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Sustainable Energy in Cities

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Sustainable Energy in Cities David Hawkey dave.hawkey_at_ed.ac.uk www.heatandthecity.org.uk Swedish DH sources Ericson, K., 2009. Introduction and development of the ... – PowerPoint PPT presentation

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Title: Sustainable Energy in Cities


1
Sustainable Energy in Cities
  • David Hawkey
  • dave.hawkey_at_ed.ac.uk
  • www.heatandthecity.org.uk

2
Overview
  • What is district heating?
  • Development of heat networks
  • Organisational issues
  • Examples
  • UK context
  • Heat map exercise

3
Cities contribution to GHG emissions
  • 7580 of anthropogenic GHG emissions?
  • Stern review, Clinton Climate Initiative, GLA,
    etc.
  • What constitutes a city?
  • Production vs consumption
  • Location vs administration
  • Cities are sites in regional, national,
    international flows of resources and waste
  • Infrastructures enable various forms of
    circulation and metabolism

4
Electricity production
5
Building energy supply
6
District heating
  • Delivery of low grade heat from central sources
    for space and hot water
  • System of insulated pipe work (with leak
    detection)
  • Heat exchange unit or direct feed in buildings

7
District heating networks Aberdeen
8
District heating networks Copenhagen
9
District Heating sources
  • Low carbon
  • Low cost
  • Renewable
  • Waste heat and heat from waste
  • Efficiency
  • Local pollution
  • Flexibility
  • Energy security
  • Community participation
  • Electricity balancing

10
Combined Heat and Power (CHP)
11
(No Transcript)
12
Energy system integration
  • c

13
Operational flexibility and balancing
14
Developing DH networks
  • High upfront costs for plant and network
  • Heat density
  • Heat diversity
  • Anchor loads
  • Long payback periods / modest returns
  • Strong mutual interdependencies
  • Uncertainty in subscriber behaviour
  • Monopoly supplier
  • Local delivery vehicle

15
  • From King, M., Shaw, R., 2010. Community energy
    planning, development and delivery.
    http//www.chpa.co.uk/media/28c4e605/Comm_Energy_P
    lanDevDel.pdf

16
Objectives
  • Environmental
  • Reduced local and global pollution
  • Waste management
  • Energy system
  • Short and long term flexibility
  • Deployment of renewable sources
  • Consumer
  • Reduced energy bills / fuel poverty
  • Shielding subscribers from fluctuating energy
    prices
  • Economy
  • Revenue generation / localisation of energy
    payments
  • Area regeneration
  • Employment

17
Data gathering
  • Heat mapping spatiotemporal demand patterns
  • E.g. energy bills, thermographic imaging,
    building surveys
  • Daily and seasonal patterns
  • Long term pattern of heat demand development
  • Existing heating systems and contractual
    commitments
  • Barriers and opportunities

18
Project definition
  • Stitch network into complex sociotechnical
    terrain
  • Subscriber perspectives
  • Connection to a monopoly supplier
  • Unfamiliar technology / uncertain performance
  • Domestic, commercial and public sector have
    different needs and capacities
  • Minimise early development risk
  • Phasing development of supply and demand
  • Reduce complexity
  • New development / existing buildings
  • Costs less, dependent on construction schedule,
    lower heat density

19
  • Source AEA Technology

20
Financial feasibility
  • Courtesy Regen SW via King, M., Shaw, R., 2010.
    Community energy planning, development and
    delivery. http//www.chpa.co.uk/media/28c4e605/Com
    m_Energy_PlanDevDel.pdf

21
Financial viability
22
Business model and organisational form
  • Revenue
  • Heat tariff structure and electricity sales model
  • Use of surplus revenues
  • Ownership/governance models balance risk and
    control between stakeholders
  • Large subscribers, local authority, utility
    company, specialist DH company, community
    representatives
  • Affects access to financial resources, in-house
    skills and experience
  • Affects balance between commercial and
    socio-environmental goals
  • Division of activities ESCo, HeatCo, GenCo, etc.

23
Aberdeen Heat and Power
  • Arms length, non-profit ESCo established by
    council
  • Surplus reinvested and/or used to reduce bills
  • Volunteer board (includes two councillors)
  • Fuel poverty main driver
  • Gas CHP, passive gas/electricity contracts
  • Financed through council capital budgets, grant
    funding and commercial loan (council guarantee)
  • Supplies social housing and public buildings
  • Domestic heat not metered
  • Expanding to supply commercial users

24
Birmingham District Energy Company
  • Wholly owned subsidiary of Cofely (GDF-Suez)
  • Partnership (and profit share) with city council
    and other large heat users
  • Council energy cost saving driver
  • Financed through grant funding and Cofelys
    resources
  • 3 city centre gas CHP networks
  • Mix of large public commercial buildings
  • Procurement and contract challenges

