Disstrict Heaating Feaasibility Case Stuudies

For detail on thhe various tyypes of eneergy systemms outlined i n these casse studies pplease read the energyy topic section inn Stockport’ss Sustainabble Design && Constructtion SPD1 aand visit thee many on-line resourcees highhlighted withhin that topiic.

Thiss documentt contains an opening ssection whicch summariises the appproach laid out in deta il in Stockpoort Couuncil’s ‘Guiddance for Diistrict Heati ng Feasibiliity’. This is followed byy five case sstudies:

SSummary off feasibilityy study sitees

Site namee/location Summaryy Developmment type

1 –– Man Diese Gro

el Site, Haz ove

zel Reside industr

ential-led de rial site.

evelopment on disusedd Low densityy residentiaal

B 2 – Chead

Business Pa dle Royal ark, Cheadlee

2.8 hec on bus

ctares of lan siness park

nd available site.

e for develoopment Commmercial

m 3 – Brin

masterplan, nington Brinningtonn

Regen includi

eration dev ng existing

velopment o community

of residentia y developme

al area, ent. RRegeneratioon residential

4 – Goyt MMill, Marple Mill red comme

developmen ercial), SHL

nt, mixed us LAA site.

se (domestic and Mill redev below SD-

velopment, -4 thresholdd

5 – Broads Redd

stone Mill, dish

Mill red comme

developmen ercial), SHL

nt, mixed us LAA site.

se (domestic and Mill redev above SD-

velopment, -4 thresholdd

Locationn of feasibiility sites

wwww.stockport .gov.uk/plan ningsustainaabledevelopmment - see RRelated Documents on rigght of page. 1

Feasibility Approach

Objectives

It is recognised that different development types will have different opportunities and requirements regarding implementation of district heating, which may have a significant impact on either technical feasibility or financial viability (or both). In order to demonstrate that these opportunities have been fully explored (and appropriate conclusions drawn), district heating feasibility studies are required to be provided by developers as evidence that the requirements of Core Strategy policies SD-3 and SD-4 have been taken into account.

The five sites included in the case studies are representative of similar development planned around the Borough. The guidance is therefore relevant for other sites with similar characteristics.

A key initial stage in assessing a development or site for district heating potential is determining the objectives that need to be delivered. In general terms these can be defined by considering the following2:

• Carbon reduction targets • Technical feasibility • Financial viability • Security of supply

These areas are intended to address issues such as:

• Which energy systems are most appropriate for a development? • Will they be financially viable at the proposed development scale? • What are the local and regional carbon emissions target requirements? • What will be the carbon impact of a proposed development / energy strategy? • How will proposals help meet local/regional carbon reductions targets? • Where will the development aim in terms of carbon reduction targets, i.e. minimum requirements or

beyond minimum requirements? • What will be the up-front costs associated with non-traditional energy generation systems, and are

they affordable? • Will the fuel used to generate energy be available throughout the lifetime of the development? • How will the price of the fuel used to generate energy change over the lifetime of the development

and at what rate? • How will the marketability of a development change depending on the energy systems (and

associated costs) proposed? • What are the financial incentives available and how might these change in the future?

Asking these types of questions at the outset of conducting a district heating feasibility study will be useful in terms of defining a set of parameters against which proposed solutions can be judged. It will also provide the foundation of a route-map towards decisions regarding energy supply and meeting policy requirements.

Understanding the Proposed Development and the Existing Setting

Most opportunities for district heating will occur when some interaction with, or connection to, existing buildings or development can happen. Gaining this understanding will involve an appreciation of both the proposed development and the setting in which is it proposed to be built. Accordingly, the following considerations will help define the criteria by which the applicability of district heating can be established:

Proposed Development • Building types proposed (e.g. domestic / commercial, what is the mix of uses?) • Load profiles of proposed building (e.g. heat-led? cooling-led? when will the times of peak demand

occur? what is the base-load of the development?)

2 Adapted from ‘Community Energy: Planning Development and Delivery’, TCPA, 2010 (http://www.tcpa.org.uk/pages/community-energy-urban-planning-for-a-low-carbon-future-.html)

• Development density (e.g. is the development proposed dense enough to warrant consideration of a decentralised energy supply?)

• New build or refurbishment project • Renewable energy issues such as visual impact / fuel delivery traffic

Existing Site • Building mix on/around the site • Presence of anchor loads (i.e. certain existing building types that are predominantly heat-led and may

have a significant heat demand: hospitals, schools, hotels, leisure centres etc.) • Proximity of anchor loads • Proximity of other development sites and specific criteria affecting these sites • Condition and potential refurbishment plans of existing building on/around site • Availability of different fuel types (i.e. is local gas network over-stretched? how ‘local’ are biomass

suppliers?) • Understanding of system types of surrounding buildings (i.e. gas-fired ‘wet’ systems or electrically

heated?) • Constraints of site (i.e. remotely located? proximity of major roads/train lines?)

