local energy supply: opportunities, archetypes and outcomes
TRANSCRIPT
School of Earth & EnvironmentSUSTAINABILITY RESEARCH INSTITUTE
Local Energy Supply: Opportunities, archetypes and outcomes
Dr Stephen Hall and Dr Katy Roelich
APSE Southeast Workshop 16th July 2015
2
Report structure
1. Motivations
2. The four opportunities
of local supply
3. Archetypes of local
supply
4. Barriers
5. Recommendations
3
Methods
• Literature review
• Local Supply Working
Group Written
submissions
• Local Supply
Workshop outputs
• 12 Primary interviews
4
Motivations
5
The four opportunities of local supply
Re-localisingenergy value
Better routes to market for local
generationEconomic
Social
EnvironmentalReal energy efficiency gains
Self-determination
Fulfilling the potential of the
demand side
Opportunities Outcomes
6
Archetypes
Current archetype
Local white labelling
Energy local
Licence light
Municipal utility
Municipal ESCo
Multi-utility service company
Peer to peer
Peer to Peer with Local Balancing Unit
Not for profit national administrator
7
Archetypes - Current
8
Archetypes – Local Aggregator
9
Mo-ESCo
10
Archetypes – P2P with Local balancing unit
11
Archetypes – NFP national administrator
12
Mapping archetypes to opportunities
13
Barriers
Archetype Regulation Capacity Experience
and risk
White Label Low Low Low
Local Aggregator Medium Medium High
License Lite Low High High
Municipal Utility Medium High High
Municipal ESCo Medium High High
Multi Utility Service High High High
Peer to Peer Medium Medium High
P2P with Local Balancing Unit Medium Medium High
NFP national supplier Low Medium Medium
14
Reccomendations
Long term
Short-term
Exempt service-oriented models form switching requirements
Investigate treatment of demand reduction centred business models in regulation and policy
Local supply innovation fund
A ‘portal of power’
Resource Local Supply Working Group
MediumTerm
Amend tariff limits for local supply archetypes
Allow for ‘local balancing unit’
Exemption from requirement for national supply
15
Existing impact
School of Earth & EnvironmentSUSTAINABILITY RESEARCH INSTITUTE
Thank you for your attention!
Contacts: [email protected]@leeds.ac.uk
Website: http://sure-infrastructure.leeds.ac.uk
Wolverhampton. Making it happen
Smart grids & energy projects in Wolverhampton
APSE Renewables & Climate Change advisory group
Cambridge, 16 June 2015
Ric Bravery, Sustainability Officer, Wolverhampton City Council
Wolverhampton. Making it happen
Content
• Wolverhampton in context
• What is a smart grid?
• ORCSEN: the acronym!
• Wolverhampton energy projects
Wolverhampton. Making it happen
Wolverhampton in context
Wolverhampton. Making it happen
Wolverhampton is…
• A city of 250,000
• In West Midlands met area
• Millennium city
• Middle Ages - market town
• Industrial revolution – manufacturing town• Now seeking to regenerate & rebuild• Retains strong engineering base• Growing population: 30% BME including 9% Sikh
Wolverhampton. Making it happen
… part of the Black Country
• Four boroughs, population 1.14m
• Joint Core Strategy & LEP
• WCC lead for Black Country LEP on low carbon
• Green Growth Plan
• Joint funding for low carbon & environment through ESIF
Wolverhampton. Making it happen
What is a smart grid?
Wolverhampton. Making it happen
A definition:
• ‘a modernised electricity grid that uses information and communications technology to monitor and actively control generation and demand in near real-time’, Smart Grid Vision & Routemap
Wolverhampton. Making it happen
Drivers of smart grids
• A deeply inefficient UK energy system
• Reducing IT costs
• Rising energy costs
• New storage & generation technologies
• Government policy
Wolverhampton. Making it happen
Pros & Cons of Smart Grids
Pros:
• New revenue streams
• Reduced fuel poverty
• Community involvement & ownership
• Faster fault finding & switching
• Jobs
Cons:
• Upfront costs
• Privacy concerns
• Unequal impact
• Increase complexity
• Uncertain future
Wolverhampton. Making it happen
What does a Smart Grid look like?
