local energy supply: opportunities, archetypes and outcomes

School of Earth & EnvironmentSUSTAINABILITY RESEARCH INSTITUTE

Local Energy Supply: Opportunities, archetypes and outcomes

Dr Stephen Hall and Dr Katy Roelich

APSE Southeast Workshop 16th July 2015

Report structure

1. Motivations

2. The four opportunities

of local supply

3. Archetypes of local

supply

4. Barriers

5. Recommendations

Methods

• Literature review

• Local Supply Working

Group Written

submissions

• Local Supply

Workshop outputs

• 12 Primary interviews

Motivations

The four opportunities of local supply

Re-localisingenergy value

Better routes to market for local

generationEconomic

Social

EnvironmentalReal energy efficiency gains

Self-determination

Fulfilling the potential of the

demand side

Opportunities Outcomes

Archetypes

Current archetype

Local white labelling

Energy local

Licence light

Municipal utility

Municipal ESCo

Multi-utility service company

Peer to peer

Peer to Peer with Local Balancing Unit

Not for profit national administrator

Archetypes - Current

Archetypes – Local Aggregator

Mo-ESCo

Archetypes – P2P with Local balancing unit

Archetypes – NFP national administrator

Mapping archetypes to opportunities

Barriers

Archetype Regulation Capacity Experience

and risk

White Label Low Low Low

Local Aggregator Medium Medium High

License Lite Low High High

Municipal Utility Medium High High

Municipal ESCo Medium High High

Multi Utility Service High High High

Peer to Peer Medium Medium High

P2P with Local Balancing Unit Medium Medium High

NFP national supplier Low Medium Medium

Reccomendations

Long term

Short-term

Exempt service-oriented models form switching requirements

Investigate treatment of demand reduction centred business models in regulation and policy

Local supply innovation fund

A ‘portal of power’

Resource Local Supply Working Group

MediumTerm

Amend tariff limits for local supply archetypes

Allow for ‘local balancing unit’

Exemption from requirement for national supply

Existing impact

School of Earth & EnvironmentSUSTAINABILITY RESEARCH INSTITUTE

Thank you for your attention!

Contacts: s.hall@leeds.ac.ukk.e.roelich@leeds.ac.uk

Website: http://sure-infrastructure.leeds.ac.uk

Wolverhampton. Making it happen

Smart grids & energy projects in Wolverhampton

APSE Renewables & Climate Change advisory group

Cambridge, 16 June 2015

Ric Bravery, Sustainability Officer, Wolverhampton City Council

Content

• Wolverhampton in context

• What is a smart grid?

• ORCSEN: the acronym!

• Wolverhampton energy projects

Wolverhampton in context

Wolverhampton is…

• A city of 250,000

• In West Midlands met area

• Millennium city

• Middle Ages - market town

• Industrial revolution – manufacturing town• Now seeking to regenerate & rebuild• Retains strong engineering base• Growing population: 30% BME including 9% Sikh

… part of the Black Country

• Four boroughs, population 1.14m

• Joint Core Strategy & LEP

• WCC lead for Black Country LEP on low carbon

• Green Growth Plan

• Joint funding for low carbon & environment through ESIF

What is a smart grid?

A definition:

• ‘a modernised electricity grid that uses information and communications technology to monitor and actively control generation and demand in near real-time’, Smart Grid Vision & Routemap

Drivers of smart grids

• A deeply inefficient UK energy system

• Reducing IT costs

• Rising energy costs

• New storage & generation technologies

• Government policy

Pros & Cons of Smart Grids

• New revenue streams

• Reduced fuel poverty

• Community involvement & ownership

• Faster fault finding & switching

• Jobs

• Upfront costs

• Privacy concerns

• Unequal impact

• Increase complexity

• Uncertain future

What does a Smart Grid look like?