Several of these issues can be depicted graphically as an ‘energy map’ to gain a better spatial understanding of the site and the opportunities and constraints that occur. Examples of energy maps are given in the case studies. A borough wide energy map3 has been created to inform energy policies in the Core Strategy and can provide data for more localised energy mapping.

Understanding these issues is important for determining an appropriate energy supply solution for any proposed site. Often, the interaction between development issues and site issues can be advantageous, for example using connections to appropriate existing buildings as a way of energy sharing can significantly improve the viability of district heating schemes, especially where waste heat is available. Such considerations need to be investigated as early as possible in the process in order to maximise any potential benefits.

Assessing Appropriate Technologies

An outline feasibility study for a particular site will require an appraisal of which particular technology options may be most suitable for a district heating solution, followed by a review of key design principles. This will require pulling together high-level conclusions from many of the issues highlighted above.

The more common technology options for district heating (and associated considerations) are listed below.

Technology Options

Gas boilers • What are the advantages of gas district heating over individual gas boilers?

To consider: financial economies of scale, improved energy generation efficiency at large scale, carbon emissions reduction potential, ease of future plant replacement, maintenance costs, delivery efficiencies/heat losses of district heating.

• Can a gas network be extended, or upgraded at a later date to incorporate low carbon technologies? To consider: other technologies compatible with district heating systems, location of future development, future-proofing for potential expansion to existing buildings/networks.

Gas-fired CHP • What advantages does a CHP offer over a gas-fired boiler?

To consider: base load of development (constant enough to maximise CHP run time?), electricity export potential, technology options to meet peak demands.

• Are there financial benefits to running a CHP engine? To consider: electricity generation potential, annual running hours of CHP engine, relationship between thermal and electrical efficiency, relationship between gas and electricity prices.

3 http://stockport.limehouse.co.uk/portal/pp/ldfcs/publicationcs?pointId=1263297918607#section-1263297918607

Biomass heating / biomass-fired CHP • What are the key issues of biomass as a fuel?

To consider: local availability of biomass, type of biomass available (chips/pellets), space for storage on-site, frequency of delivery, future local availability of fuel, smoke pollution potential.

• What are the advantages of biomass as a fuel over gas? To consider: carbon factor of fuel, meeting of carbon reduction targets, comparison of generation efficiencies at range of scales, biomass CHP suited to making significant carbon reductions.

• What proportion of the heating demand is met by biomass? To consider: contribution of other technologies to meeting peak loads, potential displacement of food production, sustainable sourcing.

Energy from waste • What type of technology may be appropriate?

To consider: type of technology available (pyrolysis, gasification, incineration, anaerobic digestion), generation of heat or electricity more appropriate?, type of waste (fuel) availability in local area.

• What are the key issues of using waste to generate energy? To consider: potential for reducing landfill waste, cost of waste as a fuel, sources of waste if not enough available from on-site generation, defining carbon reduction potential of waste as a fuel, emissions management appraisal at design stage.

Other technologies which may be considered depending on site conditions and proximity of existing installations are the use of geothermal energy (connection via a transmission main) and bio-gas.

Financial viability will largely be based on comparing any proposed options to a base-case, that is, one in which ‘traditional’ energy systems are installed (e.g. individual gas-fired boilers in each building/dwelling). This will also provide a good basis for making carbon reduction predictions to define the contributions made towards policy targets.

Opportunities for the use of micro-generation technologies (such as photovoltaics, hydropower, wind power etc.) should also be considered at this stage to maximise the potential for developing a robust decentralised energy mix and for further reducing carbon emissions.

Assessing Technical Feasibility and Financial Viability

Design Principles Many factors will have an influence on how a particular technology choice is incorporated into a development site, what its potential for expansion into the surrounding area is, and how easily it may connect to a future larger-scale heat network. The following list describes some of the principles that need to be considered as part of the technical, financial and delivery decisions regarding district heating feasibility.

• Age and condition of existing buildings To consider: standard of improvements targeted, costs associated with improvements, scale of work needed to be carried out to improve efficiency, effect of improvements on heat demands, effect of improvements on plant sizing and financial viability.

• Design targets of proposed buildings To consider: contribution of new build to increased carbon emissions, building to current or future Building Regulations targets and the ease of achieving those targets, requirements of local policy and planning targets.

• Phasing of development To consider: for larger schemes – nature of heat network evolution over time as more development comes on-line, infrastructure phasing to match demand, effect of phasing on costs associated with infrastructure; for smaller schemes – advantages of whole development coming on-line at once, incorporation of future-proofing measures into phasing, changing of design targets over time (e.g. Building Regulations).

• Overall size of development To consider: for larger schemes – opportunities for taking advantage of larger scale plant/infrastructure, economies of scale; for smaller schemes – threshold for district heating under Core Strategy policy SD-4, future-proofing of development if below threshold (see below).

• Layout To consider: effect of site layout on scale of network, effect of density of development and connections to existing buildings/dwelling on technical feasibility, scale of heat losses from pipe-work infrastructure, proximity of plant to heat demand, proximity of plant to future connecting building/developments, space requirement for plant and fuel storage, space requirement for potential thermal storage, rights of access to pipe-work.

