1. What’s The Big Idea? The Energy Economy

2. It’s the Energy Economy Growth in a Time of Recession Opportunities in the Green Economy Southampton’s Track Record The Challenges Southampton’s Vision Delivery Projects Next Steps

3. Growth in a Time of Recession We want growth but no one wants to invest Green opportunities?  FiT (Feed in Tariff)  CRC (Carbon Reduction Commitment)  RHI (Renewable Heat Incentive)  ECO (Energy Companies Obligation)  GIB (Green Investment Bank)  Low energy baseline

5. Southampton’s Track Record BBC TV Studio’s RSH Hospital Civic Centre Southampton Solent University Skandia Life DeVere Hotel Quays Heat Station IKEA Carnival ABP Polygon West Quay

6. Southampton’s Track Record CESP – Euro £18 million upgrading 4 +1 tower blocks Community Heating energy efficiency increased by a factor of 10 Solar PV in addition

7. The Local Challenge Energy prices continue to rise (energy inflation c10% pa) Security of supply will increase in importance Councils are exposed to market fluctuations Carbon Reduction Commitment

8. Southampton’s Challenge: Projected Southampton City Council Housing Electricity Heating Budget & Deficit 2011 Heat Budget - £3.5m Heat Account Deficit - £1.6m 19% increase in heat charges approved – July 2011. Current pass through cost of Electricity is 8 – 9 pence per unit. 2021 Heat budget = £9.4m and Heat deficit (due to rising fuel poverty) >£4m No reduction in carbon emissions 40 million kWh = 206,800 tonnes CO2

9. The Vision The Municipalisation of energy Building green investment across the City and the sub- region

10. Southampton Energy - Strategic Actions A Strategic Approach to Delivery Capturing the benefits of partnership working both locally and nationally Business case development (feasibility, funding, delivery structures etc) Facilitation versus Direct Delivery Working with commercial partners and the Universities Building the corporate capacity to support a strategic programme

11. Local Authority Energy Partnerships The ‘Oxford’ national LA partnership (up to 30 Local Authorities) Local partnerships (ECO, Green Deal, Collective Switching) Creating a joint capacity to deliver through sharing best practice, technical capacity and IP Supporting a corporate approach (finance, legal, procurement etc) Building required economies of scale for finance and funding (project pipeline) Supporting other strategic benefits (Economy, Anti poverty, Health etc)

12. Local Authority Delivery Issues Why should Council’s invest? Delivery structures (ESCOs) Reporting of savings/avoided costs Management Issues:  Design, Build, Operate and Maintain  A smart client role

13. Energy for Housing - Strategic Drivers The Council’s energy ambitions (SEAP) Fuel poverty for residents and control over current and future energy costs Building performance and long term maintenance and replacement costs Potential revenue streams Reducing CO2

14. Energy Company Obligation (ECO) Funding ECO for Housing Initial Euro 50 million investment to 2015 (Southampton) Euro 200 million over 5 - 7 years Funding for Insulation and Heating improvements A partnership tender (November) A regional partnership (c Euro 500 million) ECO and Green Deal for privately owned homes Benefits for the Green Economy in Skills, Training and SMEs

15. District Energy High level technical and financial assessments in selected housing areas using different technologies City Centre network expansion (e.g. Station Quarter, Holyrood) Southampton Football Club Housing Schemes

16. Thornhill District Energy Scheme A whole estate approach (Euro 50 million scheme) New heating, hot water and insulation for 1,600 residents Initial energy cost savings of up to 20% Future protection from price rises ECO Capital Support Reduced capital and maintenance charges Council revenue from generated electricity Opportunities for expansion

17. Corporate Built Estate Energy Efficiency Improvements Solar PV schemes (e.g. corporate buildings and housing) Heating upgrades including Renewable Heat schemes Energy Performance projects Schools investments (retrofit and new build) - Salix funding Future opportunities (public and commercial)

18. Some Next Steps ECO works commenced on 3 estates before end of 2013 DE scheme commenced Spring 2014 A further Solar PV programme in 2014 Expand City Centre DE network 2014/15 Expand Thornhill Network 2015 Other DE and communal heating schemes from 2015