Climate Berkshire

Project Reference: TV116

Phase I Report March 2009

This report has been prepared by TV Energy Ltd for Climate Berkshire. Report reference TVR129.

Prepared by:

Gillian Alker Technical Advisor (Biomass)

Gabriel Berry Analyst

Prepared and Keith Richards approved by: Managing Director

TV Energy 2 of 44 March 2009 CONTENTS 1 BACKGROUND...... 5 1.1 PROGRAMME OF WORK ...... 5 2 Strategies and drivers...... 6 2.1 National Policy & Drivers ...... 7 2.2 South East Region ...... 7 2.3 Local Government ...... 9 3 Renewable Energy Resources ...... 10 3.1 Technical resource...... 10 4 Urban v Rural Energy Context ...... 14 5 Existing Renewable Energy Projects...... 14 6 Opportunities for Existing Projects ...... 18 6.1 Making better use of existing developments ...... 18 7 Key Issues and Opportunities...... 18 ANNEX 1: NON-TECHNICAL BARRIERS...... 20 ANNEX 2: FINANCIAL INCENTIVES...... 22 ANNEX 3: NATIONAL AND REGIONAL POLICIES...... 26 ANNEX 4: RENEWABLE ENERGY RESOURCES AND TECHNOLOGIES ...... 31 ANNEX 5: POPULATION AND RURAL AREA STATISTICS...... 40 ANNEX 6: EXISTING RENEWABLE ENERGY PROJECTS (2008 DATA)...... 41

TV Energy 3 of 44 March 2009 EXECUTIVE SUMMARY

This is the first of two reports to address the potential for joint working on renewable energy/ sustainability between Berkshire Authorities and interested stakeholders. This first report gathers evidence of existing activity and resources, placing this in context nationally and regionally. The report builds a platform that will enable subsequent examination of the potential areas of joint working to be made that will enhance existing programmes and deliver sustainable, secure low carbon energy.

The report highlights the key opportunities for joint working as:

PLANNING: There is a lack of consistency across the Unitary Authorities which gives rise to confusion by developers and would be renewable energy generators. This contributes to planning being one of the key ‘non-technical barriers’ confronting the mainstreaming of renewable energy technology. PROPOSAL – to work with a group of policy planning officers drawn from across the authorities to develop a unified approach to encouraging renewable energy based on best practice. This to include site visits and interactive sessions with Councillors holding planning responsibilities. OUTPUTS – could include SPG and technical back-up facility. CO-LOCATION OF PROJECTS: In order to create the most sustainable, County based projects using biomass and/ or waste there is an urgent need for rural and urban focussed Local Authorities to work together. Projects where the energy is produced (heat, power, cooling, liquid fuels) need to be sited close to consumers – essential for heating and cooling sinks. However, the biomass that fuels the project needs to be drawn from a wide, rural catchment area. PROPOSAL – to identify and then examine opportunities for CHP and related facilities to be sited in or close to urban areas or new developments/ regeneration initiatives drawing on an existing or planned resource from the surrounding area. A possible way forward is to ‘twin’ urban authorities with their rural counterparts. OUTPUTS – a list of potential projects which could be developed. A case study drawing on best practice for discussion with potential private sector partners, this to include an opportunity for an ESCO (Energy Service Company) in which the LA partner might be a stakeholder. UTILITY DIALOGUE: a number of local utilities could jointly approach key local utilities to explore the potential for actions expanding the scope of existing activities or examining the scope of future joint actions. This might be with the use of biogas (Thames Water) for example. OUTPUTS – a set of project proposals for consideration. AWARENESS RAISING: There remains a genuine need to raise the profile and the importance of renewable energy across the County. This to help generate and maintain champions as well as to continue the ‘hearts and minds’ campaign on the topic. PROPOSAL - Individual Authority workshops or a County based event could be considered based on the outputs of the two suggestions above and seek to take ideas further forward. A ‘Climate Berkshire’ leaflet on the matter could be produced and/ or web based material generated. Local articles in the press and interviews on local radio should also be considered based on real activities. OUTPUTS – events and literature.

TV Energy 4 of 44 March 2009 1 BACKGROUND

The Berkshire Economic Strategy Board’s Sustainable Prosperity sub group approved the commissioning of Thames Valley Energy (TVE) to complete the following project as part of the work programme for Climate Berkshire (the Berkshire Climate Change Partnership):

· Thames Valley Energy to carry out phase 1 of a strategy re future investments for renewable and low carbon power generation across Berkshire (phase 2 would be completed in 2009/10 with a further allocation). Minuted 5th January 2009

Climate Berkshire will facilitate a coordinated approach to developing a resilient low carbon economy that is well adapted to Climate Change. It will work across the sub-region to build additional capacity to the existing mechanisms of delivery and develop new innovative approaches. It will provide a platform to strengthen economies and communities, encouraging ownership of climate change action through behavioural change and investment.

1.1 PROGRAMME OF WORK

In the first phase of the project TVE will produce a report which maps the existing opportunities within each of the 6 boroughs and highlights opportunities for joint working on projects within Boroughs and/or Sub regionally. Phase II will explore these opportunities in more detail and hold discussions with individuals within each Local Authority.

The report will brief the Partnership on the key opportunities and enable a coordinated approach(es) to be developed which enables specific projects to be taken forward by the partners which will improve energy security and reduce the carbon intensity of energy supply in Berkshire.

More specifically the report will: · Set the context, outlining the key national, regional, sub-regional and borough strategies and drivers which exist. PHASE I · Outline the principal resources available for renewable power generation in Berkshire PHASE I · Provide key information about the urban and rural context of different regions and their energy needs. PHASE I · Outline existing projects within Berkshire. PHASE I · Outline opportunities to more efficiently harness existing energy infrastructure (waste heat etc) PHASE I & II · Identify the key issues for Berkshire in providing sustainable, secure low carbon energy. PHASE I & II · Identify key opportunities and possible approaches to take forward initiatives and projects which would enhance existing programmes and deliver sustainable, secure low carbon energy. PHASE I & II · Explore some of the issues and perceived issues associated with different solutions and frame these in a local context, highlighting key risks to projects. PHASE II

TV Energy 5 of 44 March 2009 2 Strategies and drivers

The last few years has seen a change in pace concerning the tightening up of policy relating to renewables, encouraging a more proactive stance at all levels from international through regional to the very local.

Key drivers* for a change in the national energy landscape remain:

· Ensuring security of energy supply · Achieving a low carbon economy thereby addressing concerns about climate change · More latterly, seeking to boost the economy through ‘green growth’ and the creation of new employment opportunities and wealth creation.

*Drivers depend of who you are! PUBLIC SECTOR Targets (NI), quality of life, fuel poverty, value for money, employment generation, diversification/ income generation PRIVATE SECTOR Bottom line profitability, energy security of supply, long term energy contracts/ predictability, diversification, Corporate Social Responsibility (CSR) INDIVIDUALS/ DOMESTIC Utility, quality of life, cost savings, doing ‘the right thing’

To assist with making this all happen, Government has agreed to a number of TARGETS at the National and increasingly regional, sub-regional and local level. Policies and related targets are mostly under review and a Government consultation carried out last year is due to come to a conclusion in the Spring of 2009 and is expected to make a number of dramatic changes. Hand-in-hand with these national changes is a review of SE regional planning policy (SE Plan) which in turn is revisiting regional and sub-regional targets.

In implementing change, a wide variety of barriers are being addressed. These are, in the main, ‘non-technical’ in nature, the majority of technologies being sufficiently mature for wider scale adoption. These barriers are listed in Annex 1 and comprise financial, planning, supply chain and capacity related. Annex 2 details financial incentives available in addressing this particular barrier.

This section reviews the major policies and drivers that will impinge on Berkshire with its new initiative. Note the profile of planning change which highlights the need for major reform to facilitate the meeting of forthcoming stretch targets.

TV Energy 6 of 44 March 2009 2.1 National Policy & Drivers

Renewable energy is an integral part of the Government's longer-term aim of reducing CO2 emissions by 80% by 2050. In 2000 the Government set a target of 10% of electricity to be provided by renewable energy by 2010 and in 2006 proposed to double that level by 2020.

In spring 2007, the UK agreed with other Member States of the EU to an EU-wide target of 20% of the EU’s total energy consumption to come from renewable sources by 2020. The European Commission has proposed that the UK share of this target would be to achieve 15% of the UK’s energy from renewables by 2020 which is equivalent to almost a ten-fold increase in renewable energy consumption from current levels.

Annex 3 sets out the detail of all relevant policies and strategies.

