The UK district heating market

Ian MandersUK energy in

buildings policy advisor,

Danish Trade CouncilDanish Energy Model

Initiative

• Former councillor in London 15 years and chaired a town planning committee

• Worked in parliament for an MP• Deputy Director of ACE: Planning and Energy Act 2008• Deputy Director of CHPA: “Big Offer” to DECC meant

HNDU, Heat Trust and the CIBSE-ADE Code of Practice• Former manager of Microgeneration Certification

Scheme (MCS) and Green Deal Oversight and Registration Body

• UK Policy Adviser on energy in buildings for Danish Government.

Ian Manders

Danish Export Energy Model project

• Part of Danish Government's strategy for export promotion and economic diplomacy May 2014.

• Climate, Energy and Building agency (DEA) working with the Ministry of Foreign Affairs (Export Council) and industry associations

• Export unit of experts from the DEA and an energy policy adviser to each of the Danish embassies in UK, Germany and China.

Milestones• MoU with Scottish Government - November 2014

• Several Scots study trips to Denmark

• DECC report on energy investment opportunity

January 2015 included DH

• DECC study trip to Denmark – April 2015

UK Government lead officials on DH in Copenhagen(photo)

• DECC UKTI Heat Network Market

event Sept 2015

• Information on the UK heat market for

Danish companies

• Scottish Planning Policy

Milestones continuedStrategic Business Alliance•Meeting UK lead contractors•Universities event and survey•Seminar for Housing Associations, December

Municipalities•Visit Copenhagen 2016 – 20 contacts•Liveable Cities Glasgow

Policy•Contributed to Heat Networks Infrastructure consultation (300 million pounds)•Contributed to Energy Company Obligation consultation•Financing of DH – PipeCo article & workshop

% people supplied by district heating

Euroheat and Power (2013)

Decisions, decisions

“Denmark began a concerted national effort to reduce its fuel usage in the 1970s, at the same time as the UK decided that its energy security could be found in North Sea Oil and privatisation”.

Decentralised Energy: Could London Emulate Copenhagen? https://www.ucl.ac.uk/london-2062/documents/DecentralisedEnergy

2013 2014 2015 Sum (as date)2016

TOTAL

£91,627,092

£50,740,562

£75,724,286

£359,154,682 £577,246,622

2013 2014 2015 (as date)2016

TOTAL

91,627 50,740 75,724 359,155 577,246

Calculation of the total value of contracttenders 2013 to part 2016Note these are total contract amounts and not always the total value of eachproject in terms of investment required (1000 GBP).

Round 1 - red

Round 2 - blue

Round 3 - green

Round 4 - yellow

Round 5 – pink

Map of successful HNDU rounds 1-5 over 100 municipalities

10“£2 Billion investment” – UK Government

Municipalities

Property Developers

Campus schemes

Social landlordsLeadContractors

City case studies

2 x 3.4MW + gas CHP supplying:

• The Hospital

• The University

• 350 flats

Major elements

• Potential de-steaming of existing hospital network

• Conversion of electric night storage heaters to wet system in flats

• Currently reviewing financial model

Bristol City Centre DH Phase 1

1MW biomass supplying 14 social housing blocks + 100TS + Hotels

• Energy Centre construction work commenced

• Nov ‘15 completion (social housing element)

• £2.1m Capital cost

• Est. 10% saving to tenants (dependent on Gas/wood pellet price)

• CO2 savings of 1,600 tonnes p.a.

BRISTOL - Redcliffe & Temple Phase 1

Redcliffe & Temple Phase 1

Greater Manchester City-Region

• Manchester City Council is one of ten in the city-region

• The City Region has a strategicrole and is responsible for public transport

New district heating in Manchester

• Ramboll was commissioned by the Association of Greater Manchester Authorities (AGMA) to develop the district heating energy masterplan for the Greater Manchester area (2013).

• The work forms part of the Greater Manchester (GM) Heat Network Programme led by Manchester City Council on behalf of AGMA.

• Programme funding from the UK Government with the UK Green Investment Bank as a major stakeholder.

• The Heat Network Programme is run by the City Region Project Development Unit (PDU) working with 10 councils on series of new district heating projects.

• Programme funded for 2.7 euro over 3 years, aim to be self-funding in year 4.• First project – Manchester Civic Quarter has gone out to tender for a lead

contractor to design, build and operate

54 prospective district heating schemes identified

Each district heating project likely to be unique in governance, financial structure, ownership etc

Citigen Map

Sheffield Core Policy CS 65Renewable Energy and Carbon Reduction

• Where appropriate, developments will be encouraged to connect to the City Centre District Heating Scheme.

• Shared energy schemes within large developments or between neighbouring developments, new or existing, will also be encouraged.

DH Structures UK

The End

IAN MANDERS / IANMAN@UM.DKUK POLICY ADVISOR – ENERGY AND ENERGY EFFICIENCY / LONDONDIRECT +44 207 333 0214 / MOBILE +44 79466 12508

DANISH EMBASSY, LONDON55 SLOANE STREET / SW1X 9SR LONDONhttp://storbritannien.um.dk/en/the-trade-council/