1. 1 BASE London – DE panel discussion 11 th July 2013 District Energy strategy into reality Turning

2. 2 Contents BASE London – DE panel discussion 11 th July 2013 1.Context 2.Connection 3.Capital 4.Capacity

3. 3 80% carbon reduction by 205080% carbon reduction by 2050 Heat responsible for half national energy useHeat responsible for half national energy use BASE London – DE panel discussion 11 th July 2013 Why District Energy ?

4. 4 DECC’s 2050 vision for heat BASE London – DE panel discussion 11 th July 2013 Rural density – Biomass boilers Rural density – Biomass boilers Suburban density – heat pumps Suburban density – heat pumps High density urban areas – heat networks

5. 5 DECC heat networks growth projection BASE London – DE panel discussion 11 th July 2013 Chart 17: TWh/year of heat demand that could be met by heat networks

6. 6 BASE London – DE panel discussion 11 th July 2013 Delivering DE’s potential ConnectionCapacity Capital District Energy

7. 7 BASE London – DE panel discussion 11 th July 2013 Delivering DE’s potential – getting connected District Energy Planning compliance  London Plan  Borough policies Perceived as risky  not DNO, not Transco? Agreements are bespoke, more complex (expensive) Impact on liquidity ? How big should it be?

8. District Energy 8 BASE London – DE panel discussion 11 th July 2013 Delivering DE’s potential - funding Networks are expensive – it’s infrastructure! Funders are unfamiliar with the technology Connection charges – can’t pre-fund network expansion Role for ESCOs ? bring funding bring technical know-how can manage risks Capital

9. 9 BASE London – DE panel discussion 11 th July 2013 Delivering DE’s potential Nascent market Supply chain competence and capacity issues Designers Contractors Customers and their advisors District Energy Capacity

10. 10 District Energy www.pbworld.com INSPIRECREATE ENHANCE “As a non-technical client we’ve really benefitted from Parsons Brinckerhoff’s expertise and advice. Their engineering and market knowledge of CHP and district heating has been crucial to the success of our Wyndford project” Willie Croft, Head of Regeneration, Cube Housing Association