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Page 1: Barking Town Centre Energy Action Area Implementation Plan€¦ · 9 Action Plan for Upgrading Existing Buildings 46 9.1 The Need to Focus on Existing Housing 46 9.2 Feasibility Study

www.barking-dagenham.gov.uk

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Page 2: Barking Town Centre Energy Action Area Implementation Plan€¦ · 9 Action Plan for Upgrading Existing Buildings 46 9.1 The Need to Focus on Existing Housing 46 9.2 Feasibility Study

This report was adopted by Barking and Dagenham Council in August 2006.To discuss any aspect of the Barking Town Centre Energy Action Area please contact:

Spatial Regeneration DivisionRegeneration DepartmentLondon Borough of Barking and Dagenham 3rd floor, Crown House,6 Linton Road,BarkingIG11 8HG

Tel: 020 8227 3812

Fax: 020 8227 5326

Email: [email protected]

Internet: www.barking-dagenham.gov.uk

This report was produced by SEA/RENUE on behalf of the London Borough of Barking and Dagenham. It was co-funded

by the London Energy Partnership and the London Thames Gateway Development Corporation.

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Page 3: Barking Town Centre Energy Action Area Implementation Plan€¦ · 9 Action Plan for Upgrading Existing Buildings 46 9.1 The Need to Focus on Existing Housing 46 9.2 Feasibility Study

A Route Map for Barking Town Centre Energy Action Area 1

TABLE OF CONTENTS

List of Abbreviations 3

Executive Summary 4

Route Map to Implementation 8

1 Introduction 13

1.1 Background 13

1.2 Methodology 13

2 Defining the Energy Action Area 14

2.1 Key Characteristics & Objectives 14

2.2 Barking Town Centre Energy Action Area Target 15

2.3 Visible Landmarks 16

2.4 Incubating Local Skills Development 18

3 Developing Organisational Framework and Capacity 19

3.1 Ensuring an Effective Approach at LBBD 19

3.2 Training and Support 20

4 Setting Planning & Policy Context 21

4.1 Local Policy Framework 21

4.2 Policy Development to Facilitate Implementation of the Energy Action Area 21

4.3 Managing Pressures on Developers 23

5 Establishing an ESCo to Deliver the Energy Action Area 24

5.1 The Two Key Elements of A CHP System 24

5.2 What is an ESCo? 25

5.3 Possible Models for Barking Town Centre 26

5.4 A Barking Town Centre ESCo Model 28

5.5 Possible ESCo Membership 29

5.6 Conclusion 30

6 Utilising Funding & Financing Options 31

6.1 The Capital Costs Associated with Developing the Energy Action Area 31

6.2 Grant Funding 32

6.3 Other Mechanisms 33

6.4 Conclusion 33

7487 INSIDE PAGES 13/11/06 09:23 Page 1

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7 Implementing Community Heating in Barking Town Centre 35

7.1 Introduction 35

7.2 Community Heating Guidelines 35

7.3 Technology Compatibility 42

8 Embedding the Energy Action Area Requirements within Key Development Projects 43

8.1 What can be done at what stage? 43

8.2 Measures to be Employed at the Various Stages of each Regeneration Development 44

9 Action Plan for Upgrading Existing Buildings 46

9.1 The Need to Focus on Existing Housing 46

9.2 Feasibility Study of Energy Efficiency Measures in Existing Buildings 46

9.3 Heat Network for Existing Buildings 47

9.4 Developing an Active Energy Efficiency Programme in Barking Town Centre 48

10 Promoting and Marketing the Energy Action Area 49

10.1 Promotion of the Energy Action Area to Local Stakeholders 49

10.2 Marketing Opportunities from Energy Action Area Implementation 50

11 Appendices 52

A Route Map for Barking Town Centre Energy Action Area2

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A Route Map for Barking Town Centre Energy Action Area 3

LIST OF ABBREVIATIONS

BTC Barking Town Centre

BVPI Best Value Performance Indicator

CH Community Heating

CHP Combined Heat & Power

DSWH Domestic Solar Water Heating

DTI Department of Trade and Industry

EEC Energy Efficiency Commitment

ELT East London Transit

EPBD Energy Performance in Buildings Directive

ESCo Energy Services Company

EST Energy Saving Trust

GIS Geographic Information Systems

GHG Greenhouse Gas

GLA Greater London Authority

GSHP Ground Source Heat Pump

HECA Home Energy Conservation Act

LBBD London Borough of Barking and Dagenham

LCBP Low Carbon Buildings Programme

LDA London Development Agency

LEC Levy Exemption Certificate

LEP London Energy Partnership

MBT Mechanical Biological Treatment

NHER National Homes Energy Rating

NPV Net Present Value

DCLG Department for Communties and Local Government

ROC Renewables Obligation Certificate

RSL Registered Social Landlord

SAP Standard Assessment Procedure

SEPN Sustainable Energy Policy Network

SfL Solar for London

SPG Supplementary Planning Guidance

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A Route Map for Barking Town Centre Energy Action Area4

Executive Summary

Introduction

The London Energy Partnership’s Energy ActionArea initiative was proposed in the Mayor’s EnergyStrategy in January 2004 and launched by theEnergy Minister, Malcolm Wicks, and Mayor ofLondon, Ken Livingstone, in July 2005. BarkingTown Centre is one of just four areas in London tobe selected by the London Energy Partnership forthis status. As a new initiative there is littleexperience of how the status might be translatedinto reality for an area of London. This report isintended to set out that information in detail, and ineffect provides a route map for the implementationof an Energy Action Area in Barking Town Centre.

Energy Action Areas are conceived in essence as“showcase low carbon communities”1. This reportbuilds on work carried out in an options appraisalthat set out some of the costs and options toBarking Town Centre becoming a low carboncommunity. It extends this work by examining thescope not just for new build areas but alsoexisting housing/buildings which, withoutintervention, will be responsible for the majority ofcarbon emissions, once regeneration plans havebeen implemented.

The Vision

The Low Carbon Options Appraisal published inSeptember 2005 illustrates that communityheating and combined heat and power (CHP)provide the most cost effective way for BarkingTown Centre to become a low carbon community.The vision set out in this report for Barking TownCentre Energy Action Area is therefore of an areawide heating system served by one or more CHPbased heat sources. The two preferred lowcarbon heat sources are Barking Power Stationand a large biomass or energy from wastecombined heat and power plant. This will becomplemented with visible, largely building-integrated, renewable energy systems and arange of energy efficiency measures to theexisting building stock.

As part of the London Thames GatewayRegeneration framework, the Town Centre couldbecome part of a wider heat network serving anumber of London Thames Gatewaydevelopments and incorporating a range ofdifferent heat sources and in particular the wasteheat from Barking Power Station.

This vision has a number of implications in terms ofcarbon reduction targets, funding and financing, theplanning framework, the roles of delivery partners,choices of technologies and the phasing of theirimplementation. This report explains in each casewhat must be done, by whom and when.

Energy Action Area Target

We recommend that London Borough of Barkingand Dagenham (LBBD) set an overall target forreducing CO2 emissions by 11% by 2020,achieved with a 75% increase in the number ofhomes. This overall target figure includes a 32%reduction target for all new developments in thetown centre compared to 2006 BuildingRegulations. Carbon emissions from buildingsources currently amount to 45,580 tonnes/year(t/yr). In the absence of any intervention this wouldrise to 52,563 t/yr after the regeneration had takenplace, which would be an increase of 15%.

The 11% target implies a reduction of 4,825 t/yrbelow the existing baseline and 11,808t/yr belowwhat the emissions would be if BuldingRegulation standards only are followed for theregeneration of the town centre. This target willbe surpassed if the biomass or solid recoveredfuel (SRF) CHP options can be realised. If LBBDwishes to pursue a more ambitious programmethrough connecting existing buildings to thedistrict heating network then a reduction of 42%would be feasible – this figure would be close tothe long-term 60% reduction level recommendedby climatologists as required to address climatechange. This would be an impressive achievementin the context of a considerable growth in floorarea in Barking Town Centre.

1 Green Light to Clean Power, Mayor of London, 2004

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A Route Map for Barking Town Centre Energy Action Area 5

The 11% reduction target will require:

• CHP and community heating for all newdevelopments

• 10% renewable energy requirement forelectricity in new developments

• An energy efficiency programme for existingbuildings to be retained.

The Planning Framework& Technology Choices

The planning framework will need to specificallyreflect the adoption of a community heatingnetwork and renewable energy technologies. Allnew developments will need communal heatingsystems compatible with the wider heat network.This in turn has implications for the choice ofbuilding-integrated renewable energy systemsthat developers should use - only electricitygenerating systems should be used, i.e. solarphotovoltaic and wind. To ensure that theoptimum carbon outcome is achieved under thenew 2006 Building Regulations we furtherrecommend that this 10% renewablesrequirement be in addition to the carbon targetspecified within the Regulations.

Establishing a CommunityHeating Network within theRegeneration Programme

The first step is to build a natural gas fuelledcentral boiler plant within the Town Centre toprovide heating for all developments over the nextfew years. In the medium term this will serve asthe heat source for all new developments. In thelonger term, once the connection has been madeto one or more of the larger CHP sources (iebiomass, solid recovered fuel or Barking PowerStation) this “heat station” would serve as top upand standby boiler plant. Once a heat network isin place, with a proven track record in reliability, itcould then be rolled out to the existing buildings.

This is an early stage decision as the sizing ofthe heat network will need to allow for the lateraddition of the existing buildings.

Funding and Financing

Table 1 illustrates the capital costs of the lowcarbon measures for the new build and the existingstock. Community heating and CHP generally costmore to install than conventional individual boilersolutions, but when the operational costs andrevenues are compared over the longer term(the life cycle cost), they are often cheaper than theconventional alternatives. For Barking Town Centrethe life cycle costs are in fact very similar for eachindividual option. The life cycle cost for biomassCHP is similar to the conventional approach.

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A Route Map for Barking Town Centre Energy Action Area6

There are a range of possible funding andfinancing sources for these options, but theEnergy Efficiency Commitment (EEC) and theLow Carbon Building Programme (LCBP) are themost important sources of grant support. If EECfunding is available at the level indicated byenergy utility companies, this represents asignificant subsidy (around £7m) and means that

the development of a heat network from BarkingPower Station to both the existing housing andnew build areas would cost only £7m more thanthe alternative over 25 years (assuming a discountfactor of 3.5%). For the biomass option a rulingfrom Ofgem will be required as to whether this willqualify for EEC support.

*Only additional capital costs are shown for these options2Compared to individual gas boilers (if no capital grants are used)

New Build Technology / Heat Source Capital CostAdditional Life Cycle Cost25 yrs2

Individual Boilers £m 31.15 0.00

Heat Network &Stand-By Boilers

Barking Power Station £m 37.50 6.07

CHP Plant & Stand-ByBoilers

SRF CHP £m 79.38 1.98

CHP Plant & Stand-ByBoilers

Biomass CHP £m 74.01 0.39

10% Renewables 50% Wind & 50% PV £m 18.78* 11.93

Existing Buildings Technology / Heat Source Capital CostAdditional Life Cycle Costs25 yrs

Energy EfficiencyOption

Insulation, Condensingboilers etc

£m 11.49* 5.74

Heat Network & Boilers

Barking Power Station £m 19.65* 8.10

Table 1: Additional costs of low carbon measures for new build and existing buildings

Delivery – A Barking Town Centre ESCo

The development of a heat network served bycombined heat and power will require a deliveryorganisation. It is recommended that LBBD set upan Energy Services Company (ESCo), or contractwith an existing ESCo, to deliver the construction,operation and maintenance of the system, as wellas retail the heat. The terms of reference for theESCo could also include the delivery of energyefficiency initiatives to the existing building stock

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A Route Map for Barking Town Centre Energy Action Area 7

and responsibility for claiming RenewableObligation Certificates (ROCs) for the renewableenergy systems installed as part of the 10%requirement within Barking Town Centre. There are a number of successful models set out in thisreport that LBBD could draw on to develop anESCo. The choice of ESCo model will bedeveloped over the coming months in consultation with LBBD officers.

Implementation

Implementation of Barking Town Centre EnergyAction Area requires action on a number of fronts.The key actions are listed below, enabling LBBD toembed the Energy Action Area objectives within theregeneration process. The current Energy ActionArea project steering group should be continued,and possibly enlarged, to oversee overall deliveryof this Implementation Plan while key responsibilitiesfor day-to-day delivery should be allocated to adedicated Energy Action Area team.

Energy Action Area status provides anopportunity for LBBD to add another strand to itsmarketing strategy to improve the image ofBarking Town Centre to both internal and externalstakeholders. Although a large number of tasksare required, the regeneration of Barking TownCentre is in itself a very significant process andthe incorporation of low carbon measures willconstitute a relatively small additional component.

Barking Town Centre is in an excellent position tobecome a leading Energy Action Area due to theclose proximity of several low carbon energysources (Barking Power Station and SolidRecovered Fuel) for a community heating network.The carbon reduction potential for Barking TownCentre is dependent on utilising these low carbonenergy sources and therefore it is imperative thatthey are progressed immediately alongsidethe development of the community heatinginfrastructure that is required to distribute them.