• Connecting to a network To consider: ease with which a connection is made between building and network infrastructure, retrofitting to existing buildings, metering of heat consumption, topographical understanding of site for determining pump sizes and pressures at which systems can operate.

• Cooling To consider: opportunities for integrating heating and cooling networks, scale of demand for cooling (presence of commercial/industrial buildings), use of waste heat for cooling via absorption chillers.

• Future-proofing To consider: specification of appropriate plant where heat network not initially feasible for easy future connection, additional plant space for future network expansion plant, specification of plant that allows easy future upgrade or change in technology type/fuel, use of electricity microgeneration technologies to contribute to carbon emissions reductions if heat network not initially feasible.

• Financing and delivery options To consider: Stockport Council role in co-ordinating opportunities involving multiple stakeholders, relationships between stakeholders, framework arrangements, ESCo involvement, investment routes for on- and off-site microgeneration technologies, use of Special Purpose Vehicles (SPV’s) for delivering infrastructure.

• Financial incentives To consider: potential for Renewable Heat Incentive (RHI) payments for generation of low carbon heat, potential for Feed-In-Tariff (FIT) payments for microgeneration where heat network connections are not initially viable.

• Local engagement To consider: opportunities for engaging with other local buildings / businesses / developers to share energy, demonstration of the wider benefits of district heating to the local community.

Summary

Above is a summary of some considerations when carrying out district heating feasibility studies as dealt with in detail in Stockport’s ‘Guidance for District Heating Feasibility’4. The following section provides high-level examples of this type of approach. Stockport’s Core Strategy Planning Policy SD-4 District Heating (Network Development Areas) states that: 1. All development should seek to make use of available heat, biomass and waste heat. 2. Small developments (less than 100 dwellings or non-residential developments less than 10,000m2)

should connect to any available district heating networks. Where a district heating network does not yet exist, applicants should install heating and cooling equipment that is capable of connection at a later date and which could serve (or could easily be adapted to serve) that wider network if and when required.

3. Large and mixed-use developments (over 100 dwellings or non-residential developments over 10,000m2) should install a district heating network to serve the site. The council’s ambition is to develop strategic area wide networks and so the design and layout of site-wide networks should be such as to enable future expansion into surrounding communities. Where appropriate, applicants may

4 www.stockport.gov.uk/planningsustainabledevelopment - see under Related Documents on right of webpage

be required to provide land, buildings and/or equipment for an energy centre to serve existing or new development.

4. New development should be designed to maximise the opportunities to accommodate a district heating solution, considering: density, mix of use, layout and phasing.

5. Where investment or development is being undertaken into or adjacent to a public building, full consideration should be given to the potential role that the public building can have in providing an anchor load within a decentralised energy network.

Feaasibility Case Stuudies

Fivee high-levell feasibility studies haave been uundertaken for five development sites in Sttockport. Thhese partticular sitess have beenn chosen ass exampless of typical developmeent types wiithin the Boorough and it is intended that tthe guidancce associatted with each site may be easilyy replicated elsewheree. The sitess are listeed below annd their locaation in Stocckport is shoown on the map.

SSummary off feasibilityy study sitees

Site namee/location Summaryy Developmment type

1 –– Man Diese Gro

el Site, Haz ove

zel Reside industr

ential-led de rial site.

evelopment on disusedd Low densityy residentiaal

B 2 – Chead

Business Pa dle Royal ark, Cheadlee

2.8 hec on bus

ctares of lan siness park

nd available site.

e for develoopment Commmercial

m 3 – Brin

masterplan, nington Brinningtonn

Regen includi

eration dev ng existing

velopment o community

of residentia y developme

al area, ent. RRegeneratioon residential

4 – Goyt MMill, Marple Mill red comme

developmen ercial), SHL

nt, mixed us LAA site.

se (domestic and Mill redev below SD-

velopment, -4 thresholdd

5 – Broads Redd

stone Mill, dish

Mill red comme

developmen ercial), SHL

nt, mixed us LAA site.

se (domestic and Mill redev above SD-

velopment, -4 thresholdd

Locationn of feasibiility sites

SSite detail

• Site l subu

• Deve MAN

• Curre MAN redun

• Deve • Site b

open • Office

imme • Sepa

ware Estat

• Furth east/s

• Stepp imme

l summary

ocated in m rban area

elopment s

Diesel hea

elopment p

arated from

mostly res

Diesel & T ent building

ndant indus

bordered b space) to

e developm ediately to

house plot te) by railw her industri south-east ping Hill Ho ediately to

y

ite current Turbo UK L gs on site a ad office b strial build

plot circa 28 by Mirlees

west, nort ment (Rhin south

m commerc ts (Pepper

way line to al / comme t ospital loca north of M

idential /

ly owned b Ltd are existin

building and ings 8,000m2

Fields (gre th and east no Court)

cial / Road south ercial units

ated irlees Field

by

g d

een t

s to

ds

8

MMan Dieseel Site, HHazel Groove

Deevelopmennt Proposals

A planning aapplication has been submitted for a new--build residential and employmennt developmment (ooutline mastterplan showwn in Appendix 1), commprising twwo hectares of land for employmennt uses andd five heectares for up to 240 dwellings. The main section of land for deevelopmentt currently houses sevveral industrial buiildings prevviously opeerated by MMAN Diesel as a diesel engine mmanufacturing plant –– this opperation stoopped in 20008, and the site has nnot been u sed since. There is pootential for this brown--field deevelopmentt site to contribute to Sttockport Coouncil’s hou sing supplyy requiremeents.