25
Thameswey Energy Ltd
  • Public/private joint venture Woking Borough
    Council and Xergi
  • WBCs share of dividends recycled into
    environmental projects
  • Cost saving and environmental entrepreneurialism
  • Finance (and refinance) complex mix of grants,
    commercial lending, WBC borrowing
  • Gas CHP, private wire and active energy trading
  • Public and commercial buildings

26
Key Stakeholders Local Authority
  • Have strategic, long term view of area plus
    social responsibilities
  • Democratic oversight mitigates subscribers
    perceptions of monopoly risk
  • Planning policy can encourage connection and
    shape heat supply/demand patterns
  • Control large heat demand on own estate
  • Accept low (social) rates of return, but
    financially constrained
  • May adopt cross-subsidy model
  • DH cuts across traditional departmental divisions

27
Key stakeholders Energy companies
  • Have in-house expertise and systems (e.g.
    retailing, energy markets, commercial and
    technical expertise)
  • Coordinate with existing asset portfolio
  • Large balance sheets / financial resources
  • Require higher rates of return
  • Global companies global competition for
    investment opportunity
  • Economic rationality unlikely to support
    cross-subsidy
  • DH may compete with incumbent interests

28
Other key stakeholders
  • Large heat subscribers and heat sources
  • May seek ownership/profit share in exchange for
    commitment and to mitigate own risk
  • Community organisations
  • Opportunity for urban community energy initiative
  • Enthusiasm, but limited financial, technical,
    commercial resources
  • Involvement in governance may aid legitimacy

29
International comparison
30
Denmark
  • Severe impacts of 1970s oil crisis
  • Sunday driving bans
  • 1979 Heat Supply Law required LAs to map heat
  • Zones identified for DH in which
  • Electric heating banned
  • Gas network not developed
  • Connection made mandatory
  • Large networks non-profit municipal DH companies
  • Competition in supply
  • Loan finance with municipal authority backing
  • Feed in tariff for CHP
  • Sharing expertise through District Heating
    Association

31
Heat sources in Denmark
32
Renewables in Denmark
33
Sweden
  • Handful of CHP based systems in 1940s
  • Municipal authorities central to housebuilding in
    1950s and 1960s
  • Unitary model of infrastructure provision
  • Oil crises led to national focus on DH
  • National loans and tax/subsidy schemes
  • Weaker powers to compel connection than Denmark
  • But control over electricity network via
    municipal companies
  • DH companies restricted to LA areas -gt
    cooperation
  • Liberalisation of DH private ownership and
    rising tariffs

34
Swedish DH sources
  • Ericson, K., 2009. Introduction and development
    of the Swedish district heating systems
    http//www.res-h-policy.eu/downloads/Swedish_distr
    ict_heating_case-study_(D5)_final.pdf

35
UK Historical context
  • Nationalised energy industries (1940s)
  • No municipal involvement in energy provision
  • Electricity industry pursued increased electrical
    efficiency (i.e. larger centralised plant)
  • Energy production increased in response to
    resource constraints
  • National programme of conversion to natural gas
  • Poorly installed coal-based systems in 1960s
  • Lead cities programme in 1980s found raising
    private finance difficult

36
UK DH context
  • DH not specifically regulated
  • Subscriber and developer risks
  • Limited standardisation
  • Consumer charters, technical standards, appraisal
    methodologies
  • High proportion home ownership
  • Limited skills and supply chains
  • Unpredictable bursts of grant funding
  • Competing visions of low carbon heat future
  • Difficult to capture external benefits in
    business model

37
UK contemporary energy context
  • Retail dominated by six integrated utilities
  • Electricity generation and network operation
  • Subsidiaries of international companies / LSE
    listed
  • Some DH specialist companies (UK subsidiaries)
  • Low gas prices
  • UK net importer 2004
  • Access to electricity markets hard for small
    generators
  • CCGT electricity prices follow gas
  • Spark spread recently grew, envisaged to grow
    further
  • Assumptions about consumer preference for
    switching
  • Large penetration of inflexible generators planned

38
UK local government context
  • Growing number of LAs interested in DH
  • Uncertainties around constraints on private
    sector engagement
  • Fragmentation of local governance
  • Constraints on LA powers and freedoms recently
    relaxed
  • Power of well being, sale of electricity,
    prudential borrowing
  • Local planning policy encouraged but authorities
    fear development flight

39
UK/devolved governments
  • UK and Scottish govts increasingly positive
  • UK infrastructure plan
  • Scottish DH loan fund and expert commission
  • Rapidly developing energy policy
  • Changing energy tax regime
  • Capacity payments and demand side response?
  • Different heat mapping approaches Eng/Scot
  • English building standards driving some activity
  • History of unpredictable grant funding

40
Conclusions
  • DH offers significant contributions to urban
    sustainable development
  • Environmental, social, economic
  • Development is a complex heterogeneous
    engineering problem
  • Coordination challenges exacerbated by
    fragmentation of governance and liberalisation of
    energy
  • Opportunities shaped by range of factors
  • Physical, administrative, legal, commercial,
    financial
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