Table 2: Additional costs of low carbon measures for new build and existing buildings with grant funding

Technology / Heat SourceCapital Cost£m

CarbonSaving CO2

tpa

CapitalGrant £m

Source

NewCapitalCost£m

New AdditionalLife CycleCost 25 yrs£m

Individual Boilers 31.15 0 31.15 0.00

Barking Power Station 37.50 -4,500 1.57 EEC 35.92 4.66

SRF CHP 79.38 -4,603 1.57 EEC 77.81RequiresOfgem ruling

Biomass CHP 74.01 -69,609 1.57 EEC 72.44RequiresOfgem ruling

50% Wind & 50% PV 18.78 -2,090 8.57 LCBP, GreenFund

10.22 3.37

Technology / Heat SourceCapitalCost £m

CarbonSaving CO2

tpa

CapitalGrant £m

SourceNew CapitalCost £m

New AdditionalLife Cycle Cost25 yrs £m

Insulation, Condensing boilers etc 11.49 -4,488 0.44 EEC 11.05 5.3

Barking Power Station 19.65 -14,958 5.44 EEC 14.21 2.66

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A Route Map for Barking Town Centre Energy Action Area8

Route Map to Implementation

Defining the Energy Action Area

Action 1: LBBD and regeneration partners shouldadopt an 11% overall CO2 reduction target forBarking Town Centre Energy Action Area for 2020as part of corporate and regeneration policy.This reduction target would be achieved with anapproximate 75% increase in housing units.

Task 1.a - Promote and communicate the visionand objectives of the Energy Action Area to allregeneration partners.

Task 1.b - Hold an Energy Action AreaImplementation Plan launch event with allregeneration partners and stakeholders.

Action 2: Identify a number of sites for landmarkrenewable energy installations in the towncentre to provide a visual presence for theEnergy Action Area.

Task 2.a - Assemble a list of locations for stand-alone wind turbines, landmark buildings andrenewable options for street furniture.

Developing Organisational Frameworkand Capacity

Action 3: LBBD should put in place measures toensure effective project management of thecross-cutting actions and implementation ofthe Energy Action Area.

Task 3.a - Form an Energy Action Area steeringgroup with representation from all parts of theCouncil and partner organisations that will havea role in implementing the Energy Action Area.

Task 3.b – Establish a dedicated team fordelivering the Energy Action Area, and agreeresponsibility for each of the Actions in thisImplementation Plan.

Action 4: Provide training and support to aidEnergy Action Area implementation.

Task 4.a - Produce a leaflet for developers thatstates clearly the objectives and requirements ofthe Energy Action Area for development in thetown centre.

Task 4.b - Hold a seminar with prospectivedeveloper and design teams working in BarkingTown Centre to enable the rationale behindthe Energy Action Area requirements to befully explained.

Task 4.c - Consider providing practical supportfor developers, architects and constructioncompanies to both increase understanding andensure compliance with Energy Action Arearequirements. This support could take the formof an advice line, access to consultants andtraining seminars.

Setting Planning and Policy Context

Action 5: Ensure that the development policieswithin the Local Development Framework (LDF)– and in particular the Barking Town Centre Area

Action Plan – clearly specify Energy ActionArea requirements.

Task 5.a - LDF policies should require that allnew buildings in Barking Town Centre incorporatecommunal heating systems and the ability toconnect to the community heat network at anappropriate time.

Task 5.b - LDF policies should require that inBarking Town Centre 10% of buildings’ carbonemissions are cut through electricity generatingrenewable energy technologies.

Task 5.c - LDF policies should require that allnew buildings include easily visible real-timeenergy consumption displays to encourageenergy-efficient behaviour.

Task 5.d - The LDF should ensure that use ofrenewables should not be allowed to reduceenergy efficiency standards as proposed in the2006 Building Regulations.

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A Route Map for Barking Town Centre Energy Action Area 9

Action 6: Ensure that all key policy documentstake account of and enforce the Energy ActionArea requirements, such as the Regeneration,Economic Development and Housing Strategies, allother regeneration and housing policies and plans,and the Barking & Dagenham Corporate Plan.

Task 6.a - Liaise with appropriate divisionsto ensure requirements are included inkey documents.

Action 7: Utilise planning conditions or planninggain to enforce community heating and 10%renewable energy (electricity) generation within allnew developments in Barking Town Centre.

Task 7.a - Establish an Energy Action Arearenewable energy funding pot, for developers tocontribute to off-site renewable energy schemeswhere 10% renewable generation is not possibledue to physical limitations.

Task 7.b - Determine the cost per kWh that isacceptable for developers to pay.

Action 8: Ensure stringent enforcement of theBuilding Regulations 2006, to ensure that thehigh standards met at the planning stage are notbreached in practice by lack of understandingon the part of the contractors.

Task 8.a - Training schemes for site workers maybe offered in partnership with other agencies,such as DCLG, in order to reduce non-compliancethrough lack of understanding.

Financing and Delivery of the EnergyAction Area

Action 9: Develop a business plan for setting upan ESCo to deliver and finance the communityheating system and shared renewable energy infrastructure.

Task 9.a - Establish preferred ESCo model forthe Council.

Task 9.b - Develop the legal framework for thepreferred ESCo model.

Task 9.c - Develop business plan and financingmodel for the ESCo.

Task 9.d - Recruit staff and Board of Directorsfor the ESCo.

Task 9.e - Establish the ESCo.

Task 9.f - Tender for private sector partner.

Action 10: Develop a ‘funding strategy’ forvarious elements of the Energy Action Area,including pump-priming for the establishmentof the ESCo and funding for landmark renewableenergy installations.

Task 10.a - Utilise the funding sources listed toidentify and secure funding for different aspectsof the Energy Action Area.

Task 10.b - Calculate set-up costs for the ESCoand compile funding bid/s to cover these.

Task 10.c - Identify most suitable funding pot/s,and submit funding bid for one or more landmarkrenewable energy buildings.

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A Route Map for Barking Town Centre Energy Action Area10

Implementing Community Heating inBarking Town Centre

Action 11: Raise awareness amongst officers andCouncillors about the installation and operation ofmodern CHP and community heating systems.

Task 11.a - Organise a visit for officers andMembers to an existing community heating andCHP system in the UK.

Task 11.b - Ensure continuing professionaldevelopment for officers working on the EnergyAction Area in CHP, community heating andrenewable energy.

Action 12: As a priority, secure a town centre sitefor the interim gas fired boiler plant that willprovide community heating for the first 5 yearsuntil connection to Barking Power Station orcompletion of the large CHP plant.

Task 12.a - Calculate the size and otherrequirements of the site required for the initialboiler plant and identify a suitable Council-ownedsite in the town centre. Compile a proposal toallocate this site for the boiler plant.

Action 13: Once established, the ESCo shouldconduct a study to map out and understand theextent, routing, heat sources, and cost of the towncentre community heating system.

Task 13.a - Stage 1: outline design to achievesign-on from LBBD and commitment to putsystem in place.

Task 13.b - Stage 2: detailed design to take forwardto implementation and to inform other stakeholders.

Task 13.c - Analyse and design the communityheating system in order to minimise runningcosts, distribution losses and capital costs.

Task 13.d: Use specialist consultants to analyseand design the community heating system inorder to minimise running costs, distributionlosses and capital costs.

Task 13.e: Appoint a consultant to design acommunity heating system for Fresh Wharf andother near term developments, including:identifying the main heat network routes for eachdevelopment, establishing those areas where heatmains can not be installed, and identifying boilerplants for each regeneration area.

Task 13.f: Design the routing of the communityheating network, by using Master Plans of theStation Quarter, London Road, Axe Street and others.

Action 14: Establish opportunities for connectingexisting buildings to the heat network, particularlyCouncil & other public sector buildings in thetown centre.

Task 14.a - Ensure CHP and the potentialinteraction with a town centre heat network isincluded within the extension plans for BarkingTown Hall, and also consider the inclusion ofschools and Abbey Leisure Centre swimmingpool within the heat network.

Task 14.b - Explore opportunities to connect theexisting stock to community heating throughadditional funding, such as the Energy EfficiencyCommitment (EEC).

Action 15: Ensure that heat meters are installedin all dwellings so that occupants pay for heat bythe unit to encourage energy efficient behaviour.

Task 15.a - Ensure that developers include heatmeters as a core component of communalheating system and provide information onheat meters to assist them.

Developing the Low Carbon Heat Sourcefor the Energy Action Area for theLonger Term

Action 16: Determine and pursue the preferredlow carbon heat source for the town centre -either waste heat from Barking Power Station oran energy-from-waste gasification CHP plant onthe edge of the town centre.

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A Route Map for Barking Town Centre Energy Action Area 11

Task 16.a - Produce business cases and report onhow practical the two options are to implement.

Task 16.b - Arrive at a preferred low carbon heatsource based on the best business case andpractical considerations.

Action 17: If heat from Barking Power Station isthe preferred low carbon heat source, work withLondon Thames Gateway DevelopmentCorporation to establish a Thames Gateway HeatTransmission Network that will supply heat fromBarking Power Station to Barking Town Centreand other regeneration areas.

Task 17.a - Produce Implementation Plan andprogress the Heat Transmission Network.

Action 18: If an energy-from-waste CHP plant isthe preferred low carbon heat source, determinethe feasibility of setting up an energy-from-wasteCHP plant on the edge of the town centre.

Task 18.a - Earmark site for a large CHP plantnear the town centre in the longer term.

Task 18.b - Continue discussions with Shanks onprospects for utilising the waste fuel from theJenkins Lane MBT plant.

Task 18.c - Hold exploratory talks with EnergyPower Resources Ltd, Sembcorp and Novera asto the development of a biomass or energy fromwaste power CHP plant.

Task 18.d - Assess potential for a joint biomassand energy from waste CHP plant.

Embedding the Energy ActionArea Requirements within KeyDevelopment Projects

Action 19: For all regeneration sites in Barking TownCentre allocate actions for ensuring implementationof the Energy Action Area requirements.

Task 19.a - LBBD to determine the potential towhich different developments proceeding in the

town centre can incorporate the Energy Action Arearequirements, focusing on the sites that the Councilowns where high standards can be ensured.

Task 19.b - Community heating and renewableenergy requirements should be indicated as ahigh priority at all stages of the regenerationprcoess, including the masterplanning anddevelopment brief stages.

Task 19.c - Ensure that developers haveadequate energy strategies for utilising PV andwind power, for implementing intermediate heatingoptions and eventual connection to the towncentre community heating system.

Task 19.d - For developments at a moreadvanced stage, utilise Section 106 Agreementsto incorporate Energy Action Area requirements.

Action Plan for UpgradingExisting Buildings

Action 20: Work with energy efficiency deliverybodies to implement a pro-active energy efficiencyand renewable energy installation programmeacross existing council and private propertieswithin the Barking Town Centre EnergyAction Area.

Task 20.a – Appoint dedicated project manager tooversee energy efficiency programme for existingbuildings in Barking Town Centre.

Task 20.b - Co-ordinate with existing structures/delivery partners such as Warm Zones to bringtogether insulation and renewable energy fundingstreams within the Energy Action Area.

Task 20.c - Commission a more detailedfeasibility survey of retro-fit renewables andenergy efficiency measures on existing buildings.

Task 20.d - Establish tools to provide supportfor residents/businesses/organisations inexisting buildings, such as a helpline anddedicated webpage.

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A Route Map for Barking Town Centre Energy Action Area12

Promoting and Marketing the EnergyAction Area

Action 21: Ensure engagement and buy-in fromall stakeholders, and promote the Energy ActionArea vision to the positive image of BarkingTown Centre.

Task 21.a - Integrate the vision & objectives ofthe Energy Action Area within the marketingstrategy and materials for the regeneration plansfor Barking Town Centre.

Task 21.b - Consult on development proposalsand the Energy Action Area in general, providingeducation on renewables and community heatingas part of developments.

Task 21.c - Encourage the inclusion of energyrepresentatives from residents and businesses,carry out information campaigns, provideinformation on funding sources, and delivereducation on community heating in areas ofexisting buildings.

Task 21.d - Establish partnerships betweenrelevant officers and local delivery agencies toensure that programmes to encouragebehavioural changes are developed.

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A Route Map for Barking Town Centre Energy Action Area 13

1. Introduction

1.1 Background

Barking Town Centre (BTC) is one of four areas inLondon to be awarded Energy Action Area statusby the London Energy Partnership (LEP).SEA/RENUE were appointed by the LondonBorough of Barking and Dagenham in December2005 to develop a route map to implementing theEnergy Action Area and provide a toolkit for otherEnergy Actions Areas to replicate this. Thisimplementation plan was adopted by LBBD inAugust 2006.

This document represents the final report of thework on the BTC Route Map, combining allaspects of the brief: defining the Energy ActionArea, production of community heating guidelinesand upgrading existing buildings, funding,financing, ESCos, milestones, the pressures ondevelopers, and the role of private sector partners.

1.2 Methodology

The approach to this work was structured aroundthe original brief and separated into three stages.At each stage a report was produced andsubmitted for comment. Presentations were madeto the steering group at each stage. A number ofoptions considered in previous discussions havenow been deleted from this final report orattached as appendices now that options haveeither been agreed or eliminated.

