district heating strategy - dundee · 2018-09-12 · community centres. 10 1.3 benefits of district...

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District Heating Strategy2018-2028

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CONTENTS

Foreword 5

1 Background and objectives 7

1.1 Introduction 7

1.2 Whatisdistrictheating? 8

1.3 Benefitsofdistrictheating 10

1.4 Policycontext 12

1.5 DistrictheatinginDundee 16

1.6 ObjectivesfordistrictheatinginDundee 19

2 Opportunity assessment of district heating loads 21

2.1 Datacollection 21

2.2 Identificationofpotentialclusters 22

3 Opportunities for heat supply 25

3.1 Heatsupplyresourcesmapping 25

3.2 EnergyCentres 26

3.3 EnergyfromWaste 26

4 Heat Network Opportunities 29

4.1 Mappingofheatsupplyanddemand 29

5 Programme delivery 31

5.1 Preliminaryassessmentofdeliveryprogramme 32

5.2 Technologyscenarios 32

5.3 DevelopmentofBusinesscases 33

5.4 StakeholderEngagement 33

5.5 Riskappraisal 33

5.6 DeliveryvehiclesandFunding 35

6 Action Plan Summary 37

Appendix1 38

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FOREWORD

Dundeehasaclearroletoplayinrisingtothechallengesclimatechangewillpresenttothelocalarea.Reducingourgreenhousegasemissionsaheadofnationaltargets,adaptingtotheeffectsofclimatechangeandre-assertingourlowcarboncredentialswillmarkthenextphaseinourtransitiontoalowcarbonfuture.Achievingthiswillrequireatransformationalchangeinourenergyusebyreducingdemandandencouraginglocalgenerationthroughinvestment in infrastructure that will deliver a long-term affordable, lowcarbonheatsupply.

Districtheating,thesupplyofheatbyhotwatertoanumberofbuildingsthrough a heat network of underground pipes, is an effective way ofmaking themostofourheat resources, reducing thecarbon intensityofheatandreducingfuelcosts.WearealreadyseeingitsbenefitsinDundeeand there isevengreateropportunity forexpansion tocreate integratedheatnetworksthatwillgeneraterealsocial,economicandenvironmentalbenefits for thecity throughtacklingfuelpoverty,creatingnewjobsandreducingourcarbonemissions.Thiswillrequirenewpartnershipsbetweenthepublicandprivatesectortoexploreinnovativesolutionsandmostofall,long-termstrategicplanningtodelivertheinvestmentrequired.

Wearethereforepleasedtowelcomethis,thefirstDistrictHeatingStrategyforDundeeCityCouncil,whichaimsto respondto thesechallengesandopportunities by setting out our long-term ambitions to build on ourexisting schemes and deliver new projects in the pursuit of a city-widedistrictheatingnetwork.

John AlexanderLeader of the Administration

David MartinChief Executive

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1.1 Introduction

ThisdocumentaimstoidentifypotentialdistrictheatingnetworksinDundee,includingtheshort,mediumandlong-termstrategicopportunitiesandthedevelopmentofalongtermvisiontosupporttheCity’sgrowthandlowcarbontransitionusingdecentralisedenergy.ItwillprovideanevidencebasetoadvancedistrictheatingnetworkschemesinDundee,informingbothpolicyanddelivery.TheStrategyhasbeenpreparedwithassistancefromResourceEfficientScotlandandRambollandinformedbyarangeofstakeholders.

HeataccountsformorethanhalfoftheenergyconsumedinScotland1,withthemajorityofhomes,businessesandpublicbuildingsusingconventionalgasboilers.Thisdependenceonfossilfuels,coupledwitholdandpoorly-insulatedbuildingstock,meansthatheatingalsoaccountsforhalfofScotland’stotalcarbondioxideemissions.Heatmustthereforebeatthecentreofourmovetoalowcarboneconomy.

Scotlandaimstodecarboniseitsheatingby2050anddistrictheatingisseenasacrucialtechnologyinenablingthistohappen.TheScottishGovernmentrecognisethatdistrictheatingcouldmakeanimportantcontributiontomeetingScotland’sfutureheatdemandinareaswhereheatdensityissufficientlyhightodevelopnetworksthatcanprovideheatatanaffordablecost.Wherealliedtoalowcarbonheatsource,italsooffersthepotentialtomeetheatdecarbonisationobjectives2.Thenationalvisionistoachieveasignificanttransformationinthedeploymentofaffordablelowcarbondistrictheatingaspartoftheroutetoalargelydecarbonisedheatsystem,movingfromthecurrentapproachtoamorestrategicallyplanned,integratedandcomprehensivesystemthatisattractiveforinvestorsandtakesintoaccounttheneedsoftheheatuser.

ScottishPublicSectorBodieshaveakeyleadershiproletoplayindevelopingdistrictheatingthroughtheactionstheytakeontheirownestatestominimiseheatdemand;transformingthedistrictheatingmarketbyproviding‘anchor’loads(buildingswithmajorheatrequirements);andidentifyingpartnershipopportunitiesforutilisingunusedexcessheat.Threespecificroleshavebeenidentifiedforlocalgovernment:

1 BACKGROUND AND OBJECTIVES

1TheScottishGovernment,(2015)‘HeatPolicyStatementTowardsDecarbonisingHeat:Maximisingthe

OpportunitiesforScotland’(www.gov.scot/Publications/2015/06/6679)

2TheScottishGovernment,(2017)‘ConsultationonHeat&EnergyEfficiencyStrategies,andRegulationofDistrictHeating’(www.gov.scot/Resource/0051/00513244.pdf )

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• encouragedeveloperstofocusonalternativestofossilfuelheatingthroughtheplanningprocess.

• useheatmapstoplandecarbonisationinitiativesintheirlocalareas.• establishframeworkstoencouragebusinesses,industryandhomeownersto

minimiseheatdemand.

1.2 What is district heating?

Districtheatingsystemsuseanetworkofpipestodeliverheatfromaplacewhereheatisgeneratedtomultiplecustomerswhereheatisused(Figure1).Theheatistypicallyintheformofhotwaterandistransportedthroughanetworkofpre-insulatedundergroundpipes.Theheatmaybegeneratedinanenergycentreusinganyofarangeoftechnologies(e.g.surplusheatrecoveredfromanenergyfromwastefacilityorotherindustrialplant,watersourceheatpump,gascombinedheatandpower(CHP),solarthermal,etc.),andcouldchangeovertimeaslowercarbon/renewableheatsourcesemerge.

Buildingsareconnectedtotheheatnetworkthroughasubstationwheretheheatusedismetered.Buildingsmayhaveanassociatedenergycentrewhichattimesprovidesheattothebuilding,butatothertimesfeedsheatintothewiderdistrictheatingnetwork.Asthedistrictheatingnetworkexpands,higherlevelsofefficiencyandresilienceareachievedthroughtheincorporationofmultipleheatsourcessupplyingmultipleandvaryingdemands.

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Figure 1: Diagram of a district heating network

Whilstthescopeofdistrictheatingprojectscanvaryconsiderably,thevastmajorityofheatnetworksintheUKarerelativelysmall-scale;inwhichtheseelementsareunderahighdegreeofcommonownershiporcontrol.Inmanycases,generation,transmissionandmanagementiscarriedoutbyasingleorganisationsupplyingpropertiesonasinglesite,typicallyalocalauthorityorhousingassociation.

Assmall-scaleislandnetworksgraduallyexpandandintegratetoformlargerscalenetworksandrecoveryoflow-gradeheatfromindustrybecomesmorewidespread,thevariouselementswillbecomeincreasingly‘unbundled’(i.e.underseparateownership).Wherethishappens(e.g.denseurbanareas),thedeliverystructuresneedtoevolvetomanagethedifferentownershipofgeneration,transmissionanddistributionassets.