Ann outline ennergy map oof the MAN Diesel site and the su rrounding bbuildings/areea is shownn below.

9

Ennergy map of the MANN Diesel sitee and surrouundings

Thhe followingg points suummarise tthe key de evelopment and site oopportunities and consstraints for this deevelopmentt site.

Teechnical feeasibility • The current masteerplan (see Appendix 11) indicates that up to 2240 dwellinggs may be incorporateed on

the sitee. This indiccates a maxximum dweelling densityy of aroundd 48 dwellinngs per hectare. Guidaance5

suggessts a dwellinng density oof at least 50 dwellingss per hectare as a tipping point forr district heaating becomiing feasiblee. Higher deensities of ddevelopmennt can havee significantt impacts onn reducing heat losses within a nettwork, whilee also potenntially reduccing infrastr ucture costss.

• The maasterplan coould be ‘tweeaked’ to inccrease the development density, mmeaning that the feasibility and viaability of a ssmall initial site-wide neetwork wouuld be improoved. In thiss case provvision should be made ffor connecti ng to a largger heat nettwork as annd when succh an opporrtunity occuurs in the fu ture. This shhould be caarried out thhrough apppropriate sppecification of plant, annd consideeration of wwhere plant iteems and pippe-work rouutes are loccated. A mo re detailed study may be necessaary to determmine exactlyy where this ‘tipping-po int’ of viabillity occurs.

5 CCommunity HHeating for PPlanners and Developers s, Energy Savving Trust/Caarbon Trust, 2004

10

• It is understood that several of the local stakeholders at the Pepper Road estate adjacent to the development site are interested in exploring ways of reducing energy demands, largely driven by the desire to reduce energy costs which are significantly high. The Council should continue its engagement with these companies with an aim of achieving an energy sharing solution with benefits for the wider area. It is strongly recommended that these stakeholders continue to be involved in discussions and plans involving energy strategy in and around this development site. This could also include the hospital (see below).

• This site is reasonably close to Stockport Town Centre, so consideration should be made as to how a MAN Diesel on-site network may connect to a wider Town Centre network if it expands in the future. In particular, the Stepping Hill Hospital may be regarded as an excellent point for a town centre network to stretch down to along the A6 corridor.

• In the shorter term, the hospital could provide a potentially significant anchor load with which heat/energy could be exchanged by the proposed development site buildings. It is currently understood that a district heating system exists within the hospital; a ‘wet’ system would be ideal as one that could export or import heat to/from surrounding buildings.

• When considering a connection with the hospital, the biggest constraint is likely to be the existing railway line that separates the hospital and Mirlees Fields. Feeding district heating pipe-work under an existing railway can technically be achieved, although there will be a significant additional cost to such works. Further discussions with both the hospital and Network Rail (regarding their viewpoints, and any planned maintenance both at the hospital and of the rail track) should be conducted to inform feasibility/viability.

• A 240 dwelling development is likely to provide a good heat base-load for district heating, due to a year round demand for heat (heating and hot water in winter, hot water in summer). This potentially works well with systems such as CHP, where the engine should be run for as many hours as possible throughout the year to maximise efficiency.

• The MAN Diesel office building located on the site could provide an additional heat demand that would complement the loads of the proposed development. The office building would provide a building to which electricity from a CHP engine could be exported. Further information would be required relating to the plant type and fuels used within this office building to clarify this option.

• The size and layout of the site lends itself to storage of fuels such as biomass, or for housing buffer tanks (as a way of storing heat until it is required). In the case of biomass, if a robust, local supply chain can be established, then biomass heating could potentially be used as a fuel for a small-scale on-site heating network. Biomass CHP is considered an unsuitable technology for use at this (relatively small) scale, although this feasibility could change if connection to a large anchor (such as the hospital) could be achieved.

• The potential for growing biomass on the Mirlees Fields site should be considered as a way of developing a local supply chain of fuel. This would need to include an area for treating (drying) the wood before use in a boiler.

Financial considerations • When considering an initially small-scale on-site network, either gas-fired CHP or biomass heating

are potentially viable options for this site. Both solutions offer opportunities for taking advantage of financial mechanisms for offsetting initial capital and running costs, although gas-fired CHP may be limited to small-scale generation under the Feed-In Tariff6.

