CRIF Final Presentation, Camco

Cambridgeshire Renewables Infrastructure Framework


Duncan Price, Director

Shire Hall 19th December 2011

Cambridgeshire Renewables Infrastructure Framework 1

Background

• DECC study of renewable energy potential in the East of England

• CRIF work looks in more detail at Cambridegshire

• Moving beyond technical potential to economic and deployment

considerations

• Consideration of three primary delivery pathways

• Forms part of the evidence base for public policy formation


Cambridgeshire’s challenging carbon objectives

2

What is Cambridgeshire's potential?


Cambridgeshire is progressing well

3


Modelling renewable energy deployment potential

4

Inputs Scenario 1 (low)

Scenario 2 (medium)

Scenario 3 (high)

Scenario 4 (high without wind)

Discount rate 9% 7% 6% 6%

Energy price [1]

DECC - 'low' energy prices

DECC - 'high' energy prices

DECC - 'high high' energy prices

DECC - 'high high' energy prices

Financial incentives (FIT/RHI)

lower than current tariff rates current rates

current rates (FIT/ RHI designed to give fixed return & will adjust to energy prices)

current rates (FIT/ RHI designed to give fixed return & will adjust to energy prices)

Project deployment rate (wind/biomass/EfW) 8% 15% 30%

30% (0% for wind)

Green policy support (for building integrated technologies) Low Medium High High


Deployment options for renewable energy

5


Renewable electricity potential is very large

6


Renewable heat constitutes the greater challenge

7


S. Cambs and Hunts have largest resource

8


Substantial infrastructure is needed

Number of installations associated with delivery of each scenario

9


Significant investment opportunity

Investment potential for each scenario in £millions

10


Significant investment opportunity

Investment potential for each scenario in £millions

11


Energy efficiency and renewable energy can

close the carbon ‘gap’

12


Carbon prices are projected to rise

13


Conclusions: deployment potential

• Cambridgeshire has experience of delivering renewable energy

• There needs to be more – solar, biomass, heat pumps, wind

• All technologies are needed – heat and electricity

• Somewhere between medium & high scenarios delivers UK legal

renewable energy and carbon targets by 2031

• Significant investment potential – up to £6.1 billion for high scenario

• Local jobs, affordable energy, hub of expertise


Thanks

Duncan Price

DirectorCamco

t: +44 (0)20 7121 6150

m: +44 (0)7769 692 610

e: [email protected]

172 Tottenham Court Road London

W1T 7NS United Kingdom

www.camcoglobal.com

Renewable energy delivery pathways


There are three delivery pathways

Community Public Sector Commercial

16


What is the potential for each pathway?

17

0

200

400

600

800

1000

1200

1400

1600

Public sector Community Commercial

De

plo

ym

en

t p

ote

nti

al

(GW

h)

Deployment potential by pathway

Wind >=6 turbines

Wind <=5 turbines

Biomass

ASHP

GSHP

SWH

PV


Community pathway

• PV

• 145MWp, 1,150,000m² of panels

• 460 non-residential buildings and 30,400

houses (14%)

• £640m capex, £150m NPV

• Solar water heating

• 42,600m² of panels on 8,500 houses (4%)


18

Deployment potential

• Heat pumps

• 43,000 or 15% of houses


• Wind

• 75MW or 30 turbines



Case study: community

Gamlingay Eco Hub and Wind Turbine (planned)

• Community building owned by Parish Council with community input; funding from Public Works Loan Board or Community Builders fund

• Income from FiT & energy export; reduced energy bills; new community centre

• Standalone wind turbine proposed, owned by community group; entirely private investment from residents and businesses

• 10% net income to community fund for first 15 years of FiT estimated at £200,000


Community pathway roadmap

20

Conditions precedent

•strong incentive to invest in renewable energy

•access to a range of funding sources

•maximising learning from leading practice

•managing energy projects effectively

•planning support

Roadmap

Community

Share information,

establish funding

models,

demonstrate

approaches

Establish

community-wide

delivery vehicles

and de-risking

mechanisms

Mainstream

partnerships

between

community and

commercial

developers

Establish long term

community

ownership of local

infrastructure

2011 2016 2021 2026 2031


Public sector pathway

• PV

• 39MWp, 300,00m² of panels

• 180 non-residential buildings and 7,500

houses (18%)



• 8,400m² of panels on 1,700 houses (4%)


• Biomass

• 14 installations of 1.5MW

21

• Heat pumps

• 8,100 or 20% of houses


• Wind

• 27MW or 11 turbines




Case study: public sector

Decarbonising Cambridge / Carbon Management, Cambridge City

• Decarbonising Cambridge Study – forms part of evidence base for RE planning policies

• Assessed district heating, biomass, energy from waste, wind, pyrolysis, gasification and anaerobic digestion

• Carbon Trust’s Public Sector Carbon Management Plan Programme participation -to cut the Council’s carbon emissions and make ongoing cost savings

• Projects form the basis of the CM plan e.g. upgrading boilers, replacing inefficient light fittings, energy awareness campaigns – also renewable energy projects e.g. Renewable Heat Incentive projects


Case study: public sector

23


Public sector pathway roadmap

24


•Maximised value of public sector hard assets

•Maximised impact of soft assets

•Facilitating and convening across all sectors

Roadmap


Commercial pathway

• PV

• 160MWp, 1,300,000m² of panels

• 3,200 non-residential buildings



• 8,300m² of panels on 1,700 or 20% of

buildings


• Biomass

• 14 installations of 1.5MW

25

• Heat pumps

• 200 or 3% of buildings


• Wind

• For wind parks ≤5 turbines, 28MW or 11

turbines

• For wind parks ≥6 turbines, 375MW or 150

turbines

• Total capex £660m, £45m NPV



Case study: commercial/community partnership

Coldham Estate, Fenland

• Standalone turbines

• Private ownership

• Savings: 38.5 GWh/year - 9,000 UK homes36,000 tonnes CO2

• Community benefits: Revenue under Section 106 agreement for local projects and regeneration; Fund for education

• Community input: The Co-operative Group worked closely with local community during planning and site construction


Commercial pathway roadmap

27


•Strong and stable policy environment

•Clearly identified investment opportunities

•Public sector facilitation

Roadmap


Conclusions

• The economic prize is £3-6bn investment in Cambridgeshire

• Deployment potential is spread across three pathways

• Conditions precedent must be met

• There are good practice examples to follow

• The role of the public sector is key:

Leadership

Policy support

Project development through own assets


Thanks

Duncan Price

DirectorCamco

t: +44 (0)20 7121 6150

m: +44 (0)7769 692 610

e: [email protected]

172 Tottenham Court Road London

W1T 7NS United Kingdom

www.camcoglobal.com

CRIF Final Presentation, Camco

Technology

Transcript of CRIF Final Presentation, Camco