2.2 South East Region

There have been many reports over the past 10 years that have addressed energy and in particular renewable energy. Current targets that still have currency are:

Document Date Target (mimima) details The South East Plan: (SEERA) 2005 2010 – 620 MWe (5.5%) 2016 – 895 MWe (8%) 2020 – 1,130 MWe (10%) 2026 – 1750 MWe (16%) Regional Economic Strategy or RES 2006 2020 – 15% of energy 2006 – 2016 (SEEDA) supply

Progress against the SE Plan target has taken place and there is a reasonable chance that this will be met. Figures 1 and 2 below illustrates the point.

These targets are currently under review and TVE has been commissioned to carry out further scenario analysis ahead of recommending figures for inclusion in the revision of the SE Plan by the Assembly/ SEEDA (noting that the Assembly ceases to exist on 31st March and will be replaced by a new body reporting through the RDA).

TVE is producing three scenarios: · Business as usual · Medium growth · High growth

TV Energy 7 of 44 March 2009 Progress on regional renewable energy targets

SEE-Stats Renewable Electricity 1 South East of England Installed capacity, June 2008 Timeline with 2010 target2 Total by 2010? 778.09 MWe Target 2010 620.00 MWe

600 Planned 2008-10 419.95 MWe w . s e t a o r g

400

Operational 358.14 MWe 200 1Including Landfill gas 1,2Includes Offshore wind

0 Jun-05 Dec- Jun-06 Dec- Jun-07 Dec- Jun-08 Dec- Jun-09 Dec- Jun-10 Dec- 05 06 07 08 09 10 Figure 1: Progress against the 2010 SE Plan Renewables Target

Progress – Renewables (2010)

Figure 2: Composition of Current Generation (kWe)

TV Energy 8 of 44 March 2009 The first will be an extrapolation of data in the SEE-STATS database (see www.see- stats.org), the second a realistic but stretching scenario and the third a visualisation of the 15% energy consumption target. This work will be completed by May 2009.

There is the opportunity for Berkshire through Climate Berkshire to run a pilot to test out the benefits of producing County down to individual LA renewable energy targets.

2.3 Local Government

The key driver for Local Government will be meeting the NI indicators.

Local Performance Framework The new Local Performance Framework includes National Indicators (NIs) for a range of criteria. A number of these relate to renewable energy under the heading Environmental Sustainability1. Of particular note are:

· NI 185: CO2 reduction from local authority (LA) operations; · NI 186: Reduction of the per capita CO2 emissions in the LA area, as a percentage from the 2005 baseline year; and · NI 188: Planning to adapt to climate change.

Each LA is required to negotiate up to 35 of the NIs as targets within their Local Area Agreement (LAA) and NI 185 and 186 have been widely adopted. LA performance with respect to climate change is assessed within Comprehensive Area Assessments undertaken by the Audit Commission.

NI Bracknell RBWM Reading Slough WB Wok Climate Change: NI 185 - % CO2 reduction from 1 1 1 LA operations NI 186 – Per Capita CO2 1 1 1 1 emissions in the LA Area NI 187 - % of people receiving 1 income based benefits living in homes with a low and high energy efficiency rating NI 188 – Planning to adapt to 1 1 Climate Change NI 191 – 193 – Waste targets* 1 1 1 3 1

* NI 191 - Residual household waste per household, NI 192 - Household waste reused, recycled and composted, NI 193 - Municipal waste land filled.

1 The New Performance Framework for Local Authorities & Local Authority Partnerships: Single Set of National Indicators, 2007, http://www.communities.gov.uk/documents/localgovernment/pdf/505713.pdf

TV Energy 9 of 44 March 2009 All councils have at least two relevant NIs and hence present the opportunity for joint action. Councils have related ongoing actions including:

3 Renewable Energy Resources

The three major resources that will make a difference for Berkshire are:

· Wood (biomass) · Wind · Waste (biomass component)

In addition there are other resources that remain significant:

· Solar (Photovoltaics/ PV and thermal) · Low Head Hydro · Ground Source and Air Source Heat Pumps*

* Not strictly a renewable as transfering heat from one place to another but often considered as such and included in ‘hybrid’ renewable energy solutions in buildings.

Detailed information relating to the resources and technologies are listed in Annex 4.

3.1 Technical resource Determining the size of the resource is always caught up with the assumptions that are made. Each of the resources then coupled with a relevant technology will be largely swayed by the following:

Resource Technology Dominant determinant Wind Vertical or horizontal Spatial resource, mostly turbines RURAL Waste (biomass) Combustion Population, commerce and Biological Processing industry centres, URBAN Chemical processing Animal wastes, RURAL Biomass (clean e.g. wood Combustion Spatial resource, mostly from forestry or energy Biological Processing RURAL crops) Chemical processing Solar Photovoltaics (PV) or Buildings related, mostly thermal URBAN Heat Pumps GSHP or ASHP Buildings related, mostly URBAN Low Head Hydro Various Spatial, river course, mostly RURAL

TV Energy 10 of 44 March 2009 WIND ENERGY: The last resource assessment was carried out in 2000 and considered the Thames Valley. The practicable resource was considered to be 24MWe installed and allowed for grid connection. Most importantly it was constrained by the following assumptions: · that wind speeds needed to be above 7 metres per second and above · that there were physical limitations and ‘buffer zones’ drawn around towns, settlements, roads etc · no wind turbines in AONBs, Reserves

All of these assumptions would now be challenged and in particular a lower limit of 6 metres per second is used by the industry and AONBs are by no means considered to be out of bounds. At this lower wind speed, a significant proportion of the County would in theory be a potential site for a wind energy project.

The potential is thus a ‘moving feast’ but priority should be given to:

· Co-location of large (1.3 – 2MWe), single or clusters of turbines within close proximity of existing users or new developments (e.g. the Green Park 2MWe turbine) · Single or clusters (up to 5) of medium to large turbines (0.5 – 2MWe) in rural areas where the landscape can cope or where it is already compromised (e.g. alongside motorways, near other tall objects/ masts, · Smaller turbines (e.g. 10 – 50kWe) for community projects, schools and public buildings

TV Energy 11 of 44 March 2009 A detailed study in association with an industrial partner (e.g. RWE npower- renewables or RES) might be undertaken to give greater detail if required and to advise on ‘preferred areas for development’.

ENERGY FROM WASTE: The biomass component of waste is considered to be ‘renewable’ and variously attracts ‘ROCS’ (Renewable Obligation Certificates) unless first generation incineration technology is used for conversion. The management of waste has its own hierarchy and strategies. Closer examination of how waste can be used to provide energy is essential when considering the wider benefits of a renewables strategy.

This report will not detail the waste streams arising other than to note that they are significant. Further detail will be included in the Phase II report that will examine opportunities for hybrid solutions with clean biomass.

BIOMASS: Clean biomass of recent agricultural or forestry genesis is the basis of this resource. Some biomass is wet, some relatively dry and this will determine how it is converted into energy (by combustion or biological processing for example). The greatest potential in the County is from wood.

The National Inventory of Woodland and Trees considers there to be just over 15,000 hectares of woodland in the County. A practicable (sustainable) yield would be 3 oven dried tonnes per hectare per annum so this suggests a resource of some 45,000 tonnes per annum. Added to this will be Tree Surgery/ arboricultural residues extracted from groups and single trees plus a small quantity of waste from the likes of sawmills. This might add a further 10,000 tonnes per annum making a grand total of 55,000 tonnes or enough fuel for some 10MWe of power plant.

This finite resource can be supplemented by energy crops such as short rotation coppice (SRC) where yields of some 10 oven dry tonnes per hectare per annum would be expected. Hence, if a similar hectarage of land as is currently used for woodland (15,000

TV Energy 12 of 44 March 2009 ha or 22% of total farmed land) were to be switched over to energy crops as is currently used for woodland an additional 150,000 tonnes of wood fuel might be generated from local sources, or enough fuel for a further 25MWe.

Ultimately, wood and other biomass could be imported into the County (as already happens with SH&P) hence biomass should be considered as an ‘unconstrained resource’.

Further detail will be included in the Phase II report that will examine opportunities for hybrid solutions with clean biomass.

SOLAR ENERGY AND HEAT PUMPS: has a massive technical potential if applied to a large proportion of existing and new housing stock plus commercial and industrial buildings. However, cost for PV will remain a major barrier. Should this be overcome then if each premise could produce even a quarter of its electricity – quite feasible with current technology – the ‘energy hit’ would be enormous. Likewise if a quarter of the heat required could come from a combination of heat pumps and solar thermal again a massive contribution.

Further consideration will be included in the Phase II report that will examine opportunities for hybrid solutions in particular.

LOW HEAD HYDRO: although not a great potential for Berkshire there are nevertheless individual opportunities for projects along the Thames and tributaries. This can only ever be a modest overall contribution but worthwhile. The River Thames has 44 weirs which potentially could generate hydro-electric power (studies indicate between 5- 25MW capacity). Old mills, sluices and dams in the Thames Valley area, also have a great potential to generate electricity.