• Biomass heating is a technology that generally has lower efficiencies than equivalent gas-fired heating and is considered to save carbon rather than energy, assuming a local supply is used. A key benefit of this technology however is that it qualifies for a tariff under the Renewable Heat Incentive7. This provides a payment for every kWh of heat used that is generated by renewable

6 www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/feedin_tariff/feedin_tariff.aspx 7 www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/incentive/incentive.aspx

11

technologies8, which can help to offset the capital costs required for network development. The level of tariff available is dependent on the size of the heat generation installation, where generally smaller installations receive a higher tariff. The highest tariff available is for plant size of 200kWth or less, which is around the size of system that may be considered for the proposed development (assuming that peak demands are met by back-up gas-fired boilers).

• Gas-fired CHP needs to be considered carefully alongside a ‘standard’ gas boiler system to determine how viable it is as a solution. The key factors that influence this viability are the prices of gas and electricity, the relationship between these two prices and the achievable heat and electrical efficiencies of a CHP system.

• The benefits of CHP are derived from the production of electricity alongside heat generation. However, the thermal efficiencies of CHP engines are significantly lower than those of equivalent gas-boilers, meaning that they consume more gas than an equivalent gas-fired boiler. CHP is therefore primarily a technology suited to saving carbon rather than energy.

• In general terms, the viability of CHP will increase if electricity prices rise at a higher rate than gas prices, as the cost of electricity being offset (i.e. not imported from the national grid) will be more ‘valuable’ than the price of the gas consumed.

Planning and co-ordination • Raising the dwelling density will facilitate a network solution with costs reduced by providing some

simple urban design guidance. For example, townhouses could be brought closer to the back of pavement in order to reduce pipe lengths and the associated cost of heat network connections.

• The development planning statement suggests that the housing development will be completed prior to the revision to Building Regulations Part L in 2016. A site-wide network solution could therefore be promoted that supports CfSH Level 4/Part L 2013 compliance.

• Stepping Hill Hospital would be the natural anchor public sector load in the wider area as it has an existing network and its own CHP plant.

• A network solution would be at the high end of costs for a district heating network, suggesting that achievement of the higher targets outlined under Policy SD-3 might not be possible.

Delivery options • A network at this site would be likely to be developer-led, however, Stockport Council could be

asked to assist developers to discuss their energy management options. • Potential Energy Services Company9 partners could be investigated for their track record of carrying

out detailed feasibility studies and/or developing smaller standalone networks. Energy Service Companies can be co-operatives or can be structured as private enterprises10.

• There is scope for this site to link into wider opportunities. This will depend on investment/management of these opportunities being favourable to potential linkages with new development. Partners such as the NHS should be consulted to understand their motivations/schedules for investment and replacement.

See Overview Conclusions overleaf.

8 See Appendix 2 for a list of eligible technologies and tariffs under the RHI. 9 http://ceo.decc.gov.uk/en/ceol/cms/process/stage_3/plan/governance_str/governance_str.aspx10 www.tcpa.org.uk/data/files/comm_energy_plandevdel.pdf - see pages 28 to 30

Overview Coonclusionss

• Sub ach

• Eng disc of th

• Step cou

• Futu netw

• Con viab

• Adja grow

bject to cha ieved cove

gagement r cussions of he train line pping Hill H ld be a sig ure develo work – pote nsideration bility acent gree wing

anges in dw ering the p required w f decentral e Hospital of

gnificant co opment pla ential futur

n required o

en space p

welling den lanned MA

with occupie lised energ

ffers major onstraint ns to cons re connect of existing

otential for

nsity an inii AN Diesel s ers on Pep gy options,

r anchor lo

sider progre tion office build

r on-site fu

tial district site.

pper Lane , noting the

ad opportu

ess and re

ding heat d

uel storage

heating ne

Industrial E e potential

unities how

ach of Sto

demands t

/ heat stor

etwork cou

Estate to d significant

wever the t

ockport Tow

to inform its

rage / biom

uld be

drive forwa t constrain

rain line

wn Centre

s connectio

mass

rd t

on

12

SSite detail

• Office within Busin

• Seve site, k in cen

• Site b • Seve

site: S south west, Chea to sou

• Surro densi

• Anoth Vale) hospi

summary

bounded to

ounding are

y

e developm n existing C ness Park ral develop key plot is ntre

ral large bu Sainsbury’s h-east, prim

St Ann’s H dle Royal uth of busin

ty resident her primary located cl ce

ment oppor Cheadle Ro

pment plot 2 hectare

o north-eas uildings ex s & John L

mary schoo Hospice to Hospital im ness park ea predom tial y school (P ose to St A

rtunities oyal

s exist with green strip

st by A34 xist on/nea Lewis to ol to north-o south-wes mmediately

minantly low

Prospect Ann’s

hin p

r

st, y

w

13

CCheadle RRoyal Buusiness PPark

Deevelopmennt Proposals Seeveral deveelopment plots exist within the buusiness parkk for potenttial office deevelopmentt. The mainn plot off available land is locatted centrally within thee site and fuurther smalller plots exiist to the soouth-west oof the sitte.

