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The Southampton City District Energy Scheme a partnership between

The Southampton City District Energy Scheme a partnership between. SUSTAINABLE DEVELOPMENT. and. INTRODUCTIONS. Diana Maddock Director & Original sponsor of the Home Energy Conservation Act Tim Garner Business Development Manager. PRESENTATION. What is CHP and District Heating

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The Southampton City District Energy Scheme a partnership between

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  1. The Southampton City District Energy Scheme a partnership between SUSTAINABLE DEVELOPMENT and

  2. INTRODUCTIONS Diana Maddock Director & Original sponsor of the Home Energy Conservation Act Tim Garner Business Development Manager

  3. PRESENTATION • What is CHP and District Heating • 2. Group and Company Background • 3. Why Southampton - how did it start ? • 4. The First Step - The Partnership with the Council • 5. The Energy Generation Plant • 6. Our Consumers • 7. Southampton - into the new Millennium

  4. 1. What is CHP and District Heating

  5. What is CHP? Combined Heat & Power (CHP) - recovery of heat produced when generating electricity (usually wasted)

  6. What is CHP? CHP - operates at 70-85% efficiency compared to typical power stations 25-35%. CHP - Replacing central power stations with more efficient local generation

  7. What is District Energy ? • On site heat, chilled water and electricity distribution network • Used for distributing energy from boilers & CHP • Current heating piping systems - heat losses are 1°C per km • Reliability of current piping systems - 100% • Large sections could use plastic PE-X Pipes

  8. 2. Group and Company Background

  9. Utilicom is the UK subsidiary of the Idex Group • International Group of Family owned companies • Established 1963 • President - Alain Planchot • Head office Paris • Annual turnover 400 M Euros • 3,000 employees • Core business:- • Development, Operation & Maintenance of Community Heating Schemes

  10. Example Project: Palais de Congres - Paris • 1,000 bed Hotel, cinema, theatre and retail complex – 200,000m2 • All plant in Energy Centre funded by Idex • Energy supplies since 1972 • Original 27 year contract renewed for a further circa 20 years • Large scale heating, cooling and electricity generation plant

  11. Group turnover £11M, projected £20M in five years • 80 Staff throughout UK • Core Business - • Design • Development • Installation • Financing • O & M of district energy systems - including CHP, biomass etc….. • Clients include BBC, Universities, City Council’s, Private Sector Housing Developers, and Local Authorities etc…. • A stable, well established company, concentrating on our core business • Currently supplying energy and managing services for over 20,000 dwellings across the UK

  12. Example Project: University of London CHP Schemes • 4.5 MW of CHP serving UCL, UCLHT and five colleges of the University of London • 20 year energy supply contracts – based on PFI/PPP model • Operational since 1999 • £6M capital cost • Energy Sales £3M p.a. • Already expanded to serve 3 third party consumers

  13. 3. Why Southampton ?

  14. The Catalyst - The Geothermal Well and Resource

  15. The Rock and the Pump

  16. 4. The First Step- The Partnership with the Council

  17. The Cornerstone – The Joint Co-operation Agreement The Scheme has always had cross party support - the first step was to sign a Joint Co-Operation agreement - 1987 - first in the UK pre-dating PFI This committed Utilicom to: • Developing a district heating scheme in Southampton initially based around geothermal energy • Sell heat to Council buildings with agreed savings • Provide all necessary funding and technical/management expertise to ensure the scheme developed successfully • Provide open book accounting and a long term profit share to SCC and committed SCC to: • Take heat wherever practical for SCC buildings • Provide land for the Heat Station for a peppercorn • Help Utilicom promote the scheme to other potential users • Provide general support to Utilicom in developing the scheme - planning, highways etc… • Treat Utilicom as a ‘statutory utility’ within the boundaries of the City


  19. The Partnership • Utilicom and SCC meet quarterly to plan new developments • SCC representatives led by Executive Director (Mike Smith), building design, planning, environment, regeneration, highways etc.. • Supplemented by regular, often daily, dialogue to ensure that the scheme develops to deliver the aims of both parties • Currently saving organisations within the City over £0.25M per annum in energy costs and delivering 11,000 tons of Carbon Savings • LA Councillor and Officer Champion are essential to making the scheme work – this has been one of the keys to the success of the Southampton scheme

  20. 5. The Energy Generation Plant

  21. The Plant: • 2 MW Geothermal Well • 2 small scale CHP - 400kWe each • Back up/top boilers around City operated by Utilicom - Civic Centre & Hospital • 8 MW of chilled water plant – absorption and vapour compression • 5.7 MW dual fuel Wartsila CHP generator All serving over 40 consumers via a network of over 11 km of heating & cooling pipes around the City Centre for a total capital cost of £7M Supplying over 70,000,000 kWh of energy each year with CO2 savings of 11,000 Tonnes p.a.