Smart meters

• A building block of the smart grid

• Roll-out due to be complete by 2020

• Should save money, deliver accurate bills, facilitate switching

• Concerns over privacy, effectiveness & programme

Smart tariffs

• Price signals shift energy usage according to time of day – like Economy 7

• Either static (the same every day) or dynamic (changing in real time)

Smart appliances

• Automation of white goods, chargers, electric heating...

• Big Brother effect – override is essential

• Substantial price increase, to be offset against energy bill savings

Decentralised generation, storage & distribution

• Smart grids are essential for decentralised network

• Opportunity for ‘prosumers’ and community schemes

• The most important form of household-level storage: insulation

ORCSEN: the acronym

ORCSEN =Optimising Regional

Clusters of Smart Electricity Networks

ORCSEN

• May 2015 – April 2016

• Funded by Innovate UK (Technology Strategy Board)

• Partners:o Encraft Ltd

o e2E Technology

o EA Technology Ltd

o Aston University

o Western Power Distribution

o Wolverhampton City Council

o Black Country LEP

ORCSEN is about…

• Creating new kinds of control equipment to support smart grids

• Enabling local generation, storage & distribution of electricity below the level of the sub-station

• Early stage feasibility study to explore potential for such technologies in Wolverhampton & Black Country

ORCSEN Programme 1

1. Identify strategic sites for case study & network characteristics (under way)

2. Build baseline model of local distribution network for sites identified

3. Define scenarios for likely changes in technology & how they will affect network design

4. Identify likely constraints & opportunities on baseline network

ORCSEN Programme 2

5. Develop cost effective technical solution to network challenges highlighted

6. Re-run baseline model with new inputs to test feasibility

7. Develop plan to exploit any Intellectual Property Rights from project

8. Project Management

Wolverhampton energy projects

The council’s Energy Fund

• Started in 2010

• Followed Salix Scheme & applied similar principles

• £250,000 allocated p.a. up to a total value of £1.1 million

• Used to fund energy / water saving schemes at schools & corporate buildings with the money saved being used to repay the fund

• Projects have included low energy / LED lighting, Building Energy Management Systems, Condensing Boilers, variable speed drives for motors …

Solar programme – Civic Centre 1

• Started tender process in autumn 2010

• Due to reductions in FiT payments, scheme limited to 49kW

• Contract awarded to Kier Group, summer 2011

Solar programme – Civic Centre 2

• Scheme comprising 270 solar panels completed in November 2011

• Project cost = £130,000

• Average annual FiT income = £14,000

• Imported electricity saving = £3,700

• Pay back : £130,000 / £17,700 = 7.5 years

Wider solar programme 1

• £1.2 million budget for programme at council buildings

• 1st order placed in May 2014

• From an original schedule of 22 sites:

o 15 installations complete – 605 kWp

o 1 is being finalised

o 6 were not carried out due to a number of issues –asbestos tiles, structural problems, uncertainty about future of building

o 3 additional schemes have now been approved, 2 of which have been completed – 81 kWp

Wider solar programme 2

• Solar farm on an old plant nursery has been looked at but issue with power supply – new sub-station would be required

• Schools – schedule of potential schemes being drawn up

• Civic Halls refurbishment - now includes solar panels, subject to planning / structural approval

Wider Solar programme 3

• Total cost to deliver the 17 schemes = £870,000

• Annual financial benefit to council = £128,000

• Overall payback around 6.6 years

• Probably nearer 7 years when all design, planning & structural costs are finalised

Bio-mass boilers – corporate buildings

• £1.05 million funding for a schedule of containerised bio-mass boiler installations at various Council properties - 1st

order placed in October 2014

• From a schedule of 6 sites, the 1st boiler installation was completed end of May 2015, this is a 200 kW unit for Aldersley Leisure Village

• The remainder will follow on from this, however, some jobs may be put on hold due to uncertainty about future of buildings

Bio-mass boilers – schools

• Already have 1 containerised bio-mass boiler installation at Goldthorn Park School – this was paid for out of the council Energy Fund, with money paid back using the Renewable Heat Incentive (RHI) payments