Moderndistrictheatingnetworksallowheattobeefficientlytransferredforupto30kmfromasingleheatsource.Thepipenetworkinfrastructuremayalsobecombinedwiththeprovisionofotherutilitiessuchaselectricityanddata.Withmultipleheatsources,districtheatingnetworks,suchasthoseincontinentalEuropeancountries,canbehundredsofkilometreslong.InsomenorthernEuropeancountriesmorethan50%ofthebuildingstockisconnectedtoadistrictheatingsystem;inCopenhagenthisfigureisinexcessof95%.

School/Leisure and Sports Centres

Heat transition and distribution network

Energy Centre

Local energy centre

Offices

Multi-StoreyDevelopments

Residential

Low rise Developments/Community Centres

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1.3 Benefits of district heating

Districtheatingsystemsusuallyofferbenefitsderivingfromeconomiesofscale.Evenalocal(building-scale)districtheatingsystemisusuallyoperatingatagreaterscalethanthealternativeheatingsystemsitreplaces.Districtheatingmayalsoresultinheatproductionefficiencies,reducedoperatingcoststocustomersandhigherlevelsofreliabilityandqualityofheatasoutlinedbelow.

Efficiency

CHPtechnologiesaremoreefficientintheiruseofenergythanthecombinationofcentralisedpowergenerationplant(electricity)andgasboilers(heat)theytypicallyreplace.ACHPsystemmayoperateat80-90%overallefficiency,providingheatandelectricitywithalowercarbonfootprint.Modern,largescaleextractionplantshaveheatefficienciesofupto300to400%,whencompareddirectlywiththeequivalentquantityofelectricitygeneratedbythermalpowerplant(withnoheatrecovery)andheatgenerationfromboilers.Districtheatingsystemsarealsoveryreliable.TheInternationalDistrictEnergyAssociation(IDEA)reportthatmostdistrictenergysystemsoperateatareliabilityof‘fivenines’(99.999percent)andtotheirknowledge,therehavebeennorolling‘heat-outs’relatedtodistrictenergysystems.

Emissions

Districtheatingnetworksofferthepotentialtoreduceemissionsfromexistingboilerinstallations.AirqualityinDundeeispoorestinthecitycentreandalongthestrategicroadnetwork.Acity-wideAirQualityManagementArea(AQMA)hasbeendeclaredforexceedancesofthestatutoryEuropeanandNationalairqualityobjectivesfornitrogendioxide(NO2)andfineparticulatematter(PM10).

Fuel Poverty

Districtheatingsystemshavethepotentialtohelpaddressfuelpovertybyprovidingsecureheatatpriceslowerthanalternatives.Whilstthedevelopmentofadistrictheatingsystemmaybecapitalintensive,districtheatingsystemshavethepotentialtoofferstablefinancialreturnstoinvestors,whichmaythenallowaccesstofinanceatlowrates.This,togetherwiththeabilitytouseefficientheatgenerationandtofeedinlowcostheat(forexamplewasteheatfromindustrialprocesses),canresultintheabilitytosupplyheatatarelativelylowcost,withthesecurityoflong-termcontractsandthesecurityofalocalenergysupplygivingsomeprotectionfromthevolatilityofenergymarkets.TodateintheUK,however,accesstosuitablefinancehasremainedabarriertodevelopingsomedistrictheatingprojects.

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Integration

The‘economyofintegration’derivesfromtheabilitytobalancedifferentheatloadswhichhavepeakrequirementsatdifferenttimes.Itistypicalformaximumheatingandcoolingloadstofluctuatesignificantly,withmaximumdemandoccurringforshortperiodsoftime.Whenloadswithdifferentpeakdemandtimesareservedbythesamenetwork,thetotalheatcapacityrequiredcanbesignificantlylessthanthesumofeachindividualheatcapacityrequirement.Themorediversetheheatloadsonasystem(mixingcommercial,domesticandpublicbuildings,forexample),thegreaterthebenefit.

Renewables

Districtheatingnetworksofferopportunitiestouserenewableand/orlowcarbonsourcesofheat(forexampleheatpumps,heatfromwaterandsewage,geothermal,solarthermal,biomass,hydrogenfuelcells,wasteheatfromindustrialprocesses,energyfromwaste)andheatstoragetechnologiesthatmayotherwisenotbeviable,especiallyasnetworksgrow.Theydosoasthenetworkis‘technologyagnostic’,meaningthatanysource,andcombinationofsourcesofheatcanbefedintothenetworkwithouttheoperationofthenetworkbeingdependantonanyoneheatsource.

Connectability

Theabilitytoconnecttoanexistingdistrictheatingsystemcanbeveryattractivetodevelopers.Firstly,theycanavoidthehighcapitalcostsofinstallingstandalonebuildingheatgenerationequipment.Secondly,theycanmakeproductiveuseofthespacethatwouldotherwiseberequiredfortheboilerhouseorenergycentre.Thirdly,becauselargescaledistrictheatingsystemssupporttheuseoflowandzerocarbonenergysources,thecarbonfootprintofthebuildingcanbesignificantlyreduced,enablingthemtomeetanyobligationsinconnectionwithbuildingstandardsand/orplanning.Lastly,theymaybeabletoofferthebuildingoccupierstheopportunitytotakeheatsupplycontractsatalowercostthanthealternativecostofabuilding-scalesupply,especiallywhenmaintenanceandrefurbishmentcostsaretakenintoaccount.

3www.districtenergy.org4CityPlan2017-2026,DundeePartnership:ResultsfromtheScottishHouseConditionSurvey2013-2015foundthatlevelsoffuelpoverty37%ofallhouseholdsinDundeewerefuelpoor.Sincethen,therapidrisesinthecostofenergyhaveoutstrippedanyrisesinhouseholdincomeresultingintheprobabilitythatlevelsoffuelpovertywillhaveincreased.

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1.4 Policy context

ThedevelopmentofdistrictheatinginDundeeisinformedandsupportedbynational,regionalandlocalstrategicpolicies,including:

National

• ClimateChangePlan-theThirdReportonPoliciesandProposals(2018)

• TheFutureofEnergyinScotland:ScottishEnergyStrategy:TheFutureofEnergyinScotland(2018)

• EnergyEfficiencyScotlandProgramme(2018)

• ConsultationonHeatandEnergyEfficiencyStrategies,andRegulationofDistrictandCommunalHeating(2017)

• TheHeatPolicyStatement(2015)

• NationalPlanningFramework3

Regional

• TAYplanStrategicDevelopmentPlan(2016-2036)

• TayCitiesDeal

Local

• CityPlan(2017-2026)

• CouncilPlan(2017-2022)

• CapitalInvestmentStrategy(2018-2028)

• DundeeLocalDevelopmentPlan(2014-2019)

• ProposedLocalDevelopmentPlan2(2017)

• LocalHousingStrategy(2013-2018)

• DundeeFairnessActionPlan(2018)

• AirQualityActionPlan(2011)

• LocalHeatandEnergyEfficiencyStrategies(2018-pilot)

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ThefigurebelowoutlineswheretheDistrictHeatingsitswithintheDundeehierarchy.

Figure 2: Dundee Plans hierarchy

CITY PLAN

LOCAL HEAT & ENERGY EFFICIENCY STRATEGIES

CAPITALINVESTMENT

STRATEGY

COUNCIL PLAN

Dundee Partnership

Dundee City Council

DISTRICT HEATING STRATEGY

SUSTAINABLE ENERGY & CLIMATE

ACTION PLAN

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Local Heat and Energy Efficiency Strategies (LHEES)

AspartofthesuiteofconsultationsfirstlaunchedinJanuary2017,theScottishGovernmenthasbeenconsultingonahighlevelpolicyscopingpaperon‘LocalHeat&EnergyEfficiencyStrategies(LHEES),andRegulationofDistrictandCommunalHeating’.WithinthedocumentistheproposalthatlocalauthoritiesbegivenastatutorydutytodevelopLHEEStosupportthedeliveryofheatdecarbonisationandenergyefficiencyobjectivesofthenew‘Scotland’sEnergyEfficiencyProgramme’(SEEP).Coveringaperiodof15-20years,theLHEESwoulddeterminezoneswhichsetoutthemostappropriateenergyefficiency,districtheatingandheatdecarbonisationoptionsforgeographicalareas.

