mobilising local energy investment€¦ · increased investment in energy infrastructure, using...
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Mobilising Local
Energy Investment
Cherie Gregoire
Energy Investment Unit
Cambridgeshire County Council
Economy, Transport & Environment
Vision: A step change in delivery of energy infrastructure in Cambridgeshire to support a low carbon economy
Goal: To develop the right financial and delivery framework to secure
increased investment in energy infrastructure, using public sector assets to facilitate the initial investment
Objectives: 1. Set up a low carbon investment Fund(s) 2. Identify and set up the delivery mechanisms e.g. ESCo partner under
the RE:FIT Framework 3. Deliver an investment programme of public sector and community
energy projects of at least €17.03 million via the Fund and delivery mechanisms
Timescale: 36 months to August 2015
L-CIF Project
Energy Performance
Contracting
underway
2008 2015 2030 2011 2012 2025 2010 2014 2013
Local Authority
Investment Fund
Agreed
Carbon assessment
of Cambridgeshire’s
Growth Plan
Cambridgeshire’s
Renewable
Energy Framework
Agree MLEI
Project, IEE
Fund investments
pay for EIU
Strategic
Framework
to facilitate investment
into Cambridgeshire
€€€€
Investment
Into low
Carbon
economy
New business
models
needed to fund
intelligent
infrastructures
2017 2016
Smart Energy
Grid Project -
ERDF
New Corporate
Energy Strategy
First bi-directional
PPA agreed
Our Journey
A Strategic framework to facilitate investment into energy infrastructure
These mechanisms are in place
CURRENT METRIC
Capital Value £18,140,000
Cost savings (£/yr) £1,570,000
Energy savings – RE and EE (MWh/yr)
17,719
Carbon savings (T/CO2/Annum)
7,329
Renewable energy (kW) 14,960
Jobs Created • 12 working locally
• >60% of work completed by local contractors
• Local Authority Fund created (2014) with £30M loan facility
• Energy Projects in train or complete: - 23 Schools complete - 7 Corporate Buildings - 1 MW Mini Smart Energy Grid - 12 MW Solar Farm
• Significant up-skilling of local authority staff and Members
• Profits from investments support the Energy Investment Unit
Achievements
Updated 8 Dec 2016
Cambridgeshire County Council –
12 MW Solar Farm
A £9 million investment by the
Authority and a ‘Contract for
Difference’ with the Low Carbon
Contracts finance company
generating income for the Authority.
The solar farm scheme will generate
electricity for the equivalent of 3000
homes and £1million revenue. This
provides income for services of
approximately £320K p.a. after costs
Milton CoE Primary School, Milton,
Cambridgeshire
Cost of project: £166,000
Energy measures include:
Insulation, Building Management System
Heating controls, New boilers
Solar PV
Savings:
26% savings on energy cost
£11,000 energy spend reduction per annum
45 tonnes of CO2 per annum saved
Projects underway
• Having a strong Vision for Energy is sometimes not enough
• Big difference between an investible project and a potential project!
• Project development costs are an investment risk which need paying
• Project drop outs do occur but not just because of the business case
• Setting up a Fund need not be complex.
Lessons Learnt
• Be open to change and adapting your
project is essential for success
• You don’t know what you don’t know!
• Empowerment and a can-do approach go a long way.
• Accessing finance is not the biggest constraint to delivery
• Investment decisions are not only made on a business case
Lessons Learnt
Ideas, questions and inputs welcome?
Electricity Market Reform – towards a low carbon economy
The Future for Electricity Infrastructure
New Business Models Smart Energy Grid Demonstrator Project
St Ives Park and Ride £806K profit over 25 years Pay back 17.43 years Awaiting ERDF approval
Transport – Energy – Digital Infrastructure
Local Leadership
Power Management
System and Energy Storage System
Serving ALL P&R electrical needs And the PPA customer...
The Concept | Mini-Smart Grid
Battery System
Energy Model
Lighting
Energy Model
PV Generation
Energy Model
Power Purchase Agreement Energy Model
Electric Vehicle Charger
Energy Model
Small Power
Energy Model
Project Cost Itemisation
Investment Grade Proposal
Business Case
Complex energy models and data flows
The Benefits
£3.55M over 25 years
Ave. PPA Revenues £130K/yr
Ave. EVC Revenues £9K/yr
Ave. P&R Savings £5K/yr
11K Tonnes Carbon Abated
over 25 years
2.5M miles Electric Vehicle
Travel
Reduced light pollution Improved aesthetics Town council support Increased asset value
Supports other initiatives
City Deal
Connecting Cambridgeshire
Learning for local clean tech industry
Local Community benefits
Cambridgeshire’s vision is for a
Sustainable and Prosperous Place
Reviewing & building political legitimacy
Energy generation: exploiting local availability of fuels and
assets to generate electricity and heat;
Energy supply: putting in the infrastructure to supply local
energy to consumers;
Energy efficiency: reducing consumption and waste, helping
to make supplies go further;
Managing costs: reduce energy costs through collective
purchasing and contract negotiations;
Selling energy: generating income through selling electricity
and heat to local consumers; and
Supporting growth: integrating energy and digital
infrastructure with transport and housing to strategically manage
supply and demand for energy.
Priorities for its new Energy Strategy include
Questions
Reviewing & building political legitimacy
Would be interested in talking with any attendees • With experience on:
• REFIT 3 • Negotiating Power Purchase Agreements • Experience with energy storage and PV
• Update on progress on a London energy company and research on licensing arrangements required for buying and selling energy?
Cherie Gregoire [email protected]
01223 715689