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UKDEA Media Release

UKDEA Research Demonstrates Significant Potential for District Energy in the UK

11th June 2012

As a report by the independent advisory body, the Committee on Climate Change, calls for more action on carbon reduction by local authorities, the UK District Energy Association (UKDEA) has completed research which illustrates the huge potential for district energy in the UK.

The CCC report, published in May, says councils should be do more to help the UK meet its carbon budgets by championing renewable energy schemes, giving them planning consent and supporting the development of district heating projects. It suggests that local authorities across the UK should be obliged to implement robust carbon reduction plans and should be better supported in doing so.

District heating schemes are highlighted in the report as a key element of low carbon strategies. Schemes using waste heat from power stations and those using incineration of local waste to generate heat are cited as tackling the double problems of inefficient power generation and landfill issues.

Take up of district energy in the UK is currently estimated at less than 2% of heat demand. In advance of the published results of DECC’s district heating survey, the UKDEA has undertaken analysis which demonstrates that it should be feasible to supply over 100 TWh of heat (14% of the UK’s heating and hot water demands) through large scale low-carbon district heating networks, with significant untapped potential at smaller scales too.

Assuming total decarbonisation of the larger networks alone in the run-up to 2050, the greenhouse gas emissions savings should exceed over 36 MtCO2e – a 26% reduction in the current greenhouse gas emissions relating to heating and hot water.

The current legislative landscape contains a number of barriers which prevent deployment of district energy. Although often the most cost effective means of decarbonising energy supplies on a whole-life-cost basis, district energy comes at a high capital cost, and without robust financial support there is likely to be a low take up of the technology.

Within their paper, the UKDEA have made a number of proposals for policy measures, that would improve the speed of delivery of low carbon heat in the UK. If implemented, the UKDEA believes that well over 14% of the UK’s heating needs could be met using low carbon district heating sources within the next 20 years.

Committee on Climate Change report: http://www.theccc.org.uk/reports/local-authorities

Ends

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 city wide schemes to smaller housing schemes. Still in its infancy, the UKDEA has attracted leading players in the industry, with the UKDEA's full members comprising of twelve major organisations:

• Birmingham City Council • Cofely District Energy Limited • ENER-G Switch 2 Limited • Enviroenergy Limited • E.ON Energy Solutions Limited • Leicester City Council • Newcastle City Council • Newport City Homes Limited • Shetland Heat, Energy and Power Limited • Southampton City Council • Thameswey Limited • Veolia Environmental Services Limited

Together, these twelve organisations represent the: Birmingham, Leicester, 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, Bloomsbury Heat & Power, Whitehall, Hatfield, Dalston Square, Greenwich Millennium Village, Barbican Arts Centre, Guildhall, Bastion House and London Central Markets.

The UKDEA also has 12 Associate Members sharing and contributing information to our district energy knowledge base.

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

UKDEA Key Facts:

Together the UKDEA members represent:

• Over 125 MW of low carbon generation plant (CHP, biomass, EFW etc) • Supported by over 625 MW of conventional back up boiler plant • Delivering over 625,000,000 kWh of heat each year • Across energy networks which, if combined, would extend for more than 160

miles

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.

For more information or membership details contact:

Chris Tanner Secretary & Administrator for the UKDEA

Thames Head Wharf, Tetbury Road, Cirencester, Gloucestershire,

GL7 6NZ

Office: 01285 770615 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Mobile: 07773 457941 Website: www.ukdea.org.uk