Seeveral planning applicaations havee been receeived to datte, includingg a converssion of existting buildinggs to 233 apartmennts and a ttwo storey new-build office deveelopment. It is also n noted that SSainsbury’ss are caarrying out aa series of remodellingg works to ttheir store, including innstallation oof air sourcee heat pumpps to prrovide heatiing and coooling throughhout the stoore.

Ann outline ennergy map oof the Cheadle Royal ssite and the surroundin g buildings//area is shoown below.

r

r

f

14

Ennergy map of the Cheaadle Royal ssite and surrroundings

Thhe followingg points suummarise thhe key devvelopment aand site oppportunities and const raints for thhese deevelopmentt sites.

Teechnical Feeasibility

• The keey opportunnity for this site in termms of district heating feasibility iss the preseence of sevveral anchor load build ings in andd around thhe businesss park, as shown aboove. Each oof these offfer a potentiaal opportunnity for eneergy/heat ssharing, a process that could bbe driven foorward by new developpment on thhis site. The central pplot (shown in light blue above) inn particular may be id eally locatedd for develooping heat sharing asssociations between these anchoor loads. TThis could offer substanntial fuel coost savings and carboon reductionns to existinng buildingss, potentially of interest to those ccompanies rregistered wwith the CRRC Energy EEfficiency sccheme.

• The buuildings thatt offer a pa rticularly efffective year-round ste ady heat looad are the Cheadle RRoyal Hospitaal and the hhospice. Theese buildinggs would bee ideally su ited to provviding a basse load for hheat, which ccan be mett with eitheer a gas-fireed CHP or a biomass boiler. In eeither case, back-up ((gas-fired) bboilers wouuld be requ ired to hel p meet thee peak demmands. Furtther information wouldd be requireed as to thee type of heeating systeems used aat the hosppital/hospicee before theeir suitabilitty as anchor loads can be determinned. If electtric heating systems arre used, it bbecomes mmore difficultt and costly tto retrofit weet system d istribution ppipe-work wwithin a buildding.

15

• The schools in close proximity to the business park should also be considered as important heat anchors, although the yearly profile for heat in these types of buildings is affected by seasonal occupancy, i.e. when empty during school holidays.

• It is likely that a CHP solution is an appropriate technology for this type of building mix, i.e. where several large heat anchor buildings exist alongside a series of commercial buildings whose energy demands may be largely electricity led. If a private wire electricity network can be established alongside a heat network, then potentially most of the electricity generated by a CHP engine could be used on-site.

• The commercial nature of several other buildings in and around the business park means there may be a case for a more detailed investigation into whether the cooling demands of these buildings are significant enough to warrant consideration of a cooling network. This could involve sending heat that is not required in the summer to absorption chillers within commercial buildings to be converted to cooling energy. Although this process is typically less efficient than using conventional electrical chillers, making use of heat that is not needed in the summer months would mean that the overall annual load profile is kept steadier and the potential for dumping heat that is not used is greatly reduced. A more detailed feasibility study would be required to analyse the extent to which the heat/cooling loads may balance.

• The commercial buildings on the site also offer potential for microgeneration technologies – this type of energy generation should be encouraged alongside heat network solutions, not just for contributing to meeting carbon reduction targets, but also in terms of diversifying the energy mix of development. Technologies that are likely to be appropriate will include PV panels and medium scale wind turbines. A key benefit of such an approach is the ‘building-in’ of resilience and robustness to proposed development and future-proofing energy supply in relation to reducing reliance on fossil fuels. The potential for income generation from microgeneration technologies will be of interest to the building owners11.

• The potential for expansion to the east of the site is limited due to the presence of the A34 road (significant financial investment would need to be made to provide the infrastructure needed to achieve this) and the more rural nature of land on the east side of the A34.

• The residential areas to the west and south of the development are relatively low density, therefore are likely to not be suited to initial consideration for district heating.

Financial Considerations

• Although district-scale CHP does not qualify as an eligible technology under the Feed In Tariff or Renewable Heat Incentive, its use at this scale can offer significant financial benefits. Generally the electrical efficiency of CHP engines increases with size, therefore the potential for offsetting meaningful amounts of electricity is greatly increased with plant size. As electricity prices increase going forward, the increased amount of electricity cost saving could over time offset a large proportion of the capital cost requirement.

• As discussed in previous sections, the viability of CHP will be greatly affected by the relationship between gas and electricity prices. Assuming that several anchor loads can be connected, with further uptake by new development at the scale of development considered at the business park, there is potential for a heat network to be delivered by an Energy Services Company (ESCo)12. In such a case, there is scope for contracts to be based on an agreed fixed price for energy supply, which can to a degree help mitigate the issues which affect CHP viability. This approach is often found on large-scale mixed-use developments.

• Where opportunities exist for building-level microgeneration of electricity, the FIT can be used as a mechanism for offsetting capital costs of plant. For example, roof areas of buildings where PV panels can be installed will be eligible for a generation tariff and (if electricity is exported to the grid)

11 http://www.decc.gov.uk/en/content/cms/meeting_energy/bio_energy/bio_finance/bio_finance.aspx 12 www.tcpa.org.uk/data/files/comm_energy_plandevdel.pdf - see pages 28 to 30

16

an export tariff13. These tariffs (in addition to the costs saved by offsetting electricity not imported from the grid) can provide a valuable income stream for the network operator/technology owner.

