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BASE London – DE panel discussion 11th July 2013

District Energy strategy into reality

Turning

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Contents BASE London – DE panel discussion 11th July 2013

1. Context2. Connection3. Capital4. Capacity

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• 80% carbon reduction by 2050

• Heat responsible for half national energy use

BASE London – DE panel discussion 11th July 2013

Why District Energy ?

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DECC’s 2050 vision for heat BASE London – DE panel discussion 11th July 2013

Rural density –Biomass boilers

Suburban density – heat pumps

High density urban areas – heat networks

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DECC heat networks growth projectionBASE London – DE panel discussion 11th July 2013

Chart 17: TWh/year of heat demand that could be met by heat networks

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BASE London – DE panel discussion 11th July 2013

Delivering DE’s potential

Connection Capacity

Capital

District Energy

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BASE London – DE panel discussion 11th July 2013

Delivering DE’s potential – getting connected

District Energy

Connection

• Planning compliance London Plan Borough policies

• Perceived as risky not DNO, not Transco?

• Agreements are bespoke, more complex (expensive)

• Impact on liquidity?

• How big should it be?

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District Energy

BASE London – DE panel discussion 11th July 2013

Delivering DE’s potential - funding

• Networks are expensive – it’s infrastructure!

• Funders are unfamiliar with the technology

• Connection charges – can’t pre-fund network expansion

• Role for ESCOs ? bring funding bring technical know-how can manage risks

Capital

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BASE London – DE panel discussion 11th July 2013

Delivering DE’s potential

• Nascent market• Supply chain competence

and capacity issues

• Designers• Contractors• Customers and their advisors

District Energy

Capacity