FromNovember2017,theCouncilhasbeenworkingwiththeScottishCitiesAllianceandResourceEfficientScotlandtopilotaLHEESdevelopmentintheLocheeLocalCommunityPlanningPartnership(LCPP)area.Thestudyfocusesthestep-by-steppracticalitiesofdevelopingaLHEES,thedataandotherrequirementsnecessarytodevelopmeaningfulimplementationplans,thetechnologysolutionsthatarelikelytobeapplicableintheareaaswellasanunderstandingofthechallengesandlessonsonhowthewiderdevelopmentofLHEEScanbestbedeliverediftheCouncilismandatedtodosointhefuture.

TheLocheeLCPPareahasbeenchosenasithasadiverserangeofbuildingsandconstructiontypes,andvaryingsocio-economicfactors,andthereforecoverarangeofscenariostohelpinformawiderLHEES.ItisamixeduseareasimilartootherareasinDundeesoelementsoftheLHEESarelikelytobereplicable.Fuelpovertylevelsarehigh,andtheneighbourhoodsofLocheeandMenzieshillarecurrentlyintheprocessofregenerationwhichwillincludenewdevelopmentsinthenearfutureprovidingtheopportunitytotestthedevelopmentofaLHEESinadevelopingcommunity.

TherearealsosomemoreuniqueaspectsofthechosenWard.TherearethreeexistingdistrictheatingschemesownedbyDundeeCityCouncilandaseparatedistrictheatingprojectatNinewellshospital,whichbordersthisLCPParea.Theremaybethepotentialforintegratingandextendingthesetotransitionalargersectionofthecommunityawayfromdirectlysupplyingheattobuildingsfromagasnetwork.

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‘Bringing it all together’ – the Sustainable Energy and Climate Action Plan

TheCouncil’sDistrictHeatingStrategyisintendedtodirectlycontributetothecity’swiderlowcarbonambitions.TheDundeePartnershiparecurrentlydevelopinganoverarching‘SustainableEnergyandClimateActionPlan’(SECAP)forthecityaspartoftheglobalCovenantofMayorsmovementwhichwillprovidetheleadership,commitmentandplanningnecessaryforthetransitiontoalowcarbonDundee.

Thecity-widestrategywillalignwiththeScottishGovernment’snew‘ClimateChangePlan’and‘ScottishEnergyStrategy’andtheCleanerAirforScotlandStrategy.ItwillhaveasharedvisionandobjectiveswiththeTayCitiesDealofsupportingsustainableeconomicgrowth,reducingsocialinequality,andenablingentrepreneurshipandinnovation.

SixStrategicProgrammeAreashavebeenidentifiedwhichwillcombinetoformasingleintegratedplanforDundee.TheseworkprogrammesreflecttheprioritiesoftheSECAPtomaximiseemissionsreductionandtacklingclimatechange.

Figure 3: LHEES Pilot Area

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1.5 District heating in Dundee

Thecityhaslongheldareputationforenergyconservationandgenerationandahistoryofdistrictheating.Withtheintroductionofthefirstpublicsectorsocialhousingdevelopmentsinthe1920’sand1930’s,thethenCouncilbuilttheLogieHousingestateandHospitalfieldHousingestateoftenreferredtoas“TheSteamies”onaccountofthehightemperaturesteamenginesservinglowriseunits.

TheUniversityofDundeehasitsowndistrictheatingsystemwhichhasservedtheircampussincetheearly1970’s.Thisscheme,consideredasintegraltoacity-widenetwork,hasfourlargeenginesandisabouttoundertakearefurbishmentsurveylookingtoincorporatetheUniversityofAbertayinitially,withcapabilityoffutureexpansion.

Figure 4: Proposed Strategic Programme Areas of the Dundee City SECAP

Reducing the consumption of energy, promoting energy efficiency and increasing the proportion of energy from low and zero carbon technologies.

Reduce the impact of transport and travel by promoting and deploying sustainable alternatives.

DistrictHeatingRenewables

EnergyEfficiency

ResourceEfficiency

Resilience and

Adaptation

SustainableTransport

SECAP

Managing our wastesustainably by reducing, re-using and recovering waste to improve resource efficiency.

Increasing the percentage of renewables used for power and heat and delivering savings.

Increasing the use of District Heating schemes in the city, creating new heat networks and delivering affordable energy.

Reduce the risks and vulnerability to a changing climate and build resilience to unavoidable impacts.

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MorerecentlytheCouncilhasdeliveredanumberofdomesticdistrictheatinginstallationswithintenmultistoreydevelopmentsatDallfield,Lansdowne,LocheeandWhorterbank.

Eachsitehasitsowndesignatedplantroomsituatedseparatefromthelivingareaswithapurposebuiltcentralisedboilerhousecontainingboilers,pumps,pressurisationunitsandcontrols.Heatingisprovidedviasteelpanelradiatorsandindirecthotwatercylindersforhotwater.TheheatitselfisdistributedtoradiatorswithinlivingareasbyadomesticpumpsituatedinaHeatInterfaceUnit(HIU)andeachflathasitsownEnergyBillingsmartmetersothattenantsareonlychargedfortheenergytheyuse.

Theseexistingexamplesofheatnetworksdemonstrateanearlycommitmenttotheimplementationandencouragementoftheuseofheatnetworkswithinhousing.TheCouncilhasalsoidentifiedadditionalareasforpotentialdistrictheatingschemes,discussedlaterintheStrategy.

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Case Study: District Heating with Dallfield Multi-Storey Development

Dallfieldconsistsoffour14-storeytower-blocksincentralDundeeandlieswithinthepoorest10%ofdatazonesintheScottishIndexofMultipleDeprivation(SIMD).Priortotheproject,70%oftenantswereonhousingbenefit,70%hadpre-paymentfuelmetersandfuelpovertywashigh.

TocomplywiththeScottishHousingQualityStandard(SHQS),theflatsweretoreceivenewheating,kitchensandbathroomsthroughtheCouncil’scapitalprogrammeandeventhebestavailableelectricheatingwouldnothavebroughtmanyoftheflatsuptotherequiredenergyefficiencyrating.ExploratorytalkswithScottishGasraisedthepossibilityofexternalfundingforover-claddingtheblocksininsulatedrenderanddevelopingagas-fireddistrictheatingschemewhich,combined,wouldgreatlyimprovetheenergyefficiencyrating.

Whilsttheflatsofferedreasonablespacestandards,acentrallocationandspectacularviewsovertheRiverTay,theywereunpopularandturnoverwashigh.Theblockssufferedhighlevelsofanti-socialbehaviourandvandalismandtheirreputationamongstexistingtenantsandthewidercommunitywasverypoor.Ifinvestmentinthefabricandphysicalregenerationoftheareawastotakeplacethenhousingmanagement,safetyandsecurityissueshadtobeaddressedfirst.Tothisend,amulti-agencygroupwassetup

toaddresstheseissuesandbyautumn2011whenthephysicalworkswentonsite,theblockshadstabilised,turnoverhaddecreasedandawaitinglistfortheflatshadbeenestablished.