The initial information was gathered through:

• analysis of existing literature and policies;

• a series of meetings and interviews with keyindividuals and groups;

• a brief external survey of Barking Town Centreand the Barking Riverside area up to BarkingPower Station.

Analysis of the area was conducted using GISand MS Excel.

Meetings and interviews were held with:

• Development Teams;

• Key officers at LBBD;

• Representatives of the other EnergyAction Areas;

• London Thames Gateway DevelopmentCorporation;

• Local stakeholders.

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A Route Map for Barking Town Centre Energy Action Area14

2. Defining the Energy Action Area

2.1 Key Characteristics & Objectives

Energy Action Areas are an initiative first putforward by the Mayor of London in his EnergyStrategy for London. When determining what thekey characteristics should be, reference obviouslyneeds to be made to the Mayor’s original intentions.

The Mayor’s Energy Strategy describes EnergyAction Areas as:

“well-defined geographical areas which can act asshowcase low-carbon communities, demonstrate arange of sustainable energy technologies andtechniques, and provide a means of targetingresources. They could act as a focus for improvingenergy efficiency in buildings, for example,integrating sustainable technologies and incubatinglocal skills development. This approach would addvalue and profile to projects, generate nodes ofgood practice, and provide models for the rest ofLondon and other urban areas to follow.”

Secure politicalagreement

Public Consultation

Appoint PM for ExistingStock Programme

Select Area

Conduct Baseline Study& Options Appraisal

Submit Proposalto LEP

Agree energy strategy& carbon target

Produce business plan

Set planning &policy regime

Set up/contract ESCo

Implementation

Monitoring

Dissemination &Roll out

Deliver Existing StockProgramme

Figure 1: Key Steps to Implementation of an EnergyAction Area

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A Route Map for Barking Town Centre Energy Action Area 15

2.2 Barking Town Centre Energy ActionArea Target

We recommend that LBBD set an overall target forreducing CO2 emissions by 11% by 2020, achievedwith a 75% increase in the number of homes. Thisoverall target figure includes a 32% reduction targetfor all new developments in the town centrecompared to 2006 Building Regulations.

It is recommended that the reduction target is seton the basis of a combination of the following:

• Community heating for all new developmentswith connection to Barking Power Station as aminimum but with SRF or pure biomass CHPas an ideal (to reduce emissions by 22% in new developments)

• 10% on site renewable requirement throughelectricity generation measures on newdevelopments (in addition to any biomass CHPthat might be provided)

• Cost-effective energy efficiency measures to theexisting stock (to reduce emissions from existingbuildings by approximately 16.5%)

Emissions calculated for the Low Carbon OptionsStudy for all of BTC are 45,580 tonnes per year,of which 31,659 t/yr is made up by the buildingstock that will not be redeveloped. The tablebelow shows the emissions reduction based onthe above strategy ie heat from Barking PowerStation to only the newbuild, 10% (non-thermal)renewables on newbuild and the application ofenergy efficiency and solar thermal measures tothe existing stock. This would give a carbonreduction of 11% over the existing baseline.

Sector Measure CO2 tpa

All Baseline 45,580

All Baseline BAU 52,563

Newbuild10% Renewables -2,090

Heat from Barking PS -4,500

Non-Regen Area Energy Efficiency -5,218

All New Total 40,755

All % CO2 saving 11%

The table below shows the potential saving if heatfrom Barking power station is also delivered to thebuildings that are not to be redeveloped. In thiscase a 42% saving above the baseline is possible.The energy efficiency figures are lower in thiscase as not all measures will still be appropriate.

Action 1: LBBD and regeneration partners shouldadopt an 11% overall CO2 reduction target forBarking Town Centre Energy Action Area for 2020as part of corporate and regeneration policy.This reduction target would be achieved with anapproximate 75% increase in housing units.

Task 1.a - Promote and communicate the visionand objectives of the Energy Action Area to allregeneration partners.

Task 1.b - Hold an Energy Action AreaImplementation Plan launch event with allregeneration partners and stakeholders.

Table 3: Potential CO2 Emissions Reductions – Minimum Target Option

Table 4: Potential CO2 Emissions Reductions – Higher Target Option

Sector Measure CO2 tpa

All Baseline 45,580

All Baseline BAU 52,563

Newbuild10% Renewables -2,090

Heat from Barking PS -4,500

Non-RegenArea

Energy Efficiency -4,488

Heat from Barking PS -14,958

All New Total 26,527

All % CO2 saving 42%

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2.3 Visible Landmarks

2.3.1 Visible features for the EnergyAction Area

One of the areas in Europe with the largestconcentration of sustainable energy technologiesis the City of Freiburg in Southern Germany.The determination and passion amongst thecommunity to implement sustainability has sprungin part from a desire to avoid the construction of aproposed nuclear power plant near the city. Someof the images from around the city are shown inthe sections that follow, along with iconicsustainable energy developments from otherlocations. These highly visible, eye-catching usesof technology could be used to signify that avisitor is entering the BTC Energy Action Area.

2.3.2 Solar multi-storey car park

Although a multi-storey car park is an unlikelyrepresentation of sustainability, the building inFreiburg shows how renewable energy integrationcan have a very positive impact on the aestheticsof what are normally very unattractive structures.The saw-tooth pattern of photovoltaics (PVs) onthe car park roof provides a very attractive andstriking profile.

It is recommended that the 5-storey carpark planned for BTC incorporates PV in asimilar manner.

2.3.3 The solar factory

Partly as a result of the emphasis placed onrenewable energy in Freiburg, a solar PV modulemanufacturing facility chose to locate in the city.The factory itself is designed with a large PV cladfaçade, using PV for solar shading.

2.3.4 The solar tower

The solar tower is another striking demonstrationof renewable technology that is obvious to anyvisitor to Freiburg. Around 40% of the southfacing side of the tower is clad in PV modules. Asimilar PV cladding development has recentlybeen conducted in Manchester as a retro-fitapplication by the Co-operative Bank.

3Situated in Freiburg, Germany. Source: www.ise.fraunhofer.de/english/fields/field1/mb5/projects/project4.html4Source: www.solar-fabrik.de/fotos/4_seite.htm

Figure 2: Multi-storeycar park3

Figure 3: Solar Factory,Freiburg4

Figure 4: Street lighting thatincorporates a solar panel

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2.3.5 Wind turbines

Wind turbines could also provide an opportunityfor an eye-catching landmark within the EnergyAction Area.

2.3.6 Solar street furniture

Solar can be relatively easily integrated in tostreet lamps and other street furniture. Thisparticular system has been designed for streetand park furniture in South Australia. Thearmature design retro fits an existing light headand provides a suitable mounting surface for1.2m x 1.7m solar panel.

2.3.7 Large-scale CHP Plant

This energy from waste CHP plant was designedby architect Hundertwasser.

Whilst an incineration plant is not proposed forBTC, a large CHP plant for BTC might be givena similar makeover.

Action 2: Identify a number of sites for landmarkrenewable energy installations in the town centreto provide a visual presence for the EnergyAction Area.

Task 2.a - Assemble a list of locations forstand-alone wind turbines, landmark buildingsand renewable options for street furniture.

5600W turbines on rooftop, Japan, source: www.provenenergy.com, and small wind turbine at a Primary School in Lanarkshire, source:www.scotland.gov.uk/library5/education/csbo-08.asp. Accessed December 2005

6Source: www.arketype.com.au/urban_solar.htm

Figure 5: Examples of urban wind5

Figure 6: Street lighting that incorporates a solar panel6

Figure 7: Vienna’s Waste to Energy CHP Plant

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2.4 Incubating Local Skills Development

The development of local skills could beimplemented through local labour intoconstruction initiatives, identifying the range ofsustainable energy skills that will be needed for the development and providing training forlocal people to meet these requirements.

The employment and skills impacts ofregeneration or refurbishment schemes are oftennot considered separately. It is simply assumedthat the work will lead to beneficial side effects inthese areas, requiring no special intervention.

However some of the skills required are quitespecialised and may not exist to any greatdegree. A concerted programme to train localpeople may provide better value to the contractoras well as benefits to the local community. Thishas been demonstrated in Aberdeen.

Aberdeen Heat and Power (AHP) is an ESCo setup by Aberdeen City Council to develop combinedheat and power and district heating in Aberdeen.As part of the development of district heating,AHP identified a skills gap in the installation andmaintenance of district heating. The companypartnered with a local training provider to developa skills base in this area. AHP now subcontractsthe maintenance of the scheme to the companythey formed. AHP consider the local company to be better value than existing alternatives,providing better quality services at a lower cost.

When the Energy Action Area becomesestablished, local skills development should beconsidered for Barking Town Centre. Links couldbe made with Building East which has alreadybeen set up to ensure local constructioncompanies have the right skill base to takeadvantage of the large construction projects in the Thames Gateway.

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3. Developing Organisational Framework and Capacity

3.1 Ensuring an Effective Approachat LBBD

There will be many departments involved in thedelivery of the aims and objectives of the EnergyAction Area. In Section 4 it is recommended thatthe aims be incorporated into the Corporate Planto help reinforce the Energy Action Areaobjectives, both in terms of increasing visibilityand also in making it a programme that theborough has to report on annually. However, it willnot be enough to simply report on progress, dueto the complexity of the task. Some areas willneed more central co-ordination of outsideagencies, such as the programme for existingstock improvements and the behavioural changeprogramme, for which a dedicated projectmanager should be appointed.

It is envisaged that officers from the followingdepartments/units will need to be involved tovarying degrees:

• Environmental Sustainability

• Area Regeneration

• Development Control

• Building Control

• Economic Development

• Housing

• Press Office

However, it is also likely that other departmentswill need to be involved at the appropriate time. Inorder to ensure that all of these departmentshave an input to the implementation of the EnergyAction Area, and that there is no duplication ofeffort, it is advisable to create an Energy ActionArea steering group within the council withrepresentation from all relevant departments. Inorder to increase awareness, it is also advisableto involve an elected member, especially one thathas a planning remit.

The officers involved should ideally be of differentlevels, and include at least one director, althoughit is recognised that this may not be practical on aday-to-day basis. This should therfore be aworking group formed of all representatives, whocan steer the work of the wider team. Currentmembers of the Implementation Plan worksteering group should be part of any new steeringgroup set up.

Action 3: LBBD should put in place measures toensure effective project management of thecross-cutting actions and implementation ofthe Energy Action Area.

Task 3.a - Form an Energy Action Area steeringgroup with representation from all parts of theCouncil and partner organisations that will havea role in implementing the Energy Action Area.

Task 3.b - Establish a dedicated team fordelivering the Energy Action Area, and agreeresponsibility for each of the Actions in thisImplementation Plan.

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3.2 Training and Support

It is also recommended that training and supportbe provided to ensure LBBD and otherstakeholders understand the motivation behindthe Energy Action Area, the measures availableand the associated benefits and considerations.The various departments of LBBD itself need tobe aware of the Energy Action Area, thecontribution they can make and be in a position tohelp those being required or encouraged to put inplace the Energy Action Area implementationmeasures, such as developers, residents andbusinesses. For more detail on training andsupport, please see Appendix 2.

Action 4: Provide training and support to aidEnergy Action Area implementation.

Task 4.a - Produce a leaflet for developers thatstates clearly the objectives and requirements ofthe Energy Action Area for development in thetown centre.

Task 4.b - Hold a seminar with prospectivedeveloper and design teams working in BarkingTown Centre to enable the rationale behindthe Energy Action Area requirements to be fully explained.

Task 4.c - Consider providing practical supportfor developers, architects and constructioncompanies to both increase understanding andensure compliance with Energy Action Arearequirements. This support could take the formof an advice line, access to consultants andtraining seminars.

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4. Setting Planning & Policy Context

4.1 Local Policy Framework

Below is a breakdown of the local policy frameworkwhich affects the Barking Town Centre EnergyAction Area. The key energy aspects of thesepolicies are detailed in Appendix 3.

• Barking and Dagenham Energy Strategy (Sept 05)

• The Barking Code (May 04)

• Barking Town Centre Action Plan (April 2003)

• Barking Town Centre Framework Plan

• Barking Town Centre Interim Planning Guidance(December 04)

• Barking Town Centre Low Carbon Options Study(Sept 05)

4.2 Policy Development to FacilitateImplementation of the EnergyAction Area

Current policies and strategies already go someway to supporting Energy Action Areaimplementation. However, there are somechanges that would substantially assist inprogressing the Energy Action Areaimplementation and achieving more widespreadpolitical support for its principles and aims.

4.2.1 Embedding the EAA Objectives within theLocal Development Framework

4.2.1.1 Local Development Framework (LDF) andPlanning Policy

The current development of the LDF presents anexcellent opportunity for ensuring that theEnergy Action Area’s aims are supported andstrengthened, and that more stringentenforcement and negotiation measures areincorporated into later stages of Barking TownCentre’s regeneration. LBBD needs to considerfurther planning policy which addresses heatprovision for new buildings through connection to

community heating infrastructure.

It is essential that the LDF has specific measuresin relation to the Energy Action Area, and that theEnergy Action Area aims are enshrined within thisdocument. The Barking Town Centre Area ActionPlan (which will be a Development PlanDocument within the LDF) should incorporateEnergy Action Area policies for communityheating and 10% renewable electricity generation.