The principles of operating small-scale and large-scale hydro schemes are essentially the same. They require:

· A suitable rainfall catchment area · A hydraulic "head" (i.e. vertical distance from the reservoir or river to the turbine · A water intake placed above a weir or behind a dam · A pipeline or channel to transport the water from the reservoir or river to the turbine · A flow control system · A turbine, a generator, associated buildings and grid connection · An outflow, where the water returns to the main water course.

Further consideration will be included in the Phase II report.

TV Energy 13 of 44 March 2009 4 Urban v Rural Energy Context

Berkshire comprises of Local Authority areas having a distinctly rural nature and contrasts with a number of urban dominated areas. The relevant statistics are given in Annex 5. In the previous section an indication was given of the ‘rural’ or ‘urban’ nature of the renewable resources. All renewables are ‘dispersed’ or dilute energy sources as compared to fossil fuels and need to be harvested where they arise. Although dispersed, they can be collected and in the case of wood fuel for example, transported to a point of final use.

The main opportunities for synergies here are:

WOOD FUEL AND WASTE (MSW) HYBRIDS: Rural authorities such as West Berkshire producing fuel to be transported to urban centres (e.g. Reading or Slough). Power alone and CHP facilities might be located in the hinterland between the two to enable the highest levels of sustainability to be attained. WASTE (WET) BIOMASS: Large scale Anaerobic Digestion (and some existing Landfill sites) produce a biogas. New facilities could be located in the hinterland between town and country and could pipe the biogas (either neat or refined) to market towns/ villages/ urban areas through injection into existing mains for use. WIND ENERGY: Electricity produced in rural areas and fed into the grid/ urban centres. LOW HEAD HYDRO: Most sites will be rural but electricity can be transferred as for wind energy. SOLAR ENERGY AND HEAT PUMPS: the greatest application is within an urban environment. However, solar PV (and microwind for that matter) has particular niche applications where very remote sites do not have access to existing grid supplies.

The Phase II report will analyse the opportunities for urban and rural areas to work together on renewable energy projects. Bioenergy (wood fuel) is recognised as a particularly important theme.

5 Existing Renewable Energy Projects

There is some 58MWe and 22MWth of installed capacity across Berkshire (see Annex 6 for a detailed list), however, Slough Heat and Power (SH&P) accounts for all but 13MWe and 2MWth of this total sum. A further 16MWe and nearly 1MWth of capacity is planned across the County.

To date, some 3.4MWe of capacity has failed through planning. A further 0.5MWe and 3MWth failed before proceeding through full planning (the Bracknell RENAISSANCE project) due to a number of complex factors.

TV Energy 14 of 44 March 2009 Total Berkshire Capacity

70,000

60,000

50,000

40,000 Capacity (kWe) Capacity (kWth) 30,000

20,000

10,000

0 Operational Planned Failed

The following figures illustrate the breakdown by Local Authority.

Operational Capacity

60000

50000

40000 Capacity (kWe) 30000 Capacity (kWth) 20000

10000

0

ad e est BC BC ir ng sh For enhe ugh rk am BC ell adi Slo Be ngh kn Re Maid st ki ac We Br or & Wo nds Wi RB

Excluding SH&P gives a more representative picture of the ‘state of renewables’ across the County. However, to note that energy from waste remains dominant for electricity production and contributions from biogas (sewage treatment works) and landfill gas make up 4.5MWe each of the 13MWe of the residual capacity.

TV Energy 15 of 44 March 2009 Operational Capacity (Less SH&P)

7000 6000 5000 4000 Capacity (kWe) 3000 Capacity (kWth) 2000 1000 0

t ad es BC ire BC sh ng l For enhe rk am BC ugh el adi Be ngh Slo kn Re Maid st ki ac We Br or & Wo

Winds RB

‘True new’ renewable energy derived from wholly green sources (such as wind, virgin wood, solar) makes a remarkably small contribution of approximately 4MWe although accounts for the vast majority of the heat used (2MWth).

The Phase II report will look at the split by technology in more detail particularly regarding new projects coming through and relating these to the wider regional picture.

TV Energy 16 of 44 March 2009 Major Renewable Energy Projects Located in Berkshire

Biogas/sewage Biomass Hydropower Landfill gas Solar Wind Bracknell Forest Binfield STW Garth Hill School Chavey Power Reading Reading STW Smallmead Uni. Reading RB Windsor & M. Nr. Twyford Romney Weir Greenfields Hsg. Slough H&P Slough Slough STW Colnbrooke Wexham Nursery Hill Fields Farm Newbury Town Hall West Berkshire Lambourn CHP Beenham West Berks. Offices Living Rainforest GreenPark Wokingham Wargrave STW Star Works Rushy Mead

TV Energy 17 of 44 March 2009 6 Opportunities for Existing Projects

Opportunities to make better and more sustainable use of existing projects fall into the following categories:

· Better use of what already exists · ‘Organic growth’ of existing developments · Creating ‘clusters’ based on existing projects

A major determinant in these matters (and for new developments) will be the outcome of the current National Government consultation on renewables. In particular, progress made relating to:

· A feed in tariff (for domestic/ small generators) · A Renewable Heat Incentive (e.g. for biomass CHP)

6.1 Making better use of existing developments

The lead contenders in terms of technology/ resource will be:

Landfill Gas (a number of operators) Anaerobic digestion (e.g. with Thames Water) Biomass CHP (e.g. Slough Heat & Power/ Scottish and Southern) Wood fuel supply (e.g. TV Bioenergy and TV Bioenergy Coppice Producer Group)

The other angle to consider is ‘cluster’ development based on making the most of existing projects to stimulate local replication. This has been shown to work for solar, small scale wind and biomass projects.

These opportunities will be examined in the Phase II report.

7 Key Issues and Opportunities

There are a number of clear issues that Berkshire needs to address in order to increase the use of renewables and thereby decrease the carbon footprint of the County. The Phase II report will identify key opportunities and possible approaches to take forward initiatives and projects which would enhance existing programmes and deliver sustainable, secure low carbon energy.

But briefly, the key opportunities for joint working are seen to be:

TV Energy 18 of 44 March 2009 · Planning · Co-location of projects (e.g. biomass CHP) supply and use · Utility dialogue (using the combined spending power of LAs as lever) · Information and awareness raising

PLANNING: There is a lack of consistency across the Unitary Authorities which gives rise to confusion by developers and would be renewable energy generators. This contributes to planning being one of the key ‘non-technical barriers’ confronting the mainstreaming of renewable energy technology. PROPOSAL – to work with a group of policy planning officers drawn from across the authorities to develop a unified approach to encouraging renewable energy based on best practice. This to include site visits and interactive sessions with Councillors holding planning responsibilities. OUTPUTS – could include SPG and technical back-up facility.

CO-LOCATION OF PROJECTS: In order to create the most sustainable, County based projects using biomass and/ or waste there is an urgent need for rural and urban focussed Local Authorities to work together. Projects where the energy is produced (heat, power, cooling, liquid fuels) need to be sited close to consumers – essential for heating and cooling sinks. However, the biomass that fuels the project needs to be drawn from a wide, rural catchment area. PROPOSAL – to identify and then examine opportunities for CHP and related facilities to be sited in or close to urban areas or new developments/ regeneration initiatives drawing on an existing or planned resource from the surrounding area. A possible way forward is to ‘twin’ urban authorities with their rural counterparts. OUTPUTS – a list of potential projects which could be developed. A case study drawing on best practice for discussion with potential private sector partners, this to include an opportunity for an ESCO (Energy Service Company) in which the LA partner might be a stakeholder.

UTILITY DIALOGUE: a number of local utilities could jointly approach key local utilities to explore the potential for actions expanding the scope of existing activities or examining the scope of future joint actions. This might be with the use of biogas (Thames Water) for example. OUTPUTS – a set of project proposals for consideration.

AWARENESS RAISING: There remains a genuine need to raise the profile and the importance of renewable energy across the County. This to help generate and maintain champions as well as to continue the ‘hearts and minds’ campaign on the topic. PROPOSAL - Individual Authority workshops or a County based event could be considered based on the outputs of the two suggestions above and seek to take ideas further forward. A ‘Climate Berkshire’ leaflet on the matter could be produced and/ or web based material generated. Local articles in the press and interviews on local radio should also be considered based on real activities. OUTPUTS – events and literature.