Planning and Co-ordination

• The scale of the existing and proposed development suggests the need for a co-ordinating role for Stockport Council in promoting technologies. However, the nature of energy demand from the predominant use classes (power demand for lighting, cooling and IT) suggests that novel solutions such as the water-source heat pump network considered for a Town Centre network would be worth exploring potentially as a pilot, which could be replicated for wider use in the Town Centre.

• The series of existing heat loads on the periphery of the site (care home, primary school and Cheadle Royal Hospital) suggest the potential for new-build to both benefit from/provide benefits to these buildings. Stockport Council could play a co-ordinating/liaison role to broker the dialogue between the developer(s) and the existing building owners/operators.

• Other more tried and tested technology options could also be explored – including large-scale solar photovoltaic arrays and medium to large scale wind turbine(s) to serve the whole park.

Delivery Options

• Beyond more conventional solutions such as CHP, the Stockport Town Centre Energy Supply Study14 raised specific issues/options relating to development of an innovative ‘Versatemp’ water source heat pump network which could be more suited to the energy requirements of the mix of uses. The delivery considerations included: � Who would finance/operate the network? A private sector partner could be procured or a mutual

ESCo enterprise established with each building owner a member/beneficiary. These are very different options and are briefly discussed further below.

� Who would finance/maintain the heat pump units? This would depend on the procurement/start-up route for the network. This may dictate whether there will be a division between finance/operation of the network and finance/operation of the heat pump units in each building.

� How would installation align with phasing? Investment in a network before enough completed buildings were on-line would require certain risks to be addressed. For example forward contracts of between 5 and 20 years for heating/cooling provision may be required in order to provide security and provide financial certainty for a certain proportion of the anticipated heating/cooling load.

• An alternative approach would be to retrofit the network once buildings have been completed. However, this would not then deliver the Part L benefits of Versatemp and would create additional costs because building owners may have had to install their own equipment unless this equipment had, potentially through a planning requirement, to be specified to be compatible with the Versatemp concept (a form of futureproofing).

• A specialist ESCo partner could be procured as the operator of a district heating network or Versatemp network on this site. The ESCo would contract with building owners to supply heat or to maintain the network within an agreed temperature range and could also specify/provide the heat pumps and/or heat exchange interface units.

• As has been discussed there could be a scenario in which such a network is installed as the main infrastructure for a masterplan. This would be the most cost effective option but incurs greater risk to the investor in the network as there will be greater uncertainty that future phases of development will come on stream.

13 See Appendix 2 for a list of eligible technologies and tariffs under the FIT. 14 www.stockport.gov.uk/ldfevidence - see alphabetical listing

• Mai hos betw

• The dev dep buil

• New a sit plan

• Com the opp

• The mic

n developm pice, scho ween these e hospital s velopment pendent on dings

w commerc te-wide he nt mmercial d site and w

portunities f e energy m rogenerati

ment site l ools) so a g e buildings should be c in terms of informatio

cial develo eat network

developme whether the for using w

mix of the d on technol

ocated clo ogood poten s considered f providing on on the c

opment sho k which cou

nt should a e reduction waste heat evelopmen logies at b

se to seve ntial exists

d as playin a year-rou

current hea

ould consid uld incorpo

also invest in heat de to generat

nt should b uilding lev

eral good a afor develo

g a key rol und steady ating strate

der layout a orate future

tigate furth emand in s te cooling

be diversifi el

nchor hea ping energ

e in potent y base hea egy employ

and placem e changes

er the coo summer mo via absorp ed by cons

at loads (ho gy relations

tial future at load – th yed within

ment of pla to (or repl

ling require onths lead ption chiller sidering

ospital, ships

network is is the hospita

ant space f lacement o

ements of s to rs

al

for of)

Overview Coonclusionss

17

• Unless a modularr solution ccould be deesigned whhich accommmodated phhasing it iss likely thatt this uncertaainty would need to be mitigated bby a combinnation of thee developerr providing upfront worrking capital,, some upfroont subsidyy and/or eneergy contraccts.

• As disccussed, an alternative to procureement of ann ESCo partner would be the estaablishment of a mutual ESCo entterprise. Thhe network could be ddelivered oon a modul ar basis orr when enoough buildingg owners h ad come toogether andd agreed to connect, although thee overall risk would sit with the mutual ESCo. Each wouuld then takke a share in the projeect equivaleent to value of their ennergy requireement.

• An alteernative moddel would bbe to shift mmore of the risk onto th e building oowners. Usuually the coost of connecctions to a hheating or coooling netwwork would bbe charged to individuaal building oowners. In oorder to help reduce thiss upfront coost building g owners coould be giveen access toto preferenttial rate loanns in order tto upgrade their plannt and buy a share oof the netwwork. Thiss could eithher be throough signpossting existinng loans (foor example, through thee Carbon Trust) or couuld be deveeloped as a new brokereed service, for examplee by Stockpport Council , to supportt low carbonn developmment.