Action 5: Ensure that the development policieswithin the Local Development Framework – andin particular the Barking Town Centre AreaAction Plan – clearly specify the Energy ActionArea requirements.

Task 5.a - LDF policies should require that all newbuildings in BTC incorporate communal heatingsystems and the ability to connect to thecommunity heat network at an appropriate time.

Task 5.b - LDF policies should require that inBTC 10% of buildings’ carbon emissions are cutthrough electricity generating renewableenergy technologies.

Task 5.c - LDF policies should require that all new buildings include easily visible real-timeenergy consumption displays to encourageenergy-efficient behaviour.

Task 5.d - The LDF should ensure that use ofrenewables should not be allowed to reduceenergy efficiency standards as proposed in the2006 Building Regulations.

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4.2.1.2 Barking and Dagenham Corporate Plan

The Energy Action Area requirements should alsobe included in Barking and Dagenham’sCorporate Plan. The Energy Action Area can helpenhance the regeneration process and have asignificant role in the economic development ofBarking Town Centre by benefiting businessesand households with reduced fuel bills, especiallyin the face of rising fuel prices. Having specificmention in the Corporate Plan will reinforce theCouncil’s commitment to the Energy Action Area,both in the minds of residents and developerswho are active in the borough.

4.2.1.3 Regeneration and Economic Development Strategies

The Economic Development Strategy outlinesLBBD’s aspirations to improve the competitivenessof the business sector, and the economic well-being of its residents. This is a good policydocument within which to include reference tobehavioural change. LBBD officers should beworking with the public and businesses to empowerthem to reduce their environmental impact andtheir energy consumption in particular. These aimsshould be incorporated into this document, as away to help meet the 2020 vision for a vibranteconomy with a sustainable community. This willalso assist officers in establishing and promotingschemes that will deliver practical advice toresidents and businesses, such as: advice throughthe local Energy Efficiency Advice Centre (EEAC)or Sustainable Energy Network (due to beestablished in London to replace the EEACnetwork in 2007-8); and maximising the use ofinitiatives aimed at business, such as Carbon Trustprogrammes, and forthcoming LDA programmes.

Action 6: Ensure that all key policy documentstake account of and enforce the Energy ActionArea requirements, such as the Regeneration,Economic Development and Housing Strategies, allother regeneration and housing policies and plans,and the Barking & Dagenham Corporate Plan.

Task 6.a - Liaise with appropriate division to ensurerequirements are included in key documents.

4.2.2 Existing strategy and policy

Within current policies, there already exists someleverage to encourage developers to incorporatesustainable energy measures within their buildings.The new 2006 building regulations will apply to alldevelopments in Barking Town Centre and inaddition to being more stringent than the previousregulations, they also place more emphasis onenforcement and compliance. There is also theLondon Mayor’s Energy Strategy, which sets targetsfor embedded generation within each of the 33London Boroughs. Additionally, LBBD has signedthe Nottingham Declaration on Climate Change,developed its own Sustainable Energy Strategy, andproduced Barking Town Centre Interim PlanningGuidance which commits all major developmentwithin the town centre to generate 10% of energyneeds from on-site renewable energy.

Action 7: Utilise planning conditions or planninggain to enforce community heating and 10%renewable energy (electricity) generation within allnew developments in Barking Town Centre.

Task 7.a - Establish an Energy Action Arearenewable energy funding pot, for developers tocontribute to off-site renewable energy schemeswhere 10% renewable generation is not possibledue to physical limitations.

Task 7.b - Determine the cost per kWh that isacceptable for developers to pay.

Action 8: Ensure stringent enforcement of theBuilding Regulations 2006, to ensure that the highstandards met at the planning stage are notbreached in practice by lack of understanding onthe part of the contractors.

Task 8.a - Training schemes for site workers maybe offered in partnership with other agencies,such as DCLG, in order to reduce non-compliancethrough lack of understanding.

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4.3 Managing Pressures on Developers

Appendix 12 details the pressures facingdevelopers, how these pressures impact onenergy matters in any given development, andhow these might be addressed or overcome.Conclusions of this work are that:

• Without clear guidance, developments in BarkingTown Centre will not be compatible with theaims of the Energy Action Area. This is hardlysurprising given that developers are currentlyunaware of the strategic aims of the EnergyAction Area and the potential for communityheating. Developers and their design teams willsee their buildings in isolation andunderstandably attempt to meet requirementsset by planning and building regulations withinthe site boundaries. Currently this appears tolead to a choice of ground source heat pumpsand/or solar thermal.

• The EAA requirement that developments cuttheir carbon emissions by 10% throughrenewable electricity generation only will imposesignificant costs on developers. In the case ofthe Foyer this amounts to perhaps £230,000 tomeet 4% of CO2 emissions - though with grantfunding this could be reduced to a contribution ofperhaps £100,000. In light of this, some flexibilitymay be needed in implementing the requirement.

• Developers’ design teams have their ownphilosophies about sustainability which reflectthe spread of ideas within the architecture andengineering professions as well as the generalpublic. These diverse philosophies will notalways be compatible with the aims of theEnergy Action Area. Both education and strictplanning requirements (and enforcement ofthem) will be required to overcome this.

• Building-mounted wind has significant design andplanning implications and needs to be thoughtthrough and integrated early on in the designprocess. There also exists a concern that building-mounted wind is an unproven technology.

• Without clear planning policies within the LDF,developers in Barking Town Centre may use the10% renewables requirement to offset the needfor higher energy efficiency standards under the2006 Building Regulations.

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5. Establishing an ESCo to Deliver the Energy Action Area

5.1 The Two Key Elements of aCHP System

This section of the report examines theorganisational structures and mechanisms thatcan be used to develop the Energy Action Area,drawing on examples from elsewhere in the UK.It proposes establishing an Energy ServicesCompany (ESCo) to design, build, finance andoperate the community heating network in Barking Town Centre.

The regeneration of Barking Town Centre involvesa number of different parties, such as developers,housing associations, the local authority and theLondon Thames Gateway DevelopmentCorporation. What is so special about the EnergyAction Area that requires involvement fromanother contributing body? The central element ofthe low carbon strategy is a community heatingnetwork to deliver low carbon heat from BarkingPower Station or a new CHP plant. There will alsobe a significant quantity of renewable energyinstallations required to meet the 10% generationtarget and there will be considerable activity interms of retrofitting energy efficiency measures toexisting buildings. A specialist delivery vehicle isrequired to finance, install and operate thissustainable energy infrastructure.

5.1.1 Power plant operator

The Low Carbon Options study identifies 3 keysources of low carbon heat and power:

• Biomass CHP plant;

• Energy from waste CHP plant (taking wasteSRF product from the Jenkins Lane MBT plant);

• Waste heat from Barking Power Station.

Different partners will be required in each case. Inthe case of Barking Power Station, one of thepartners already exists (the power stationoperator), but for either a pure biomass or SRFplant a new partner will be required. There are a

number of companies involved in the developmentof SRF gasification plants, but Novera arebuilding and operating the first plant in London.Shanks, who operate the two MBT plants fromwhich SRF would be sourced, have suggestedthat they might consider either taking an equitystake or even developing a plant themselves.For a pure biomass plant the leading UK companyis Energy Power Resources Ltd7. They havedeveloped a large number of biomass plantsusing a range of different feedstocks across theUK. Sembcorp have also just developed a plant ofa similar scale to the one envisaged for BTCusing a range of biomass sources. An alternativearrangement would be to develop a single plantfuelled by both woody biomass and SRF.

5.1.2 Heat network

A plant of the scale recommended is a specialistoperation and is it not envisaged that the powerplant operator would be vertically integrated i.e.that they would engage in selling heat (or power)directly to consumers. It is likely that a separatecompany will be required to operate and maintaina heat distribution network and sell heat toconsumers. This network will also need to befinanced. This is the most complex area ofdevelopment as there is so little UK experienceand it is here that an ESCo will be required. Thefollowing sections explain the principles of anESCo and put forward a possible model forBarking Town Centre.

7www.eprl.co.uk

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5.2 What is an ESCo?

The term ESCo (Energy Services Company) isused to describe a wide range of different energysupply and energy efficiency arrangements.Essentially an ESCo does not supply just gas andelectricity, but rather the services that energyprovides, i.e. heat, light and ultimately comfort.

This is part of a general approach that has beenput forward as a way of using market systems toachieve more resource efficient outcomes. Whena company provides a service rather than amanufactured product, this gives the serviceprovider an incentive to reduce the costsassociated with the use of the product. Forinstance some lift manufacturers now sell avertical transport service, charging for each metretravelled by the lift rather than simply charging forsupply of the lift itself. This incentivises thecompany to manufacture for longevity and energyefficiency and maintain the lift to a high standard.Similarly some companies now sell floor covering

services, rather than carpet. Rather thanreplacing the whole carpet they simply replacetiles that are worn and have an incentive toproduce a durable product rather than a shortlivedone.

In the case of energy as the diagram belowshows, a company supplying fuel has little interestin the efficiency of the boiler. In fact, it willarguably have an interest in the efficiency beinglow to maximise sales of fuel. An ESCo supplyingheat or comfort has an incentive to minimise thecost of the heat provision and therefore improvethe efficiency and longevity.

Inherent in all of this is the assumption that theservice provider will be better placed to optimisethe efficiency of the service - either through betteraccess to finance, knowledge or the institutionalcapacity to deliver. In the case of combined heatand power an individual householder simply doesnot have the capacity to deliver a communal heatnetwork, let alone the knowledge or finance.

Figure 8: Conventional Model and ESCo Model

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5.3 Possible Models for BarkingTown Centre

There is a range of possible options for BarkingTown Centre to follow. Some of these areexplored below.

5.3.1 Barkantine Heat and Power

Barkantine Heat and Power (BHP) was set upthrough a Pathfinder PFI to serve 530 homes onthe Barkantine Estate with heat from a 1.4MWeCHP plant in the London Borough of TowerHamlets. Barkantine Heat and Power is owned byLondon Heat and Power which is in turn asubsidiary of EDF Energy. It started operationin March 2001.

BHP is responsible for managing the energycentre which houses the CHP, boiler plant andthermal store for a period of 25 years. At the endof the 25-year term, the Energy Centre reverts toTower Hamlets Council's ownership, at which timethe plant will be refurbished.

Whilst Tower Hamlets are reportedly very satisfiedwith BHP’s management of the scheme, it seemsthe new parent company EDF Energy have shownlittle desire to develop further schemes (until therecent announcement of partnership with theClimate Change Agency). According to LB TowerHamlets negotiating the PFI was a tortuousprocess and later schemes have been done in-house. A separate company, Dalkia, areresponsible for maintenance of the plant. A tenantliaison officer is employed by EDF Energy on site.

5.3.2 Southwark

London Borough of Southwark own four CHPplant, (the largest of which is 1MWe) and around90 boiler houses serving a total of 20,000dwellings and a number of non-domesticproperties including offices, a health centre and anumber of shops. Maintenance is provided by 3contracting companies but managed in house bySouthwark Technical Services.

Heat is provided unmetered to residents using acharging formula based on the number ofbedrooms. The CHP and networks have beenfinanced using a combination of Southwark’s ownresources with some funding from EEC for CHPplants.

5.3.3 Woking - Thameswey Ltd

Woking set up a wholly owned company who thenown a minority share in another company alongwith a Danish investment company who own theremaining 81%. The company is called ThamesweyLtd. The Woking Council Energy Manager is thedirector of the company. The Danish company haverecently withdrawn and the ESCo is now whollyowned by Woking Council.

Woking have developed a number of CHPschemes using this model, believed to totalaround 5MWe. Finance has come in part fromDanish investors and in part from the ability tokeep a proportion of savings made.

5.3.4 Aberdeen Heat and Power

Aberdeen Heat and Power (AHP) were set up asa separate not-for-profit company by AberdeenCity Council. AHP is a company limited byguarantee and the board is made of localcommunity representatives, and chaired by MikeKing from the Combined Heat and PowerAssociation. Ownership of heating componentswithin the properties remains the property of thecouncil leaseholder or RSL, but the heat network,CHP and energy centre is owned by AberdeenHeat and Power.

The rationale behind setting up a special purposevehicle was to maintain independence andcontrol. Any surpluses made are either ploughedback into the scheme or used to lower fuel bills.The company currently employs no staff buteffectively uses a combination of a consultant (BillRowe), financial services from council and thetime of the Council’s HECA officer. In the longerterm it is their intention to employ dedicated staff.

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AHP uses a company known as a consolidator todeal with electricity sales and the sale of electricitydirect to tenants has recently been initiated. Likethe Southwark scheme the council charges forheat with rent on a flat rate basis. The council thencollects heating payments and in turn pays AHP.

Aberdeen Heat and Power provides heat to justover 1000 home as well as a swimming pooland sheltered housing, and further expansionis envisaged.

5.3.5 Southampton

Southampton City Council have now developed2 separate CHP based ESCos. The first was astraightforward design, build, finance and operatemodel using an existing company called Utilicom.The scheme developed from a geothermal heatsource in the centre of Southampton and heatnetwork was developed from there toSouthampton’s own offices and other customersin the city centre. A 5.6MWe CHP plant has alsobeen added to the scheme.

