Base Birmingham 2013 Birmingham’s Decentralised Energy Potential Mike Smith - Cofely District Energy

Presentation ESCO’s The Birmingham ESCO - Birmingham District Energy Company(BDEC) Outline of the scheme, it’s customers and it’s benefits Plans and opportunities for expansion

Cofely District Energy Services to Energy Companies External Clients Energy Companies New ESCOs SGHC Cofely Ltd GDF SUEZ GDF SUEZ Energy Services LTD Cofely District Energy Group Ltd ICE (UK) Cofely District Energy Ltd BDEC BHP LDEC

Birmingham District Energy Company A partnership between: District Energy

Birmingham District Energy Company, Birmingham City Wide DE Scheme 12,000 tonnes CO 2 saved p.a. 3 Core Partners Providing heat chilled water & electricity from 3 Energy Centres 6.1MWe CHP

BDEC Timeline 2003 – BDEC scheme conceived after feasibility study 2005 – Tender Process Launched 2006 – Cofely DE selected as preferred partner 2006 – BDEC partnership formed -First 25 year agreement signed (after only 3 months!) 2007 – First scheme operational (Broad Street) 2009 – Aston University scheme operational (Eastside) 2010 – Birmingham Children’s Hospital operational (Eastside) 2011 – BDEC Partnership is cited for ‘Superior Achievement’ by International Energy Authority October 2011 – BDEC Scheme Re-launch

BDEC Large commercially developed CHP/district energy scheme Commenced Initial Schemes: City Centre, Aston University & Birmingham Children's Hospital £6.0 M p.a. Energy Sales £0.3 M p.a. cost savings to consumers 12,000 tonnes of CO 2 saved p.a. 6.6 MWe of CHP Supplying heating, cooling and electricity Project built on 20 year energy supply contracts Capital cost to date £7M

The Broad Street Scheme

Broad Street Scheme Core Scheme NIA Hyatt ICC The REP Paradise Circus Town Hall Council House Energy Centre

the NIA Energy Centre the ICC Council House Hyatt Hotel Town Hall the REP Broad Street Scheme

Birmingham - Eastside Schemes 1.Phase 1 – Birmingham Children’s Hospital and BCC Lancaster Circus  CHP – 1.5 MW in new energy centre  Application made for £1M NHS Capital Grant  Energy Sales - £1.04M  Carbon Savings - 3,500 Tons of CO 2 2.Phase 2 – Aston University  CHP – 2 x 1.5 MW in existing boiler house  Energy Sales - £2M  Carbon Savings - 5,300 Tons of CO 2

BCC BCH Aston University Regeneration Areas/ Potential Consumers Energy Centre Eastside Schemes

Aston University

Birmingham Childrens Hospital

BCH New Energy Centre

Masshouse/City Park Gate

HMCS: Magistrates Court

The Combined Schemes Potential future energy links Broad Street Scheme Eastside Regeneration Area Westside Regeneration Area Eastside Scheme Phases 1 and 2

The Business Benefits to Potential Third Party Consumers Capital cost savings – connection charge up to 20% less than conventional plant Space savings – direct connections mean no plant space required – very valuable in urban areas No roof mounted plant – planning gain Operating cost savings – up to 10% when compared to the alternative cost of heating/cooling Guaranteed savings – prices linked to basket of indices to ensure savings maintained throughout life of the contract Delivers on carbon saving targets and indicators Ensures full and genuine outsourcing of energy supplies = risk transfer

Future Proofing - Integrating technologies New technologies being actively considered:- Biomass – woodchip Energy from Waste Anaerobic Digestion Fuel Cells...and several others

Sustainability Achievements 17,000,000 kg of CO 2 saved (since September 2007) £300,000 savings per annum

Partnership Framework Strategic Board Energy Board Operational co-ordination Development co-ordination Ownership & Investment Project Governance Risk Transfer Joint Co-operation Energy Services

Birmingham - Award Winning Scheme 2011 Award Winner Premises and Facilities Management (PFM) Awards 2011 Partners in Expert Services & Overall Winner

The Future Vision 1.Expand both schemes to serve third party heating, cooling and electricity loads across their City area 2.Interconnect the two schemes 3.Introduce Biomass generation into the schemes – wood chip and digestion 4.Increase carbon savings from 12,000 to 20,000 Tons of CO 2 p.a.

Cofely’s UK District Energy Schemes £2.5bn revenue stream over the concessions 77,000 tonnes CO 2 saved per annum 270 GWh energy sales per annum Manchester MediaCity UK Midlands Leicester District Energy Birmingham District Energy Coventry District Energy Berryfields Estate London South Coast Olympic Park & Stratford City Whitehall Bloomsbury Heat & Power Greenwich Millenium Village Equinox, Hatfield Southampton Geothermal Eastleigh

Contact Mike D Smith Non-Executive Director, Cofely District Energy and Public Sector Advisor Tel: Mobile: Web: