ENERGY STRATEGY 2019-2030 D2N2 Clean Industrial Revolution A view on D2N2’s Clean Growth future D2N2 2017/18 D2N2 2030 Population - 2.2 million residents A sustainable and clean growth economy Economy - £45bn generated each year 77.8% of vehicle miles were by cars Over 70% of vehicle miles to be Ultra Low Emissions An average of 7.4 days per site, To comply with, and exceed where possible, when air quality exceeded ‘moderate’ applicable air quality standards in all locations or higher thresholds Households experiencing fuel poverty to be 12.1% of households experiencing below the national average and all buildings fuel poverty to be EPC C or above Carbon emissions decoupled from growth - Carbon intensity of turnover 50% reduction in carbon intensity of turnover 348 Tonnes CO2/£million annual GVA to under 210 Tonnes CO2/£million annual GVA 50% reduction, or greater, in CO2 Emissions CO2 Emissions Per Capita 7.1 Tonnes Per Capita to < 3.5 Tonnes In 2016 11.6% of D2N2 electricity 100% low carbon energy supply with 60% of consumption was generated from D2N2 electricity consumption generated by local low carbon local low carbon sources D2N2 spends an estimated Investing in all profitable energy efficiency and £3,690 million on all of its energy low carbon options, could cut total energy bills and fuel bills* by £1,030 million a year in D2N2 This strategy has been written and reviewed by Nottingham City Council for D2N2 LEP: Jonathan Ward – Principal Energy Policy Officer Ellen Cooper-Tydeman – Energy Policy Officer Michael Gallagher - Regional Energy Projects Manager The Document has been approved by the Chair of the D2N2 Energy Steering Group, Michael Wayne Bexton – Head of Energy Services, Nottingham City Council. The document has been developed in conjunction with members of the D2N2 Local Enterprise Partnership and its Energy Steering Group, with input from other stakeholders in the D2N2 LEP area. March 2019 [email protected] * http://www.candocities.org/energy-and-carbon/derby,-derbyshire,-nottingham-and-nottinghamshire 2 ENERGY STRATEGY 2019-2030 – D2N2 Clean Industrial Revolution Contents Glossary BEIS – Department of Business Energy and Glossary . .3 Industrial Strategy BTM – ‘Behind-the-meter’ A Vision for D2N2 – energising the Midlands Economy. .4 CO2 – Carbon Dioxide CHP – Combined Heat and Power Aiming for Success: D2N2’s 2030 Energy Aspirations for Clean Growth . 7 D2EE – Derby and Derbyshire Energy Efficiency Grants and Energy Advice for SMEs Introduction. .10 D2N2 – The Local Enterprise Partnership for Derbyshire and Nottinghamshire, and their An Energy Revolution: addressing the global respective cities, Derby and Nottingham climate challenge through clean growth . 13 DSR – Demand Side Response The strategic context . 17 EPC – Energy Performance Certificate D2N2’s low carbon, energy and ERA – Energy Research Accelerator renewables economy . 21 ESC – Energy Systems Catapult Enabling the region’s potential. .32 ETRI – Energy Technologies Research Institute Conclusions and recommendations . 39 GHG – Greenhouse Gas GUL – Go Ultra Low GVA – Gross Value Added ICE – Internal Combustion Engine IPCC – Intergovernmental Panel on Climate Change LAEP – Local Authority Energy Partnership LCEGS – Low Carbon, Environmental Good and Services LCRE – Low Carbon and Renewable Energy sector, ONS data classification LEP – Local Enterprise Partnership LEVEL – Low Emission Vehicle Enterprise and Learning MaaS – Mobility-as-a-Service NG – National Grid ONS – Office of National Statistics SIA – Science and Innovation Audit TD – Two Degree (scenario) UTC – University Technical College V2G – Vehicle to Grid D2N2 Spring 2019 3 A Vision for D2N2 – energising the Midlands Economy Within the birthplace of the Industrial Revolution, a clean growth revolution is now underway. One that harnesses the region’s world-renowned heritage and nature with effective and sustainable use of local resources. This revolution will be accelerated by the region’s ability to undertake cutting-edge research and development, a proactive public sector and a highly-skilled workforce. By 2030, D2N2 will be a national pioneer in clean growth and a test-bed for world class energy systems innovation. Energy is central to everything we do; our The region will be one of the most dynamic homes, work, water, food, communications and carbon neutral economies in the UK and transport. It’s fundamental to our quality of life, internationally, attracting significant inward our environment and our economy. Each of these investment and tens of thousands of new jobs. It relationships with energy will be increasingly will be the UK’s premier location for developing, transformed and interlinked in the coming decade. trialling and implementing innovative energy