclusions and implications 108 12 Vision Map 110 12.2 Option assessment against stakeholder priorities 110 12.3 Scheme Growth 112 12.4 Network diameters 117 12.5 Interface between individual clusters and DEN 119 12.6 Capital Spend Profile 121 13 Delivery Vehicles 123 13.1 Potential commercial arrangements 123 13.2 Background to commercial arrangements for district heating in the UK 123 13.3 Potential Approaches for development of DH 123 13.4 Appraisal of potential options 127 13.5 Cost of Funding 127 13.6 Funding Gaps 127 13.7 Risk versus Control 128 13.8 Regulations and Licensing 128 13.9 Availability of Resources and Skills 128 13.10 Operation of Schemes 129 13.11 Analysis of ULV schemes 129 13.12 Next Steps 131 110726 - PEL285594A - NLSA ULV DEN Report v3.0.docx Prepared by Parsons Brinckerhoff July 2011 Page 8 for North London Strategic Alliance ULV DEN Pre-feasibility Study 14 Risks and Uncertainties 132 14.1 Regulatory / Political 132 14.2 Technical / viability 132 15 Conclusions and Recommendations 134 15.1 Conclusions 134 15.2 Recommended Actions 137 15.3 Recommended Actions by Borough 139 15.4 Waltham Forest 140 16 Appendix A – Cluster Analysis Assumptions 142 16.2 ESCO Operational Costs 144 17 Appendix B – Cluster Analysis Results 146 17.1 Introduction 146 17.2 LBWF Cluster A: Town Hall Scheme 146 17.3 LBWF Cluster B: Blackhorse Lane North 147 17.4 LBWF Cluster C: Blackhorse Lane South 148 17.5 LBWF Cluster D: Wood Street North 149 17.6 LBWF Cluster D: Wood Street South 150 17.7 LBWF Cluster E: Northern Olympic Fringe / Leyton Orient 151 17.8 LB Waltham Forest – Walthamstow Town Centre 152 17.9 LB Enfield – Innova Park 153 17.10 LB Enfield – Southbury 154 17.11 LB Enfield – Ponders End / Southern Brimsdown 155 17.12 LB Enfield – Enfield Town 156 17.13 LB Enfield – Edmonton 157 17.14 LB Enfield – Palmers Green 158 17.15 LB Enfield – New Southgate 159 17.16 LB Enfield – Cockfosters 160 17.17 LB Haringey – Wood Green North 161 17.18 LB Haringey – Tottenham Town Hall 162 17.19 LB Haringey – Hornsey High Street 163 17.20 LB Haringey – Wood Green East 164 17.21 LB Haringey – South Northumberland Park 165 17.22 LB Haringey – Haringey Heartlands 166 18 Appendix C – Aspirations Workshop Agenda and attendees 167 18.1 Attendees 168 19 Appendix D – Small Scale Generation Technologies 169 19.1 Spark-ignition Gas Engines 169 19.2 Compression Ignition 171 19.3 GT Open cycle 173 19.4 Solid Biomass boilers 174 20 Appendix E – ULV Decentralised Energy Network – Planning Policy Review 178 20.1 Introduction 178 110726 - PEL285594A - NLSA ULV DEN Report v3.0.docx Prepared by Parsons Brinckerhoff July 2011 Page 9 for North London Strategic Alliance ULV DEN Pre-feasibility Study 20.2 National Level: Planning Policy Statements 178 20.3 Regional Level: London Plan 179 20.4 Local Level – London Boroughs’ Local Planning Frameworks 180 20.5 LB Enfield 181 20.6 LB Haringey 181 20.7 LB Waltham Forest 182 21 APPENDIX F - Copy of British Waterways Costs Undertaking 184 22 Appendix G – Phasing of Loads and Options Results Illustrations (PDF only) 186 22.1 Scenario A1 - Scenario A1 – Edmonton EcoPark as heat source, post 2023, 120ktpa throughput, gasifier technology 186 22.2 Scenario A2 – Edmonton EcoPark as heat source post 2023, 327ktpa throughput, gasifier technology 186 22.3 Scenario A3 – Edmonton Incinerator modified to supply heat from 2015, new gasifier facility post 2023 on Edmonton EcoPark site with throughput of 120ktpa 186 22.4 Scenario A4 - Edmonton Incinerator modified to supply heat from 2015, new gasifier facility post 2023 on Edmonton EcoPark site with throughput of 327ktpa 186 22.5 Scenario B1 – Kedco gasifier as heat source circa 2015 onwards 186 22.6 Scenario B2 – Kedco gasifier as heat source from circa 2015, with addition of 120ktpa throughput gasifier on Edmonton EcoPark as additional heat source post 2023 (Olympic Route) 186 22.7 Scenario B2 – Kedco gasifier as heat source from circa 2015, with addition of 120ktpa throughput gasifier on Edmonton EcoPark as additional heat source post 2023 (Tottenham Route) 186 22.8 Scenario C1 – Enfield power station circa 2025 – assumed to operate to provide base load power to the grid (e.g. 8000hrs operation). 186 23 Appendix H – Strategic Network Modelling Assumptions 187 23.1 Energy costs 187 23.2 Connection Charges 187 23.3 Availability Charges 187 23.4 Closure of Edmonton Incinerator site 187 23.5 Cost of Network in ULV Industrial Corridor Employment Areas 187 24 Appendix I - NLWA and Solid Recovered Fuel 189 24.1 Solid Recovered Fuel and Refuse Derived Fuel 189 24.2 How is SRF produced? 189 24.3 How is SRF used? 191 24.4 Production and Use of Solid Recovered Fuel in the UK 194 25 Appendix J – Individual Cluster Load Maps (PDF only) 198 26 Appendix K – Technical Connection Information 199 26.1 Primary and secondary network interface 199 26.2 Heat exchanger substations 199 26.3 Heating 200 26.4 Secondary System Designs 200 26.5 Domestic hot water supply 200 26.6 Domestic hydraulic interface units (HIUs) 201 26.7 Plant Layouts 203 110726 - PEL285594A - NLSA ULV DEN Report v3.0.docx Prepared by Parsons Brinckerhoff July 2011 Page 10 for North London Strategic Alliance ULV DEN Pre-feasibility Study 27 Appendix L: Planning Mechanisms Considered 205 27.2 The Localism Bill 205 27.3 Planning application process 208 Table of Figures Figure 1-1 DEN development process ............................................................................................. 15 Figure 1-2 Vision Map Network Scenario B2 ‘Olympic Park’ configuration ........................................ 16 Figure 1-3 Vision Map Network Scenario B2 ‘Tottenham’ configuration ............................................ 17 Figure 3-1 Existing waste management and waste transfer sites in the Upper Lee Valley ................. 26 Figure 3-2 Edmonton Incinerator site timeline .................................................................................. 28 Figure 3-3 Kedco gasifier Site Plan .................................................................................................. 29 Figure 3-4 Schematic drawing of Enfield Power Station cycle........................................................... 31 Figure 3-5 Enfield Power Station site layout drawing ........................................................................ 33 Figure 3-6 Conceptual vision of technology progression ................................................................... 36 Figure 3-7 Value of heat distribution to key heat sources ................................................................. 37 Figure 3-8 Heat source supply capacities......................................................................................... 38 Figure 3-9 Options modelled ...........................................................................................................