Wolverhampton. Making it happen
Smart meters
• A building block of the smart grid
• Roll-out due to be complete by 2020
• Should save money, deliver accurate bills, facilitate switching
• Concerns over privacy, effectiveness & programme
Wolverhampton. Making it happen
Smart tariffs
• Price signals shift energy usage according to time of day – like Economy 7
• Either static (the same every day) or dynamic (changing in real time)
Wolverhampton. Making it happen
Smart appliances
• Automation of white goods, chargers, electric heating...
• Big Brother effect – override is essential
• Substantial price increase, to be offset against energy bill savings
Wolverhampton. Making it happen
Decentralised generation, storage & distribution
• Smart grids are essential for decentralised network
• Opportunity for ‘prosumers’ and community schemes
• The most important form of household-level storage: insulation
ORCSEN: the acronym
ORCSEN =Optimising Regional
Clusters of Smart Electricity Networks
Wolverhampton. Making it happen
ORCSEN
• May 2015 – April 2016
• Funded by Innovate UK (Technology Strategy Board)
• Partners:o Encraft Ltd
o e2E Technology
o EA Technology Ltd
o Aston University
o Western Power Distribution
o Wolverhampton City Council
o Black Country LEP
Wolverhampton. Making it happen
ORCSEN is about…
• Creating new kinds of control equipment to support smart grids
• Enabling local generation, storage & distribution of electricity below the level of the sub-station
• Early stage feasibility study to explore potential for such technologies in Wolverhampton & Black Country
Wolverhampton. Making it happen
ORCSEN Programme 1
1. Identify strategic sites for case study & network characteristics (under way)
2. Build baseline model of local distribution network for sites identified
3. Define scenarios for likely changes in technology & how they will affect network design
4. Identify likely constraints & opportunities on baseline network
Wolverhampton. Making it happen
ORCSEN Programme 2
5. Develop cost effective technical solution to network challenges highlighted
6. Re-run baseline model with new inputs to test feasibility
7. Develop plan to exploit any Intellectual Property Rights from project
8. Project Management
Wolverhampton. Making it happen
Wolverhampton energy projects
Wolverhampton. Making it happen
The council’s Energy Fund
• Started in 2010
• Followed Salix Scheme & applied similar principles
• £250,000 allocated p.a. up to a total value of £1.1 million
• Used to fund energy / water saving schemes at schools & corporate buildings with the money saved being used to repay the fund
• Projects have included low energy / LED lighting, Building Energy Management Systems, Condensing Boilers, variable speed drives for motors …
Wolverhampton. Making it happen
Solar programme – Civic Centre 1
• Started tender process in autumn 2010
• Due to reductions in FiT payments, scheme limited to 49kW
• Contract awarded to Kier Group, summer 2011
Wolverhampton. Making it happen
Solar programme – Civic Centre 2
• Scheme comprising 270 solar panels completed in November 2011
• Project cost = £130,000
• Average annual FiT income = £14,000
• Imported electricity saving = £3,700
• Pay back : £130,000 / £17,700 = 7.5 years
Wolverhampton. Making it happen
Wider solar programme 1
• £1.2 million budget for programme at council buildings
• 1st order placed in May 2014
• From an original schedule of 22 sites:
o 15 installations complete – 605 kWp
o 1 is being finalised
o 6 were not carried out due to a number of issues –asbestos tiles, structural problems, uncertainty about future of building
o 3 additional schemes have now been approved, 2 of which have been completed – 81 kWp
Wolverhampton. Making it happen
Wider solar programme 2
• Solar farm on an old plant nursery has been looked at but issue with power supply – new sub-station would be required
• Schools – schedule of potential schemes being drawn up
• Civic Halls refurbishment - now includes solar panels, subject to planning / structural approval
Wolverhampton. Making it happen
Wider Solar programme 3
• Total cost to deliver the 17 schemes = £870,000
• Annual financial benefit to council = £128,000
• Overall payback around 6.6 years
• Probably nearer 7 years when all design, planning & structural costs are finalised
Wolverhampton. Making it happen
Wolverhampton. Making it happen
Bio-mass boilers – corporate buildings
• £1.05 million funding for a schedule of containerised bio-mass boiler installations at various Council properties - 1st
order placed in October 2014
• From a schedule of 6 sites, the 1st boiler installation was completed end of May 2015, this is a 200 kW unit for Aldersley Leisure Village
• The remainder will follow on from this, however, some jobs may be put on hold due to uncertainty about future of buildings
Wolverhampton. Making it happen
Wolverhampton. Making it happen
Bio-mass boilers – schools
• Already have 1 containerised bio-mass boiler installation at Goldthorn Park School – this was paid for out of the council Energy Fund, with money paid back using the Renewable Heat Incentive (RHI) payments
• Also 3 other Schools with bio-mass boilers installed in the existing boilerhouses
Wolverhampton. Making it happen
Wolverhampton Homes
• Wolverhampton Homes: Arms Length Management Organisation (ALMO) managing council housing
• 2007: 50 solar panels on Graiseley Court high rise
• 2007: pilot scheme for solar thermal on 14 properties
• 2011: 1mw biomass boiler in district heating serving c1,200 properties at Heath Town estate;
• 2012: solar panels on 56 properties, St Chads estate
• Currently exploring other solar PV opportunities
Wolverhampton. Making it happen
Any questions?