TV Energy 19 of 44 March 2009 ANNEX 1: NON-TECHNICAL BARRIERS

Barrier Technology/ Commentary Proposed Solution resource FINANCIAL High capital costs Most technologies Current economic Fiscal incentives difficulties are accentuating this issue Value of electricity Electricity generating ROC incentivise ROC reform technologies electricity generation Micro generation/ grids over heat supply ‘Feed in tariff’ proposed (small scale) No established heat Heat producing Lack of an heat RHI plus other measures market technologies incentive Public procurement/ Most technologies Affects public lead Carbon Reduction Risk averse LAs initiatives at scale where Commitment there is significant financial/ commercial risk Commercial vehicle/ Most technologies There is a lack of Energy Service understanding of ESCos Companies in the UK and how these can be used to deliver successful projects (private and public/ private partnerships) INDUSTRIAL Most technologies There is a lack of a UK CAPACITY industry base and a rapid increase in deployment will be difficult. Lack of installers, maintenance engineers PLANNING RELATED Planning permission Biomass, EfW See case study details. PPS1 support Visual impact, loss of amenity etc. Co-location Govt guidance to EHOs preferable in mixed use environments. Possible adverse impact on urban air quality Master planning Most technologies Need to incorporate Merton ruling a start renewables/ EfW at the conceptual stage for large new and redeveloped sites Designated areas Most technologies Considerable areas of the region are designated AONBs, SSSIs etc and are resistant to many renewables/ change

TV Energy 20 of 44 March 2009 Gentrification of region Most technologies Increasing public Make available resistance to further appropriate sites developments ‘industrialising’ the countryside and edges of larger settlements SUPPLY CHAINS Biomass Lack of an effective quality, secure fuel supply chain, appreciation of drawing in fuel from a dispersed area with concomitant cost, carbon erosion impact. Lack of strategic energy crop development TECHNOLOGY Transport movements Biomass, EfW Emissions Biomass, EfW, AD Stack Biomass, EfW Visual impact Smell Biomass, EfW, AD Storage/ fire hazards Biomass, EfW, AD Pipe laying etc Energy Distribution For retrofit this is a Schemes significant issue causing e.g. town centre disruption, cost escalations INFORMATION Most technologies Lack of awareness, serious profile, need to counter ‘techno-fear’

TV Energy 21 of 44 March 2009 ANNEX 2: FINANCIAL INCENTIVES

Renewables Obligation The Renewables Obligation (RO) was introduced in 2002 and is the main UK Government mechanism for supporting renewable energy. It is an obligation placed on all electricity suppliers to source a proportion of electricity supplied to customers in the UK from eligible renewable sources. These sources include both dedicated biomass generation and biomass co-firing. The proportion of renewable derived electricity that UK power suppliers have to supply grows every year. The RO started in 2002 with a required percentage of 3%, which will rise to 15% by 2015. The obligation level is 9.1% for 2008/09.

To date the RO has been technology neutral, i.e. it has not differentiated between technologies in the award of ROCs. This has effectively given priority to those technologies which are more economic, such as co-firing and onshore wind, but has not been as successful for the less well established technologies which need more support. Therefore, in order to broaden the renewables portfolio, the Government has announced a number of proposals for changes to the Renewables Obligation. These changes will provide differentiated support levels to different renewables technologies, thereby bringing forward the emerging, higher risk technologies and reducing support for mature, low risk technologies.

In addition, the next Renewables Obligation Order will give additional certainty on long term Renewable Obligation Certificate prices, as the mechanism has been extended from 2027 to 2037. The Government expects the reformed RO to be some 30% more effective in delivering new generation over the coming years than the RO would have been in its current form2. The changes to the RO require new primary legislation and will be introduced in April 2009.

ROCs increase the profitability of renewable energy generation as the certificates have an additional value over and above the price of electricity itself. Certificates can be sold to energy suppliers to enable them to demonstrate compliance with the RO. The price of a ROC is subject to the market, but generators currently expect to receive approximately £40 - £50 per ROC.

Renewable electricity generators of all sizes receive 1 Renewable Obligation Certificate (ROC) for every 1 MWh of renewable electricity generated subject to accreditation. Reforms proposed to the RO mean that from April 2009, renewable energy technology will be banded, with some forms of energy generation receiving 2 ROCs per 1MWh.

2Government Response to the Statutory Consultation on the Renewables Obligation Order 2009, p.6, http://www.berr.gov.uk/files/file49342.pdf

TV Energy 22 of 44 March 2009 Table 1: New banding for ROCs in 2009 Energy Technology ROCs / MWh Electricity from Landfill Gas 0.25 Electricity from sewage gas 0.5 Co-firing of biomass 0.5 Co-firing of energy crops 1 EfW with CHP 1 Co-firing of biomass with CHP 1 Dedicated biomass 1.5 Energy crop co-firing with CHP 1.5 Advanced gasification 2 Advanced pyrolysis 2 Anaerobic digestion 2 Dedicated energy crops with/ without CHP 2 Dedicated biomass with CHP 2

Penalties for Energy Suppliers that do not meet the Obligation: Energy suppliers can either present enough certificates to Ofgem to cover the required percentage of their output, by producing green energy themselves or by buying ROCs, or they must pay a ‘buyout’ price for any shortfall (£35.76 per MWh in 2008-9).

All proceeds from buyout payments are distributed to suppliers in proportion to the number of ROCs they present. This means that the penalty costs are redistributed to competitors who do manage to meet the targets, providing a good incentive to meet the target. The buyout price is set each year by Ofgem.

Climate Change Levy and other Taxes Since introduction in 2001, the Climate Change Levy (CCL) has added a small but significant percentage to the electricity and fossil fuel bills of large public and private energy consumers. This is collected as a levy by HM Revenue & Customs. A body may reduce its CCL payment by up to 80% through ‘climate change agreements’ investing in energy-saving projects3. The additional cost to industry of the CCL is designed to be offset by cuts in employers' National Insurance contributions, and additional support for energy efficiency schemes and renewable sources of energy.

Levy Exemption Certificates (LECs) are granted to generators of electricity which are exempt from the Climate Change Levy (CCL). LECs are used as part of the evidence that exported electricity meets the definition of having been generated from a qualifying renewable / CHP Scheme.

Other Tax Incentives · Microgenerators do not have to pay tax on income from the sale of electricity to the grid nor from the sale of Renewable Obligation Certificates.

3 ‘Climate change agreements: the Climate Change Levy’, Defra, 2009, http://www.defra.gov.uk/environment/climatechange/uk/business/cca/levy.htm

TV Energy 23 of 44 March 2009 · Certified microgeneration installations benefit from a reduced rate of VAT (5%). · Zero carbon homes of value up to £500,000 are exempt from stamp duty payments.

Carbon Reduction Commitment The Carbon Reduction Commitment (CRC) scheme will start in 2010 and will be a requirement on large businesses and public sector bodies to assess their own carbon footprint and to reduce it by a certain percentage against an agreed baseline (equalling carbon emissions in the first year). During the first three year phase, carbon emissions caps will be applied with allowances being auctioned to participants rather than sold at a fixed price4.

It is effectively the UK’s first mandatory carbon trading scheme5 and, as such it is intended to increase demand for generation of CHP and renewable energy. It will be compulsory for public and private organisations which consumed over 6,000 MWh during 2008 (due to be identified during 2009). At today's prices, this is equivalent to total electricity bills of approximately £500,000 per year. The scheme is expected to affect some 25% of UK business sector emissions6.

In January 2009, the National Health Service published its Carbon Reduction Strategy for England in which it pledged commitment to meet the Government's target of an 80% reduction in carbon emissions by 20507. The report promotes the role of CHP in meeting these aims and makes a commitment to use CHP to its maximum potential by 20208.

Carbon Emissions Reduction Target (CERT) Programme The Energy Efficiency Commitment (EEC) was introduced in 2002 by the Department of Environment, Food and Rural Affairs (Defra), and set out a three-year energy savings target for domestic energy suppliers. It aimed to help reduce carbon emissions by improving energy efficiency in households. The energy saving target is met through measures such as offering cavity wall and loft insulation, using energy efficient boilers, appliances and light bulbs. At least half of these savings have been aimed at low-income consumers in order to alleviate fuel poverty.

Consultations are currently underway for the third period of the EEC, now known as the Carbon Emissions Reductions Target programme (CERT), which runs from 2008 to 2011. A consultation document was published alongside the 2007 Energy White Paper 2007. CERT will further the government’s commitment to the reduction of carbon emissions from households by establishing reduction objectives for gas and electricity suppliers who have more than 50,000 domestic customers.