AswellashelpingtheCounciltoachievetheSHQSandclimatechangetargets,itwasvitalthateffortshadamajorimpactonfuelpovertyoftenantsbyreducingfuelbills.GaswasthereforeprocuredatcommercialratesthroughaTaysideconsortiumwhichtheCouncilutilisesinobtainingfuelforitsownbuildings.Itwasdecidedearlyonthataflat-rateheat-with-rentschemewasnotappropriateassuchaschemewoulddiscourageenergy-efficientbehaviourbytenants.Thismeantthatsupplieshadtobemeteredandusingwirelesstechnology,apay-as-you-gosystemwasdeveloped.Aunit

rateforheatwassetbytakingthecommercialrateandaddingallowancesfordistributionlosses,managementchargesanddelinquency.Theoverallcosttotenantsislessthanthecostofdomesticgas.Ingoingfromelectricheatingandnoinsulationtogas-fireddistrictheatingandinsulation,tenantscouldexpecttheirfuelbillstobereducedbyatleast30%.EnergyratingsimprovedfromEtoBandcarbonemissionswerecutby60%.Theschemewassosuccessfulthatitwasreplicatedatafurthersixhigh-riseblocksinthreelocationseachwiththeirownenergycentres.

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1.6 Objectives for district heating in Dundee

Tacklingfuelpoverty,reducingCO2emissionsanddecentralisingenergyarekeyissuesforthecityasidentifiedintheCityPlan,theCouncilPlanandtheCapitalInvestmentStrategy.

TheDundeeFairnessCommissionreport‘AFairWaytoGo’5publishedin2016identifiesdistrictheatingasameanstoprovideaffordableenergyandrecommendedthatDundeeshould“expandtheavailabilityandviabilityofdistrictheatingsystems”tohelpaddressfuelpovertywithinthecity.

TheDistrictHeatingStrategyhasthereforebeenbroughtforwardtodeliverthesecommitmentsandaimstoprovideanotherstepforwardintheCouncil’slongstandingaspirationforthecityframedaroundjobs,socialinclusionandqualityoflife.

TheDistrictHeatingStrategywillfollowtheScottishGovernment’sHeathierarchyof:

1. Reducingtheneedforheat2. Supplyheatefficientlyandatleastcosttoconsumers3. Userenewableandlowcarbonheatresources

TheStrategyaimstoachievethefollowingobjectives:

• Deliversustainableandaffordableenergytoreducefuelpovertyandenergycosts.

• AchievereductionsintheCouncil’sCO2emissionsandcontributetothecity’semissionsreductiontargetof40%by2030.

• Developthecity’sheatnetworkatapacewhichisfinanciallyandpracticallyviableandwhichimproveseconomicefficienciesfromassets.

• Developtheknowledgeandskillsbasetofacilitateheatnetworkdelivery.

• Fostercollaborativepartnershipsandagreementsforheatnetworkdelivery.

5www.dundeepartnership.co.uk/sites/default/files/fairnessreport-screen_0.pdf

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TheopportunitiesfordistrictheatingnetworksinDundeearecharacterisedbytheirroleindelivering:

• Reducedenergycostsandcustomerprotection–addressingfuelpoverty.

• Carbonsavings–fromamixoftechnologysolutions.

• Energysecurity–multipletechnologyoptionssupplyingintothenetwork.

• Revenuegeneration–throughowningandoperatingdistrictheatingnetworks.

• Economicdevelopment-Dundeeasanattractiveplaceforbusinessestolocateandinvest.

2.1 Data collection

Akeystartingpointindevelopingalongtermstrategyforheat,atbothalocalandnationallevel,istounderstandwhereheatneedis(demand)andopportunitiestogenerateandprovideheat(supply).DundeeCityCouncilhasbeenworkingwiththeScottishGovernment’sHeatMappingprogrammetosupportthedevelopmentofalocalGISbasedheatmap.Thelocalsystemmeanslocaldataandpriorities,suchasfuelpoverty,planning,economicopportunityorpublicsectorestate,canbeconsideredatthesametime.

Figure 5: Dundee Heat Demand Map

2 OPPORTUNITY ASSESSMENT OF DISTRICT HEATING LOADS

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Heatmappingprovidesafundamentaltoolinthisprocessbyprovidingvaluableinformationoncurrentheatloadswithinthecity.Itcanalsoassistindeliveringprojectsonthegroundbymodellingfutureheatsupplyanddemandscenariosforinvestmentinnewdevelopments.ItwillprovideameansfortheCounciltoidentifylinksbetweenheatsourcesandheatdemandtooptimiseresourcesandmaximiseinvestmentopportunities.

Theinitialstageinvolvedthecollectionofkeydatasetsto:

• Characterisepropertieswithinthelocalauthorityareaintermsoftheirbuildingtype,tenureandheatdemandwhichwereinitiallyestimatedfromtheScotlandHeatMap6andthenenhancedwithsupplementarylocaldata.

• Identifyinitialgroupsofpropertiesbyownershiporpropertytypethatcanbeaggregatedtogetherunderonecompanyorcommunitygrouptofacilitatefuturestakeholderconsultationactivity.

• Identifyinformationonproposednewdevelopmentsinthearea,includinginformationonproposedfloorareas/numberofdwellingsandplannedenergysupplyplant.

• CollateadditionalGISinformationtoassistwiththeunderstandingofopportunitiesincluding:informationonfuelpovertyindices,proposedinfrastructureworks,utilitieswhereavailableetc.

TheheatmapwillbeupdatedregularlyastheCouncil’sdistrictheatingstrategyisbeingdelivered.Thiswillensurethatthemappingisinformedandrefinedtoprovidecontinuedclarityandguidanceonthescopeofheatnetworksolutionsforfuturedevelopment.

2.2 Identification of potential clusters

Opportunitiesfordistrictheatingwereidentifiedthroughworkshopsin2017,combiningtheinterestsofPlanning,Property,HousingandEnergyManagement.ParticipantsreviewedtheHeatMapandinparticularthelayersshowingtheheatdemanddata,proportionofsocialrentedproperties(asaproxyforfuelpoverty),andfuturedevelopmentproposalsandconstraintsmapsfromtheLocalDevelopmentPlan.

Clusteropportunitieswerefurtherassessedwheresituatedinareasofexistinghighdensityheatloads,asillustratedinFigure6.ItisworthnotingthatthisdoesnotrepresentthelimitoftheopportunityinDundee,ratherthesearetheareaswhereCouncilorotherpublicsectoranchorloadswereidentifiedandwhereclusterscouldinitiate.

6www.scotland.gov.uk/heatmap

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Figu

re 6

: Hea

t dem

and

clus

ters

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3 OPPORTUNITIES FOR HEAT SUPPLY

ThissectionreviewsthepotentialopportunitiesthatexistinDundeeforheatgenerationincludingdedicatedheatplantandrecoveryofheatfromexistingindustry.Italsoconsiderson-siteornear-sitenaturalresourcesthatcouldbeutilisedforheatproduction.

3.1 Heat supply resources mapping

Basedonlocalknowledge,Scotland’sheatmapandpublicdatasets,thefollowingresourceshavebeenidentified.ThesetechnologiescanbecharacterisedinthegroupsshowninTable1thatcanbecombinedwiththermalstoragetoprovidesustainableheatsupply.

*ExamplesofthesetechnologieshavealreadybeendevelopedinDundeeorareindetaileddesignphases.

