The Southampton City District Energy Scheme a partnership between

WORKING IN PARTNERSHIP TO DELIVER SUSTAINABLE ENERGY SOLUTIONS

The Southampton City District Energy SchemeThe Southampton City District Energy Scheme a partnership between a partnership between

andand

SUSTAINABLE

DEVELOPMENT


INTRODUCTIONSINTRODUCTIONS

Diana MaddockDiana Maddock

Director & Director &

Original sponsor of the Home Energy Conservation ActOriginal sponsor of the Home Energy Conservation Act

Tim GarnerTim Garner

Business Development ManagerBusiness Development Manager


1.1. What is CHP and District HeatingWhat is CHP and District Heating

2.2. Group and Company BackgroundGroup and Company Background

3.3. Why Southampton - how did it start ?Why Southampton - how did it start ?

4.4. The First Step - The Partnership with the CouncilThe First Step - The Partnership with the Council

5.5. The Energy Generation Plant The Energy Generation Plant

6.6. Our ConsumersOur Consumers

7.7. Southampton - into the new MillenniumSouthampton - into the new Millennium

PRESENTATION


1. What is CHP and District 1. What is CHP and District HeatingHeating


Combined Heat & Power (CHP) - recovery of heat produced when generating electricity (usually wasted)

What is CHP?


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

CHP - Replacing central power stations with more efficient local generation

What is CHP?


• On site heat, chilled water and electricity distribution network• Used for distributing energy from boilers & CHP• Current heating piping systems - heat losses are 1°C per km• Reliability of current piping systems - 100%• Large sections could use plastic PE-X Pipes

What is District Energy ?


2. Group and2. Group and Company Background Company Background


• Utilicom is the UK subsidiary of the Idex Group• International Group of Family owned companies• Established 1963 • President - Alain Planchot• Head office Paris • Annual turnover 400 M Euros • 3,000 employees • Core business:-

Development, Operation & Maintenance of Community Heating Schemes


Example Project: Palais de Congres - Paris

• 1,000 bed Hotel, cinema, theatre and retail complex – 200,000m2

• All plant in Energy Centre funded by Idex

• Energy supplies since 1972

• Original 27 year contract renewed for a further circa 20 years

• Large scale heating, cooling and electricity generation plant


• Group turnover £11M, projected £20M in five years• 80 Staff throughout UK

• Core Business - Design Development Installation Financing O & M of district energy systems - including CHP, biomass etc…..

• Clients include BBC, Universities, City Council’s, Private Sector Housing Developers, and Local Authorities etc….

• A stable, well established company, concentrating on our core business• Currently supplying energy and managing services for over 20,000 dwellings across the UK


Example Project: University of London CHP Schemes

• 4.5 MW of CHP serving UCL, UCLHT

and five colleges of the University of

London

• 20 year energy supply contracts – based

on PFI/PPP model

• Operational since 1999

• £6M capital cost

• Energy Sales £3M p.a.

• Already expanded to serve 3 third party

consumers


3. Why Southampton ?3. Why Southampton ?


The Catalyst - The Geothermal Well and Resource


The Rock and the Pump


4. The First Step4. The First Step- The Partnership with the Council- The Partnership with the Council


The Cornerstone The Cornerstone – The Joint Co-operation Agreement– The Joint Co-operation Agreement

The Scheme has always had cross party support - the first step was to sign a Joint Co-Operation agreement - 1987 - first in the UK pre-dating PFI

This committed Utilicom to:– Developing a district heating scheme in Southampton initially based around geothermal

energy

– Sell heat to Council buildings with agreed savings

– Provide all necessary funding and technical/management expertise to ensure the scheme developed successfully

– Provide open book accounting and a long term profit share to SCC

and committed SCC to:– Take heat wherever practical for SCC buildings

– Provide land for the Heat Station for a peppercorn

– Help Utilicom promote the scheme to other potential users

– Provide general support to Utilicom in developing the scheme - planning, highways etc…

– Treat Utilicom as a ‘statutory utility’ within the boundaries of the City


Company Organisation StructureCompany Organisation Structure

UTILICOM GROUP LIMITEDUTILICOM GROUP LIMITED

UTILICOM LTD SGHC UTILICOM LTD SGHC SOUTHAMPTON SOUTHAMPTON CITY COUNCILCITY COUNCIL

CO-OPERATION AGREEMENTCO-OPERATION AGREEMENT

= Total Risk Transfer to the Private Sector= Total Risk Transfer to the Private Sector


The Partnership• Utilicom and SCC meet quarterly to plan new developments

• SCC representatives led by Executive Director (Mike Smith), building design, planning, environment, regeneration, highways etc..

• Supplemented by regular, often daily, dialogue to ensure that the scheme develops to deliver the aims of both parties

• Currently saving organisations within the City over £0.25M per annum in energy costs and delivering 11,000 tons of Carbon Savings

• LA Councillor and Officer Champion are essential to making the scheme work – this has been one of the keys to the success of the Southampton scheme


5. The Energy Generation 5. The Energy Generation PlantPlant


The Plant:

• 2 MW Geothermal Well • 2 small scale CHP - 400kWe each• Back up/top boilers around City operated by Utilicom - Civic Centre & Hospital• 8 MW of chilled water plant – absorption and vapour compression• 5.7 MW dual fuel Wartsila CHP generator

All serving over 40 consumers via a network of over 11 km of heating & cooling pipes around the City Centre for a total capital cost of £7M

Supplying over 70,000,000 kWh of energy each year with Supplying over 70,000,000 kWh of energy each year with CO2 savings of 11,000 Tonnes p.a.CO2 savings of 11,000 Tonnes p.a.