4 ‘Carbon Reduction Commitment’, Defra, 2009, http://www.defra.gov.uk/environment/climatechange/uk/business/crc/index.htm 5 http://www.carbonreductioncommitment.info/ 6 http://www.carbonreductioncommitment.info/crc-compliance 7 Climate Change Act 2008 8 Combined Heat and Power Association, Press Release, 27th January 2009, http://www.chpa.co.uk/

TV Energy 24 of 44 March 2009 Capital Grants

UK Environmental Transformation Fund The UK ETF brings together Defra’s and BERR’s existing low carbon technology funding programmes together with a number of new investments to begin in 2008/09, as follows:

· Hydrogen Fuel Cell and Carbon Abatement Demonstration Programme · Marine Renewables Deployment Fund · Low Carbon Buildings Programmes · Bio-energy Capital Grants and Bio-energy Infrastructure Schemes · Offshore Wind Capital Grants programme · Carbon Trust’s innovation programme, including research accelerators, technology accelerators, and incubators · Carbon Trust funding for new low carbon technology enterprises, including Partnership for Renewables · Carbon Trust investments in low carbon technology businesses · Carbon Trust energy efficiency loans scheme for small and medium sized enterprises (SMEs) · Salix Finance public sector invest-to-save loan schemes

Energy Tariffs

Renewable Electricity Feed-in Tariff In the 2008 Energy Act, the Government committed to introducing a Feed-in Tariff for small generators of electricity. This is currently under consultation as part of the UK Renewable Energy Strategy. Feed-in Tariffs are a mechanism by which owners of renewable electricity systems are paid a premium price for any excess electricity production that is fed back into the grid. The Government intends that only small energy producers (5MW or less), will be eligible to use the feed-in tariff.

Renewable Heat Incentive (RHI) In the 2008 Energy Act, the Government also committed to establishing a financial support mechanism for renewable heat, known as the Renewable Heat Incentive, from large industrial sites down to the household level. The aim will be to introduce a ‘banded’ system, similar to that for the Renewables Obligation. These tariffs are still being designed; it is intended that they will be introduced at the same time as the Feed-in Tariff in April 2010. The expectation is that this will apply to new and existing renewable fuel fired facilities with heat capture potential but that existing CHP schemes will not qualify.

TV Energy 25 of 44 March 2009 ANNEX 3: NATIONAL AND REGIONAL POLICIES

The 2007 Energy White Paper Current UK energy policy was set out in the Energy White Paper of May 2007, building upon work done for the 2003 Energy White Paper and the 2006 Energy Review Report. The 2007 White Paper set out the Government’s energy strategy to address the energy challenges of the UK. A number of key points are relevant to the development of CHP and distributed energy generation: · establish an international framework to tackle climate change; · reduce emissions via legally binding carbon targets; · encourage energy saving through better information, incentives and regulation; · provide more support for low-carbon technologies; · ensure the right conditions for investment in new energy technologies.

The Energy White Paper restated the Government’s commitment to decarbonising heat with an undertaking to ‘…conduct further work into the policy options available to reduce the carbon impact of heat and its use in order to determine a strategy for heat.’ The Government is therefore examining policy options and support measures that could further reduce the carbon impact of heat.

The UK Biomass Strategy was published alongside the Energy White Paper in May 2007. It was developed jointly by BERR and Defra with the aim of achieving optimal carbon savings from biomass, while complying with EU policies and the EU Biomass Action Plan9. It intends to achieve a major expansion in the supply and use of sustainably produced biomass by facilitating the development of a competitive market and supply chain. The strategy promotes the innovation and development of low-carbon technology and looks at ways of achieving increased use of biomass to provide energy to generate heat and electricity (CHP).

In October 2007, Defra published an ‘Analysis of the UK potential for Combined Heat and Power10, in response to Article 6 of the EU Cogeneration Directive. Article 6 obliges EU Member States to analyse national potentials for high efficiency CHP and to assess barriers to the realisation of CHP systems. The report makes an assessment of the costs and benefits of installing CHP in identified locations across the UK.

In summer 2008, the Government held a consultation seeking views on how to drive up the use of renewable energy in the UK in order to meet its share of the EU target to source 20% of energy from renewable sources by 2020. As a result of this consultation11, the UK Renewable Energy Strategy will be published in spring 2009.

9 http://ec.europa.eu/energy/renewables/bioenergy/national_biomass_action_plans_en.htm 10 http://www.defra.gov.uk/environment/climatechange/uk/energy/chp/pdf/potential-report.pdf 11 http://renewableconsultation.berr.gov.uk/

TV Energy 26 of 44 March 2009 In November 2008 the Energy Act became part of UK law. The Act addresses the legislative aspects of the 2007 Energy White Paper and is intended to ensure that UK legislation underpins the delivery of the energy and climate change strategy. As such, it promises to strengthen the Renewables Obligation to achieve more rapid delivery of renewable energy projects. In addition, it seeks to establish a ‘Feed-in Tariff’ for small generators of renewable electricity as well as a Renewable Heat Incentive scheme.

The Climate Change Act 2008 introduced legally binding greenhouse gas emission reduction targets of at least 80% by 2050, and reductions in CO2 emissions of at least 26% by 2020, against a 1990 baseline. The Act also creates five-year carbon budgets to cap emissions, shaping the trajectory towards 2050. The levels of these caps will be determined by the new Committee on Climate Change, an expert body advising Government12.

The Planning Act 2008 underpins the policies in the Climate Change Planning Policy Statement (PPS) by introducing statutory duties on regional and local plans to take action on climate change13. Under the Planning Act, ministers will create a new body: the Infrastructure Planning Commission (IPC), which will determine nationally significant projects. The Act will give legal force to a new unified consents regime and a new requirement for a suite of National Policy Statements (NPSs) setting out government planning policy in such areas as nuclear development and airport expansion.

Eleven NPSs are currently planned. Of relevance to energy these include: overarching energy; fossil fuels; renewable energy; electricity networks; gas and downstream oil infrastructure, and nuclear power. Scrutiny of the first NPSs in draft form is expected to begin in the summer of 2009 with the first tranche designated in 2010.

The new legislation also gives ministers powers to bring in a new tax, the Community Infrastructure Levy, and makes a number of changes to existing development control and development plan arrangements. It is intended to establish a quick, predictable and fair planning system for major infrastructure that can deliver new renewable energy supplies, public transport and clean water.

The Planning and Energy Act 2008, a Private Members’ Bill brought forward by Michael Fallon MP, gives statutory support for the policies in paragraphs 26 to 33 of the Climate Change PPS on local requirements for local energy and sustainable buildings. As a result of the Act, local planning authorities in England and Wales are able to set policies in their local development plans which impose requirements for: o developments to be powered by energy from renewable sources o developments to make use of low carbon energy o developments to comply with energy efficiency standards that exceed building regulations.

12 http://www.theccc.org.uk/carbon-budgets/ 13 http://www.opsi.gov.uk/acts/acts2008/ukpga_20080029_en_12#pt9-ch2-pb3-l1g181

TV Energy 27 of 44 March 2009 The objective of the Government's Microgeneration Strategy, ‘Our Energy Challenge: Power from the People’, published in 2006, was to create conditions under which microgeneration becomes a realistic energy generation source for householders, communities and for small businesses. It listed 25 actions to tackle the barriers to widespread uptake of microgeneration.

A steering group was established towards the end of 2006 to drive forward the implementation of the strategy, with membership from across government and industry. A timetable was agreed to complete all actions by spring 2008. In June 2008, a progress report was published by BERR, which showed that many of the barriers identified in the strategy had been addressed.

In summer 2008, the Government held a consultation seeking views on how to drive up the use of renewable energy in the UK in order to meet its share of the EU target to source 20% of energy from renewable sources by 2020. As a result of this consultation14, the UK Renewable Energy Strategy will be published in spring 2009.

National and Regional Planning for Renewable Energy

The Department for Communities and Local Government (DCLG) establishes national planning policy. Development plans establish the policy framework for the use of land and transport in a locality. Decisions on planning applications should therefore be made in accordance with the development plan.

In May 2007 the Government published the Planning White Paper: Planning for the Sustainable Future, which sets out proposals for reform of the planning system, thereby improving speed and responsiveness in land use planning. In addition, it proposed reforms for how decisions are taken on major infrastructure projects, including energy, waste and transport. As such, it seeks to respond to the challenges of globalisation and climate change.

The Department for Communities and Local Government (CLG) issues Planning Policy Statements, which in turn guide regional and local policy documents. The key documents in relation to renewable energy are · Planning Policy Statement 1: Delivering Sustainable Development15, and · Planning Policy Statement: Planning and Climate Change, a supplement to Planning Policy Statement 116. · Planning Policy Statement 22: Renewable Energy17,

14 http://renewableconsultation.berr.gov.uk/ 15 http://www.communities.gov.uk/documents/planningandbuilding/pdf/planningpolicystatement1.pdf 16http://www.communities.gov.uk/planningandbuilding/planning/planningpolicyguidance/planningpolicysta tements/planningpolicystatements/ppsclimatechange/ 17 http://www.communities.gov.uk/publications/planningandbuilding/pps22

TV Energy 28 of 44 March 2009 Planning Policy Statement 1: Delivering Sustainable Development was published in January 2005. It sets out the overarching planning policies on the delivery of sustainable development through the planning system.

In December 2007, Planning Policy Statement: Planning and Climate Change (the “Climate Change PPS”) was published as a supplement to Planning Policy Statement 1 in order to show how planning was expected to contribute to reducing emissions and stabilising climate change.

