1. HEAT NETWORK PARTNERSHIP DISTRICT HEATING STRATEGY SUPPORT WORKSHOP THE STRATEGIC APPROACH Peter North September 2015

2. Reducing London’s CO 2 Emissions 30% of London’s CO 2 emissions are attributable to consumption of heat (mostly mains gas) Greatest opportunity for CO 2 reduction within London is to reduce demand for heat through building retrofit and low carbon, local (decentralised) heat supply. Decarbonising electricity supply is better placed as a national action (nuclear, wind, carbon capture and storage)

3. The London Plan (2011) Chapter 5 sets out policies in accordance with the hierarchy: In particular: Policy 5.2 sets CO 2 reduction targets from energy efficiency interventions for both residential and non-residential buildings until 2031 (zero carbon) Policy 5.5 sets the policy requirements for London Boroughs to identify and establish DE networks, including the development of Energy Master Plans Policy 5.6 sets out the policy requirements for development proposal with regards DE The London Plan is the overall strategic plan for London, to which London Boroughs’ local plans need to be in conformity with.

4. The Mayor’s Climate Change Mitigation and Energy Strategy - October 2011 London’s CO 2 emissions reduction targets Reductions based on 1990 levels: o 2015 (interim target) 20% o 2020 (interim target) 40% o 2025 60% o 2050 at least 80% 25% from decentralised energy by 2025 An £8bn investment opportunity

5. 5 Programme Development Methodology Capacity Building Heat Mapping Policy Support Resourcing

6. Heat Mapping

7. Energy Masterplanning Energy Masterplans Identify larger scale DE opportunities Long-term vision for heat network growth Develop planning policies to promote connection to heat networks Deliver Policy Objects CO 2 reduction Inward investment Anti-poverty Fuel poverty Income generation Energy efficiency Business-as-usual

8. Upper Lee Valley Opportunity Area Energy Strategy EOn 400MWe Enfield Power Station (~12MWth potential LP steam) Johnson Matthey Industrial Plant (potential low grade heat rejection & existing CHP) LWL Edmonton EcoPark (~18-60MWth; 8-23MWe) Proposed Gasification Plant (potential for ~10MWth) ~7.5km Broadwater Farm District Heating Network Option: British Waterways Corridor District Heating Network Option: Network Rail Corridor

9. Project defined by the Energy Masterplan Long-term development plan Private leadership requires guaranteed major initial heat load (note industrial loads unreliable), otherwise: Public involvement: –Planning policy –Safeguarding (routes and energy centres) –Heat load guarantee –Public finance (3.5% to 6% IRR) –Public delivery vehicle –Policy delivery (fuel poverty, carbon reductions etc) Continue public ownership, refinance or exit to private sector Strategic Development

10. Strategic Principles Energy Principles – Security of supply – Sustainability – Affordability Strategic Priorities – Environmental – Growth – Poverty – Affordable warmth – Revenue generation Approach – Scale – Available energy sources – Heat demand densities – Overarching scheme – Policy evidence base – Phased implementation – Delivery strategy

11. Conclusions Plan big, start small Public leadership essential - where more than two entities are involved Political support Senior officers’ agenda The Champion Idea to construction - three to seven years Persevere – many blind alleys

12. References [1/2] Mayor’s Climate Change Action Plan, GLA 2007 (http://legacy.london.gov.uk/mayor/environment/climate- change/docs/ccap_fullreport.pdf)http://legacy.london.gov.uk/mayor/environment/climate- change/docs/ccap_fullreport.pdf Delivering Decentralised Energy, London First 2008 (http://londonfirst.co.uk/wp- content/uploads/2012/10/DE_report_summary_low_res_FINAL-1.pdf)http://londonfirst.co.uk/wp- content/uploads/2012/10/DE_report_summary_low_res_FINAL-1.pdf Powering Ahead, GLA 2009 (https://www.london.gov.uk/sites/default/files/archives/mayor-publications- 2009-docs-powering-ahead141009.pdf)https://www.london.gov.uk/sites/default/files/archives/mayor-publications- 2009-docs-powering-ahead141009.pdf The London Plan, GLA 2011 (https://www.london.gov.uk/priorities/planning/publications/the-london-plan)https://www.london.gov.uk/priorities/planning/publications/the-london-plan Mayor’s Climate Change Mitigation and Energy Strategy, GLA 2011 (https://www.london.gov.uk/sites/default/files/Energy-future-oct11.pdf)https://www.london.gov.uk/sites/default/files/Energy-future-oct11.pdf London Heat Map, GLA 2011 (www.londonheatmap.org.uk)www.londonheatmap.org.uk Decentralised Energy Capacity Study, GLA 2011 (https://www.london.gov.uk/priorities/environment/decentralised-energy- capacity-study)https://www.london.gov.uk/priorities/environment/decentralised-energy- capacity-study

13. References [2/2] Decentralised Energy Programme, GLA 2011 (http://www.london.gov.uk/priorities/environment/tackling-climate- change/energy-supply)http://www.london.gov.uk/priorities/environment/tackling-climate- change/energy-supply The Future of Heating – Strategic Framework, DECC 2012 (https://www.gov.uk/government/uploads/system/uploads/attachment_data/f ile/48574/4805-future-heating-strategic-framework.pdf)https://www.gov.uk/government/uploads/system/uploads/attachment_data/f ile/48574/4805-future-heating-strategic-framework.pdf The Future of Heating – Meeting the Challenge, DECC 2013 (https://www.gov.uk/government/uploads/system/uploads/attachment_data/ file/190149/16_04-DECC-The_Future_of_Heating_Accessible-10.pdf)https://www.gov.uk/government/uploads/system/uploads/attachment_data/ file/190149/16_04-DECC-The_Future_of_Heating_Accessible-10.pdf London Zero Carbon Energy Resource, GLA 2013 (http://www.london.gov.uk/sites/default/files/031250%20GLA%20Secondary% 20Heat%20-%20Summary%20Report_0.pdf)http://www.london.gov.uk/sites/default/files/031250%20GLA%20Secondary% 20Heat%20-%20Summary%20Report_0.pdf London Heat Network Manual, GLA 2014 (https://www.london.gov.uk/priorities/environment/district-heating-manual- for-london)https://www.london.gov.uk/priorities/environment/district-heating-manual- for-london London Infrastructure Investment Plan, GLA 2014 (http://www.london.gov.uk/priorities/business-economy/vision-and- strategy/infrastructure-plan-2050)

14. Peter North Senior Manager Programme Delivery – Sustainable Energy Greater London Authority peter.north@london.gov.uk Contact