The second more recent Southamptondevelopment at Southampton Millbrook area hasfollowed a similar model to the Aberdeen scheme.A company limited by guarantee has beenestablished to oversee the development of amuch larger heat network and the development ofa 25MWe biomass fuelled CHP plant.

5.3.6 Transfer of risk

Figure 9: Map of ESCo Case StudiesThe above figure attempts to map out the case studiesdescribed above in terms of the public sector involvement.Generally speaking there is a trade off between the transfer of risk and cost of capital. The business plan assumptionshave been made on the basis of 3.5% discount factor.A fully private sector ESCo would expect to see returns of around 10%.

Public Sector

Southwark

Aberdeen

Woking

Southampton Millbrook

Barkantine

Southampton City Transfer of Risk

Higher cost ofcapital

Private Sector

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5.3.7 Other existing ESCo options

5.3.7.1 Connective Energy

The Carbon Trust has a new initiative calledConnective Energy. Connective Energy is a 100%owned subsidiary of the Carbon Trust. It has beenset up to finance, own and operate connectionsbetween existing heat sources and existing heatloads. They would do this on the basis of 10%return on investment. They are a new venture andas yet have no schemes in the ground. This is asource of higher cost finance than public sectorfinance at 3.5%.

5.3.7.2 London Climate Change Agency

The Climate Change Agency has an emerging rolein the field of sustainable energy in London. TheAgency was set up through the LondonDevelopment Agency. The business plan for theAgency has not yet been announced and it is notclear what this will be but the model being proposedhere is unlikely to fit with the current small gas CHPprivate wire favoured by the Agency.

5.3.7.3 Utilities

Barking Power are one possible source of heat,but are unlikely to wish to engage in heat sales.

EDF Energy have historically been involved inCHP at the Barkantine scheme as outlined belowbut have shown little appetite to develop furtherschemes as yet, though their recent alliance withthe Climate Change Agency may herald adifferent approach.

5.3.7.4 ESCos

A number of private sector ESCos exist such asUtilicom, Vital Energi, EcoCentraGen who might bewilling to take forward such as scheme. Thesewould design, build, finance and operate a scheme.

5.4 A Barking Town Centre ESCo Model

The diagram below sets out the possible structureand role of a Barking Town Centre ESCo.Essentially it would purchase heat from one ormore possible heat utility companies. This couldeither be done directly or through a separatecompany in charge of operating a transmissionnetwork. In Copenhagen a consortium ofboroughs and the city council have formed acompany for this purpose. Heat would be sold onto local residents and businesses. Many of theESCo responsibilities could be subcontracted inthe short term but in the longer term the companycould develop in-house capabilities to deliverproject management, operation and maintenanceand metering and billing. The ESCo would beresponsible for the operation and maintenance ofthe local standby and peak load plant.

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5.5 Possible ESCO Membership

5.5.1 Introduction

If LBBD chose to progress the option of aBarking Town Centre ESCo on the model ofAberdeen or Southampton Millbrook there are arange of possible organisations that could formthe board of the ESCo besides LBBD itself.

5.5.2 Housing Associations

A number of Housing Associations are involved inthe BTC redevelopment. Housing Associationshave in other areas been responsible for themanagement and operation of communityheating. The chief executive of a local HousingAssociation would bring business administrationexpertise to the board of an ESCo as well asrepresenting local interests.

5.5.3 Community Development Trusts (CDT)

A Community Development Trust is envisaged tomanage communal spaces in Barking TownCentre in the Gascoigne Estate area and ascommunity heating constitutes a furthercommunal facility requiring management thiscould be seen as part of the CDT’s remit.

5.5.4 London Thames Gateway DevelopmentCorporation (LTGDC)

The LTGDC is extremely interested in thedevelopment of a heat network from BarkingPower Station and is currently investigatingsuitable approaches for the delivery of a LondonThames Gateway heat network. LTGDC is alsohighly supportive of the Barking Town CentreEnergy Action Area.

Figure 10: Potential Model for BTC ESCo

Standby Boiler Plant

Heat Sales

Heat Sales

Elec Sales

Finance

Grid/ConsolidatorPrivate Electricity 1Utility Co, Atco

Private ElectricityUtility Co, Biomass

CHP operator

Private ElectricityUtility Co 3, SRF

CHP operator

Operation & Maintenance

Optional Additional Roles

ProjectManagement

10% RenewablesO&M & ROCs

Existing StockProgrammes

Barking RiversideESCo

Barking Town Centre ESCo

Other Thames GatewayESCos

Residents & Business

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5.5.5 Thames Gateway LondonPartnership (TGLP)

The TGLP is a strategic partnership supportingthe regeneration of the Thames Gateway and themany organisations involved the regenerationprocess. The TGLP may well want to beinvolved in the Barking ESCo and support thedevelopment of the Barking Town CentreEnergy Action Area.

5.5.6 Industry Champions

There are a number of individuals who may wishto become involved in the delivery of a CHPbased ESCo. In Southampton, Michael King fromthe CHPA (Combined Heat and PowerAssociation) has considerable expertise in thisarea and is a director on their board.

5.5.7 East London University

A representative from the engineering departmentat East London University or a local highereducation college might offer expertise in thisarea as well as being a customer of the widernetwork in the longer term.

5.5.8 Residents’ Associations

A representative from local residents’ associationwould enable residents to have a say in chargingmechanisms and the provision of a critical service.

5.6 Conclusion

The development of a heat network served bycombined heat and power will require a deliveryorganisation. It is recommended that LBBD set upan Energy Services Company (ESCo) or contractwith an existing ESCo to deliver the construction,operation and maintenance of the system, as wellas retail the heat. The terms of reference for theESCo could also include the delivery of energyefficiency initiatives to the existing building stockand responsibility for claiming ROCs for therenewable energy systems installed as part of the10% requirement within BTC. There are a numberof successful models set out in this section thatLBBD could draw on to develop an ESCo. Thechoice of ESCo model will need to be developedover the coming months in consultation with allBTC regeneration partners.

Action 9: Develop a business plan for setting up an ESCo to deliver and finance the communityheating system and shared renewableenergy infrastructure.

Task 9.a - Establish the preferred ESCo model forthe Council.

Task 9.b - Develop the legal framework for thepreferred ESCo model.

Task 9.c - Develop the business plan andfinancing model for the ESCo.

Task 9.d - Recruit staff and Board of Directors forthe ESCo.

Task 9.e - Establish the ESCo.

Task 9.f - Tender for private sector partner.

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6. Utilising Funding & Financing Options

6.1 The Capital Cost associated withdeveloping the Energy Action Area

The Low Carbon Options study calculated theadditional capital costs for the low carbonstrategies – these are based on the plannedconstruction of approximately 7,000 new housingunits over the next fifteen years. The findingsare summarised in the tables below for the newbuild and the existing stock.

*Additional capital costs are shown for these options8Compared to conventional individual gas boilers (if no capital grants are used)

Table 5: Additional costs of low carbon measures for new build and existing buildings

New Build Technology / Heat Source Capital CostAdditional LifeCycle Cost 25 yrs8

Individual Boilers £m 31.15 0.00

Heat Network & Stand-ByBoilers

Barking Power Station £m 37.50 6.07

CHP Plant & Stand-ByBoilers

SRF CHP £m 79.38 1.98

CHP Plant & Stand-ByBoilers

Biomass CHP £m 74.01 0.39

10% Renewables 50% Wind & 50% PV £m 18.78* 11.93

New Build Technology / Heat Source Capital CostAdditional LifeCycle Cost 25 yrs

Energy Efficiency OptionInsulation, Condensingboilers etc

£m 11.49* 5.74

Heat Network & Boilers Barking Power Station £m 19.65* 8.10

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A Route Map for Barking Town Centre Energy Action Area32

6.2 Grant Funding

Community heating and CHP generally cost moreto install, where an existing gas network is inplace, than conventional individual boilersolutions. However, when the operational costsand revenues are compared over the longer term(the life cycle cost) they are often cheaper thanthe conventional alternatives. For Barking TownCentre the life cycle costs are in fact very similarfor each individual option.

The life cycle cost for biomass CHP is similar tothat for an individual boiler solution. However forthe options for connection to the existing stockand the other heat source options there are both

additional capital and lifetime costs. This isalso true for energy efficiency measures to theexisting stock.

Unless a strategy is adopted whereby thedevelopers or the eventual customers are askedto pay more for heat (and electricity) than theywould have done had the development goneahead with more conventional energy provision,then grant funding will be required.

There are a range of possible funding sources forthese options. A summary of these is set out inTable 8, with a more detailed description availablein the Appendix 4.

Table 6: Summary of support mechanisms

None of the above programmes are fixed and are subject to continual review. New schemes couldradically alter the funding framework.

Mechanism Acronym Applicability Value Future variation Total Value Lifetime

Energy EfficiencyCommitment

EECSubsidy to domestic energy saving & CHP

0.7-.9p/kWh Unknown beyond 2008 £396m for EEC2EEC2 2005-8EEC3 2008-11

Levy ExemptionCertificates

LECs CHP & renewable elec can claim Up to 0.43p/kWh Increase with RPI Unlimited

EU Emissions TradingScheme

EU ETS Cap & trade system on 20MWth plantCurrent price £6/tonne CO2

Market instrument – valueof carbon

Limited by govt caps Phase II to 2012

Low Carbon BuildingsProgramme

LCBFCapital support for building integratedrenewables and CHP

Varies depending ontechnology

Unknown beyond 2009 £80m 2006-9

Renewable ObligationCertificates

ROCs Awarded to renewable generators 4.5p/kWh Market instrument Limited by % obligation 2016

Utility Green Funds -Capital grants for communityrenewables

Approx 50% capitalcost

Unknown £2m/yr nationally Unknown

EU Funding Concerto ConcertoCapital support for building integratedrenewables and CHP & “Eco-building”

35% of capital cost FP7 2007-2013 beingagreed now

Around £3m percommunity

FP7 2007-2013 beingagreed now

EU Intelligent EnergySave, Altener,Steer

Support for large sustainable energyinitiatives

50% of programmecost

FP7 2007-2013 beingagreed now

Approx £50k per projectFP7 2007-2013 beingagreed now

Carbon Trust Schemes -Business advice & support – includesfree business audits

100% funding forbusiness advice

Unknown Unknown Unknown

London DevelopmentAgency

LDA Business advice & support100% funding forbusiness advice

Unknown beyond 2009 Unknown 3 years

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6.3 Other Mechanisms

The most obvious local options are simply torequire developers to incorporate thesetechnologies into developments or requiredevelopers to contribute to the cost throughSection 106 Agreements. Where this is notpossible, the cost could be subsidised byaccepting a lower value for the sale ofLBBD owned land.

Alternatively the cost of the installation of thenetwork could be recouped by increasing heatcharges. New homes will anyway have muchreduced heating requirements compared to thehomes they will replace. Some of this reduction inheating charge could be used to subsidise thedevelopment of the heat network. This strategywill of course not be available to the extension ofthe heat network to the existing buildings where areduction in heat charges will need to be offeredto persuade consumers to connect.

6.4 Conclusion

Table 7: Additional costs of low carbon measures for new build and existing buildings with grant funding

Technology / Heat SourceCapital Cost£m

CarbonSaving CO2

tpa

CapitalGrant £m

Source

NewCapitalCost£m

New AdditionalLife CycleCost 25 yrs£m

Individual Boilers 31.15 0 31.15 0.00

Barking Power Station 37.50 -4,500 1.57 EEC 35.92 4.66

SRF CHP 79.38 -4,603 1.57 EEC 77.81RequiresOfgem ruling

Biomass CHP 74.01 -69,609 1.57 EEC 72.44RequiresOfgem ruling

50% Wind & 50% PV 18.78 -2,090 8.57 LCBP, GreenFund

10.22 3.37

Technology / Heat SourceCapitalCost £m

CarbonSaving CO2

tpa

CapitalGrant £m

SourceNew CapitalCost £m

New AdditionalLife Cycle Cost25 yrs £m

Insulation, Condensing boilers etc 11.49 -4,488 0.44 EEC 11.05 5.3

Barking Power Station 19.65 -14,958 5.44 EEC 14.21 2.66

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A Route Map for Barking Town Centre Energy Action Area34

It can be seen from the table above that EnergyEfficiency Commitment (EEC) and the LowCarbon Building Programme (LCBP) representthe two most important sources of grant support.If EEC funding is available at the level indicatedby EDF, this represents a significant subsidy(around £7m) and means that the development ofa heat network from Barking Power Station toboth the existing and new build areas would costonly £7m more than the alternative over 25 years(assuming a discount factor of 3.5%). For thebiomass option a ruling from Ofgem will berequired as to whether this will qualify for EECsupport. Other major sources of support, LECsand ROCs are already included in the originalbusiness case assumptions.

As part of the detailed business plandevelopment work for the operator of the heatnetwork, securing this funding stream will becritical. A ruling from Ofgem will probably berequired to ascertain whether EEC support canapply to a biomass based CHP system. It will beimpossible to secure funding for the lifetime of thescheme initially since the next round of EEC willonly be available to 2011 and the details of thiswill only be fixed next year. Therefore a phasedapproach to securing EEC funding should beadopted. As EDF have a stake in Barking PowerStation, they may be the most amenable EECprovider.