Consumer interface/meter

Buried Pre-insulated distribution mains

Centralised Heat Sources CHP, Boilers etc

The Southampton Energy Centre


Our 5.7 MW CHP being delivered !


We also have smaller scale CHP and CH schemes !


HOLYROOD ESTATE• City Council owned housing, approx 300 flats in 9 blocks, each with

only a single room heater and electric immersion

• Utilicom designed and project managed installation of district heating and hot water system including CHP to serve entire estate

• Cost guarantee given by Utilicom to SCC for future energy supplies

• SCC Housing very satisfied - voids virtually gone and ability to let flats on the estate enormously increased.


Holyrood Estate – 300 dwellings supplied with heat from local Energy Centre including CHP

- guaranteed heat price, with full maintenance of all in dwelling equipment

Public Sector Housing


6. The Consumers6. The Consumers


WHO DO WE SERVE ?

Consumers include:

• Civic Centre

• 4 Hotels

• RSH Hospital

• Offices

• Southampton Institute

• Swimming & Diving Complex

• Entire 53 Acre West Quay Shopping Centre

• Public and Private Sector Housing

……….. and many many more - largest Commercially developed district energy scheme in the UK - £2M of energy sales p.a.


Why Connect ?• Capital cost savings – connection charge up to 25% less than

conventional plant• Space savings – direct connections mean no plant space required –

very valuable in urban areas• Operating cost savings – at least 10% when compared to the

alternative cost of heating/cooling/electricity - £0.25M • Guaranteed savings – prices linked to basket of indices to ensure

savings maintained throughout life of the contract• Delivers on LA 21 and Kyoto carbon savings – 11,000 tons• Ensures full and genuine outsourcing of energy supplies = risk transfer


How are connections funded ?

• Connection charges from the consumer• Long term energy supply revenues – repaying bank or

private sector finance• Grant funding – Community Energy Fund and others…


Do Consumers Connect ?• Yes – because they understand the benefits, i.e. Barratt Homes a convert

to the scheme

• However, many developers wish to use cheap electric heating – high emissions and operating costs

• Also building services consultants acting for potential consumers often prefer own plant as this is traditional and returns fees

• SCC/Utilicom work in partnership to demonstrate benefits and encourage use of Whole Life Cycle costing

• SCC can also encourage via the planning process, Section 106’s and land sale agreements


The Civic Centre – The first consumer


BBC TV Studios – heating 1990, cooling 2000


Swimming and Diving Complex


Connected Offices – Skandia, SCC, No.1 London Road


DeVere 5* Grand Harbour Hotel - Connected 1994 via 600m ‘energy link’ all heating and cooling from scheme


West Quay Shopping Centre - heated & chilled by our scheme


Barratt’s Park View and the Dell developments – both connected to the scheme – circa 600 dwellings including Holyrood Estate

- the first private housing in the UK to connect to an existing district energy scheme

Private Housing


IndependentStudy on Customer

Satisfaction and Cost Effectiveness


Barratt’s Park View Development

Some of the Key Benefits:• Capital cost savings - Barratt’s publish savings as £300 per unit• Space savings• No flues or gas pipework – removes gas from dwellings• Unlimited supplies of hot water• Operational cost savings

The Residents Views:“The flat warms up quickly, it’s quick and cheap” , “the economy appealed to us” and “ we have

constant hot water with good water pressure in the shower”

The Survey:78% were aware that the flat had community heating when they purchased it and 60% stated that

it influenced their decision in a positive way !78% also replied that they would buy electricity from SGHC if available and 66% thought that lack

of choice in a supplier wasn’t a problem


Barratt’s - Urban Living Brochure


• Ex British Gas Offices being converted to 400 bedrooms 82 Flats and 40 one bed Studios for Student Accommodation

• Linked to our district heating scheme in June 2003

Key Worker Housing

UNITE - Orions Point


Civic Centre

Heat Station

De Vere Hotel

The Dell - 164 Private Houses/Flats RSH Hospital

Southampton

Institute

West Quay

Shopping Centre


A selection of our satisfied consumers with their awards from us !


7. Southampton - 7. Southampton - into the new Millenniuminto the new Millennium


The Future – to 2010

• Further large scale CHP - increase to 20 MW ?

• Heating and especially cooling mains continue to grow - energy sales doubled

• Electricity sales to local consumers

• Incorporation of other technologies – anaerobic digestion of the Cities Waste– fuel cells– biomass etc…- currently developing wood fired boilers/CHP schemes


Our Vision for SGHC

• Expand community heating/cooling throughout the City of Southampton - maximising use of CHP

• Demonstrate viability of innovative energy generation and distribution technologies

• Provide simple agreements for energy supplies ensuring long term energy savings

• Maintain 100% consumer supplies and satisfaction

• Promote Environmental issues whilst maintaining ‘No Green Premium’

• Replicate & assist others in implementation of similar schemes

The Southampton City District Energy Scheme a partnership between

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