The Climate Change PPS sets out how spatial planning should make a full contribution to delivering the Government’s Climate Change Programme and energy policies; and, in doing so, contribute to global sustainability. This includes producing and delivering planning strategies that help secure the highest viable standards of resource and energy efficiency and reduction in carbon dioxide emissions for new development.

The Climate Change PPS is underpinned by the Planning Act which places a duty on local planning authorities to take action on climate change. This requires them to include in their development plan documents and policies designed to secure that use of land in their area contributes to mitigating and adapting to climate change. The Act also places a duty on the content of regional spatial strategies, requiring them to include policies designed to secure that the development and use of land in the region contribute to the mitigation of, and adaptation to, climate change.

The DCLG has also issued the document Practice Guidance to support the Planning Policy Statement: Planning and Climate Change. As such it can be seen a companion guide to be read and used alongside the Climate Change PPS, providing focus for planners on the how best to implement the Climate Change PPS. It has been developed into a web-based resource so that it can be updated in the light of emerging practice and examples of good implementation18.

Planning Policy Statement 22 (PPS22): Renewable Energy, sets out the Government's renewable energy policies, which planning authorities should have regard to when preparing local development documents and taking planning decisions. A key principle of this guidance is that:

‘Regional spatial strategies and local development documents should contain policies designed to promote and encourage, rather than restrict, the development of renewable energy resources.’

PPS 22 states that policies that place constraints on the development of renewable energy technologies should not be included in regional spatial strategies or local development documents without sufficient reasoned justification.

18 http://www.hcaacademy.co.uk/planning-and-climate-change

TV Energy 29 of 44 March 2009 Planning for Renewable Energy: A Companion Guide to PPS22

In addition to PPS22, a Companion Guide was also produced in 2004 to offer practical advice showing how the policies could be implemented on the ground. Together, the documents aim to encourage the appropriate development of renewable energy schemes throughout England.

RPG9 (amended) and the draft South ‘The planning system can only deliver sufficient East Plan include a suite of policies on additional renewable energy schemes to meet the renewable energy, including regional shortfall if positive planning policies are in and sub-regional targets for renewable place. These need to be backed up by strong energy deployment. These were leadership, the integration of planning for informed by resource assessments renewable energy with other more mainstream undertaken between 2000 and 200319 planning activities and communication between planners, the renewables industry, interest and were subject to extensive public groups and the wider public. Local communities consultation and tested at Examination should be involved to a greater extent than in the in Public before adoption as part for past.’ the statutory development plan for the region. Companion Guide to PPS22

Building Regulations are also being used to incorporate microgeneration technologies into new build. The Government’s DCLG announced in its 2007 Policy Statement: Building a Greener Future that all new homes would be zero carbon by 201620 with a progressive tightening of the energy efficiency building regulations (by 25% in 2010 and by 44% in 2013) up to the zero carbon target in 2016.

In 2008, the Government announced that all new non domestic buildings should also be zero carbon by 2019 and all new public sector buildings should be zero carbon by 2018. This is in addition to the Government’s earlier commitment that all new schools will be zero carbon from 2016. Many of the above targets will require investment in CHP technology.

The Department for Communities and Local Government launched the Code for Sustainable Homes in 200721. Since May 2008 all new homes are required to have a Code rating and a Code certificate must be included within the Home Information Pack (HIP). The Code includes requirements to reduce CO2 emissions and the higher Code levels will require the installation of renewable energy and possibly CHP technology. The Code for Sustainable Homes is now mandatory for publicly funded development and will be enforced at Code Level 3 through the Building Regulations from 2010. By 2016, all new homes should be zero carbon (Code Level 6).

19 http://www.southeast-ra.gov.uk/energy_strategy.html 20 http://www.communities.gov.uk/publications/planningandbuilding/building-a-greener 21 http://www.planningportal.gov.uk/england/professionals/en/1115314116927.html

TV Energy 30 of 44 March 2009 ANNEX 4: RENEWABLE ENERGY RESOURCES AND TECHNOLOGIES

WOOD/ BIOMASS Renewable energy technologies all produce very low levels of carbon dioxide emissions (the main contributor to the greenhouse effect) compared to the fossil fuel-based systems that they displace or replace. All renewable energy technologies require some resource and energy input during manufacture, construction and decommissioning (as indeed do fossil fuel technologies); however, over the full life cycle of perhaps 20 years, these inputs are relatively small. In the case of wind, solar or hydro systems, there is no fuel use, so operation is effectively carbon-neutral. The use of biomass, including all animal and vegetable material of recent biological origin, is a little more complex and requires clarification.

Bioenergy systems use a fuel – wood chips, pellets or logs in the case of this report. Combustion of the fuel releases carbon dioxide into the atmosphere. The carbon dioxide released is balanced by the amount that is fixed from the atmosphere by photosynthesis during the plant’s life. There is a so-called carbon cycle illustrated in the figure below. The harvesting of trees, processing of the wood and transportation also produce some carbon dioxide but it has been shown that these emissions are relatively small (a few %) within the whole life cycle, especially if locally sourced biomass fuels are used.

In practice the use of biomass is considered to be carbon neutral.

Figure 1 The carbon cycle (image: Forestry Commission)

Biomass has the potential to significantly offset the amount of CO2 produced through conventional energy generation in the UK. Biomass could generate a large proportion of the South East’s renewable energy target for electricity generation and it can also contribute to the reduction in CO2 produced through the generation of heat in buildings and processes. Biomass can also be used to produce liquid and gaseous fuels which might replace petrol, diesel and other conventional transport fuels.

TV Energy 31 of 44 March 2009 Biomass in the form of wood chip, wood pellets and logs can also provide end users with protection from fuel price increases, such as those recently experienced in the gas and particularly the oil sector, and is exempt from the Climate Change Levy.

Despite the fact that the UK’s targets for renewable energy generation are based on electricity, the majority of the UK’s non-transport energy consumption is in the form of heat. The table below shows the breakdown of domestic energy consumption in the UK in 2004. It can be seen that the bulk of the energy consumption is made up of both space and water heating.

Breakdown of Domestic Energy Consumption 2004

Space heating

Water

Cooking

Lighting and appliances

Figure 2 Breakdown of domestic energy consumption (BERR, 2004)

The use of wood fuel also aids the regeneration of woodlands in the local area by providing a sustainable and local market for woodland thinnings, lop and top and brash. By assisting to bring woodlands back into good management practices the use of wood fuel can improve woodland habitat and thus increase biodiversity and can improve the amenity value of woodlands for the public. In addition using wood fuel can also help boost the rural economy and can provide employment.

WIND TURBINES The technology: a small/medium wind turbine has a tower height of between 6 and 50 metres and will be rated at between 1 kW and 300 kW. In comparison, the larger turbines used in wind farm developments frequently top 100 metres and are rated between 300 kW and 5 MW – current typical size being 1 – 2 MW. The turbine in the picture below at Brill Primary School, Buckinghamshire (9m hub height) is an example of a small 6 kW machine. Turbines need to be mounted on a tower of a height that minimises the blocking and eddying effects of buildings and trees.

TV Energy 32 of 44 March 2009 The amount of energy generated is generally determined by the site average wind speed and the area swept by the blades. Blade shape and rotation speed determine efficiency. On some turbines a braking system shuts off the turbine if the wind is excessively strong. On others pitch control and aerodynamic load -shedding is used. The turbine’s rotor blades are attached to its hub, and the associated machinery and generator sit in the nacelle at the top of the tower (or at its foot). The tower is fixed to a reinforced concrete base foundation and a cable connects the turbine to a substation (large schemes) or to the site electricity supply (small).

Grid connection: ‘Offsite’ wind clusters and wind farms generate electricity which is fed into the regional grid; the advantage of this is being able to reach higher wind speeds in areas of higher elevation and greater exposure; the disadvantage being the lower price paid for the power and the planning risk from local preservationists.

‘Onsite’ turbines feed electricity either directly into the site buildings (small turbines), displacing that otherwise imported from the national grid, or the local grid (larger turbines). When electricity demand on site is greater than the output from the wind turbine, the difference is drawn from the grid. Should electricity demand be lower than the output from the wind turbine(s), electricity can be exported back into the grid. Depending on negotiations with the electricity supplier or a consolidator (agent), this export of electricity could generate a credit on the electricity bill, or a one-off annual payment, to also include payment for the Renewables Obligation Certificates (ROCs).

Planning issues: Planning permission will be an issue and no predictions can be made at this stage as to how the local planning authority will view a wind turbine proposal. This area needs to be handled with great sensitivity.

It can be said with confidence that if sensitively sited, wind turbines are little or no a danger to bird life, nor generators of excessive noise. Noise surveys at other locations indicate that the noise of the wind on its own will drown out any noise from the rotation of the turbine. These will often be the key concerns of planning officers and committee member and visits to regional installations can be arranged to allay these and other concerns. For larger schemes, the need for extensive consultation with stakeholder and expert organisations, and the production of environmental impact statements and assessments, serve to rule out the least viable schemes before they are proposed. Nevertheless a large proportion of schemes of all scales still fail at the planning stage.