Wolverhampton. Making it happen
For any more information contact…
Ric Bravery, Sustainability Officer, Wolverhampton City [email protected]
01902 552177
ORCSEN:Kate Ashworth, Encraft
[email protected] 312159
Wolverhampton council’s energy programme:Keith Daw, Energy Manager, Wolverhampton City Council
01902 [email protected]
Wolverhampton. Making it happen
Additional credits
• Conrad Steel, Consumer Futures (now Citizens Advice) for Smart Grid slides
APSE Renewables and Climate Change Advisory Group
16th June 2015
James Owen
About Us
• Wholly Owned Company of Swindon Borough Council (SBC) – 100% Shareholder
• Employs circa 50 staff
• Turnover of circa £12m
• 3 business units:
– Power Solutions
– Waste Solutions
– Heat Solutions
What our Business is all about
Our Vision & Mission
• Our Vision is to be the provider of choice for innovative waste and power solutions
• Our Mission is to be a successful, respected provider of sustainable waste & power solutions by blending the best of public & commercial sectors for multiple stakeholder benefit
Power Solutions
• Brownfield Land
• Landfills
• Low Grade Agricultural Land
• Solar Noise Barriers
• Car Parks/Park and Ride
• Full development service
• DPS utilisation and management
Wroughton
Photomontage View
Braydon Manor
Landfill Solar
Solar Noise Barriers
DPS
What does the DPS do?
DPS(meets Public Sector Procurement Regulations / OJEU 2015)
PPS Solar Project (PPS as developer)
EPC
Funder
Revenue Assurance
Local Electricity
Supply
O&M
ICPPPA
LegalPlanners
All services required to successfully deliver a Solar
Development
Any Public Sector Solar Project (PPS as procurement manager)
Project Manager
Trust Fund Manager
DPS Overview
Why use the DPS?• Compliant with the new Public
Procurement Directive (2014/24/EU) & OJEU
• PPS acts as a Central Purchasing Body enabling the Public Sector to meet their obligations under Procurement Law
• Completing an OJEU tender takes time, money and resource
• The DPS already has all the services and suppliers in place ready to deliver all aspects of a solar project
What makes it unique to PPS?• PPS is a company wholly owned by SBC
and is therefore classed as a contracting authority meeting the following criteria:
Financed wholly or mainly by another contracting authority
Subject to management supervision by another contracting authority
More than half of the board of directors or members are appointed by another contracting authority
• No private sector company could do this unless they met the above criteria
• A local authority could setup a DPS –but why would they?
SRF Fuel Production Facility
Is taking this waste….
And turning it into this fuel!
Why deploy an SRF Solution?
• Landfill disposal costs increasing
• New technologies often talked about but what's actually possible today?
• Climate change impacts of landfill gases
• Damage to the fleet
• SBC wanted savings and the SRF plant saves them £2m per year compared with landfill disposal.
What did we learn?
• Its not easy
• Plant technology
• Manage the financial expectation
• Quality, quality, quality
• Mind-set
• What to do with by-products
Additional developments
• Washing plant
• Can baler
• Maximising plant potential
• Resource redistribution
• Closing the end loop – Residential Waste Collection to Residential CHP district heating from SRF.
• Community based ESCo’s
• Build more plants
Converging Businesses