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Using District Energy to Deliver Decarbonisation of Heat in the UK
Using District Energy to Deliver Decarbonisation of Heat in the UK
Who are we ?
What is District Energy ?
National Approach to District Energy
Example Municipal Energy Project – Sutton Decentralised Energy Network
• Non Trade not for profit association, working together to:
• Offer guidance to other organisations, particularly LA’s
• Raise awareness of district energy as a low carbon solution and the benefits that it can deliver
• Members of the UKDEA gain the tools and support that they need to develop and expand their schemes
• Started in 2010 with 6 Founder Full Members (mainly local authorities)
• Now over 100 members and growing rapidly - all major district energy schemes in the UK are represented by the UKDEA
• We want to show that district energy works at all scales not just large high density urban areas
Who are we ?
Our Work Streams include:
• Free help and advice to members
• Members are happy to help each other and often work together on issues
• Consultation responses and Government engagement – making sure DE stakeholders’ views are effectively represented
• Technical R&D – Design and Information Notes
• Information & Raising Awareness – Guides for organisations seeking to develop DE in the UK.. Our first APP is to be launched shortly
• Customer Protection - important industry wide issue
Our Work
Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your
scheme
What is District Energy ?
Question - what is it ?
Answer - linking of two of more buildings together via a network of heating pipes from one or possibly more heat sources
Question - why do we use the term district energy ?
Answer - because it can mean both heating and cooling networks. Cooling networks are often used in city centres for air conditioning
When heating is used on it’s own it is called District Heating or it can also be called Community Heating
The Basics
Question - what runs in those pipes ?
Answer - hot water at similar pressures and temperatures as you use in your own home or office heating system
Question – what buildings are suitable ?
Answer – any but best are those with a greater heat load, i.e. housing, leisure, care homes etc…
Question – how much is there in the UK ?
Answer – Around 2% of homes in the UK are supplied with heat from an external source and this is growing rapidly
The Basics cont’d
Key Components
Heat Source
Distribution Systems
“the buried network of
pipes”
Consumer Interface
“HIU or thermal
substation or metering station
The Customer
“the Building”
What do these distribution systems look like ?
• Highly insulated pipes known as “Pre-insulated pipework”
• Plastic systems are suitable for most smaller projects and are available in 100m coils
• Steel pipes are used on larger systems
• Heat Losses < 1°C per km• Reliability ~ 100% • Networks last for > 50 years
CHPDistrict Energy is Technology Agnostic
Possible Sources
of Energy
Energy from Waste
Facilities
Biomass, i.e. wood boilers,
anaerobic digestion
Geothermal and ground source or
water source heat pumps
Waste Heat from industry
Gas fired CHP
• Many possible generation technologies – but select the best one for your scheme…
• Consider:
What is available in your area
Space constraints for plant and fuel deliveries
Scale
Development timescales… the energy source can always be changed but once connection opportunities have been missed they are difficult to recover
What makes a good district energy scheme ?
Anchor Load – a development or series of buildings which can act as the catalyst for the scheme
High Energy Density – reduces capital costs for a given energy consumption and increases viability
Range of Consumers - differing consumption profiles can deliver a flatter heat demand across the day – increases utilisation of LZC heat sources
Cost Effective Heat sources – what LZC ones are available at low/no costs - any waste heat ?
A series of Stakeholder Champions – people who want the scheme to succeed irrespective of the obstacles encountered
A contracting structure that brings this together and can be delivered….
Key Components of a Successful Framework ?
• One of the best ways to deliver substantial carbon savings in an urban area
• Ideal when there is a source of waste heat
If not, there are many potential generation technologies which can be used.. e.g. gas fired CHP
• By connecting several buildings, economies of scale can be achieved
Prevents token projects & ”greenwash”
Make sure you look over the fence… what else could be connected ?
• An energy generation “heart transplant” can be made at least once or even twice in the life of the network as new technologies become viable
• Future proofing - whatever thermal energy sources are available in the future can be “plugged into” the network
If buildings operate in isolation this cannot take place
• On a whole life cycle costing basis, DE can also deliver significant cost savings
• Brings stability in a changing legislative environment ...
Why District Energy… the benefits ?
Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your
scheme
National Approach to District Energy
• 1971 - Government were encouraging local authorities to develop district heating schemes
• 2015 - the government is still encouraging local authorities to develop district heating schemes
• 2015 – percentage of heat supplied by networks ~ 2%
Is this a new concept ?.....
2010 ->
Amber Rudd – Secretary of State for DECC (Carbon Connect Launch Event 2015) –
“heat is the Cinderella of the energy world whose time has come to go to the ball”
Since reformation of Department of Energy (DECC) government has focused on heat in last 4 years
Two heat White papers and 10 pages on heat in UK Infrastructure Paper published in January 2015
DECC have a “Heat Focus” – we now have a Heat Infrastructure Team and a Head of Heat Infrastructure
Local Authorities are best placed to lead projects and £9.6M awarded to 100 LA’s (20% of all in UK) to explore the development of 180 projects.
Round 5 of funding has just been launched
Independent Consumer Regulation
CODES of Practice
Sustainable District Heating is on the agenda !
Government & Industry Approach in last 5 years
– It will be different and challenging with new business models emerging into a sector with very limited experienced resource !
– UKDEA have carried out detailed analysis to map the potential at 14% of heat in the UK
– DECC now use this figure as their target
– The economic climate has changed, many LA’s want to retain any benefits from the development of the these schemes for the LA
– The role of the LA has changed they now have much wider powers
– There are many authorities already leading the way, i.e. LB Sutton, LB Enfield…
• forming local authority owned companies to take their schemes forward
• purchasing heat from third parties
• selling heat to private sector developers…
– This is a brave new world… but LA’s need to keep in mind why they want to be involved and what are the risks….
The game changer in the next 5 years –Municipal Energy Companies ?
Owners and operators of the largest district energy schemes in the UK We face the pains and successes of district energy on a daily basis Joining the organisation will ensure you gain the tools to develop your
scheme
Example Project – Sutton Decentralised Energy Network
Local Authorities as Heat Shippers ?
Innovative New Structures ?SDEN Outline Project Structure
London Borough of Sutton
Opportunity Sutton Ltd
Sutton Decentralised Energy Network (SDEN)
Ltd
- Construction Contract for Network
- Operation Contract for Network and
Back up Boilers
- Residential Customer Services and
Metering and Billing Contract
Land agreements for pipework with
Viridor/Thames Water
Land and Asset Protection Agreements
with Network Rail
Heat Sale Agreement to Schroders & FelnexOccupiers including
customer service standards etc..
Contract with Viridor for heat supply
Contract for Gas supplies to back up boilers on
Felnex Site
Contract for Electricity Supplies to Felnex boilers
for pumps etc..
