Berkshire Economic Strategy Board Climate Berkshire Future Investments in Renewable & Low Carbon Power Generation Keith Richards 12 th July

Phase I and II study Completed December 2009 Reviewed current evidence base List of potential renewables projects Wind, wood and waste big hitters Role for solar technologies too + others Importance of the leadership role of LAs Draw in private sector too

Recommendations Develop a strategic approach including councillors, planners and influencers – meeting Show lead – 20% on-site renewables target for council properties by 2020 ESCo or other vehicle for financing projects and managing a portfolio Information campaign e.g. with schools, also business and home owners

Further project based studies Urban bioenergy (Reading) Rural bioenergy (West Berkshire)

Reading Civic Area Assessment of existing energy demand surrounding Reading Civic Centre Civic centre, police station, magistrates courts, offices, hotels, larger retail Opportunity for central CHP and district heating? Central plant within underground service area District heat network 1.3km Advanced technology option: Biomass CHP 70kWe 280kWth, boilers 2MW using locally supplied woodfuel Baseload heat demand from hotels, cooling via absorption chiller High investment costs – distribution pipe network, hard dig Successful scheme dependent on civic centre re-development, and significant public sector investment using low 3.5% finance rate

Coley High Rise 267 flats within 3 high rise towers All electric heating – high cost, poor control, high carbon emissions Majority Reading BC tenants Opportunity for central heat supply to new radiator systems Biomass heating plus possible gas CHP for baseload as hot water demand Gas CHP 135kWe 215kWth, biomass boiler 1MW using locally supplied woodfuel Retrofit of heating systems within flats presents significant challenge Successful scheme dependent on suitable site for energy centre Capital cost £2.2m, economics favourable with12% project IRR CO 2 emissions savings 2,800tonnes/yr

New Development Sites Future major new build sites within Reading Borough South Reading - Worton Grange, Berkshire Brewery, North of Manor Farm Road Central Reading - North of Reading station Mixed development, significant new residential build Central CHP, heat and cooling, woodchip, district energy Phased development, increase energy supply & network over time Gas/ biomass CHP, biomass boilers, gas boilers Developer contribution to offset % of scheme capital costs Projects IRR around 7% - public sector finance may be required Project economics dependent upon future technology costs, ESCo/ developer negotiations, gas & electricity markets

Rural District Energy Develop a methodology to assess candidate communities Select a lead community and carry out a feasibility study Financial analysis and way forward Use methodology to evaluate across Berkshire?

Rural District Energy (Wood) Off gas grid >3 significant heat sinks A clear anchor load Co-located Diversity of load Age of buildings Community interest Existing projects Local fuel supply

Candidates Bradfield Brightwalton Compton Kintbury Stratfield Mortimer

Brightwalton DE Scheme? SchoolSocial Housing Village Hall Church

Small Scale District Energy Scheme (Austria)

Brightwalton Scheme may be expandable Sovereign Housing Assoc. very interested Old stock, address fuel poverty issues Two private (large) thatched properties also interested in joining Look to establish a Community ESCo 50% capital from grants? HA plus private buy in/ shares?

International Energy Agency Conference 2011 Task 29 socio-economics lead addressing bioenergy and alleviation of fuel poverty DECC involvement etc Seeking case studies/ exemplars from HAs and LAs Maidenhead HA big programme starting on renewables Ditto Sovereign Reading and Oxford LAs very interested

2010 Developments Change of government/ policy (ongoing)

What is known …. Positive stance and targets will likely be increased (Carbon 20% t0 30% redn 2020?) Fiscal incentives FIT and RHI to be retained BUT..... Relevant grants have been removed Regional resources removed Regional planning and strategies removed Localisation agenda to be pursued with more power to local government

Feed in Tariff Introduced 1 st April 2010 Marketed as Green Cash Back PV, AD, Hydro, Wind, MicroCHP pilot Paid on all electrcity generated Up to 41.3p/kWh for PV (buy in 13p/kWh) A further 3p/kWh for units exported Halved the payback for PV

Renewable Heat Incentive First fiscal assistance for renewable heat – expected to be retained Recognising the importance Biomass, ASHP, GSHP, solar thermal Will commence 1 st April 2011? Up to 9p/kWhth for small biomass? Up to 18p/kWhth for solar?

Changed regional and local outlook

UK Government 80% reduction in carbon emissions by 2050

(Previous) Regional Emphasis DECC require a return to a standard approach to understanding renewables Evaluating the evidence base for renewables Creating scenarios for 2020 and 2031 Establishing new targets for delivery of renewable heat and power Decentralised energy theme

The Methodology

Assessment scale Geographical Scale Regional, county and where possible district level assessment Separate assessment of potential within designated areas Timescale Assessment for 2020 (Government target) and 2031 (Regional Strategy)

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100 50, Drax biomass Electrical Equivalents 100,000

Outputs GIS and tabulated local data enabling better understanding of potential (by County) Comparison tables allowing technology/ resource choices to be made Support to produce locally generated targets in tune with local priorities Support to planning/ decision making

Focus for the future Large projects ( multi MWe or MWth) will be handled by utility type organisations Small to medium scale e.g. community should be the focus Own buildings, schools, leisure centres..... Look for synergies with NHS, MoD, Police across the County maybe District energy, CHP (wood and waste) plus opportunities for early action e.g. PV

Financing How best to seize the opportunity presented by the FIT (and RHI)? Invest and own using own capital.... generate revenue streams Borrow.... e.g. Public sector 3.5% rate.... Partner (Public or Private)... maybe Form a bespoke ESCo and collaborate with other LAs/ partners Other (e.g. take a fee for access to roof space)

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