Political ConsensusPolitical Consensus&&

aa Clear Path Clear Path toto Action Action

Local Renewables Freiburg 2007

John Thorp

Chief Executive Thameswey Ltd

Political DevelopmentPolitical Development

• Woking, Surrey

• Population: 90,500 (mid 2005)

• Political composition: May 2007

Liberal Democrat 16 (18)Conservative 19 (15)Labour 0 (3)

Corporate PrioritiesCorporate Priorities

The Environment is one of the Council’s top three priorities

Commitment since 1990/91

Local Policy DevelopmentLocal Policy Development

Adopted December 2002

Three Overarching Aims: Reduction of CO2 equivalent emissions

Adaptation to climate change

Promotion of sustainable development

Local Policy DevelopmentLocal Policy Development

8 Key Themes• Planning and Regulation• Energy Services• Waste• Transport• Procurement• Education and Promotion• Management of Natural

Habitats• Adapting to a Changing Climate

Local Policy DevelopmentLocal Policy Development

Climate Neutral DevelopmentGood Practice guide

Neutral risk to the climate by not contributing to greenhouse gases and,

Neutral risk from the climate by ensuring development is resilient to changes in climate

FutureFutureLocal Policy DevelopmentLocal Policy Development

Woking LDF Core Strategy Policy Sustainable Construction

Development will be refused unless it:• Achieves a 40% reduction in CO2 emissions (against current

Building Regulations)• Is carbon neutral (greenfield sites)• Adapts to climate change impacts in design of buildings and

open spaces• Provides a sustainable water management system (runoff and

potable water)

Household Extensions:• Extensions to existing dwellings will be required to meet best

practice standards for energy efficiency

PartnershipPartnership WorkingWorking

ESCoESCo

Energy (& Environmental) Services Company (ESCo)

• A vehicle through which energy and environmental services can be delivered.

• Flexible corporate structure – Limited Company, Limited Liability Partnership, Social Enterprise.

• Woking established its ESCO, Thameswey Energy Limited (a Limited Company) in 1999 and completed its first project in 2001.

• Designed to deliver Woking’s Climate Change ambitions and to work in partnership with others to deliver projects outside of Woking.

XEGI LIMITED

XERGI SERVICES LTDXERGI SERVICES LTD.

WOKING BOROUGH HOMES WOKING BOROUGH HOMES LIMITEDLIMITED

100%

100%

10%

90%

10% 90% 100%

Corporate StructureCorporate Structure

Delivering EnergyDelivering EnergyGenerationGeneration

• Twenty to Thirty year project business plans.• Projects progressed on an internal rate of return of circa 8%.• Economics rely upon being a generator, distributor and supplier

of energy.• Retail sales income (plus renewable energy credits where

applicable) critical to financing projects.• Tracks energy prices to give affordable “market comparable”

charges to businesses and 5% below a basket of major energy company dual fuel tariffs to residential customers.

Distributed EnergyDistributed EnergyGenerationGeneration

New build by Woking Borough Homes Ltd of six flats incorporating small scale CHP (5.5kWhe) and Photovoltaic roof tiles (2.6kWhpe) in a private

wire system run by Thameswey Energy Ltd

Affordable Housing with Sustainable and Renewable Energy

Distributed Energy GenerationDistributed Energy Generation

The Council’s AchievementsCorporate

• Energy Consumption (2006) -51%• C02 emissions (2006) -81%• Sustainable Energy Self Generation (2006) +94%• Renewable Energy Self Generation (2006) +4%

Borough Wide• Energy efficiency of residential property

(up to 2006) +33%• C02 emissions (2006) -21%• Number of households assisted with

energy conservation grants (1996 – 2006) +5,000

Distributed EnergyDistributed EnergyGenerationGeneration

Use of photovoltaics

Co-generationCo-generation

Financing the BenefitsFinancing the Benefits

Energy Plant in Woking Euro’000

Total Investment 18,000Financed byWBC Share Capital 3,294Xergi Share Capital 366Grants & Contributions 4,840WBC Loan 10,500Total 18,000

Relative economics of CHP(Excess electricity output export to grid)

Total Cost

Buy power from supplier Co-generate heat

generate heat only and power

Break even cost

Slope=price of fuel + per-unit O & M cost

Upfront capital

costs

Slope=retail price of power

Upfront capital

costs

Break even useage Electricity

Consumption

Distributed EnergyDistributed EnergyGenerationGeneration

Innovative use of Sustainable and Renewable Energy

Central Milton KeynesCentral Milton Keynes

• Re-development of Central Milton Keynes

• Wholly owned subsidiary, Thameswey Central Milton Keynes Ltd

• Two 3MWe gas-fired CHP engines currently being installed

• Phase one will also deliver 9MWth

• Completion of the scheme is expected to be in 2012

• Planned:

4 stations - 26MWe

Key factors for successKey factors for success

Make climate change a political and corporate issue Set clear achievable financial targets and stick to them!Adopt a Climate Change StrategyWork with PartnersEngage the developer communityEngage the local community

Political ConsensusPolitical Consensus&&

aa Clear Path Clear Path toto Action Action