TV Energy 33 of 44 March 2009 Building mounted turbines: These turbines differ from other wind turbines in being mounted on a pole attached to a building. They are relatively new to market and are not yet fully ‘road-tested’, but could be an option in the coming years given design improvements.

Caution should be taken with energy output figures, the need for planning permission and advertised installation prices as there appears to be a degree of misinformation within the public domain on these subjects.

Normal wind speed data bears little relevance for this technology, as wind speed and directions are altered around buildings. It is therefore very difficult to give an accurate idea as to the output and suitability of these systems for specific locations.

SOLAR (PV) Solar generated electricity is created by the technology of photovoltaics (PV) – solid state semi-conductors that convert light into electricity. When a small amount of light (a photon) lands on a PV cell it gives energy to an electron. The electron moves away from the cell into an electrical circuit. The electricity created is direct current (DC). This can either be used to charge batteries or power DC devices, however, in the UK, it would normally be converted to alternating current (AC) via an inverter to meet the electrical demands of the site and be tied into the grid, with any surplus after on-site use, generating an income. We have been using the technology for years to power calculators.

Systems are easily retrofitted and this would involve attaching standard modules to form an array on to an unshaded roof that faces within 60° of south. An example of how this would look is shown below on a house in Hurley, Berkshire and a larger residential system in Woking, Surrey.

TV Energy 34 of 44 March 2009 Alternatively, for flat roofs purpose-built toughened plastic cassettes can act as the panel mounting and are weighted down by ballast bags. These can be aligned to due south and moved if required (photo below left). Their use is dependent on the load-bearing capabilities of the hosting roof.

Grid connection: The PV system feeds electricity into the site buildings, offsetting that imported from the national grid. When electricity demand on site is greater than the output from the PV the difference is drawn from the grid. Should electricity demand be lower than the output from the PV, electricity can be exported back into the grid. Depending on negotiations with the electricity supplier or a consolidator (agent), this export of electricity could generate a credit on the electricity bill, or a one off annual payment, to also include payment for the Renewables Obligation Certificates (ROCs).

SOLAR (THERMAL) Solar thermal heating systems (STHS) utilise energy from the sun, in the form of light and heat, to supply heat to hot water systems as opposed to generating electricity. This is achieved by using a solar collector filled with liquid, which absorbs heat from the radiation of the sun (it does not have to be sunny to work) and transfers this heat, via a heat

TV Energy 35 of 44 March 2009 exchange system to a dual coil (or supplementary) hot water tank that is also attached to the main boiler or immersion for backup as and when required – see diagram, right, showing a sample system design. If a replacement rather than supplementary hot water cylinder is introduced, it is usually slightly larger than a conventional single-coil model.

Collector technology is split between flat plate collectors and evacuated tube systems. The former are cheaper and flatter than the latter, but not as productive per square metre and has a slightly longer response time. STHS can provide a guaranteed 50% of hot water requirements for homes, offices and schools etc. over the course of a year, although the reality is often much higher. In a domestic situation, most years this will be almost 100% of hot water requirements from mid-May through to mid-September, but even in the depths of winter can be as much as a 20% contribution.

Systems are best located on unshaded pitched roofs with a southerly aspect, although, as the diagram to the left shows, they work well at all angles from due east to due west, with some drop-off in production as the percentages . In a standard domestic context around 3-4m² of roof space per household is required for the collectors, subject to hot water requirements.

GROUND SOURCE HEAT PUMPS In the UK, the earth at a depth of 1.5 metres and below keeps a constant temperature of around 11-12 ºC throughout the year. Because of the ground’s high thermal mass, it stores heat from the sun. Ground source heat pumps (GSHPs) can extract this heat from the ground, raise its temperature and pump it into a building to provide space heating and, in some cases pre-heating for hot water. For every unit of electricity used to pump the heat, 3-4 units of heat are produced.

Whilst not a totally renewable energy technology because of the requirement to input energy for compressing, heat pumps can have a significant impact in reducing CO2 emissions and are cost competitive against electric, oil and LPG heated systems and even, in some instances, mains gas.

To focus initially on GSHPs, there are three important elements to consider –

· Ground loop - comprises lengths of plastic pipe buried in the ground, either in a borehole or a horizontal trench. The pipe is a closed circuit and is filled with a mixture of water and antifreeze, which is pumped round the pipe absorbing heat from the ground. · Heat pump (below, right) - although we may not know it, heat pumps are very familiar to us. Fridges and air conditioners are all examples. A heat pump works by using the evaporation and condensing of a refrigerant to move heat from one place to another. In this case, the evaporator (the squiggly loop in the cold part of your fridge) takes heat from the water in the ground loop; the condenser (the hot

TV Energy 36 of 44 March 2009 thing on the back of your fridge) gives up heat to a hot water tank which feeds the distribution system. A compressor, which uses electricity, (this is what makes the noise in your fridge) moves the refrigerant around the heat pump. It also compresses the gaseous refrigerant to increase the temperature at which it condenses, to that needed for the distribution circuit. · Heat distribution system - consists of underfloor heating or radiators for space heating and water storage for hot water supply. Some systems can also be used for cooling in the summer.

For ground loop based installations there are three main options: borehole (below, centre), straight horizontal and spiral horizontal, often called 'slinkeys' (below – left). Each has different characteristics allowing you to choose the most suitable for the site. Horizontal trenches can cost less than boreholes, but require greater land area. For a slinky coil, a trench of about 10m length will provide for about 1kW of heating load. Borehole based collectors will be at depths of between 60 – 200m.

As already stated, electrical energy is needed to activate the heat pump cycle and to compress the vapour for the production of useful heat. The efficiency of this process is expressed by the ratio between the useful heat delivered and the driving energy used by the compressor. This ratio is called the Coefficient of Performance (COP).

As environmental heat is free and available in very large quantities, it is not included in the COP. That is why the COP is always larger than 1. The COP of the current generation of heat pumps varies from 2.5 to 5. Since the COP shows performance at a steady state only, a second parameter is usually used to show the performance of the heat pump over an entire year. It is called the seasonal performance factor (SPF), which is the ratio of annually delivered useful heat over annually used driving energy. When calculating the SPF, it is common to include the annual electricity requirements of auxiliary equipment, such as circulation pumps, fans, etc.

Therefore, the performance of a heat pump system is affected by several factors, which include: · The climate (annual heating and cooling demand and peak loads);

TV Energy 37 of 44 March 2009 · The temperature of the heat source and the heating distribution system; · The auxiliary energy consumption; · The heat pump control.

The performance of heat pumps should be balanced by the fact that the efficiency of electricity generation in the UK is less than 35%. That means that for every unit of electricity used, more than 2.5units of primary energy (mix of oil, gas, peat, etc.) have been burned. Therefore, a heat pump with a COP of 4 driven by electricity generated by a thermal power plant has a primary energy efficiency of 160%.

That is already better than the 100% achieved by a modern gas condensing boiler operating at low temperature for example. But you can increase the primary energy efficiency of your heat pump, and therefore its environmental benefit, by 3 times by driving it with green electricity. It is now possible to switch easily to a green electricity supplier at no extra cost.

AIR SOURCE HEAT PUMPS Work in a similar way to Ground Source but use the energy in air rather than the ground. Ambient air is drawn into a building, the heat extracted to provide space heating and, in some cases pre-heating for hot water. An external fan is the only obvious feature. Costs are much less than for GSHPs but efficiency is not as good generally.

LOW HEAD HYDRO Worldwide there remains vast potential from unexploited hydro resource ranging between 400-500 GW. Small scale hydro-power has great potential as a renewable energy source. Unlike large scale hydro projects, such as the Aswan Dam in Egypt, small scale-hydro power requires a limited amount of physical construction and therefore avoids the environmental and sociological problems associated with their development. Other advantages include:

· Hydro is a concentrated energy source, so small systems can create relatively large amounts of energy · Water turbine technology is highly efficient, in the region of 80-90% · Hydro power can provide a high availability of power throughout the year and variations are seasonably predictable · Small hydro projects have minimal visual and noise impacts.

In the Thames Valley such projects are limited to the availability of running water. It is a misconception that a requirement for hydro-electric power is a large volume river with a large velocity. Although these rivers have the potential for a greater amount of energy production, such projects are possible on smaller, slower water courses. For example, the River Thames has 44 weirs which potentially could generate hydro-electric power (studies indicate between 5-25MW capacity). Old mills, sluices and dams in the Thames Valley area, also have a great potential to generate electricity.

