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UKDEA Media Release

UKDEA Welcomes News of Significant Levels of Funding for Heat Networks

26th November 2105

It is not often that the Chancellors Autumn Statement contains much good news but for heat networks which for so long have been left on the side lines it appears that their time has come.

Simon Woodward, Chairman of the UK District Energy Association (ukDEA) commented that,

“Heat Infrastructure which is often seen as the Cinderella of the Energy World compared to electricity and gas, but it seems she has finally been brought out of the cold and into centre stage with ambitious plans from the government to triple the number of homes on district heating schemes”.

Yesterday’s announcement, although thin on detail, promised £300m of funding for networks. Taking into account the government’s recent projections, which suggest this will leverage private sector funding of £2bn for 200 schemes, could mean a total fund per scheme of £1.5m (13% of total capital costs).

The Renewable Heat Incentive (RHI) will also be continued and, although savings are targeted, it is understood that there will be reforms to make the scheme deliver better value. This suggests targeting funding at larger schemes and potentially those using waste heat, all of which works well with district energy networks.

Together these announcements are very good news for the district energy sector which has been overlooked for so many years.

Speaking on behalf of the ukDEA, Simon Woodward commented that,

“Whilst the UKDEA is very supportive of this new fund we would also urge caution. With the potential significant development in heat networks this could bring, DECC needs to keep in mind the problems which occurred in the 1960's and 1970's when large amounts of heat networks were installed and subsequently removed due to poor design and installation practices.

“Many of these issues occurred as a result of a lack of properly trained and qualified engineering resource, which is still a major problem today. The UKDEA are working to address this through a number of initiatives, including our joint heat networks design guide with BSRIA which is due to be published in 2016.”

The ukDEA is the UK’s leading district energy membership organisation. The membership comprises over 100 businesses and organisations who are involved in the development and operation of district energy systems here in the UK. Combined, the Association represents over 120MW of low carbon generation, supported by over 600MW of conventional boiler plant.

Find out more about the ukDEA on their website at ukdea.org.uk and read the DECC report for yourself here.

 

 

 

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Notes to Editors:

The partners, owners and operators of the largest district energy schemes in the UK have aligned themselves in the creation of the UK District Energy Association (ukDEA); with the aim of not only promoting district energy as a means to deliver significant carbon savings, but also to establish a direct link between the Government and the industry's small market base.

The Association is a not for profit, non-trade association of companies and public sector organisations involved or interested in district energy schemes of all sizes, from village scale, community based 'micro district energy' schemes to city wide district heat energy networks.

The ukDEA has attracted leading players in the industry, with the ukDEA’s Full members comprising of 17 major organisations:

• Birmingham City Council

• Brookfield Utilities/GTC Limited

• Cofely District Energy Limited

• Coventry City Council

• ENER-G Switch 2 Limited

• Enviroenergy Limited

• E.ON Energy Solutions Limited

• Leicester City Council

• Manchester City Council

• Newcastle City Council

• Newport City Homes Limited

• Shetland Heat, Energy and Power Limited

• Southampton City Council

• SW Energy Limited

• Thameswey Limited

• Veolia Environmental Services Limited

• Viridor Waste Management Limited

Together, these 17 organisations represent the: Birmingham, Coventry, Exeter, Leicester, Liverpool, Manchester, Milton Keynes, Newport, Newcastle, Nottingham, Sheffield, Shetland, Southampton and Woking District Energy schemes, together with a number of schemes in London including Olympic Park and Stratford City, Metropolitan Kings Cross, Bloomsbury Heat & Power, Whitehall, Hatfield, Dalston Square, Greenwich Millennium Village, Barbican Arts Centre, Guildhall, Bastion House, Ontario Tower, Pan Peninsula, Baltimore Wharf, Wapping Lane, High Point Village and London Central Markets and others

The ukDEA also has 87 very knowledgeable Associate Members, including Local Authorities, Colleges & Universities, leading industry companies as well as several international members, sharing and contributing information to our district energy knowledge base.

ukDEA Key Facts:

Together the ukDEA members represent:

• Over 120 MW of low carbon generation plant (CHP, biomass, EFW etc)

• Supported by over 600 MW of conventional back up boiler plant

• Delivering over 700,000,000 kWh of heat each year

• Across energy networks which, if combined, would extend for more than 200km

Through Full and Associate membership, the UK District Energy Association's aim is to represent current and potential owners, developers, consumers, partners, operators, product suppliers and interested parties of District Energy schemes throughout the UK.

The ukDEA welcomes new members. Be part of our district energy information sharing loop and apply for membership of this forward thinking Association today.

For more information and membership details contact:

Chris Tanner

Secretary

UK District Energy Association

Thames Head Wharf Tetbury Road Cirencester Gloucestershire

GL7 6NZ

Office: 01285 770615 Mobile: 07773 457941

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Website: www.ukdea.org.uk