A critical factor in EEC funding is whether CHPwill continue to qualify for “uplift” – effectively anadditional 50% support in future rounds ofEEC – also to what extent suppliers will be limited to achieving 10% of their target through uplift measures.

Action 10: Develop a ‘funding strategy’ for variouselements of the Energy Action Area, includingpump-priming for the establishment of the ESCo and funding for landmark renewable energy installations.

Task 10.a - Utilise the funding sources listed toidentify and secure funding for different aspects of the EAA.

Task 10.b - Calculate set-up costs for the ESCoand compile funding bid/s to cover these.

Task 10.c - Identify most suitable funding pot/s,and submit funding bid for one or more landmarkrenewable energy buildings.

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A Route Map for Barking Town Centre Energy Action Area 35

7. Implementing Community Heating in Barking Town Centre

7.1 Introduction

The vision set out in this report for Barking TownCentre Energy Action Area is of an area-wideheating system served by one or more CHPbased heat sources. As part of the LondonThames Gateway Regeneration framework, theTown Centre could become part of a wider heatnetwork serving a number of London ThamesGateway development sites and incorporating arange of different heat sources.

The development of community heating andcombined heat and power in Barking Town Centreraises a number of issues in terms of:

• design of the heat network;

• choice and location of heat sources;

• phasing of the heat network;

• routing of the heat network;

• the complementarity of other technologies andinteraction with the planning system.

This section sets out how some of these issueshave been dealt with elsewhere, explores a rangeof possible solutions, and recommends a specificway forward. Please see Appendix 5 for anintroduction to the historical development ofcommunity heating schemes.

Action 11: Raise awareness amongst officers andCouncillors about the installation and operation ofmodern CHP and community heating systems.

Task 11.a - Organise a visit for officers andMembers to an existing community heating andCHP system in the UK.

Task 11.b - Ensure continuing professionaldevelopment for officers working on the EnergyAction Area in CHP, community heating andrenewable energy.

7.2 Community Heating Guidelines

7.2.1 Introduction

Schemes can start with the installation of a heatnetwork linking buildings together, initially utilisingfossil fuels. Once a viable heat network isestablished, renewable fuels such as biogas,wood-chip or other choices can feed heat into the system.

The physical elements of a community heatingsystem are a central heat source, a heatdistribution network and end-user installations ineach dwelling. Installing the heat mains inconjunction with other main services would alsobe a cost effective strategy.

The Energy Action Area Options Study, carriedout by PB Power, estimated the energy demandfor existing buildings within the Barking TownCentre Energy Action Area, as shown in thefollowing table:

Table 8: Energy demand and CO2 emissions for existing buildings

CurrentBaseline

GasMWh/y

ElectricityMWh/y

CO2tonnes/y

Gas %Electricity%

CO2 %

New BuildAreas

42,339 13,667 13,921 27.5% 36.0% 30.5%

ExistingBuildings

111,625 24,303 31,659 72.5% 64.0% 69.5%

B&D allEnergyActionArea

153,964 37,970 45,580 100.0% 100.0% 100.0%

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A Route Map for Barking Town Centre Energy Action Area36

It is clear that the energy consumption of theexisting housing/buildings areas represent animportant part of the energy used by the wholeEnergy Action Area (see new build areas map inAppendix 7). According to the above study, most ofthe thermal energy for the new build sites will berequired by the Gascoigne Estate and the StationQuarter areas (see heat map in Appendix 7).

The following table shows a summary of theenergy demands and CO2 emissions for thereference case as estimated by the Energy Action Area Options Study.

Table 9: Energy demands and CO2 emissions for the regeneration sites

The Gascoigne Estate is mainly a residential area while the Station Quarter is a mixed area, combiningresidential and commercial properties.

Gas & Powerconsumption

Gas MWh/y Electricity MWh/y CO2 Tonnes/y

Axe Street 4,531 3,165 2,221

Town Square 2,182 1,524 1,069

Gascoigne Estate 17,263 5,204 5,521

Fresh Wharf 5,676 2,051 1,961

London Road & NorthStreet

3,276 1,570 1,298

Station Quarter 18,089 12,557 8,834

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A Route Map for Barking Town Centre Energy Action Area 37

7.2.2 Community heating network

In order to connect different buildings, a heatingnetwork connected to the energy sources isrequired. The network would normally consist ofpre-insulated pipes (or heat mains) that areburied in the ground in a similar way to gas or water mains.

This type of pipe system is covered by differentEuropean standards. They are very reliable, withservice lives in excess of 30 years and producedby specialist manufacturers. They would normallyinclude a leak detection system located within theinsulation that helps to locate and solve the fault,which in tern will avoid corrosion of the pipes.

Modern pre-insulated pipes can withstandtemperatures as high as 140°C, but this is notnormal practice in current design as it is notusually economical for community heating. Lowersupply temperatures, 90°C or lower, and lowreturn temperatures (below 50°C) are preferred toreduce the pipe heat losses, prolong the longevityof the system and increase the efficiency of CHP.

Large community heating systems with high staticpressures usually adopt medium temperaturenetworks (up to 120°C) where the consumers areindirectly connected. Smaller-scale communityheating systems are normally suited for lowertemperature networks.

The design of the heat distribution network isfundamental to the economic viability ofcommunity heating, because it has a majorimpact on the capital and running costs.The network design affects costs as follows:

• Installation costs - An important proportion ofthe pipe installation costs (around two thirds) isrelated to digging and reinstatement. Costscould be minimised by selecting routes with lowreinstatement costs or by optimising the networkdesign. Pipes should be sized to allow forfuture needs.

• Running costs - The two main factors that affectrunning costs are distribution heat losses andpumping costs. Pipe losses can be reduced bychoosing low flow and return temperatures.Pumping costs can be reduced by increasing thetemperature difference between the flow andreturn water temperatures, and by using avariable flow system.

Economical optimisation is normally carried outwhen designing community heating networks. Itinvolves the evaluation of capital costs, runningcosts and distribution heat losses. The idea is tominimise the life-cycle cost for the system.

As the BTC Energy Action Area will be developed instages, it is likely that isolated networks will bedeveloped with time and will be eventuallyconnected to one or more CHP/boiler plants.Incorporating heat loads to existing networksrequires careful hydraulic design. If the system isnot well designed to accommodate this, it couldcompromise the development of the larger scheme.

In order to connect all the different sites,community heating networks should be developedin each regeneration site as they develop andconnected later to a larger CHP plant in order tosupply most of the heat and power for all the sites.

As the heat networks develop for each site, theywould form the base for a bigger communityenergy network. For example, taking the FreshWharf estate, the following figure shows anillustrative heat network for the area and thephasing that has been proposed for the sitedevelopment. A heat network could start in themiddle and run through the development. Thenetwork could grow with the development,connecting different buildings. This network couldbe connected to others within the area throughthe whole BTC development.

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A Route Map for Barking Town Centre Energy Action Area38

If all the regeneration sites were developed intocommunity heating areas, as shown in the nextfigure, they could be connected via a main heatnetwork coming from a larger plant.

7.2.3 Interim measures for developing acommunity heating network

Whatever low carbon heat source is selected in thelong term, the most important first step is to ensurethat all developments are, at the very least,compatible with a community heating network andideally that a network is developed as part of theregeneration process connected initially to gas firedboiler plant. This boiler plant will initially provide allthe heat for the development but in the longer termwill become top-up and standby plant, so the

investment will not be wasted. Other interimmeasures should include:

• Where it is not economic to connect to thecentral boiler plant initially or in developmentsnot yet connected, use local temporary gas fired boilers;

• Size heat mains in order to cope with larger heatload in the future;

• Ensure that community heating systems aredesigned to be compatible with each other in the future;

• Ensure the end-user installations are compatiblewith future larger energy plants;

• Utilise appropriate control systems to minimiseenergy wastage;

• Ensure heat charges are appropriate andpromote the use of community heating systems;

• Ensure a good maintenance and managementsystem is in place.

A programme of energy efficiency and solarthermal could reduce emissions by 16.5% on thecurrent baseline for the existing buildings, savingan estimated 5,218 tonnes/year at a capital costof £11.49m. The largest savings could beachieved by fuel switching: replacing electricheating systems by gas central heating systemswith condensing boilers. For further analysis ofinterim measures, please see Appendix 6.

Action 12: As a priority, secure a town centre sitefor the interim gas fired boiler plant(s) that willprovide community heating for the first 5 yearsuntil connection to Barking Power Station orcompletion of the large CHP plant.

Task 12.a - Calculate the size and otherrequirements of the site required for the initialboiler plant(s) and identify a suitable Council-owned site in the town centre. Compile a proposalto allocate this site for the boiler plant.

Figure 11: Proposed heat network and phasing for the FreshWharf development

Figure 12: Individual heat networks for the regeneration sites

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A Route Map for Barking Town Centre Energy Action Area 39

7.2.4 Community heating for new developments

The final phasing of all the different new buildareas is still under development, but it is knownthat Town Square is currently being developed.Axe Street, Fresh Wharf and Station Quarter willfollow. Community heating design and controlstrategies should be adopted as soon as possibleto avoid potential technical conflicts with the otherdevelopments. The community heating systemshould allow for the phasing of the various stagesof a development and allow future systems toconnect to it from different places. At present, wedo not have detailed plans for phasing of newbuild areas other than Fresh Wharf, but theyshould be analysed in the future in order toestablish an optimum design.

In the case of the Gascoigne Estate, it isunknown how this area will developed, butGascoigne Road is right in the centre of this area.This road could be used as the main artery forthe heat network as shown in the above figure.The advantages and constraints of doing thisshould be investigated, not just for this area, butfor all the other new build areas.

7.2.4.1 Design of Barking Town Centrecommunity heating system

A study should be carried out as soon as possiblein order to map out and understand the extent,routing, cost and other implications of acommunity heating system, within the new buildareas and also throughout the existinghousing/buildings areas.

This probably needs to be carried out in two stages:

• Stage 1 - outline design to achieve sign-on fromLBBD and commitment to put system in place

• Stage 2 - detailed design to take forward toimplementation and to inform any otherstakeholders (e.g. individual developments).

The studies need to

• calculate heat loads

• identify heat sources (as has already beenstarted in this study, further work would need tobe carried out to further investigate andformalise these)

• design the distribution system through todevelopment areas and user interfaces.

LBBD may also wish to consider a study of thecurrently available boilers that could be used as atemporary basis prior to completion of thecommunity heating network. This could alsoformalise the plan of action for the managementof the temporary boiler facilities while the mainssystem was being put in place.

Action 13: Once established, the ESCo shouldconduct a study to map out and understand theextent, routing, heat sources, and cost of the towncentre community heating system.

Task 13.a - Stage 1: outline design to achievesign-on from LBBD and commitment to putsystem in place

Figure 13: Gascoigne Estate heat mains

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Task 13.b - Stage 2: detailed design to takeforward to implementation and to informother stakeholders.

Task 13.c - Analyse and design the communityheating system in order to minimise runningcosts, distribution losses and capital costs.

Task 13.d: Use specialist consultants to analyseand design the community heating system inorder to minimise running costs, distributionlosses and capital costs.

Task 13.e: Appoint a consultant to design acommunity heating system for Fresh Wharf andother near term developments, including:identifying the main heat network routes for eachdevelopment, establishing those areas where heatmains can not be installed, and identifying boilerplants for each regeneration area.

Task 13.f: Design the routing of the communityheating network, by using Master Plans of theStation Quarter, London Road, Axe Street and others.

Action 14: Establish opportunities for connectingexisting buildings to the heat network, particularlyCouncil & other public sector buildings in the town centre.

Task 14.a - Ensure CHP and the potentialinteraction with a town centre heat network isincluded within the extension plans for BarkingTown Hall, and also consider the inclusion ofschools and Abbey Leisure Centre swimming poolwithin the heat network.

Task 14.b - Explore opportunities to connect theexisting stock to community heating throughadditional funding, such as the Energy EfficiencyCommitment (EEC).

7.2.5 End-user installations

The end-user components of the communityheating system are normally similar to whatalready exists in conventional gas-fires systems,such as pipework, radiators, hot water-storage,thermostatic and time controls.

A significant difference is that there will be aconsumer unit interface instead of a boiler. Thisunit will normally take less space than a boilerand does not require a flue pipe or any gasconnections. This unit does not need to belocated next to an outside wall.

Hot water will come from the heat mains and isthen distributed to the radiators and hot storagetank. In some models, these units can produceinstantaneous domestic hot water via a heatexchanger, so there is no need for storage.These systems can be controlled in a similar way to conventional systems, which include roomtemperature, hot water temperature, and timercontrols for heating and hot water.

There are two main ways for charging for heat,using a service charge or using heat meters.Service charges are normally related to theproperty size, so it is not related to actualconsumption. Service charge does not promoteenergy efficiency but does not penalise othermore vulnerable users (e.g. elderly people). Heatmeters work in a similar manner to electricitymeters. They record the kWh of heat used by theproperty and customers are charged only for the heat used.