  22. The Southampton Energy Centre Centralised Heat Sources CHP, Boilers etc Buried Pre-insulated distribution mains Consumer interface/meter

  23. Our 5.7 MW CHP being delivered !

  24. We also have smaller scale CHP and CH schemes !

  25. HOLYROOD ESTATE • City Council owned housing, approx 300 flats in 9 blocks, each with only a single room heater and electric immersion • Utilicom designed and project managed installation of district heating and hot water system including CHP to serve entire estate • Cost guarantee given by Utilicom to SCC for future energy supplies • SCC Housing very satisfied - voids virtually gone and ability to let flats on the estate enormously increased.

  26. Public Sector Housing Holyrood Estate – 300 dwellings supplied with heat from local Energy Centre including CHP - guaranteed heat price, with full maintenance of all in dwelling equipment

  27. 6. The Consumers

  28. WHO DO WE SERVE ? Consumers include: • Civic Centre • 4 Hotels • RSH Hospital • Offices • Southampton Institute • Swimming & Diving Complex • Entire 53 Acre West Quay Shopping Centre • Public and Private Sector Housing ……….. and many many more - largest Commercially developed district energy scheme in the UK - £2M of energy sales p.a.

  29. Why Connect ? • Capital cost savings – connection charge up to 25% less than conventional plant • Space savings – direct connections mean no plant space required – very valuable in urban areas • Operating cost savings – at least 10% when compared to the alternative cost of heating/cooling/electricity - £0.25M • Guaranteed savings – prices linked to basket of indices to ensure savings maintained throughout life of the contract • Delivers on LA 21 and Kyoto carbon savings – 11,000 tons • Ensures full and genuine outsourcing of energy supplies = risk transfer

  30. How are connections funded ? • Connection charges from the consumer • Long term energy supply revenues – repaying bank or private sector finance • Grant funding – Community Energy Fund and others…

  31. Do Consumers Connect ? • Yes – because they understand the benefits, i.e. Barratt Homes a convert to the scheme • However, many developers wish to use cheap electric heating – high emissions and operating costs • Also building services consultants acting for potential consumers often prefer own plant as this is traditional and returns fees • SCC/Utilicom work in partnership to demonstrate benefits and encourage use of Whole Life Cycle costing • SCC can also encourage via the planning process, Section 106’s and land sale agreements

  32. The Civic Centre – The first consumer

  33. BBC TV Studios – heating 1990, cooling 2000

  34. Swimming and Diving Complex

  35. Connected Offices – Skandia, SCC, No.1 London Road

  36. DeVere 5* Grand Harbour Hotel - Connected 1994 via 600m ‘energy link’ all heating and cooling from scheme

  37. West Quay Shopping Centre - heated & chilled by our scheme

  38. Private Housing Barratt’s Park View and the Dell developments – both connected to the scheme – circa 600 dwellings including Holyrood Estate - the first private housing in the UK to connect to an existing district energy scheme

  39. IndependentStudy on Customer Satisfaction and Cost Effectiveness

  40. Barratt’s Park View Development Some of the Key Benefits: • Capital cost savings - Barratt’s publish savings as £300 per unit • Space savings • No flues or gas pipework – removes gas from dwellings • Unlimited supplies of hot water • Operational cost savings The Residents Views: “The flat warms up quickly, it’s quick and cheap” , “the economy appealed to us” and “ we have constant hot water with good water pressure in the shower” The Survey: 78% were aware that the flat had community heating when they purchased it and 60% stated that it influenced their decision in a positive way ! 78% also replied that they would buy electricity from SGHC if available and 66% thought that lack of choice in a supplier wasn’t a problem

  41. Barratt’s - Urban Living Brochure

  42. Key Worker Housing UNITE - Orions Point • Ex British Gas Offices being converted to 400 bedrooms • 82 Flats and 40 one bed Studios for Student Accommodation • Linked to our district heating scheme in June 2003

  43. The Dell - 164 Private Houses/Flats RSH Hospital Civic Centre Southampton Institute Heat Station West Quay Shopping Centre De Vere Hotel

  44. A selection of our satisfied consumers with their awards from us !

  45. 7. Southampton - into the new Millennium

  46. The Future – to 2010 • Further large scale CHP - increase to 20 MW ? • Heating and especially cooling mains continue to grow - energy sales doubled • Electricity sales to local consumers • Incorporation of other technologies • anaerobic digestion of the Cities Waste • fuel cells • biomass etc…- currently developing wood fired boilers/CHP schemes

  47. Our Vision for SGHC • Expand community heating/cooling throughout the City of Southampton - maximising use of CHP • Demonstrate viability of innovative energy generation and distribution technologies • Provide simple agreements for energy supplies ensuring long term energy savings • Maintain 100% consumer supplies and satisfaction • Promote Environmental issues whilst maintaining ‘No Green Premium’ • Replicate & assist others in implementation of similar schemes

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