TV Energy 38 of 44 March 2009 The principles of operating small-scale and large-scale hydro schemes are essentially the same. They require:

· A suitable rainfall catchment area · A hydraulic "head" (i.e. vertical distance from the reservoir or river to the turbine · A water intake placed above a weir or behind a dam · A pipeline or channel to transport the water from the reservoir or river to the turbine · A flow control system · A turbine, a generator, associated buildings and grid connection · An outflow, where the water returns to the main water course.

TV Energy 39 of 44 March 2009 ANNEX 5: POPULATION AND RURAL AREA STATISTICS

Bracknell · Land area 109 sq km. · Population 112,000 (2007). · GVA 3,009 £m (2006). · Deprivation index rank 320 (2007). · Rural area 51.9%. Reading · Land area 40 sq km. · Population 144,000 (2007). · GVA 4,905 £m (2006). · Deprivation index rank 151 (2007). · Rural area 0.3%. RBWM · Land area 197 sq km. · Population 141,000 (2007). · GVA 3,857 £m (2006). · Deprivation index rank 323 (2007). · Rural area 61.3%. Slough · Land area 33 sq km. · Population 120,00 (2007). · GVA 3,895 £m (2006). · Deprivation index rank 115 (2007). · Rural area 0.3%. West Berks · Land area 704 sq km. · Population 151,000 (2007). · GVA 4,134 £m (2006). · Deprivation index rank 330 (2007). * Rural area 94.2% Wokingham · Land area 179 sq km. · Population 157,000 (2007) · GVA 3,274 £m (2006). · Deprivation index rank 353 (2007). · Rural area 62.2%.

Total farmed hectares: 68,000 ha

TV Energy 40 of 44 March 2009 ANNEX 6: EXISTING RENEWABLE ENERGY PROJECTS (2008 DATA)

The following data is an extract from the SEE-STATS renewable energy database managed by TV Energy on behalf of the SE Region of England.

Summary of installed capacity

Capacity Capacity Area Status (kWe) (kWth) Total Berkshire 58,225 22,032 Operational 15,813 846 Planned 3,443 0 Failed Bracknell Forest 373 84 Operational 0 500 Planned 0 0 Failed Reading BC 6,582 150 Operational 11 0 Planned 0 0 Failed RB Windsor & Maidenhead 665 316 Operational 260 9 Planned 0 0 Failed Slough BC 47,952 20,540 Operational 0 300 Planned 0 0 Failed West Berkshire 398 552 Operational 3,027 37 Planned 3,300 0 Failed Wokingham BC 2,256 390 Operational 12,515 0 Planned 143 0 Failed

TV Energy 41 of 44 March 2009 List of projects by unitary authority

Capacity Capacity Project RE category Status (kWe) (kWth) Bracknell Forest Bracknell sewage treatment Bio & sewage gas 200 Operational works Garth Hill College Biomass 500 Planned Chavey Power landfill gas Landfill gas 165 Operational Domestic micro wind Onshore wind 1 Operational Domestic solar PV, Solar PV 2 Operational Sandhurst Domestic solar PV, Bracknell Solar PV 2 Operational Domestic solar PV, Binfield Solar PV 2 Operational Domestic solar PV, Solar PV 2 Operational Crowthorne Domestic solar thermal BFC Solar thermal 84 Operational Reading BC Reading sewage treatment Bio & sewage gas 3,422 Operational works Ground source heat MAPP Centre GSHP 17 Operational pump Smallmead Farm landfill gas Landfill gas 3,148 Operational Semplice Reading micro wind Onshore wind 1 Operational Thames Water wind Onshore wind 1 Operational EA Reading Green Columns Onshore wind 0 wind RISC roof garden wind Onshore wind 0 Operational Kings Meadow House PV Solar PV 11 Planned Reading University solar PV Solar PV 8 Operational roof Reading St James Island Solar PV 2 Operational demo PV RISC roof garden PV Solar PV 0 Operational EA Reading Green Columns Solar PV 0 Operational Reading BC solar thermal Solar thermal 59 Operational scheme Caversham solar thermal Solar thermal 67 Operational Tuns Hill Cotts. solar thermal Solar thermal 3 Operational Cemetery Junction Reading Solar thermal 1 Operational solar thermal Reading St James Island Solar thermal 3 Operational demo solar thermal RB Windsor & Maidenhead HURLEY RIVERSIDE PARK Air source heat pump 22 Operational air source heat pump Hurley Straw-bale burner Biomass 273 Operational Holyport Manor School Biomass Planned BCA SRC Energy crops 4.5ha Planted Ground source heat Elton John's GSHP 5 Planned pump Hurley GSHP Ground source heat 5 Planned

TV Energy 42 of 44 March 2009 pump Romney Weir hydro Hydro 260 Planned Star Works landfill gas Landfill gas 630 Operational Hurley wind turbine Onshore wind 6 Operational Maidenhead micro-wind 1 Onshore wind 1 Operational Maidenhead micro-wind 2 Onshore wind 1 Operational Bray micro-wind Onshore wind 1 Operational Maidenhead micro-wind 4 Onshore wind 1 Operational Maidenhead micro-wind 5 Onshore wind 1 Operational Domestic micro wind Onshore wind 1 Operational Domestic micro wind Onshore wind 1 Operational Maidenhead micro-wind 3 Onshore wind 0 Operational Greenfields Housing PV, Solar PV 20 Operational Maidenhead Bag End PV, Hurley Solar PV 1 Operational Windsor Castle solar thermal Solar thermal 21 Operational HURLEY RIVERSIDE PARK Solar thermal Operational solar thermal Slough BC Slough sewage treatment Bio & sewage gas 680 Operational works Slough Heat & Power station Biomass 45,000 20,000 Operational Wexham Nursery biomass Biomass 540 Operational boiler Langley City Academy Biomass 300 Planned biomass boiler Colnbrooke landfill gas Landfill gas 2,272 Operational West Berkshire Ridgeway Grain/Lambourn Biomass 3,000 Planned biomass CHP The Living Rainforest Biomass 220 Operational biomass Woodlands St Mary biomass Biomass 21 Planned stove Hill Fields Farm biomass Biomass 220 Operational boiler Curridge School biomass Biomass 50 Operational boiler Ground source heat Streatley Ecohouse GSHP 10 Operational pump Ground source heat 11 The Old Golf House GSHP pump Operational Ground source heat Crookham Heath GSHPs 5 Planned pump Beenham landfill gas Landfill gas 346 Operational Theale Prudential wind Onshore wind 2,000 Failed Baydon Meadow community Onshore wind 1,300 Failed wind Tesco Newbury wind Onshore wind 12 Planned Thatcham Safety Research Onshore wind 8 Operational Centre micro wind Membury Airfield wind A Onshore wind 6 Operational Membury Airfield wind B Onshore wind 6 Operational

TV Energy 43 of 44 March 2009 Lambourn wind Onshore wind 1 Planned Lambourn micro-wind Onshore wind 1 Operational Shaw carport micro-wind Onshore wind 1 Operational Swan Bridge BP filling station Solar PV 21 Operational PV Newbury Town Hall solar PV Solar PV 5 Operational West Berks Offices solar PV Solar PV 5 Planned Sheepdrove Farm PV Solar PV 5 Planned The Living Rainforest solar Solar PV 2 Operational PV Newbury bungalow solar PV Solar PV 2 Operational Shaw carport solar PV Solar PV 2 Planned Chieveley Village Hall solar Solar PV 2 Planned Lambourn solar PV Solar PV 0 Operational Lambourn solar thermal Solar thermal 2 Operational Tidmarsh solar thermal Solar thermal 3 Operational Warden INTEGER Home Solar thermal 3 Operational solar thermal Pangbourne solar thermal Solar thermal 3 Operational Newbury bungalow solar Solar thermal 3 Operational thermal Boxford solar Solar thermal 3 Planned Inkpen solar Solar thermal 3 Planned Purley on Thames solar Solar thermal 3 Planned Hill Fields Farm solar thermal Solar thermal 28 Operational Rose Farm, Chieveley solar Solar thermal 3 Planned thermal Wokingham BC Wargrave sewage treatment Bio & sewage gas 250 Operational works Nr Twyford straw boiler Biomass 366 Operational Dinton Pastures biomass Biomass 21 Operational stove Woodley landfill gas Landfill gas 143 Failed Rushy Mead Wind Cluster Onshore wind 12,500 Planned Green Park wind turbine Onshore wind 2,000 Operational Upper Culham Farm wind Onshore wind 5 Planned turbine Wokingham wind turbine Onshore wind 5 Planned Worleys Farm wind turbine Onshore wind 5 Planned Reading McDonalds micro Onshore wind 1 Operational wind Woodley micro-wind Onshore wind 1 Operational Hawthorns School solar PV Solar PV 2 Operational Southfield School solar PV Solar PV 2 Operational Earley solar thermal Solar thermal 1 Operational Dinton Pastures solar thermal Solar thermal 2 Operational

TV Energy 44 of 44 March 2009