Action 15: Ensure that heat meters are installedin all dwellings so that occupants pay for heat bythe unit to encourage energy efficient behaviour.

Task 15.a - Ensure that developers include heatmeters as a core component of communalheating system – and provide information on heatmeters to assist them.

7.2.6 Developing the low carbon heat source forthe Energy Action Area for the longer term

There are 4 potential long-term CHP basedheat sources:

• Pure Biomass – this would involve constructionof a new (20MWe) plant;

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A Route Map for Barking Town Centre Energy Action Area 41

• Solid Recovered Fuel from the Jenkins Lanewaste depot – again this would involve theconstruction of a new gasification plant;

• Barking Power Station – taking heat from theexisting plant and potentially the extension;

• Local Gas-Fired CHP plant.

There are uncertainties around all of theseoptions although the last is relatively easilyachievable. The biomass and SRF options bothrequire a sizeable site as well as securing a fuelsupply. The SRF fuel supply is readily availablewith two Mechanical Biological Treatment plantsunder development in Havering and Newham, buta BTC scheme may be in competition with otherdevelopments wishing to secure this fuel.

Ideally a combination of all the first three shouldbe developed to serve a larger network serving allof the London Thames Gateway developments.

Biomass fuels within the borough will include treesurgery and clean wood waste. This fuel could becollected and used in a centralised biomassenergy plant. This would need to be developed in conjunction with other businesses andorganisations, and in particular Shanks East London.

Research has identified four potential sites for aCHP plant near the Barking Town Centre. All theindividual heating networks could be connected toa larger energy production site. The EnergyAction Area Options Study stated that aconventional gas fired CHP plant would requirearound 2,500 m2 of land-take in order to supplythe heat and power to all the regeneration sites. Ifa biomass CHP plant was chosen as the solution,it was estimated that more than 14,000 m2 wouldbe required, mainly for storing the biomass fuel.The space requirements for a CHP gasificationplant using SRF are not known at this stage, but itcould probably be somewhere between theprevious two.

Sites identified and examined as part of thisstudy are:

• Potential biomass locations - Beckton sewagetreatment works, timber site on River Road, andthe industrial site south of the GascoigneEstate;

• Mechanical Biological Treatment plant atJenkins Lane.

The location of these potential sites has to beconsidered when designing the distributionnetwork. See Appendix 8 for maps and detailsof sites.

Action 16: Determine and pursue the preferredlow carbon heat source for the town centre —either waste heat from Barking Power Station oran energy-from-waste gasification CHP plant onthe edge of the town centre.

Task 16.a - Produce business cases and report onhow practical the two options are to implement.

Task 16.b - Arrive at preferred low carbon heatsource based on the best business case andpractical considerations.

Action 17: If heat from Barking Power Stationis the preferred low carbon heat source, workwith London Thames Gateway DevelopmentCorporation to establish a Thames Gateway HeatTransmission Network that will supply heat fromBarking Power Station to Barking Town centre.

Task 17.a - Produce Implementation Plan andprogress the Heat Transmission Network.

Action 18: If an energy-from-waste CHP plant isthe preferred low carbon heat source, determinethe feasibility of setting up a CHP plant on theedge of the town centre.

Task 18.a - Earmark site for a large CHP plantnear the town centre in the longer term.

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Task 18.b - Continue discussions with ShanksEast London on prospects for utilising the wastefuel from the Jenkins Lane MBT plant.

Task 18.c - Hold exploratory talks with EnergyPower Resources Ltd, Sembcorp and Novera asto the development of a biomass or energy fromwaste power CHP plant.

Task 18.d - Assess potential for a joint biomassand energy from waste CHP plant.

7.3 Technology Compatibility

The welcome introduction of the 10% on-siterenewable energy requirement through theLondon Plan and through Barking andDagenham’s and other London Boroughs’

planning requirements has brought forward anincrease in interest in renewables and a range ofsolutions. However it is important to consider howthese different technologies will work together as awhole and provide the optimum carbon reduction.

The table below gives a guide to the compatibilityof different supply technologies, or more accuratelyhow they well they work together. It is perfectlypossible that solar thermal can be installedtogether with CHP and district heating, but theyboth provide carbon free heat simultaneously,meaning that no additional carbon savings areachieved by installing solar thermal if CHP hasalready been selected.

Table 10: Technology Compatibility

It’s clear from the above table that the development of community heating and CHP is ideallycompatible with renewable electricity generating systems i.e. PV, wind and hydro.

Technology CHP/DHGround sourceheat pumps

Solarthermal

Solar PV Wind Micro-CHP Hydro

CHP/district heating(DH) 7 7 3 3 7 3

Ground source heatpumps 7 3 3 3 7 3

Solar thermal 7 3 3 3 7 3

PV 3 3 3 3 3 3

Wind 3 3 3 3 3 3

Micro-CHP 7 7 7 3 3 3

Hydro 3 3 3 3 3 3

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A Route Map for Barking Town Centre Energy Action Area 43

8. Embedding the Energy Action Area Requirements withinKey Development Projects

8.1 What can be done at what stage?

8.1.1 Ensuring delivery within key development sites

A number of measures have been recommendedthroughout this Implementation Plan for pushingforward the Energy Action Area in BTC. Some ofthese are general measures which will benefit theimplementation overall, or are not related tospecific regeneration developments, and shouldbe put in place as soon as possible. Others relatemore directly to developments and may only beable to be put in place at certain stages of thedevelopment plans.

Action 19: For all regeneration sites in BTCallocate actions for ensuring implementation ofthe Energy Action Area requirements.

Task 19.a - LBBD to determine the potential towhich different developments proceeding in thetown centre can incorporate the Energy Action Arearequirements, focusing on the sites that the Councilowns where high standards can be ensured.

Task 19.b - Community heating and renewableenergy requirements should be indicated as ahigh priority at all stages of the regenerationprocess, including the master planning anddevelopment brief stages.

Task 19.c - Ensure that developers haveadequate energy strategies for utilising PV and wind power, for implementing intermediateheating options and for eventual connection to the town centre community heating system.

Task 19.d - For developments at a moreadvanced stage, utilise Section 106 Agreementsto incorporate Energy Action Area requirements.

8.1.2 Time frames for incorporating development-specific measures

For any particular development proposal, eachimplementation task can be incorporated up toand including the development phase as shownin Table 11 below.

Table 11: Timeframe for incorporating facilitation/implementation measures

Task

Development stage:

Master-planning

Tender fordevelopmentpartner

Developmentbrief

Initial designpre-planning

Planningapplication

Detaileddesign

Construction

Compliance with EU Performance in Buildings directive andother existing policies and targets 3 3 3 3 3 3 •

Compliance with Borough renewables targets and new policieson 10% electricity generation through renewable technologiesand provision of connection to community heating network

3 3 3 3 3

Section 106 agreements enforcing 10% electricity generationthrough renewable technologies and provision of connection tocommunity heating network

3

Preliminary indicator studies for PV and wind turbines on late-stage developments; discussion with developers to incorporate 3 3 3 (3 )

Public consultation on development proposals and Energy ActionArea in general and education on renewables and communityheating as part of developments

3 3 3 3 3

Marketing of benefits of Energy Action Area measures to developers 3 3 3

Feasibility and outline design study for Town Hall expansion 3 3 3 3

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8.1.3 Marketing benefits to developers

There are a number of significant benefits todevelopers of incorporating carbon reductionmeasures that may not be immediately apparentin the face of some of the draw-backs (seeAppendix 12). These should be highlighted toencourage their engagement in the Energy ActionArea. Please see Appendix 13.

8.2 Measures to be Employed at Various Stages of each Regeneration Development

8.2.1 Phasing of key development areas in thetown centre

Table 12 outlines the current position of each ofthe developments under consideration within theBarking Town Centre Energy Action Area. Differentmeasures could be employed for each regenerationproject at their respective development stage.This is further detailed in Appendix 9.

Table 12: Current status of regeneration developments

Development phase Master-planningDevelopmentbrief

Tender fordevelopment partner

Initial designpre-planning

Planning application Detailed design Construction

Tanner Street Gateway 3 3 3 3 3 3Due complete summer06

Tanner Street Triangle 3 3 To complete 2008

Town Square(LLC, housingand retail)

3 3 3 3 3 3

3LLC underway,housing Ph1 in progressJan04-Dec06, housing& retail Ph2 Oct06-08,Ph3 Dec06-09

Greater Axe Street(Housing, car park, health centre,Lidl junction, Captain Cookcorner, Leisure centre)

3 3 3 3 draft design

3 flats on car parkarea has consent,Health Centre appnMarch

flats constructionnov05-07,

Fresh Wharf 3 3 3 underway 2006-2020

Station Quarter 3ongoing 3

Foyer 3 3 3 Being finalised Due summer 06

Cambridge Road 3 3 3 3Planning applicationdue

Due summer 06

The Lintons Being finalised 3 07/08

London Road/ North StreetcompleteMarch 06

07/08

Gascoigne Estate In progress 2008-2018

Superstore areaAbbey Rd, Tesco

Also ongoing By Oct 06

Town Hall refurbishment Plan stage only

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8.2.2 Summary of actions for key development areas

Table 13 below provides a summary of theactions appropriate to each development. Theseactions should be applied to all futuredevelopments as well and incorporated intodevelopment work plans drawn up byRegeneration Case Officers.

Table 13: Actions applicable to specific developments

8.2.3 Existing buildings in the town centre

For implementation of the Energy Action Area inexisting buildings, see Section 9 and Appendix 10for recommendations. Although these would notbe linked to development time-scales, connectionof existing buildings to community heating woulddepend on the progress of installation of thecommunity heating distribution network in thearea. Detail on the implementation of communityheating is presented separately in Section 7.

TaskMasterplanning toinclude EAA measures

Development brief:10% renewableenergy, CHconnection

10% Renewable EnergyFeasibility study

Public consultation(energy aspects)

Section 106 Agreement Late-stage incorporation

Tanner Street Gateway

Tanner Street Triangle

Town Squarefor phases 2 and 3(residential /retail)

Greater Axe Street

Health Centre,car park & otherproposals

Axe Street flats

Fresh Wharfas alternative to earlier measures

Station Quarter

FoyerFormalise study & discussfurther with developers

as alternative to earlier measures

Cambridge Roadas alternative to earlier measures

The Lintons

London Rd/ North St

Gascoigne Estate

Superstore area

Town Hall refurbishment

Regeneration

Developer

Development Control

Developer / Development Control / Regeneration

Area Regeneration

Responsibilty Key:

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9. Action Plan for Upgrading Existing Buildings

9.1 The Need to Focus on Existing Housing

Table 14 shows the energy demands and CO2

emissions for the existing buildings (calculated by the Energy Action Area Options Study).Residential properties which will not be affectedby the redevelopment programme currentlyconsume more than 50% of both gas andelectricity consumption in Barking Town Centre.Overall the residential sector is responsible for75% of CO2 emissions within Barking TownCentre and therefore attention should be focusedon the options available for improving the energyefficiency of existing housing.

Table 14: Energy demand and CO2 emissions for existing buildings that will not be redeveloped

A number of options are available for improvingthe envelope of existing buildings in terms ofenergy performance and the retro-fitting ofrenewable technologies. Of the various insulationmeasures that might be applicable to the existinghousing stock, cavity wall insulation and loftinsulation represent the best value for money.Solid wall insulation, flat roof insulation, floorinsulation and double glazing tend to be veryexpensive measures, unless the element needs tobe replaced or upgraded in some way: forexample, where re-roofing is required or windowframes are rotten.

9.2 Feasibility Study of Energy Efficiency Measures In Existing Buildings

The feasibility study identified homes in the town centre where the following measures could be implemented:

• Cavity Wall Insulation - it is estimated thatapproximately 1000 homes have the opportunityto be improved through cavity wall insulation;

• Loft Insulation - it is estimated thatapproximately 1,400 homes have the opportunityto be improved through loft insulation;

• Double Glazing - it is estimated thatapproximately 1,300 homes have the opportunityto be improved through double glazing;

• Condensing Boilers - it is estimated thatapproximately 3,000 homes have the opportunityto be improved through replacing boilers withcondensing boilers;

• Replacing Electric Heaters with Condensing GasBoilers - it is estimated that approximately 1,500homes have the opportunity to be improvedthrough replacing electric heaters withcondensing boilers;

Existing buildings that will not be redeveloped Gas MWh/y Elec MWh/y CO2 Tonnes/y

Residential 80,293 19,443 23,616

Non-Domestic 31,332 4,860 8,043

Total 111,625 24,303 31,659

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• Energy Efficient light bulbs - it is assumed that 4traditional light bulbs can be replaced by energyefficient ones in all homes;

• Solar Water Heating (houses only) - it isestimated that approximately 800 homes canaccommodate solar water heating systems.

Implementing these low cost energy efficiencymeasures would reduce carbon emissions fromexisting buildings by approximately 16.5%.Appendix 10 outlines the analysis and providesgreater details on how each of these measurescan be applied to the existing homes in Barking Town Centre.