Table 1: Heat generation technology options identified

Group Technology Description and examples

Existing heat production

EnergyfromWaste(EfW)Plant TheEfWplantatBaldovieislocatedclosetoWhitfieldandhashighpotentialheatproductionthatcouldsupplyasubstantialnumberofcustomers

Industrialplantswhereheatmaybeavailablefromrecoveringheatfromcoolingtowers,fluesandeffluentdischarge

TherearevariousindustrialareasinDundeewhereexistingindustrymayhaveexcessheatthatcouldberecovered,alternatively,industriallandcouldberepurposedforheatgeneration

Potential new production within the City

Combinedheatandpower(CHP)*andboilersusingnaturalgasgridinfrastructure

ThenaturalgassupplywillallowCHPandback-upandpeakingboilerstobelocatedstrategicallywithintheCity

Riversandsurfacewatersupplyingheatviaheatpumps

ThetidalRiverTay,itstributariesandthePortofDundeeoffersignificantheatresource

Groundconditionsthatcouldsupportgroundsourceheatpumps*

Sustainableheatrecoveryfromthegroundandgroundwaterusingclosedoropenloopboreholes

SewerHeatRecovery Heatrecoveryfromthesewernetworktoprovideheatviaheatpumps

EffluentHeatRecovery Heatrecoveryfromwastewatertreatmentsitestoprovideheatviaheatpumps

Potential new production on the perimeter of the City

Biomass Biomassboilerplantusingforestryandagriculturallandtogrowshortrotationcoppice

AnaerobicDigestion Useofindustrial,agriculturalandotherwastematerialtogeneratebiogas

SolarThermal* Potentialforlargescaleheatgeneration,combinedwithseasonalheatstorageinpit,boreholeoraquiferthermalenergystoreswhereconditionsarefavourable

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Theopportunitieslistedabovearepresentedwithoutdetailedconsiderationofthepotentialviabilityofeachoption.Theinclusionofanypotentialheatsupplyassetsandtheirlocationwilldependonanumberofchallengesassociatedwithtechnological,environmental,financialandcommercialconsiderationsincluding:

• Thecapitalinvestmentandoperationandmaintenancecostswillhavetobecarriedbytheprojectandjustifiedthrougharobustbusinesscase.

• Environmentalimpactsassociatedwiththedeploymentoftechnologywhichmaybepermittedwillbemitigatedthroughplanningandenvironmentalpermittingregulations(noise,airquality,visualimpact,ecology,etc).

• Theestablishmentanddevelopmentofsupplychainsforthesupplyandinstallationoftechnology,whichmayimpactonthecostandqualityofsolutions.

• Resilienceofthetechnologytodeliverreliablepowerandheattocustomers.

• Theselectionofsuitablelocationsfordeploymentofsolutionswithinlocalplanningpolicy.

3.2 Energy Centres

TheCouncilhasalreadyestablishedcommunalheatingsystemsbasedonanumberofthetechnologieslistedinTable1includingCHPsupplytomulti-storeydevelopments.Approvalhasalsobeensecuredtodevelopaninnovativemulti-technologysolutioncombiningCHP,groundsourceheatpumpsandsolarthermalatCairdParkRegionalPerformanceCentreforSport.Theenergycentredesigncombinesheatpumps,gasCHP,SolarThermal,PV’S,andlargethermalstoresforlowgradeandhighergradeheatcombinedwithgasboilersforpeakingandbackup(seeappendix1).ThismodelwillbepilotedinitiallyatCairdParkwheretheCHPismodelledtosupplythebaseloadcovering35%oftheloadthroughouttheyear.TheGroundSourceHeatPumpswouldcontributeafurther55%leavingtheGasBoilerswithonly15%oftheprojectedload.

Othertechnologies,listedinTable1,aresuitedtothesiteandlocationofmultipleenergycentreswithinthecityandonindustrialandbrownfieldlandattheperimeterofthecitytosupplyheattowardsthecentre.Thiscouldallowmoreofthesuburbanareastoconnectinthefuture.Renewabletechnology,suchasanaerobicdigestionandsolarthermalmaybeabletoutiliserurallandintheperimeterofthecityandprovidediversificationtotheagriculturalsector.

3.3 Energy from Waste

EnergyfromWaste(EfW)istheprocessofcreatingenergy,intheformofelectricity

27

and/orheat,fromthethermaltreatmentofwaste.EfWfacilitiescanbedesignedtoprovidepower(electricity)and/orheat,andtheratioofheatcomparedtopowercanbesplittofavoureither.Thedistanceyoucansendheatinadistrictheatingschemedependsonhowmuchenergyisinthesteamorhotwaterbeingsentout.Thegreatertheenergycontent,thefurtheritcanbetransportedbeforesystemlossesmakeitunsuitable.AnexistingEfWfacilityinLerwickprovidesheattopropertiesover6kmawaywhilstinDenmarkboosterstationsareusedtoreduceenergylosseswhentransmittingheatover80km.

ItisrecognisedthatwhilstEfWitselfisnotarenewableenergysource,theenergyproducedbyEfWfacilitiesreplacesthatgeneratedbyotherfuelssuchascoal,oilandnaturalgas.ScottishPlanningPolicy6:RenewableEnergy7identifiesthatenergyfromwaste,landfillgasandothertechnologieswillbeusedtohelpmeetScotland’stargetsforincreasingtheamountofelectricitygeneratedfromrenewableenergysources,asthisisavitalpartofthenationalresponsetosustainabledevelopmentandclimatechange.

AlongtermstrategicopportunityforsupplyingadistrictheatingnetworkinDundeeCityisaconnectiontotheCombinedHeatandPower(CHP)facilityabouttoenterconstructionatBaldovie.MVVEnvironmentBaldovieLtd(MEB)haverecentlybeenawardedatwentyeightyearcontractbyDundeeCityCouncilandAngusCounciltotreatresidualwastefromthetwoauthorities.ThecontractwillbedeliveredbytheconstructionandoperationofanewplantonasiteatBaldovie,adjacenttotheexistingEfWplantformerlyoperatedbyDERL.

Thewastewillbecombustedandtheheatwillbeusedtogeneratesteam.Thesteamwilldriveasteamturbineandgeneraterenewableelectricityforuseatthefacility,tosupplytheMichelintyrefactoryandforexporttothegrid.SteamwillalsobeextractedfromtheturbineandfedintotheMichelintyrefactorysteamnetworktobeusedforprocessandheatingpurposes.TheEfWfacilitywillthereforeincorporateCombinedHeatandPower(CHP)technology.Onaverageapproximately10MWofsteamwillbeexportedtoMichelinforusewithintheirfactoryforproductionandheatingpurposes.Anewpipelinewillbeinstalledtoconnecttotheexistingheatdistributionsystemandsomeexistingpipeworkwillneedtobereplaced.Aseparateplanningapprovalhasbeenawardedforthesteamconnection.

BytakingsteamfromMVV’sEfWCHPfacility,Michelinwillbeabletoplacetheirboilers,whicharecurrentlygasfired,onstandbymode;andtobekeptwarmusingsteam,andonlyusedwhentheEnergyfromWasteCombinedHeatandPowerfacilityisnotproducingenergy.Approximately5MWofpotentialsteamwouldbeavailableaftersupplytoMichelin,whichcouldbelinkedtoawiderheatnetwork.

7http://www.gov.scot/Resource/Doc/171491/0047957.pdf

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Thedemandandsupplyopportunitiesoutlinedinsection2and3havebeencombinedtoidentifythescopeandextentofpotentialheatnetworks.Thisincludesthegeographicalextent,potentialinfrastructureroutes,proposedconnectionsandthelocationandtechnologyfortheheatsupply.

TheCouncilhasworkedwithRambolltotestanumberofmodellingscenariosandkeyeconomicperformanceindicatorsderivedforeachscenario.Thesekeyindicatorswereweightedtoassesstherelativerankingandpriorityfordevelopingtheopportunitiesidentified.

4.1 Mapping of heat supply and demand

OpportunitiesforindividualdistrictheatingnetworkshavebeenmappedinGISandareillustratedinFigure7below.FurtherdetailsonfourofthesearepresentedinAppendix1.

