Liverpool City Region s District Heating Projects James Johnson, Liverpool City Region LEP 7 th May CLASP Event Supporting Heat Network Delivery

Transcription

1 Liverpool City Region s District Heating Projects James Johnson, Liverpool City Region LEP 7 th May 2014 CLASP Event Supporting Heat Network Delivery Liverpool City Region s District Heating Projects 1. Partnership approach and providing a strategic view 2. Role of the LEP in bringing gmultiple projects together 3. The application process and learning from Rounds 1 and 2 4. How to make a successful application 5. Work with HNDU to turn around unsuccessful applications 6. Key priorities and next steps 1

2 6 Local Authorities & Merseytravel Liverpool City Region Combined dauthority From April 2014, remit including, Transport Economic Development Housing Skills Five Merseyside Metropolitan Boroughs & Halton Local Authority 1. City Region Partnership approach Sustainable Energy Low Carbon Committee and Task Groups Renewable Capacity Studies 2009 / 2010 Energy Infrastructure Study 2011 Sustainable Energy Action Plan (SEAP), 2013 Pipeline of 280 potential projects Including 30 potential heat networks Preparing Local SEAPs (Covenantof of Mayors) Sustainable Energy Project LEP March 2014 (Growing Places Fund, LEP) LCR Low Carbon Committee 2

3 Support for the LCR SEAP Sustainable Energy Projects Manager Liverpool LEP est Membership model is unique 450 member organisations Priorities include: Low Carbon Economy Knowledge Economy SuperPort Visitor Economy Major Projects Local Growth Plan March 2014 Submitted for 2014/2020 ERDF Full time role promoting projects Expertise provided to partners Feasibility studies, planning guidance Support for mapping projects Focus on district heating & infrastructure Bring forward new project opportunities Consolidate & share lessons learnt Champion projects to implementation Develop funding opportunities Update and renew projects pipeline 3

4 Potential District Heating Projects 2. Role of the LEP in supporting HNDU bids LEP discussed with HNDU the advantages of a combined application Projects selected from Liverpool City Region SEAP Project Pipeline LEP is match funding 33% of total project budgets (Round 1 & 2) LEP is match funding 33% of total project budgets (Round 1 & 2) LEP led the tender process for an outside consultant (ARUP) to consolidate information ahead of Round 1 Submitted a combined bid document with a shared format Helped to consolidate information submitted for Round 2 Co ordinated HNDU visit to the City Region to meet Local Authorities Providing ongoing support for projects that have won funding Engaging with Partners to help develop future bids (Including resubmissions) Supporting all potential district heating projects in the city region 4

5 Priorities from SEAP Pipeline: District Heating Projects Selected for HNDU bids: Potential LA sponsored projects 1. Knowledge Quarter [City] 2. Daresbury [Halton] 3. KIBP [Knowsley] 4. Bootle [Sefton] 5. St Helens [St Helens] 6. North Liverpool [City] 7. West Liverpool [City] 8. Southport Hospital [Sefton] 9. Sutton Leisure Centre [St Helens] 10. Runcorn Docks [Halton] 11. Wirral Waters 12. Liverpool Waters Round 1: Successful Applications 1. Knowledge Quarter [Liverpool City] 2. Daresbury [Halton] Round 2: Successful Applications 1. KIBP [Knowsley] 2. Bootle [Sefton] Round 3: May / June 2014 Evaluate for Re submission 1. St Helens [St Helens] 2. North Liverpool [City] Re evaluate evaluate for submission Identify further projects for submission Review latest planning applications Reach out to largest energy users Current Project Stages HNDU envisaged route to investment Mapping Masterplanning & Initial Feasibility Feasibility Procurement of delivery mechanism Commercial development HNDU Bid LEP Support DARESBURY Stage 1 Daresbury Stage 2? LEP Support Knowledge Quarter Future bid KIBP Delivery Partner 2014 Bootle Mapping Small Anchor scheme Future bid 5