The future of the economy relies on addressing the systems approaches at scale. It will build and need to reduce carbon and energy costs, and being use its capacity to deliver against its own energy able to capitalise on growing markets will deliver and carbon priorities and export services and this. D2N2 should aim to increase participation products to help other regions, across the UK and in the global market through driving the shift to a beyond. A cross sector approach that integrates clean economy. Energy investments, when targeted lifelong learning and educational links will ensure and thought-out, will deliver a range of benefits. that the development of services and provision of Adopting a more holistic and systems thinking skills is always ahead of the curve. approach will overcome silos of work and prevent wasted opportunities. By working across sectors The future of this region will see predominantly and aligning to other key regional priorities, D2N2 electric energy for heating, lighting and transport, can identify approaches and business models that leading to lower carbon emissions and better are sustainable in every sense and address the air quality as renewable generation increases. core problems faced by people and organisations These systems will be highly integrated, flexible in the region. This way, the region’s energy and dynamic. Assets provide multiple uses as strategy delivery will create equal benefits for all houses become power stations, vehicles are stakeholders to prevent the inequity that innovation mobile batteries and waste becomes resource. has often fostered in the past. Consumers can become producers. The D2N2 region will be somewhere communities and businesses can experience and participate in high D2N2 will progress ambitions using its quality energy infrastructure that delivers energy range of strengths, including natural that is affordable, secure and low-carbon. These assets, a high-value engineering and communities will be active and collaborative manufacturing economy and supply- participants in the flexible generation, distribution chains, strong energy leadership and and management of energy. excellent research capabilities. 4 ENERGY STRATEGY 2019-2030 – D2N2 Clean Industrial Revolution This provides unprecedented levels of control, empowering a wider set of engaged stakeholders, all underpinned by advances in smart technologies and big data. The challenge MIDLANDS of changing behaviour to shift demand practices ENERGY HUB and increase efficiency will be enabled by system leadership at all levels and networks of support. Advances in artificial intelligence (AI) and big data will allow radical new approaches to planning energy investments, identifying efficiency and The Midlands Energy Hub – D2N2 creating new services that can operate in close to The Midlands Energy Hub is funded by the real-time. Department for Business, Energy and Industrial D2N2 should not be afraid to go beyond Strategy as part of the Clean Growth Strategy. minimum standards and aim higher; for where The role of the Midlands Energy Hub is to support others see risk, this region should see benefits the capacity of Local Enterprise Partnerships from early adoption and the opportunity to and Local Authorities to identify and deliver local become a more attractive place to live, work energy strategies and projects. There are nine and study. De-carbonising our housing will Local Enterprise Partnerships areas across the go hand-in-hand with tackling the pressing Midlands and each LEP area will have a locally issue of fuel-poverty and creating high quality, based Senior Energy Project Officer available healthy homes. The best way to enable this to provide support on Energy Projects that are is to treat new housing and retrofitting as key identified from the local LEP Energy Strategies. infrastructure projects. Advances in sustainable The key objectives of the Midlands Energy Hub construction will allow new buildings to be are to: net energy positive and developments carbon neutral, and connect occupants to a range of Increase number, quality and scale of energy and transport services. Older houses 1 will be retrofitted using whole-house techniques local energy projects being delivered integrated with renewable generation and energy storage. The scale of the work required Raise local awareness of opportunity for 2 will sustain significant new numbers of jobs and and benefits of local energy investment drive innovation and supply chain development. Town and country planning will enable, not Enable local areas to attract private and/ restrict, energy efficient practices and foster the 3 or public finance for energy projects best use of natural resources. Standards will be raised and enforced, and the