Theseindividualdistrictheatingnetworkscanbedesignedtoadoptcompatibleheatspecificationsanddeveloped,intheshortterm,tooperateasislandclusters.Inthemediumtolongtermitisintendedthattheseindividualnetworksbeexpandedandconnectedtooneanotherinordertocreateacity-widedistrictheatingsystem.Asuitablydesignedcity-widesystemcouldbenefitfromgreaterdemand,economyofscaleandoverallsystemefficiency.

4 HEAT NETWORK OPPORTUNITIES

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Figu

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: GIS

map

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and

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Figure 8: Steps in delivering a district heating project8

TheStrategyseekstoinitiateaprogrammeoflowcarbondistrictenergyprojects,relatedbytechnologyandlocationwhichcandelivertransformationalchangeinDundee.Eachprojectwillbedeliveredfollowingtheapproachsetoutinfigure8.Theprincipalthemestobetakenforwardintheprogrammedeliveryphaseare:

• DeliveringsignificantreductionsinCO2emissionsandgreenhousegases;

• Fosteringandformalisingcollaborativepartnershipsthatdeliverqualitativesolutionsandadditionalinvestment;

• Engagingwiththecommunitiestodeveloplocalsupportandbenefitsfromcommunityinvestmentandparticipationanddirectlyreducingfuelpoverty;

• Deliveringarangeofprojectspecificandlongertermbenefitstoemploymentandbusinessdevelopment;

• Deliveringsustainableandresilientsolutionsthatprovideasecurelocalenergysupply.

5 PROGRAMME DELIVERY

8Basedon“CommunityEnergy”,King&Shaw(www.districtheatingscotland.com/wp-content/uploads/2015/12/CommunityEnergyPlanningDevelopmentAndDelivery.pdf )

Set Objectives Gather Data

Define project and stakeholders

Opportunityassessment and

ranking

Project delivery & contract

management

Market testing & procurement

Commercialbusiness model

Financial modeling,

funding options

Technical feasibility study

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5.1 Preliminary Assessment of Delivery Programme

ThepreferredmethodofdeliveringprojectsschemesisthroughaprogrammeofworkmanagedbytheCouncil.ThisprogrammemanagementapproachwilltakeanoverarchingandlongtermviewoftheCitytoensurethatenergycentresandnetworksaresizedtosafeguardfutureexpansionandinterconnection.

TheindicativeprogrammeisshowninFigure9anddefinesthestrategicambitionsoftheclusterdevelopmentandinterconnections.Theproposeddeliveryvehicleisdiscussedlaterandtheidentificationofthemostappropriatemodel,governancestructureandimplementationwouldevolvewiththeemergingclusters.Theoperatingmodelwouldbefullyimplementedpriortosignificantinterconnectionofclustersandroll-outofthecitywidenetwork.

5.2 Technology scenarios

Amixofsuitabletechnologiesforthesupplyofheattothedistrictenergynetworkwillbeconsidered.Thiswillbebasedonutilisingavailableexcessheatfromindustry,suchasEnergyfromWaste,proposedhydrogenproductionandfuellingstationandotherindustrialparksinthecity.Itwillalsoincludededicatedlowandzerocarbonenergycentreswithsuitableback-upandpeakingboilerplantcapacity.

Figure 9: Initial delivery programme to create a city wide district heating network in Dundee

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5.3 Development of Business cases

Thisstrategydoesnotdefinethebusinesscase,howeveritsetsouttheobjectivesandrequirementsforpresentingabusinesscasefortheoverallprogrammeandforindividualprojectswithintheprogramme.

Theintendedapproachtoinvestinginandconnectingacitywidedistrictenergyprojectisthroughavehiclethatidentifiesindividualdistrictenergyclustersanddeliversthemthroughaprogrammeofdistrictheatingdevelopment.Thisensuresthat:

• Thereisanoverarchingdesignbasistoensurecompatibilityofallsystems;

• Reducesthecapitalcostandriskofinfrastructureinvestmentbysharingthecostacrossanumberofprojects;

• Mayallowalternativeoptionsforinnovativefundinganddeliverythatcanbeintegratedcontractuallyandcommerciallylater.

5.4 Stakeholder Engagement

Theengagementandactiveparticipationofstakeholdersiscriticaltothesuccessofthestrategy.Itisanticipatedthatbusinesspropertyownersandtenantsinthestudyareaswillbecomecustomersofthesystemwhereappropriate.Asaresult,thestrategydefinesapresumptionthatthenetworkoperatorwilloffercustomersthebestvalueagainstalternativeenergysupplyoptions.Eachdistrictheatingprojectwillrequirecollaborativepartneringbetweenenergygenerationsuppliers,thenetworkoperatorandinvestors.

5.5 Risk appraisal

ThekeyrisksfordevelopingdistrictheatingprojectsareoutlinedinTable2.TheCouncilwillexploreavarietyofwaystohelpde-riskprojectswhererequired,makingthemmoreinvestiblefordevelopersandfinanciers,including:

• facilitation–co-ordinatingandbrokeringcommitmentsfromthirdparties.

• regulation–e.g.throughtheplanningsystem.

• committingpublicsectorbuildingsaslong-termanchorloads.

• underwritingcertainprojectrisks9.

9ScottishFuturesTrust:GuidanceonDeliveryStructuresforHeatNetworks(www.districtheatingscotland.com/sites/default/files/SFT%20DH%20Delivery%20Structure%20Report%20%28v1%20-%2016%20Mar%2020015%29_0.pdf )

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Table 2: District Heating Risk Appraisal

Risk DescriptionMitigation measures during current phase or included in Design, Build,

Operate or Maintain

Timescales • Timescalesfornewdevelopmentsareexpectedtobefixedandanyheatmustbeavailableathandover

• Rangeofpotentialtechnologyoptions

• Requirementforasystematicoptionsappraisal

Customer uptake • Lowcustomerengagementandwillingnesstoparticipateinprojectswouldresultinlowerthanexpectedrevenues

• Ensurepropertylandlordsandtenantsareengagedandensurethatfullbenefitsareclearlycommunicatedandreasonableconcernsareaddressed

Project data availability

• Informationprovision

• Continuityofsupport/Availabilityforconsultation

• Influence(positive/negative)

• EarlyengagementwithstakeholdersandsupportingCouncilthroughcommercialdiscussions

• Procurementtoidentifykeyclientissuessuchascriticaltimescalesorperiodswhenworksshouldbeavoided

Network route constraints

• Physicalbarriers,groundconditions,etc

• Identificationofrouteconstraints

• Riskassessmenttoidentifyanyunknowns

Below ground utility routes

• Gas,electricity,water,communications

• Obtaininformationinternallyandundertakeutilitysearchesifinformationnotavailable

• Preparationofinformationpacktoincludefullsetofutilityinformation

Planning Procedures

• LocalDevelopmentPlanpolicyrequirements

• Planningapplicationprocess

• Heatnetworkfeasibilitystatement,airqualityassessmentetc

• EarlyengagementwithPlanningDivision

Commercial • Theoverallcommercialviabilityoftheindividualprojectsorcitywidenetwork

• Riskstrategy:riskappetiteofthedeliveryorganisation

• Theoutlinebusinesscasefortheoverallprogrammeandthedetailedbusinesscaseforindividualprojectsshouldbebasedonappropriatequalityofcostdataforthetechnologyproposals

• Thestrategyshoulddefineanappropriatescaling&flexibilityoftechnologydesign

• Clearscheduleoftechnicalrequirementsandassociatedbillsofquantitiesatprocurement

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5.6 Delivery vehicles and Funding

Deliverystructuresfordistrictheatingprojectscanrangefromfullypublicsectorledtofullyprivatesectorled,orincludeavarietyofjointpublic/privateor‘hybrid’arrangementsaccordingtoeachpartofthedesign,build,financingandoperation(DBFO)oftheproject.Eachapproachprovidesdifferentlevelsofcontrol,degreeofrisk,requiredratesofreturn,investmentcostsandexistingexperienceandskillssetsrequired.

