1. Servite HA Inverness Pellet District Heating  4 th Servite District Heating Scheme  32 Units  Heating Analysis via Pick Everard –Building regs 10,200 kwh/annum –Target u values 6,600 kwh/annum  Walls: 0.18 W/m2K  Roof: 0.16 W/m2K  Ground Floor: 0.22 W/m2K  Windows: 1.4 W/m2K  Final SAP average 5200 kwh/annum

2. Servite H.A. Inverness Pellet District Heating  Tenders  Fraser and Sun –Tender followed by Negotiated D/B contract –£239,000 –£7,500/unit –Development cost £100,000 over benchmark –£60,000 grant Community Energy Scotland –£40,000 Servite –Completed April 2010

3. Servite HA Inverness Pellet District Heating  Heating System Design –3 blocks of flats –2 boiler houses with 3 Okofen boilers (50kwh output)+ Accumulator Tanks ( 1 Accumulator tank house) –Vital heat meters with radio control and info updated monthly via spreadsheet –Billing based upon monthly service charge @11p/kwh (updated bi-annually) with backup of pre-paid card system for non- payers (updated bi-annually) with backup of pre-paid card system for non- payers  Annual Cost estimate £6-700/tenancy  Reality based upon 9 months of data probably £1,000/unit @11p/kwh but Servite charging less so maybe £800/tenancy??

6. Servite HA Inverness District Heating System  W. Heather Rd. secures top mark (Excellent) for Eco-homes evaluation in Scotland: March 2010  W. Heather Rd. wins Scottish Homes Award for best Small Affordable Housing Development: June 2010

10. Servite HA Inverness Pellet District Heating  Contractual Issues –D/B split –Extra over costs of app. 10%  Extra heating main pipework due to change in proposed infrastructure runs  Assistance with heating sub-contractor  Main contractor delays –Lack of specification  Quality of workmanship via Fraser and Sun

11. Servite HA Inverness Pellet District Heating  System Performance –CES provision of meters for boilers –CES system test predicts efficiency of 93%  District heating mains heat loss –Original efficiency prediction 87% –Reality…. Difficult to confirm due to meter/boiler data inconsistency but probably less than predictions

12. Servite HA Inverness Pellet District Heating  Fuel Supply Chain Issues –Lack of predictable quality –Woodchip –Move to performance based contract –Consider Control of fuel supply chain/woodchip  Forestry Investment!  Metering Issues –Inconsistent data ?? Meter calibration?? –Control of information  Ownership of meter –LIFT properties require deed retaining ownership of meter to enable access for repairs and disconnection

13. Servite HA Inverness Pellet District Heating  Future Direction –Performance related contract for Installation  Design/full specification via district heating engineers  D/B contract split?  District heating + internal heating to be under one roof –Performance related supply chain –Establishment of ESCO?  Subsidiary ( Non-Profit) provides heat to HA/others via performance related contract ( i.e. xp/kwh supplied)  Subsidiary takes headache of billing etc. off of housing team  Subsidiary brings in FEED IN TARIFF, more than making up the difference between benchmark costs and extra over costs of district heating schemes  Subsidiary builds up reserves for replacement costs etc.