Heat Network Partnership Workshop Glasgow 8 September 2015

Heat Network Partnership Workshop Glasgow 8 September 2015 LDP Process - timeline Requirements of NPF3 and SPP and LDP response - Alan Duff, LDP Heat Network Development – Gavin Slater, City Energy Manager

2010 Heat Network Partnership Workshop Glasgow 8 September SPP general support for renewable heat - new development to make use of opportunities for decentralised heat Main Issues Report - major new development to be designed to connect to existing or planned heat networks Glasgow LDP Draft SPP 2013 – support for development & expansion of heat networks – use heat mapping to assess potential National Policy Proposed Plan – use of heat mapping, high level policy requirements SPP 2014 – more explicit guidance on what LDP policy should do SG – detailed policy guidance

Heat Network Partnership Workshop Glasgow 8 September 2015 To meet targets in Climate Change (Scotland) Act 2009 Partnership between the Council, University of Strathclyde, Scottish and Southern Energy, Scottish Enterprise and others 5 key areas for the development of DH Systems, identified on basis of: High density of carbon emissions linked to heating Presence of large organisations (particularly public sector) that could act as anchors Major investment/regeneration initiatives Energy and Carbon Masterplan

responses generally supportive however concerns over cost and additional burdens on developers Heat Network Partnership Workshop Glasgow 8 September 2015 Issue 1.3 – Low Carbon Heating/CHP Preferred Option: Revise existing policy to, wherever possible, require major new development to be designed to connect to existing or planned district heating networks and/or to develop opportunities for decentralised and local renewable … or low carbon sources of heat and power to meet their own, on-site, needs and potentially those of others in a local heat network.

“there is significant scope for district heating in the north of the city and in the central Glasgow area” Heat Network Partnership Workshop Glasgow 8 September 2015 “Heating and cooling constitutes around half of our total demand for energy … new and planned district heating schemes … will be required if we are to meet our target for renewable heat.” “by 2020 we are aiming to source 11% of heat demand and 10% of transport fuels from renewable sources.” “We can make much better use of the heat sources we have, including unused and renewable heat, and have prepared a Scotland heat map to help this to happen. We believe that there are significant opportunities for the cities in particular to use renewable and low carbon heat energy. New development should be future-proofed to ensure that connections to existing or planned heat networks are taken forward as soon as they are viable.”

“Development plans should seek to ensure an area’s full potential for electricity and heat from renewable sources is achieved” Heat Network Partnership Workshop Glasgow 8 September 2015 Local development plans should: use heat mapping to identify the potential for co- locating developments with a high heat demand with sources of heat supply support the development of heat networks in as many locations as possible, even where they are initially reliant on carbon-based fuels identify where heat networks, heat storage and energy centres exist or would be appropriate and include policies to support their implementation Policies should: should support safeguarding of piperuns within developments for later connection and pipework to the curtilage of development should give consideration to the provision of energy centres within new devt may include a requirement for new development to include infrastructure for connection to an existing or planned district network, providing the option to use heat from the network

Heat Network Partnership Workshop Glasgow 8 September 2015

Heat Network Partnership Workshop Glasgow 8 September 2015 The Council will support proposals to develop District Heating networks based on low carbon and renewable sources, or that facilitate the more efficient use of heat from existing energy generation or other processes. Figure 13 provides an initial indication of those parts of the City considered to have greatest potential for District Heating networks, based on an initial assessment of demand. This position will be updated through heat mapping to more accurately identify the potential for co-locating developments with a high heat demand with sources of heat supply, and Supplementary Guidance will be brought forward to identify the areas with greatest potential. In these areas, in particular, the Council expects that the feasibility of delivering district heating/connecting to existing schemes, and the potential to extend such a system to adjacent uses/sites, as part of a local heat network, will be fully evaluated by the developer during the design of new development and incorporated into the design where viable. The Council will support proposals by developers who wish to connect to existing district heating schemes.

Heat Network Partnership Workshop Glasgow 8 September 2015 Timing and rapidly evolving policy environment – policy may come up short? Assessing viability – tools and expertise Double Whammy? – Requirements for LZCGT and for Heat Infrastructure – opportunities to dovetail? Technical and financial constraints in establishing networks - Gavin Challenges and Opportunities

Heat Network Partnership Workshop Glasgow 8 September 2015 Challenges Associated with New Development

Heat Network Partnership Workshop Glasgow 8 September 2015 Multiple Stakeholders and Technical Issues

Heat Network Partnership Workshop Glasgow 8 September 2015 Multiple Stakeholders and Technical Issues

Sustainable growth of district heating requires high level strategy & management. Is establishment of an ESCo the answer? Heat Network Partnership Workshop Glasgow 8 September 2015 DH Management & Energy Services Company ESCo OperationsESCo BenefitsESCo Risks/Issues Management of stakeholders Increase in affordable warmth and economic benefits State aid issues Management of heat distribution network Co-ordinated growthBilling for energy & customer lock-in Ownership of Assets(?)Ring-fencing surplus’ generated by DHN Project financing Contracting ServicesReduction in CO 2 emissions