1. Peterborough City Council ESCO’s, renewable energy and energy efficiency Base Birmingham 11 April 2013

2. 2 years ago... What’s happening at the moment…….A LOT that’s not co-ordinated that does not link into a lot of the councils core policies and strategies of resources lack of prioritisation conflicting priorities missed opportunities to make real difference

3. I WANT AN ESCO!

4. Peterborough City Council - Strategic Context Current Future Strategic Direction Environment CityEnvironment Capital Tactical Development Net ConsumerNet Generator Operational Deployment ESCoMicro-Utility Contractual Definition CustomerCentral Purchasing Authority

5. Converting “opportunity” to “project” 1 1 2 2 3 3 4 4 Compliant 1 1 Bankable 2 2 Structured 3 3 Commercialised 4 4

6. ESCO Scope Blue Sky Peterborough ECO & Green Deal Energy From Waste Rooftop Solar Ground Mount Solar Wind Collective Switching Regeneration Energy Efficiency

7. Primary Objectives Peterborough Council (PCC) aim to generate up to 171GWh of energy annually from a blend of renewable sources. –Sources due to begin generation in 2015 – 2016. –Should fulfill Peterborough City Council’s energy needs (demand of 47 GWh) –May require a “top-up” agreement with an energy supplier. –Other sources of generation to potentially be added subsequent to 2016 (e.g. CCGT power plant).

8. Business Model –Generate a profit from the sale of its excess energy; –Be scalable / sellable to other councils; –Be financially self-sustaining for [X] years; –Keep costs of supply/transmission low; –Result in a cheap, green “Peterborough tariff” for local residents; –Allow Peterborough to be self-sufficient for energy.

9. Transition from ROCs to CfDs 2014 2017 2027 2037 31 March 2037 ROCs no longer tradeable / valid 31 March 2037 ROCs no longer tradeable / valid 2020 2030 CfDs become available CfD price set by government Competitive pricing of CfDs for projects post 2020 Ofgem buy ROCs at a fixed price funded by levy on electricity suppliers 31 March 2017 RO accreditation no longer available to new generation 31 March 2017 RO accreditation no longer available to new generation Late 2020s CfD no longer needed. Market drives prices. Late 2020s CfD no longer needed. Market drives prices. ROCs or CfDs available to new gen projects

10. PCC Assets Supply and Sell Model PCC Buildings 124 GWh p.a. Surplus £xm/ MWh Surplus Value £xm Surplus Value 171 GWh p.a 47 GWh p.a. £X / MWh Energy Supply Company Energy Wholesale Market PCC Generated Energy £ for Energy sold by PCC £ from PCC Energy sold to market

11. ENPC: STRATEGY Operating Energy Cost Time Business as usual Capital constrained efficiency Long term EnPC

12. ENPC: Key Benefits Guaranteed energy performance improvements Access to third-party funding Using operational savings to reduce capital budget requirements for maintenance and refurbishment

13. BSP & Other Council Example – EnPC Contractor Funder EnPC Portfolio Savings Guarantee Repayment from savings Funding Repayment Savings Guarantee Payment BSP Framework BSP Framework 3 rd Party Council BSP Framework BSP Framework Council BSP Framework BSP Framework

14. Lessons Learned Governance – Ownership at Financial Director level Centralised control – Structured approach Strategic Direction – Strong Legal, Technical and Financial focus Triage – Focus on commercialisation Collaboration – Leverage framework and experience to reduce time and costs 1 1 2 2 3 3 4 4 5 5

15. John Harrison Executive Director of Strategic Resources Peterborough City Council Managing Director, Blue Sky Peterborough john.harrison@peterborough.gov.uk +44 (0) 1733 452 520 Contact