• Also 3 other Schools with bio-mass boilers installed in the existing boilerhouses

Wolverhampton Homes

• Wolverhampton Homes: Arms Length Management Organisation (ALMO) managing council housing

• 2007: 50 solar panels on Graiseley Court high rise

• 2007: pilot scheme for solar thermal on 14 properties

• 2011: 1mw biomass boiler in district heating serving c1,200 properties at Heath Town estate;

• 2012: solar panels on 56 properties, St Chads estate

• Currently exploring other solar PV opportunities

Any questions?

For any more information contact…

Ric Bravery, Sustainability Officer, Wolverhampton City Councilric.bravery@wolverhampton.gov.uk

01902 552177

ORCSEN:Kate Ashworth, Encraft

Kate.ashworth@encraft.co.uk01926 312159

Wolverhampton council’s energy programme:Keith Daw, Energy Manager, Wolverhampton City Council

01902 555764keith.daw@wolverhampton.gov.uk

Additional credits

• Conrad Steel, Consumer Futures (now Citizens Advice) for Smart Grid slides

APSE Renewables and Climate Change Advisory Group

16th June 2015

James Owen

About Us

• Wholly Owned Company of Swindon Borough Council (SBC) – 100% Shareholder

• Employs circa 50 staff

• Turnover of circa £12m

• 3 business units:

– Power Solutions

– Waste Solutions

– Heat Solutions

What our Business is all about

Our Vision & Mission

• Our Vision is to be the provider of choice for innovative waste and power solutions

• Our Mission is to be a successful, respected provider of sustainable waste & power solutions by blending the best of public & commercial sectors for multiple stakeholder benefit

Power Solutions

• Brownfield Land

• Landfills

• Low Grade Agricultural Land

• Solar Noise Barriers

• Car Parks/Park and Ride

• Full development service

• DPS utilisation and management

Wroughton

Photomontage View

Braydon Manor

Landfill Solar

Solar Noise Barriers

What does the DPS do?

DPS(meets Public Sector Procurement Regulations / OJEU 2015)

PPS Solar Project (PPS as developer)

Funder

Revenue Assurance

Local Electricity

Supply

ICPPPA

LegalPlanners

All services required to successfully deliver a Solar

Development

Any Public Sector Solar Project (PPS as procurement manager)

Project Manager

Trust Fund Manager

DPS Overview

Why use the DPS?• Compliant with the new Public

Procurement Directive (2014/24/EU) & OJEU

• PPS acts as a Central Purchasing Body enabling the Public Sector to meet their obligations under Procurement Law

• Completing an OJEU tender takes time, money and resource

• The DPS already has all the services and suppliers in place ready to deliver all aspects of a solar project

What makes it unique to PPS?• PPS is a company wholly owned by SBC

and is therefore classed as a contracting authority meeting the following criteria:

Financed wholly or mainly by another contracting authority

Subject to management supervision by another contracting authority

More than half of the board of directors or members are appointed by another contracting authority

• No private sector company could do this unless they met the above criteria

• A local authority could setup a DPS –but why would they?

SRF Fuel Production Facility

Is taking this waste….

And turning it into this fuel!

Why deploy an SRF Solution?

• Landfill disposal costs increasing

• New technologies often talked about but what's actually possible today?

• Climate change impacts of landfill gases

• Damage to the fleet

• SBC wanted savings and the SRF plant saves them £2m per year compared with landfill disposal.

What did we learn?

• Its not easy

• Plant technology

• Manage the financial expectation

• Quality, quality, quality

• Mind-set

• What to do with by-products

Additional developments

• Washing plant

• Can baler

• Maximising plant potential

• Resource redistribution

• Closing the end loop – Residential Waste Collection to Residential CHP district heating from SRF.

• Community based ESCo’s

• Build more plants

Converging Businesses

local energy supply: opportunities, archetypes and outcomes

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