HEAT NETWORK PARTNERSHIP DISTRICT HEATING STRATEGY SUPPORT WORKSHOP

HEAT NETWORK PARTNERSHIP DISTRICT HEATING STRATEGY SUPPORT WORKSHOP THE STRATEGIC APPROACH Peter North September 2015

Reducing London’s CO 2 Emissions • • • 30% of London’s CO 2 emissions are attributable to consumption of heat (mostly mains gas) Greatest opportunity for CO 2 reduction within London is to reduce demand for heat through building retrofit and low carbon, local (decentralised) heat supply. Decarbonising electricity supply is better placed as a national action (nuclear, wind, carbon capture and storage)

The London Plan (2011) The London Plan is the overall strategic plan for London, to which London Boroughs’ local plans need to be in conformity with. Chapter 5 sets out policies in accordance with the hierarchy: In particular: • Policy 5. 2 sets CO 2 reduction targets from energy efficiency interventions for both residential and non-residential buildings until 2031 (zero carbon) • Policy 5. 5 sets the policy requirements for London Boroughs to identify and establish DE networks, including the development of Energy Master Plans • Policy 5. 6 sets out the policy requirements for development proposal with regards DE

The Mayor’s Climate Change Mitigation and Energy Strategy - October 2011 • • London’s CO 2 emissions reduction targets Reductions based on 1990 levels: o 2015 (interim target) 20% o 2020 (interim target) 40% o 2025 60% o 2050 at least 80% 25% from decentralised energy by 2025 An £ 8 bn investment opportunity

Programme Development Methodology • Capacity Building • Heat Mapping • Policy Support • Resourcing 5

Heat Mapping

Energy Masterplanning Energy Masterplans • • • Identify larger scale DE opportunities Long-term vision for heat network growth Develop planning policies to promote connection to heat networks Deliver Policy Objects • • CO 2 reduction Inward investment Anti-poverty Fuel poverty Income generation Energy efficiency Business-as-usual

Upper Lee Valley Opportunity Area Energy Strategy EOn 400 MWe Enfield Power Station (~12 MWth potential LP steam) Johnson Matthey Industrial Plant (potential low grade heat rejection & existing CHP) ~7. 5 km Proposed Gasification Plant (potential for ~10 MWth) Broadwater Farm LWL Edmonton Eco. Park (~1860 MWth; 8 -23 MWe) District Heating Network Option: British Waterways Corridor District Heating Network Option: Network Rail Corridor

STRATEGIC DEVELOPMENT • Project defined by the Energy Masterplan • Long-term development plan • Private leadership requires guaranteed major initial heat load (note industrial loads unreliable), otherwise: • Public involvement: – – – Planning policy Safeguarding (routes and energy centres) Heat load guarantee Public finance (3. 5% to 6% IRR) Public delivery vehicle Policy delivery (fuel poverty, carbon reductions etc) • Continue public ownership, refinance or exit to private sector

Strategic Principles Energy Principles – Security of supply – Sustainability – Affordability Strategic Priorities – – – Environmental Growth Poverty Affordable warmth Revenue generation Approach – – – – Scale Available energy sources Heat demand densities Overarching scheme Policy evidence base Phased implementation Delivery strategy

Conclusions • Plan big, start small • Idea to construction three to seven years • Public leadership essential - where more • Persevere – many than two entities are blind alleys involved • Political support • Senior officers’ agenda • The Champion

References [1/2] • Mayor’s Climate Change Action Plan, GLA 2007 (http: //legacy. london. gov. uk/mayor/environment/climatechange/docs/ccap_fullreport. pdf) • Delivering Decentralised Energy, London First 2008 (http: //londonfirst. co. uk/wpcontent/uploads/2012/10/DE_report_summary_low_res_FINAL-1. pdf) • Powering Ahead, GLA 2009 (https: //www. london. gov. uk/sites/default/files/archives/mayor-publications 2009 -docs-powering-ahead 141009. pdf) • The London Plan, GLA 2011 (https: //www. london. gov. uk/priorities/planning/publications/the-london-plan) • Mayor’s Climate Change Mitigation and Energy Strategy, GLA 2011 (https: //www. london. gov. uk/sites/default/files/Energy-future-oct 11. pdf) • London Heat Map, GLA 2011 (www. londonheatmap. org. uk) • Decentralised Energy Capacity Study, GLA 2011 (https: //www. london. gov. uk/priorities/environment/decentralised-energycapacity-study)

References [2/2] • Decentralised Energy Programme, GLA 2011 (http: //www. london. gov. uk/priorities/environment/tackling-climatechange/energy-supply) • The Future of Heating – Strategic Framework, DECC 2012 (https: //www. gov. uk/government/uploads/system/uploads/attachment_data/ file/48574/4805 -future-heating-strategic-framework. pdf) • The Future of Heating – Meeting the Challenge, DECC 2013 • (https: //www. gov. uk/government/uploads/system/uploads/attachment_data /file/190149/16_04 -DECC-The_Future_of_Heating_Accessible-10. pdf) • London Zero Carbon Energy Resource, GLA 2013 (http: //www. london. gov. uk/sites/default/files/031250%20 GLA%20 Secondary% 20 Heat%20 -%20 Summary%20 Report_0. pdf) • London Heat Network Manual, GLA 2014 (https: //www. london. gov. uk/priorities/environment/district-heating-manualfor-london) • London Infrastructure Investment Plan , GLA 2014 (http: //www. london. gov. uk/priorities/business-economy/vision-andstrategy/infrastructure-plan-2050)

CONTACT Peter North Senior Manager Programme Delivery – Sustainable Energy Greater London Authority peter. north@london. gov. uk