Leicester District Energy Scheme

January 2012

Trevor Chilton & Ian Forsyth

Cofely & GDF Suez

Combined Heat & Power and District Energy

The schemes

– Southampton (overview)

Introduction

– Birmingham (overview)

– Olympics (overview)

– Leicester (detail)

The future

Q&A

A GDF SUEZ Company

GDF SUEZ -

Largest Utility/Services Company in the World

197,000 employees

Turnover €89 billion

3

ENERGY FRANCE

ENERGY EUROPE

&

INTERNATIONAL

GLOBAL GAS &

LNGINFRASTRUCTURES ENERGY SERVICES ENVIRONMENT

€14 Billion turnover

17% of the group’s turnover

80,000 employees

40% of total GDF SUEZ Staff

1,300 locations in Europe

30 Countries

Cofely District Energy

Manchester

Alexandra Park & Longsight Estates

Media City

Nationally – No.1 in District Energy ~ 35 MW of low carbon electricity generation

Operation & management of over 300 MW of boiler plant

and 50 km of district heating and cooling pipework

South CoastSouthampton Geothermal Heating Co

Eastleigh

MidlandsBirmingham District Energy Co

Berryfields Estate

Leicester District Energy Co

London Olympic Park and Stratford CityBloomsbury Heat & Power WhitehallComet Square, Hatfield Greenwich Millennium Village

Operates at 70-85% efficiency compared to typical power stations 25-35%.

CHPCombined Heat and Power

Piping heating & potentially cooling to buildings – “Energy Linking”

Heat Losses - 1°C per km

Reliability ~ 100% (99.98% for Southampton)

District Energy

Typical pipe work Installation

City Wide DE Scheme

70,000,000 kWh energy

generated p.a.

11,000 tonnes CO2 saved p.a.

Providing heat chilled water &

electricity to

45+commercial consumers

Southampton Geothermal Heating

Company, Southampton

45+

800+ residential consumers

Energy Efficiency in Action

– Energy Efficiency in Action

• Energy Efficiency in Action

BBC TV Studio’s

ParkviewRSH

Hospital

Civic Centre

Southampton Solent University

Skandia LifeABP

DeVere

Hotel

Quays

West QuayThe Heat Station

IKEA

Carnival

City Wide DE Scheme

12,000 tonnes CO2 saved p.a.

3 Core Partners

Providing heat chilled water &

electricity from

3 Energy Centres

Birmingham District Energy

Company, Birmingham

3

6.1MWe CHP

Energy Efficiency in Action

– Energy Efficiency in Action

• Energy Efficiency in Action

The Combined Schemes

Eastside Scheme

Phases 1 and 2

Broad Street Scheme

Eastside

Regeneration Area

Potential future energy links

Broad Street Scheme

Eastside

Regeneration Area

Westside Regeneration

Area

£100 million investment

16 km of energy network

2 energy centres

(district heating & cooling)

Olympic Delivery Authority

Energy Centres for London 2012

40 year concession

City Wide DE Scheme

100,000,000 kWh heat energy

generated p.a.

12,000 tonnes CO2 saved p.a.

Providing heat & electricity to a core

scheme of;

30+ administrative buildings

Leicester District Energy Scheme

30+

2,900+ residential consumers

Partnership Framework

Strategic Board

Energy Board

Operational co-ordination

Development co-ordination

Project

Governance

Development co-ordination

Ownership &

Investment

Risk Transfer

Joint Co-operation

Energy Services

LDEC

(Leicester District

Energy Company)

Overcoming Barriers Together

Timescales to delivery – typically 3 to 5 years – not a political quick fix!

Lack of Capital Financial Support – very sporadic

Government Support for District Energy – almost non existent from central government who argue which generation technology should central government who argue which generation technology should be supported whilst ignoring the benefits of DE

Carbon Reduction (Gas Fired CHP) vs Renewables – the endless debate

Local Authority Champions – Essential Component

Planning Policies – to encourage connection once scheme is developed

District Energy needs to be compared to alternatives on a whole life cycle cost basis – not well understood

City wide District Energy Scheme

£15M CDE investment & adoption of existing assets

Core customers; City Council & University

4 Core schemes including City Centre

Leicester District Energy Scheme

4 Core schemes including City Centre

~2,900 homes & 32 administrative buildings

Plans to connect prison, hospital and many other public and private buildings

25 Year Energy Supply Agreement + 5 year extension

5 MWe gas fired CHP including

3.2 MWe within University campus

Technical Summary

7 km buried distribution network

~50 MW gas boilers

100 kW biomass boiler

The Consumers

Aikman

Avenue St Peters

Estate

New Walk Museum

De Montfort Hall 1-3 Greyfriars

Attenborough

Tower

Town Hall

Charles

Wilson

Archaeology

Building

St Matthews Estate

The Business Benefits to Potential Third Party Consumers

• Capital cost savings – connection charge up to 20% less than conventional plant

• Space savings – direct connections mean no plant space required

• Planning gain – environmental benefits and no roof mounted cooling plant • Planning gain –

• Operating cost savings – up to 10% compared to alternative cost of heating/cooling

• Savings guaranteed – prices index linked to market levels to ensure savings maintained

• Carbon Savings - Delivers on LA 21, Kyoto and CSR targets

• Risk Transfer – with off site energy supplies

CDE Project team;

– Design

– Site supervision

– Project & traffic management

Construction Phase

– Project & traffic management

Broke ground 29/06/2011

University - start July 11, finish Feb 12 (OSD Apr 12)

Main works – Start Summer 11, finish Summer 12

City Centre Works – Start Summer 11, finish Summer 12

Scheme Operational start dates - May to Nov 2012

Further investment from CDE to connect other buildings

– Leicester Prison; Tigers Stadium; Leicester Royal Infirmary; De Montfort University, etc.

Interconnection of satellite schemes when economic

Strong planning policy from LCC

The Future

Strong planning policy from LCC

– Requirement to connect if close to network

– DE scheme set above renewable requirement

Increasing renewable supply as incentives improve

– Biomass

– Waste (SITA)

LCC, UOL and CDE Board

Q & A’s