However, the study was not able to examine theextent to which PV and wind turbines could beadded and how feasible external cladding of solidwalls would be. Such measures (particularly ifthere is a limited level of involvement) will havesmaller overall impact on carbon reduction targetsthan the efficiency improvements above and willhave greater costs, so will be less of a priority.However, they could be useful in providing somevisible examples of putting the Energy ActionArea into effect in residential and non-residentialareas, and would be a tangible way of involvingthe wider community in the Energy Action Area.

A more detailed survey of the existing residentialand non-residential properties should be carriedout to determine the actual potential for retrofittingrenewable energy installations and energyefficiency measures. Such measures wouldinclude, for example, PV, wind turbines (buildingintegrated or stand-alone), cavity wall insulation,loft insulation and external cladding of solid walls.

9.3 Heat Network for Existing Buildings

A further energy efficiency option is to connect allthe existing buildings to the Barking Town Centrecommunity heating network. Installing communityheating networks in the existing domesticproperties could cost in excess of £10m.Appendix 11 analyses the potential for a heat

network outside the new build areas themselvesand concludes that the potential CO2 reductionsfrom connecting the existing housing/buildingsstock to district heating could be very large:14,958 tonnes per year if heat from BarkingPower station is used.

The table below shows a summary of the overallcarbon savings for measures to the new-build andthe existing stock. The biggest saving by far is theconnection of existing stock to district heating, somethree times the savings achieved through connectingnew build to community heating. The additional costof achieving this is £8.1m over 25 years, comparedto the additional cost for the new-build of £6.07m forthe Barking Power station option.

This clearly shows that the opportunity to connectthe existing stock to district heating should bepursued, if this additional funding can be sourced,for example from EEC funding. However, the tableabove actually involves double counting as anumber of the energy efficiency measures shouldnot be undertaken in conjunction with communityheating. Condensing boilers could not be used inconjunction with community heating (it is a competing heating technology) and solar water heating would have little benefit inconjunction with community heating. If communityheating is rolled out to existing buildings thenthese energy efficiency measures should not betaken forward. Please see Appendix 1 for furtherdetails on further technical studies that would beuseful for progressing the Energy Action Area.

Table 15: Potential CO2 Emissions Reductions

Sector Measure CO2 tpa

All Curent Baseline 45,580

All Future Baseline BAU 52,563

Newbuild10% Renewables -2,090

Heat from Barking PS -4,500

Existing buildingsEnergy Efficiency -4,488

Heat from Barking PS -14,958

All New Total 26,527

All % CO2 saving 42%

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9.4 Developing an Active EnergyEfficiency Programme in Barking Town Centre

Implementing these energy efficiency measureswill require a proactive energy efficiencyprogramme in the town centre. The two keyelements involved are the promotion ofgovernment and energy utility grants to residentsand also the development of new grantprogrammes specific to Barking Town Centre byforming partnerships with energy utilities andother funding bodies. The Council can alsodirectly improve the energy performance of itssocial housing stock and harness energyefficiency grants for council housing. The Councilis most likely to be able to bring-in additionalfunding if it has established good marketingprogrammes that are successful in accessing allsections of the community.

LBBD already has a partnership with LondonWarm Zone which provides a fuel povertyprogramme for households in the borough. On award by ward basis they are providing every fuelpoor household with the opportunity of comingout of fuel poverty to cover all parts of theborough by 2013. As LBBD is already workingwith London Warm Zone they might be the bestvehicle through which to implement this towncentre energy efficiency programme – but LBBDshould consider all prospective partners includingthe North East London Energy Efficiency AdviceCentre or other specialist energy efficiencyagencies in determining the best approach to theprogramme. The Council may even wish toestablish an energy agency within Barking TownCentre so as to provide a local presence for theenergy efficiency programme – this could behoused within the Barking ESCo.

The Council is also part of the Solar for Londonscheme which provides grants and installationsupport to householders for solar water heatingsystems – this could be built upon to deliver aretrofit renewable energy programme for existinghousing. In addition the implementation of DecentHomes improvements provides the Council withthe opportunity to significantly improve insulationlevels in council properties as the properties willalready be having works carried out.

Action 20: Work with energy efficiency deliverybodies to implement a pro-active energy efficiencyand renewable energy installation programmeacross existing council and private propertieswithin the BTC Energy Action Area.

Task 20.a - Appoint dedicated project manager tooversee energy efficiency programme for existingbuildings in Barking Town Centre.

Task 20.b - Co-ordinate with existing structures/delivery partners such as Warm Zones to bringtogether insulation and renewable energy fundingstreams within the Energy Action Area.

Task 20.c - Commission a more detailedfeasibility survey of retro-fit renewables andenergy efficiency measures on existing buildings.

Task 20.d - Establish tools to provide support for residents/businesses/organisations in existing buildings, such as a helpline anddedicated webpage.

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10. Promoting and Marketing the Energy Action Area

10.1 Promotion of the Energy ActionArea to Local Stakeholders

10.1.1 Contributing to the positive image forBarking Town Centre

The Energy Action Area presents LBBD with arange of opportunities to engage and inspire thelocal community, disseminate ideas relating tosustainable energy choices and environmentalissues, and enhance the image of Barking TownCentre for both the local area and outsideaudiences. There are a number of barriers andchallenges to the successful promotion of theEnergy Action Area, such as lack of knowledge ofthe benefits of renewable energy technology,appropriate targeting of key audiences andensuring that the stakeholders most affected bythe development are kept informed and engagedwith the process. Addressing these challenges willenable LBBD to engage fully with the localcommunity and use the implementation of theEnergy Action Area to develop more positiverelationships with stakeholders.

The image of the designated Energy Action Areawill be greatly improved if the local communitycan take pride in what is being achieved, whetherthrough having their opinions considered duringthe regeneration process, or through theinstallation of tangible renewable energytechnologies, which can act as a landmark for thelocal area and a positive advert for low carbondevelopment. For examples from other EnergyAction Areas, please see Appendix 16.

10.1.2 Developing an Energy Action Area brand

Developing a specific brand for the Energy ActionArea will allow LBBD to draw together the variousstrands of low carbon regeneration and presentthem as an effective whole to stakeholders.The Greater London Authority have ownershipof the Energy Action Area brand and will need to be involved in the brand development forBarking Town Centre.

10.1.3 Potential tools for promoting the EnergyAction Area

There are a number of potential tools for consultingon and promoting the Energy Action Area:

• Consultation - focus groups, workshops andopen days give residents and local businesses achance to express any concerns they may haveregarding the developments, which will alsoprovide LBBD with an idea of what barriersneed to be addressed.

• Active local engagement in energy issues -developing links with local residents’ andbusinesses groups or including a communityrepresentative on local residential managementgroups provide an opportunity to engage withthe wider community.

• Community Funding - producing a guide tofunding possibilities and coordinating communityenergy projects would help the wider communityto become directly involved in the low carbon development.

• Advice and Dissemination of Information - anenergy advice line and dedicated website or webpages will help local residents and businesses toreduce their own carbon emissions

• Local Issues - the most effective approach tocommunicating environmental messages is tomake climate change issues a key part of theeconomic and social regeneration of the area

• Events - the Energy Action Area can besuccessfully linked to current successful andrecognised events, presenting the opportunity tocapitalise on an already interested audience,through information stalls or leaflet distribution.

• Landmark installations - although theseinstallations might not have a large impact oncarbon reduction they will provide a tangibleimage for the community and for publicity ofthe project.

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• Engaging with Schools - focusing informationcampaigns on school children is an effectivemeans of approaching a wider target audienceand presents opportunities to deliver keymessages through creative media.

• Engaging with the renewable energy sector -coordinating toolkits, reports and disseminationevents could be an effective means of publicisingLBBD’s achievements and the successes of theEnergy Action Area, while maintaining interest inthe targets of the regeneration.

For further detail on these promotional toolsplease see Appendix 17.

10.2 Marketing Opportunities fromEnergy Action Area Implementation

10.2.1 An innovative and green marketing message

Energy Action Area status provides BTC with theopportunity to become a showcase area forLondon’s future development mechanisms,making BTC itself synonymous with an innovativeand practical approach to urban development.This will complement LBBD’s aims to regenerateBTC economically and socially, as well asachieving a high standard in taking action tomitigate climate change. Low carbon developmentstatus provides ample opportunity to repositionBTC as not just a regeneration area, but amodern and positive place to live, work and invest,with good potential for positive press interest toraise the area’s profile.

The implementation of the Energy Action Areawill provide LBBD with further opportunities todevelop a positive relationship with currentresidents and businesses, while attracting interestfrom outside the area. LBBD will be seen to be anactive local authority, delivering majorimprovements for the area and addressingenvironmental challenges.

10.2.2 Current marketing messages

The current key messages for LBBD’sregeneration marketing team focus on promotingBTC as a good place to live and work, withEnergy Action Area information included whenBTC is being placed in a wider context. Thesemessages aim to raise the profile of the area andchallenge the present perception of Barking &Dagenham as a social housing borough. Thereare two main strands of this message: developinga more positive profile for BTC to outsideagencies and engaging with residents regardingthe changes in their area.

The strategy has a particular focus on housingchoice, with the regeneration aiming to provideaspirational and affordable housing. A keymessage here is the emphasis on presentresidents being included in the change, ratherthan ‘gentrification’ - often seen as the negativeeffect of regeneration - causing local people to beunable to remain in BTC.

Transport is a very important part of message,both for the reduction of car use which will beimplemented through the Energy Action Area,and emphasis on the good public transport links to central London. LBBD have a strategic transport group working on the delivery ofthis key message.

The Energy Action Area is presently acomplementary element of a wider marketingstrategy to improve perception of BTC. However, asthe implementation of the low carbon developmentbegins, some elements of the regeneration mayrequire a more tailored approach.

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10.2.3 Benefits of the Energy Action Area forpeople using Barking Town Centre

Successful employment of carbon reductionmeasures and environmentally sensitive designthroughout the BTC Energy Action Area willproduce results that will achieve London-wide andpossibly national recognition and acclaim. It willbe an impressive example for other localauthorities to follow and reproduce elsewhere, ofhow to successfully reduce carbon emissions inthe battle against climate change.

It is important that parties involved in theimplementation of the Energy Action Areameasures, from LBBD to the developers,understand the benefits that low-carbondevelopment can bring about, in order to achieve an increased level of commitment to their incorporation.

Although the incorporation of low carbon featurespresent a number of challenges to developers (asbriefly listed in section 4.3 and further elaboratedin Appendix 12), developers will also benefit in anumber of ways from developing in Barking TownCentre Energy Action Area. These benefits todevelopers include:

• Improving the developer’s reputation andexpertise in this field of increasing importance,particularly through involvement in landmark lowcarbon developments;

• Helping developers get ahead of the game interms of building low carbon developments withlegislative requirements continuing to becomemore and more stringent in future years;

• Increasing saleability with the units beingmarketed as green homes;

• The Energy Action Area status is likelyto assist developers in securing fundingopportunities; and,

• Energy efficiency and renewable energycontractors are more likely to get involved in, orassist with, developments in the Energy ActionArea than one-off developments elsewhere dueto the focus of sustainable energy activity.

Appendix 13 gives further detail on these benefits and how LBBD should highlight these todevelopers to encourage sign-on to the EnergyAction Area requirements.

There are also many benefits to residents,businesses and the public sector and these aredetailed in Appendix 14.

Action 21: Ensure engagement and buy-in fromall stakeholders, and promote the Energy ActionArea vision to the positive image of Barking Town Centre.

Task 21.a - Integrate the vision & objectives ofthe Energy Action Area within the marketingstrategy and materials for the regeneration plansfor Barking Town Centre.

Task 21.b - Consult on development proposalsand the Energy Action Area in general, providingeducation on renewables and community heatingas part of developments.

Task 21.c - Encourage the inclusion of energyrepresentatives from residents and businesses,carry out information campaigns, provideinformation on funding sources, and delivereducation on community heating in areas ofexisting buildings.

Task 21.d - Establish partnerships betweenrelevant officers and local delivery agencies toensure that programmes to encouragebehavioural changes are developed.

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11. APPENDICES

1. Technical Studies to support theImplementation of the Energy Action Area

2. Training and Support for Stakeholders

3. Wider policy context relevant to Barking TownCentre and sustainable energy

4. Funding and Financing Options

5. Historical Development of Community Heating Schemes

6. Temporary biomass boilers and requirementsfor fuel

7. New build areas and heat map ofnew build areas

8. Community Heating Energy plant sites aroundBarking Town Centre

9. Milestones for Developments - Opportunitiesfor each Development

10. Energy Efficiency Options for ExistingResidential Properties

11. CHP Option Analysis for existing residential properties

12. Potential pressures on developers

13. Benefits to Developers of building in theEnergy Action Area

14. Benefits of the Energy Action Area forResidents and Public Sector

15. Public consultation from other Energy Action Areas

16. Examples of promotional tools from otherEnergy Action Areas

17. Potential Tools for promoting the EnergyAction Area

18. Public Consultation Event Held in Barking as part of Study

19. Further Information from Public Consultation Event

Please see separate report, Barking Town Centre Energy Action Area Implementation Plan:Appendix, for detailed appendices (this report is available from the Council).The contents of this report are as below.

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Published by the London Borough of Barking and Dagenham, November 2006, CC2104