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Michael King Chairman Aberdeen Heat & Power Co. District Heating and CHP in Aberdeen. Aberdeen multi storey blocks. Aberdeen City Council. Feb 1999 adopts Affordable Warmth Strategy Policy to target the least thermally efficient homes Found to be multi storey flats

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michael king chairman aberdeen heat power co

Michael KingChairmanAberdeen Heat & Power Co

District Heating and CHP

in

Aberdeen

aberdeen city council
Aberdeen City Council
  • Feb 1999 adopts Affordable Warmth Strategy
      • Policy to target the least thermally efficient homes
      • Found to be multi storey flats
  • Commissioned study of all 59 multi storey blocks
      • Structural survey
      • Ground conditions survey
      • Energy issues - affordable warmth, reduced CO2 emissions, affordable to Council, speedy delivery
  • Will provide a strategy for future investment in these blocks
aberdeen city council1
Aberdeen City Council
  • Interim report:
      • Focused on one cluster of 4 multi storey blocks - Stockethill cluster
        • 19 storeys
        • total of 288 flats
        • electric storage heating
        • precast panel, cavity construction
      • Considered range of options
      • Recommended CHP
report findings
Report findings

Option Over-claddingCost/FlatHeatcost/Flat

Elect Htg £4.3M £20,000 £14.27

Central Blr £5.4M £23,000 £5.65

CHP Plant £5.6M £24,000 £3.18

Option No Over-claddingCost/FlatHeat cost/Flat

Elect Htg £0.4M £1,691 £15.73

Central Blr £1.0M £4,464 £5.83

CHP Plant £1.2M £5,000 £3.65

aberdeen city council2
Aberdeen City Council
  • Council had the technical answer but how to do within financial constraints?Council needed external funding
      • Appointed specialist CHP consultant
      • Established independent, not-for-profit company
      • Provides focussed management
      • Company raises capital
      • Contracts between Council and company
      • Business Plan and cash-flow forecast/management
      • Enables the Council to accelerate refurbishment and regeneration programmes

Without external funding Council could only afford one development every 10 to 12 years!

aberdeen heat power co
Aberdeen Heat & Power Co
  • Founded 2002
  • Arms length not-for-profit co limited by guarantee
  • Membership structure instead of shareholders
  • Voluntary board
  • N-f-P structure enables alignment with socio/environmental objectives
  • Can accept lower NPV
  • Contractual relationships with Council secures lower cost capital
  • Responsible for fuel purchases, operation & management & sales
  • Sales arrangements
  • Consultation on resident preferences

- Flat rate charge for heat

- Tenants – heat with rent

- Owner-occupiers – direct debit established

  • Electricity sales – via consolidator

- to local residents and customers

  • Development of further projects
governance
Governance
  • Board Membership
    • Experience - technical, management, finance, community and intermediary groups.
  • Specialist Advisors
    • Aberdeen City Council officer support, CHP consultant provides project management, accountant provides strategic financial advice & support, legal advice
  • Structure
    • Quarterly Board Meetings
    • Sub Groups – Finance + Development + Policy & Resource + Marketing
    • Business Strategy and Business Plan reviews
partnership funding and agreements
Partnership, Funding and Agreements

Partnership

  • Aberdeen City Council & Aberdeen Heat & Power Co
  • Agreed pilot project – Stockethill Cluster

Funding

  • Aberdeen City Council funding
  • Council application to Community Energy Programme

Agreements

  • Framework Agreement with Aberdeen City Council for each scheme covers:
    • Heat Supply Agreement
    • Maintenance Agreement
    • Installation Agreement
    • Licence to occupy land for infrastructure
stockethill cluster
Stockethill Cluster
  • Total project cost - £1.6 million
  • Community Energy Programme
      • £730,000 grant for capital costs
        • CHP plant
        • Distribution system
        • Internals
  • Bank financing of up to £1 million based on income from Council of £215,000 per annum
  • Energy Efficiency Commitment (EEC) money to offset costs of heating systems within leaseholder flats.
  • Surpluses re-cycled for further projects
development at hazlehead
Development at Hazlehead
  • Hazlehead completed
  • Community Energy Prog grant
  • 4 blocks with 180 flats
  • 50 sheltered units
  • School with swimmimg pool
  • Extension to Hazlehead sports facility completed
  • Plant room located in school
  • 320 kW CHP with backup boilers
  • Private electricity supply to school
  • 14,500 tonnes saved over 25 years
development at seaton
Development at Seaton
  • Seaton Phase 1 (6 blocks - 503 flats)
  • 408 completed 2008 - 10
  • Community Energy Prog grant
  • Plant room designed to blend with links
  • Incorporates sports changing room and shower facilities
  • 1 MW gas-fired CHP with back-up boiler
  • Space allowed for future plant additions
  • Link to sports village completed 2009
  • Beachfront complex (ballroom, ice rink, leisure centre) completed 2009
  • 24,300 tonnes saved over 25 years
mastrick land
52 flats

Previously electric ‘wet’ systems

Residents campaign for DH

Developed as a stand alone ‘heat only’

4 in line gas boilers

Will retro-connect to heat network as it develops

Straight design/build contract with City Council

Completed May 2009

Mastrick Land
ashgrove court
40 flats

Peviouslytly electric storage heaters

Developed as a stand alone ‘heat only’

4 in line gas boilers

Will retro-connect to heat network as it develops

Straight design/build contract with City Council

Completed December 2009

Ashgrove Court
denburn court
Denburn Court
  • Gas fired heat only boiler
  • Internals suitable for CHP
  • 1 Block of 120 flats
  • Adjacent to health centre
  • Completed Aug 2010
  • 1,000th domestic connection
future development
Future Development
  • Seaton Phase 2 - 8 blocks (740 flats)
  • Approved August 2010
  • 25% CESP funding contribution
  • Work undertaken 2010 – 2012
  • Planned city centre network linking blocks and public buildings
  • Extend into Tillydrone regen area
  • Planning permission lodged for extension to Seaton plant room to accommodate biomass CHP
  • Discussions with NHS Grampian
overview
Overview
  • Strategic city wide approach
  • Focus on fuel poverty
  • Identify and develop heat islands as anchor loads
  • Public sector customer base reduces development risk
  • Connect loads together to form network
  • Diversify customer base – residential, institutional, commercial
  • Multiple heat sources
  • Diversify fuel types
  • Provides robust system, security of supply and reduces volatility
  • Eventual development of ring main with multiple embedded CHP stations with a variety of fuels
  • Develop skills base
  • Future proofs city – easy to retrofit emerging technologies
  • Generates electricity locally – avoids transmission/distribution losses
  • Saves carbon – 2,000 tonnes per annum
  • Community Energy Programme crucial for start up
contact
Contact

Michael King

Chairman

Aberdeen Heat & Power Co

43 Regents Court

Aberdeen AB24 1SZ

01224 482620

mj.king@blueyonder.co.uk

.