Typicallyprivatesectordevelopmentmodelsrequirehigherprojectreturnrates(IRR)toenabledevelopmentbutabsorbmuchoftherisk.PublicmodelsmayenabledevelopmentofprojectswithlowerIRRsandallowfocusonalternativeprioritiessuchascarbonreduction,fuelpovertyandschemeexpansion.

Duringtheearlystagesofstrategyimplementation,DundeeCityCouncilwillbetheprogrammeleadfortheidentifiedschemesandintakingtheseforwardwillconsidercollaborativeinvestmentopportunitieswithinthepublicandprivatesectorwhereitprovidescommercialoreconomicbenefit.Intheshort-termtheCouncilwillseektosecureexternalcapitalthroughexistingfundingschemesonaprojectbyprojectbasisincludingtheScottishGovernment’s‘LowCarbonInfrastructureTransitionProgramme’andwherealliedtodomesticenergyefficiencyimprovement,thenew‘Scotland’sEnergyEfficiencyProgramme’.Aninternalrevenuebudgetforthedesignanddevelopmentoffutureschemeswillbeexplored.

Inparallel,theCouncilwillconsidertheoptionsforcreatinganEnergyServicesCompany(ESCo)toprovideacleardeliverymodelforplanning,developingandoperatingnewschemesoverthelongerterm.Anorganisationthatwasabletoofferthiswideroverviewcouldhelpensurethatbestpracticeismadeavailable,thatthetechnologiesusedarescalableandcompatibleandthateconomiesofscaleareutilised.Overtime,theESCocouldseektocreatethedistrictheatingnetworkacrossthecity,workingwithotherpartnerstocreatethefinancialmodelandseekingoutinterestfromthewiderinvestmentcommunity.TheCouncil’srecentheatnetworkdevelopmentsrepresentaninvestmentofaround£27M,whichcouldpotentiallybetransferredtoanESCotooperate,andformpartofitsassetbase.

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6 ACTION PLAN

Action Timescale

Short Term (2018-2020)DelivertheCouncil’sfirstnon-domesticdistrictheatingschemeviatheLow Carbon District Energy HubattheRegionalPerformanceCentreforSport.

August2019

Seektosecurefunding fordistrictheatingprojectsthroughLCITP2andongoingSEEPprogrammeandinternalbudgets.

December2018

DevelopfeasibilitystudiesfordistrictheatingprojectsandnetworkswithintheLochee CorridorandDighty Corridor.

December2018

EncouragethedeliveryofdistrictheatingwithinthecitythroughproposingnewDistrict Heating Planning PolicyintheLocalDevelopmentPlan2.

December2018

Medium Term (2020-2024)LiaisewiththeScottishGovernmenttoembed Local Heat and Energy Efficiency Strategieswithinnationalandlocalpolicy.

March2022

DeliverdistrictheatingprojectsandnetworkswithintheLochee CorridorandDighty Corridorsubjecttofunding.

March2021

Supporttheexpansionofadistrictheatingnetworkwithinthecity centreinpartnershipwithotherlocalpublicandprivatestakeholders.

December2022

WorkwithpublicandprivatesectorpartnerstoexploredistrictheatingopportunitiesinandaroundMenzieshillandColdside.

April2023

SeektoestablishaDundeeCityESCo. March2024

Longer Term (2024-2028)Assessoptionsonhowdistrictheatingcanbeutilisedinthedevelopmentofintegratedenergyhubswithhydrogenprovisionfortransportandfleet.

2024

Investigatepossibleconnectionsbetweenestablisheddistrictheatingschemestoimproveoperationalefficiencies.

2024-28

Continuetosupporttheexpansionofacity centre district heating network inpartnershipwithotherlocalpublicandprivatestakeholders.

April2028

Explorealternativemethodsofheatgenerationtodecarbonisedistrictheatingnetworksinlinewithemerging technologies.

April2028

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APPENDIX 1

Project: Low Carbon District Energy Hub at Regional Performance Centre for Sport

Description

DundeeCityCouncilandsportscotlandarepartnersintheprojecttocreateaRegionalPerformanceCentreforSportatCairdParkinDundeetoserveTaysideandFife.AlsoinvolvedareDundeeUniversity,AbertayUniversityandDundee&AngusCollege.ALowCarbonDistrictEnergyHubwillbebuiltaspartoftheprojecttofeedtwobuildings,theRegionalPerformanceCentreandDome,theAthleticStraightandDome.Thehubhasbeendesignedinsuchawaytohavefuturecapacitytofeedapproximately220housesinMillofMainsorLinlathenhousingdevelopmentsadjacenttothesiteoverthenexttenyearsandotherpossibleinterestedparties.Bydeliveringalowandzerocarbonsolution,thefullyintegrateddistrictenergyHubwillbeoperationalin2019andwillsignificantlylowercarbonemissionswhilstprovidingkeyinfrastructurethatwillactasthecatalysttoacceleratethecity’sambitionsforthedevelopmentofacity-wideenergynetwork.

Technical Information

Theenergycentrewillhave600kWofheatpumps,236kWofheatbyagasCHP,50kWofSolarThermal,63kWofPV’S,2400kWofgasboilerbackupandtwolargethermalstoresforlowgradeandhighergradeheat.GIEnergy(whowereworkingonanenergycentrefortheV&AMuseum),andRamboll,(whohadundertaken

workfortheScottishGovernmentonprospectsfordistrictheatinginDundee),haveassistedtheCouncilwiththisproject.RambollhaveprojectedtheusageofplantwithinthesiteandtheviabilityoftheproposedheatingelementsfindingthattheCHPwouldbethebaseloadcovering35%oftheloadthroughouttheyear.TheGroundSourceHeatPumpswouldcontributeafurther55%leavingtheGasBoilerswithonly15%oftheprojectedload.

Projected Cost

TheCouncilappliedforfundingfromtheScottishGovernment’sLowCarbonInfrastructureTransitionProgramme(LCITP),whichsubjectedtheproposalstofurtherrigoroustestingofthefinancialandtechnicalviabilityofthescheme.TheCouncilsuccessfullysecured£2.9millionfundingfromtheLCITPinMarch2017,togetherwithanallowanceof£100,000towardsenablingworks.

Estimated Pay Back

Theestimatedpaybackperiodforthisprojectis11years.

Project Delivery

SiteStartMay2018,CompletionAugust2019.

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Case Study: Low Carbon District Energy Hub at RPCS

PartoftheCouncil’sdesignproposalsforthenewRegionalPerformanceCentreforSport(RPCS)atCairdParkincludea‘LowCarbonDistrictEnergyHub’(LCDEH).ThedriverforthiswasthechangetotheScottishBuildingStandardsinOctober2015whichrequireanimprovementinenergyconservation/efficiencyfornewbuildingsbyreducingcarbonemissionsbyapproximately43%comparedtotheprevious2010standards(60%comparedtothe2007standards).SuchasignificantreductionincarbonemissionsnecessitatestheutilisationofLoworZeroCarbonTechnologies.

TheCouncil’sproposedtoutilise‘lowgrade’heat(circa8°Cto10°C)frombelowgroundandtoconvertthisintoahighertemperatureofheat(70°C),whichbecomesusefulinprovidingtheheatdemandsofthevariousbuildings.Thisisachievedusingadeviceknownasa‘heatpump’.Theheatpumprunsonelectricity,andforevery1kWofelectricalenergyconsumed,itwillproduce3.61kWofheatenergy,duealsototheheatobtainedfrombelowtheground.Duetotherelativecostofgas(3p/kWh)andelectricity(11.3p/kWh),afurtherproposalwasagreedtouseaCombinedHeatandPower(CHP)unittogeneratetheelectricityconsumedbytheheatpumps.Thisenablesfinancialbenefitsfromthesignificantlycheapercostofgas,whilstusingelectricallypoweredheatpumpunits.TheCHPunitwillalsocontributeusefulheattothesystem,aswillsolarthermalpanels,whichalsoformpartoftheproposals.