6 3. Application process 200 Pages INTRO. & VISION LA LETTER PROJECTS SUMMARY Project Name Project Ownership Project overview Mapping Masterplanning Feasibility SCOPE Procurement Funding gap details Project timescales Initital Calculations Homes MW Comments Offices MW Comments Industry MW Comments Low CHP Heat Comments Carbon CHP Power Comments Capital Cost Revenes IRR LASponsorship of project Regional and Local CO2 Context Successful LA projects Project Challenges 7 Pages Each APPENDICES Existing information Full Details VISUALS & MAPS 1 Page Project Learning FEEDBACK ROUND 1 / 2 Bootle [Sefton] Project has great potential Scope of proposed mapping area too ambitious initially. Consider smaller pilot study. Work to be undertaken on mapping Knowsley Industrial Park [Knowsley] Project has great potential. HNDU requested better definition of workstreams LDO study not to be funded directly. 2 nd APPLICATION RESPONSE ACCEPTED AFTER SECOND APPLICATION Reduced scope for first stage Modified submission document Outputs designed to feed into later wider study ACCEPTED AFTER SECOND APPLICATION Knowsley project technical advisor prepared a resubmission document. More detail provided, with project further advanced Reshaping of the work plan as suggested by HNDU 1a Disruption Management Plan 1b Connection Strategy 2 Detailed feasibility study 3 Governance arrangements 6

7 4. Successful Applications Checklist 1. LA project sponsor fully engaged. Project partners also engaged 2. Realistic ambitions and a vision for the project 3. Initial thinking undertaken to define scope 4. Projects of scale, density and diversity 5. Urban/suburban projects with a mix of uses (including dwellings?) 6. Heat demands already mapped in outline, visualisation of project 7. Understanding potential power generation and revenue model 8. Involvement of a consultant to shape the submission document 9. Resubmission of bids if not initially successful 10. A project champion within the LA or LEP with energy expertise 5. Learning from Rounds 1 & 2: Example 1 Example 1: DARESBURY Halton with LEP Support Act as informed client Mapping of demand Stakeholder workshops Site constraints map Initial energy no.s Procurement support 50 HNDU liaison role MW Heat Demand Timeline Anticipated growth in Heat Demand (Based on Policy CS11) Status: Out for Tender Sandymoor Residential Year Sandymoor School 7

8 5. Procurement of consultants Brief for consultants initial draft document from another local authority with recent experience Comments and additions provided by HNDU LEP advisory role to Halton LA. Feedback from stakeholders ahead of procurement. LEP preparation of a supporting document Mapping of site constraints road and canal crossings Existing utilities considerations electrical loads and revenues Tenancy and operational aspects for R&D buildings Workshops for developers to understand implications on low energy building design Tender questionnaire uses quality and price evaluation Seeking consultants to demonstrate a vision for the project opportunity and potential legacy. 5. Learning from Rounds 1 & 2: Example 2 Example 2: KNOWLEDGE QUARTER Mapping study Liverpool Institutions Existing networks with planned extensions Exploring options for an expanded network Engage the stakeholders Governance mechanism important early question Status: Initial mapping & stakeholder conversations, ahead of consultant appointment Knowledge Quarter Institution Heat Networks (Planned) 8

9 5. Learning from Rounds 1 & 2: Example 3 Example 3: KIBP Knowsley Disruption management planning Connection strategy Detailed anchor load feasibility Techno Economic Feasibility study completed 2012 (recommended heat clusters around anchor loads) Strongly driven by LA team and technical consultants. Procurement of delivery partner Seeking partner to take on operational risk for 30+ year services concession Procurement process initiated. preferred bidder meetings in Autumn 2014 Status: Consultant appointed for HNDU funded workstreams 6. Key Priorities & Next Steps Progress projects to a delivery stage and sign up of partners Seek feedback from HNDU on current project details Share knowledge with other cities, regions & LEPs Develop business case models Understand legal/commercial aspects inc. consumer protection Delivery partner (ESCO) map a route to procurement and contracts Possible pilot project for district heating residential retrofit Seek kfurther HNDU funding for feasibility studies once mapping/masterplanning projects are complete Identify new projects for future HNDU bids 9

10 Contact Details James Johnson Sustainable Energy Projects Manager Liverpool City Region Local Enterprise Partnership T: ll 10