UK District Energy Association Looks to the Future of District Energy

Nov. 25, 2010 - PRLog -- Last week saw a number of developments which concern the future of district energy, the first
of which was the release of DECC’s new annual business plani.
DECC’s Business Plan
The business plan marks out a new approach for DECC who will now prioritise support for the
technologies that are most “effective” at meeting their objectives. The plan states:
The Department will no longer … fund technologies unless we are confident that
they are the most critical to meeting long-term decarbonisation and energy
security objectives.
Exactly what material changes this will entail remains to be seen but it is unlikely to result in a
particularly prescriptive approach from DECC, whose central tenet of delivering energy security
is a diverse energy system, not a system reliant on any single technology or solution.
The UKDEA expect that this new pragmatism will work significantly to the advantage of district
energy, which offers one of the most reliable means of delivering low carbon energy supplies to
diverse customer bases, as well as helping to future proof consumers through its fuel agnostic
approach.
Renewables targets remain in place, as part of the UK’s binding European climate targets.
However, it has been clear for some time that renewables are only a part of the solution and
cannot be relied upon in isolation to meet the UK’s demanding greenhouse gas emission
reduction targets:
· 34% reduction in greenhouse gas emissions by 2020,
· 80% reduction in greenhouse gas emissions by 2050.
Therefore, significant parallel efforts on energy savings and efficiency measures are required,
including non-renewable forms of low carbon generation.
New Code for Sustainable Homes
The importance of non-renewable low carbon generation and district energy was reinforced by
last week’s release of the updated Code for Sustainable Homesii (CfSH), which is now better
aligned with Part L of the Building Regulations. The decision has been made to maintain credit
ENE7 as a credit for use of all “Low and Zero Carbon Technology”, rather than apply it to use of
renewables alone, because “There was strong feedback that [CfSH] should continue to include
low carbon technologies, especially gas CHP [Combined Heat & Power], as this could be a
suitable first step to installing, at a later stage, a zero emissions or renewable technology”; this
is precisely what district energy enables.
EU Energy Strategy
Further emphasis on the importance of district energy came in the form of the new EU Energy
Strategy for 2020iii, stating as a key action for “Achieving an energy efficient Europe” that
“efforts are needed to substantially increase the uptake of high efficiency cogeneration, district
heating and cooling.”
The UKDEA therefore recommends that DECC consider introducing targets for nationwide
deployment of district energy, to counteract the renewable centric view that can be promoted by
the existing renewables targets standing in isolation. This would increase awareness of district
energy amongst developers and local authorities, and help them to consider on a case by case
basis, what is the most effective way to reduce energy consumption and deliver reductions in
emissions of greenhouse gases.
Coming Changes
A further point of interest from DECC’s business plan is the proposed “reform of the climate
change levy [CCL], to help support the carbon price”. Expectations that this support for the
carbon price is intended to support new nuclear generation (alongside Sir David King’s
assertion that a carbon price of up to £30/tonne might be needed to support new nuclear
generationiv) mean that the UKDEA will be keeping a keen eye on these reforms and how they
could impact on energy costs.
Potentially key tools are on the horizon, to help developers and local authorities make informed
decisions about the most appropriate energy solutions, as DECC plan to make more energy
statistics publically available and commence work on a new national database of energy use in
both domestic and non-domestic properties.
Finally, there is evidence of a fundamental change in DECC’s remit as “DECC will move further
away from centralised service delivery and will drive change increasingly through the private
sector.” This holds the potential to provide more opportunities for Energy Service Companies
(ESCOs) but the UKDEA hopes this doesn’t simply mean that less funding will be available as
more expectation is put onto an un-incentivised private sector.
i The DECC business plan can be viewed online at:
www.decc.gov.uk/assets/decc/About%20us/decc-business-plan-2011-2015.pdf
ii A summary of changes to the Code for Sustainable Homes technical guidance is available at:
www.communities.gov.uk/documents/planningandbuilding/pdf/1766323.pdf
iii The European Energy Strategy can be viewed online at:
http://ec.europa.eu/energy/strategies/2010/2020_en.htm
iv At the recent Carbon Connect event “The Future of UK Energy Supply” on 19th October 2010.
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Ends
Notes to Editors:
The partners, owners and operators of the largest district energy schemes in the UK have
aligned themselves in the creation of the UK District Energy Association (UKDEA); with the aim
of not only promoting District Energy as a means to deliver significant carbon savings, but also
to establish a direct link between the Government and the industry's small market base.
The Association is a not for profit association of companies and public sector organisations
involved or interested in District Energy schemes. The UKDEA initially comprised of the
representatives of the 6 main District Energy schemes in the UK today:
Birmingham City Council,
Enviroenergy Limited,
Veolia Environmental Services Limited,
Southampton City Council,
Thameswey Limited and
Cofely District Energy Limited
Together these six organisations represent the: Birmingham, Milton Keynes, Nottingham,
Sheffield, Southampton and Woking District Energy schemes.
The UK District Energy Association’s aim is to represent current and potential owners,
developers, consumers, partners, operators and product suppliers of District Energy schemes
throughout the UK.
For more information contact:
Chris Tanner, Secretary for the UKDEA
Thames Head Wharf, Tetbury Road, Cirencester, Gloucestershire, GL7 6NZ
Tel: 01285 770615
Mobile: 07773 457941
Email: secretary@ukdea.org.uk
Website: www.ukdea.org.uk

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The partners, owners and operators of the largest district energy schemes in the UK have aligned themselves in the creation of the UK District Energy Association (ukDEA); with the aim of not only promoting district energy as a means to deliver significant carbon savings, but also to establish a direct link between the Government and the industry's small market base.

The Association will be a not for profit association of companies and public sector organisations involved with these major schemes. The ukDEA will initially comprise representatives of the 6 main District Energy Schemes in the UK today:

Birmingham City Council,
Enviroenergy Limited,
Veolia Environmental Services Limited,
Southampton City Council (SCC),
Thameswey Limited and
Cofely District Energy Limited.

Together these six organisations represent the:

Birmingham
Milton Keynes
Nottingham
Sheffield
Southampton and
Woking

District energy schemes