Heatfromthesethreesources(groundsourceheatpumps,CHPunit,andsolarthermalpanels)iscombinedintoanintegratedcircuitwithinanEnergyCentrebuilding,andisthendistributedtothedifferentbuildingsonsite.ThisisthemostcosteffectivewayofusingtheseLoworZeroCarbonTechnologiesindifferentbuildingsonthesamesite,andaltogetherformsthedistrictheatingsystem.Anotheradvantageofusingadistrictheatingapproach,isthatcapacityhasbeenincludedwithinthesystemtoprovideheattosocialhousing(inMillo’MainsorLinlathen),whichwillhelptoalleviatefuelpovertyintheseareas.Note-thefinalconnectiontothishousingwouldformafuturephaseofworks.

Takingaholisticapproachtotheenergydemandsoftheproject,Photovoltaic(PV)solarpanelswillbeusedtogenerateelectricityforuseinthebuildings.Thebuildingswillalsobenefitfrom‘enhanced’thermalinsulationandtripleglazedwindows,tohelplowerheatlosses.

Inthedesignsforthisproject,thesizeandusageofeachitemofequipmenthavebeenoptimisedtoachievethebestpossiblecarbonemissionsreductionforthelowestconsumedfuelcosts.

TheLowCarbonDistrictEnergyHubwasdesignedbytheDesign&PropertyDivisionwithintheCityDevelopmentDepartment,andtheplantdesignsweresubjecttoanindependentprofessionalpeerreviewbyaspecialistconsultantinthisfield,RambollEnergy.

40

Description

TheLocheeProposalencompassesKirkStreetMSD(with550flats)andWhorterbankMSD(with168flats),bothwithacentralisedboilerplantandtotalconnectedload4,500kW(bothinstalledbyBritishGasin2014underaSESPfundedinitiative),WestAreaHousingOffice,StMarysPrimarySchoolandLocheeLeisureCentreandPool.AnalysishasbeenundertakentoexplorewaystoimproveandenhancetheperformanceoftheMSD’sbylinkingthesebuildingsthroughanenergycentre.SubjecttoanR&ALegacyagreementandsupportfromDoosan,itisproposedtoinstallahydrogenfuelcelllocaltothevehiclechargingstationasthebaseloadenergyprovider.ThiswillthenlinktheboilerroomswithinthebuildingsandatthebaseoftheMSDs.TheFuelcellwillbeusedtofeedbothheatandpowertoallthebuildingsbutalsoassistwiththecarchargingpoints.AlongwiththisthefuelcellwillalsoprovideHydrogenwhichcanbestoredandusedforhydrogenvehiclesthusprovidingatrueenergyhub.ThiswillenabletheCounciltoimproveenergycostswithinthesystemandreducethefuelbillsfortenantsevenfurtherthusremovingthemfurtherfromfuelpoverty.


TheHydrogenFuelCellwouldprovide

approx.1200kWThermaland900kWElectric.Thiswouldbelinkedtothe1,000kWboilersatWhorterbankand3500kWboilersatKirkStreet.LocheeLeisureCentreandPoolhastwoHovalSR-plusBoilersmodel700kWtotaloutputwith2Dachs(BaxiSenerTech)CHPunitseachwitha750litrebuffervesseleachunitratedat31kWthermal/11kWelectricaltotaloutput.StMarysPrimarySchoolconnectedload525kW(theseboilersaredueforreplacementandthuswouldsimplyberemoved).TheWestareahousingofficehasnothermalheatingsystembutisheatedwithaVRVairconditioningsystemwithAirSourceHeatPumps.

Projected Cost

ThehighlevelestimatedoverallcostofthePlant,infrastructure,andHIU’sineachbuildingwillcostintheregionof£3m.

Estimated Pay Back

Thecurrentestimatedpaybackperiodforthisprojectis5-6years(Thiscouldincreaseslightlyoncemoredetailedsurveysarecomplete).

Project Delivery

Itisanticipatedtohavethisonsitelate2018withcompletion2019subjecttofunding.

Project: Lochee Development

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Project: Dighty Corridor Development

Description

Whitfieldisanoldsocialhousingdevelopmentwhichisundergoingregenerationwithnewprivatedevelopmentsalreadyinplaceandadditionalhomesplannedforthefuture.ThereisalsoanewPrimarySchool,1960’sstyleSecondarySchoolwithaswimmingpoolandanewCommunityHub.TheprincipalwouldbetotakethewasteheatproducedattheBaldovieEnergyfromWasteplanttotheeastofthesitetoanenergycentreandpipethistoaseriesofheatexchangercentresdistributedthroughoutthedevelopment.Thesecentreswouldthendistributetotheindividualbuildings.TheenergycentrewouldalsorequirealternativeheatsourcestoensurecontinuityofsupplyastheheatfromtheEnergyfromWasteplantwouldonlybeavailablearound80%oftheyear.

TheinclusionofMichelin’swasteheatintotheenergycentrewouldgreatlyincreasethecapabilityoftheenergycentre.Withthisarrangement,thesitesatDouglasandMidCraigiecouldbeincludedwithapossiblelink

totheRPCSsiteinCairdPark.TheWastetoEnergyplantwillbeupgradedoverthenextfewyearsbyitsnewownersMEBwhichcouldallowconsiderationoffittinganelectrolyserintotheenergycentretosupplyaHydrogenGeneratorfortransportrefuelling.


Theenergycentrewillhaveapproximately9,000kWwasteheat,GasCHP,SolarThermal,PV’S,gasboilerbackup&alargethermalstores.

Projected Cost

Notknownatpresent.

Estimated Pay Back

Notknownatpresent.

Project Delivery

Noprogrammedatessetatpresent.

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Description

Thecitycentreisideallysuitedfordistrictheating,consistingofDundeeCityCouncilbuildings,thecentralwaterfront,docks,UniversitiesofAbertayandDundee,HighSchoolofDundee,PoliceScotlandandCourt,D.C.Thompson’s,StudentAccommodationandtheWellgateandOvergateshoppingcentres.Thesiteiscompactandplacedonthewaterfrontitopensvariouspossibilitiesforheatgenerationanddistribution.AbertayUniversityandtheUniversityofDundeearecurrentlyexploringthetechnicalandeconomicopportunitiesforadistrictheatingschemetolinktheirrespectivecampuses.Thiswouldgivetheinitialkickstarttoalargerprojectandwouldenableotherinterestedpartiesinthevicinitytofeedintothenetwork.


TosupplementtheUniversityofDundee’senergycentre,fourenergycentresareenvisagedinaringwithinthecentrecomprisingheatpumps,gasCHP,SolarThermal,PV’S,gasboilerandtwolargethermalstoresoneforlow

gradeandoneforhighergradeheat.Thosenearertheriverutilisingwaterheatpumpsandtheonesinlandgroundorairsource.TheEnergyCentrelayouttobestandardisedatRPCSwhereapplicabletomakefurthermaintenanceandplantreplacementeasierandallowforastandardstockofsparestobekeptwhichwillworkinanycentre.Ramboll,whoaresupportingwiththefeasibilitystudyhaveprojectedthat80%oftheenergycouldcomefromrenewableswouldstillbeaconservativeestimateatthistimeforthissitealso.

Projected Cost

Notknownatpresent.

Estimated Pay Back

Notknownatpresentbutwouldrequiretobewithinthe20yearlifeoftheplant.

Project Delivery

Noprogrammedatessetatpresent.

Project: City Centre Development

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