• Large ssolar arrayss could be funded throuugh a numbber of routes including licensing oof roof accesss to a specialist investtor/utility or the establiishment of an Special Purpose VVehicle by eeither Stockkport Council or the devveloper(s).

• Large wind turbinnes could bbe funded through a partnershipp with a sppecialist in vestor suchh as Ecotricity15 or an innitiative succh as the Caarbon Trustt’s Partnership for Reneewables16.

15 www.ecotriccity.co.uk/ 16 www.carbonntrust.co.uk/aabout-carbonn-trust/who-wwe-are/carboon-trust-groupp/carbon-trusst-ennterprises/Paages/partnerhhips-renewa bles.aspx

y

eration ma cial / econo ements in e xisting mai hbourhood

y buildings a eration for ool facilitie ntial on site ow density by M60 mot

(industrial 60 with pe g the sites

Country Pa -west

Site detail

• Hous proje to dri choic

• Site(s resid and c

• Gree • Spec

sport • Exist

high • Site b

east other overp Redd west

l summary

sing regene ct with soc ve improve

ce available s) within ex ential neig community n belt area

cial conside s and scho ing residen rise and lo bounded b and south r side of M6 pass linking dish Vale C and south

S

asterplan omic driver housing

inly d, schools also prese

relocation s e, including housing torway to estate on

destrian ), and

ark to north

rs

ent

of

g

h,

18

BBrinningt on Masteerplan

Deevelopmennt proposals Thhe proposed Brinnington masterpplan (see Apppendix 1) outlines development in Brinnington designeed to adddress the ssignificant rregeneration need requuired in thee area and tto propose aa frameworrk around wwhich immprovementts can be iimplementeed. The prooposal incluudes provission of neww residentiaal developmment, reegeneration of existing communityy facilities annd considerration of refurbishmentt of existing facilities.

Currently, thee two main sites for future new buuild developpment oppoortunities arre located oon the east side off Brinningto n (betweenn the two linnks to the inndustrial es tate across the M60) aand at the nnorth end oof the sitte adjacent to Blackberry Lane.

Ann outline ennergy map oof the Brinnington site aand the surrrounding buuildings/areea is shown below.

f

19

Ennergy map of the Brinnnington site and surrouundings

Thhe followingg points suummarise tthe key deevelopment and site oopportunitiees and connstraints forr the masterplan ssite.

Teechnical feeasibility • The geeneral area around Brinnington ccan offer seeveral opportunities forr developing decentralised

energy solutions. Although tthe area is mainly loww density reesidential, tthere are sseveral buillding types wwithin the wwider site thhat could a act as potenntial anchorr loads. Seeveral of theese are loccated towardss the northh of Brinnington, whichh is where the two primary deveelopment plots are loccated (see abbove).

• There aare seven 12-storey appartment bloocks spreadd across thee north of thhe site whicch could proovide the high density thhat is preferrable for heaat network ddevelopmennt, depending on the ccurrent serv icing strategyy employedd. These sseven blockks are all l ocated in cclose proximity to thee two propoosed developpment sitees so theere is pottential for any connnection to require rrelatively sshort connecction/transmmission routees.

• Retrofittting of disttrict heatingg to an apaartment building can bbe difficult aand requiree a high caapital input if the existin g servicing strategy iss not compaatible. If theese blocks uuse a centrral ‘wet’ heaating plant too distributee heat to tthe individuual apartmeents, this wwould pres ent an ideeal scenarioo for consideering them as initial heat anchhors to whhich future developmeent can coonnect. Fu rther investiggation into tthe heating system typpes used in these blocks should bbe carried oout to determmine their suuitability for use as ancchor buildinggs.

20

• Following conversation with Stockport Homes regarding the investment plans for these blocks, it is understood that all seven blocks currently use electric storage heating throughout. It is recognised that this is not the most efficient way of delivering heating/hot water to the apartments, and future retrofit of wet district heating systems has not been ruled out at this stage. Whether or not such changes can be made to the apartment buildings depends heavily on costs and time-frames for funding (e.g. projects to be delivered and CESP funding spent by the end of next year).

• However, it is known that Stockport Homes have considered potential sites for district heating plant near these sites (i.e. car parks) for potential future decentralised systems and risers exist within the blocks which can be used for distribution systems if required. It is also known that these blocks underwent over-cladding improvements circa 2006 as part of the Decent Homes programme.

• If areas nearby to the blocks cannot be used for locating plant, plant space within the blocks should also be considered. Existing plant space located centrally within the blocks will provide an opportunity for location of decentralised plant. This type of plant replacement has been carried out by Barnsley Council17 in combination with the use of biomass heating to offer cost and carbon saving benefits to the apartment tenants.

• Consideration should be given to the location of the existing train line that runs through the site as this separates four of the apartment blocks from the Blackberry Lane site. Providing a district heating connection across this could require significant additional capital expense, affecting financial viability. However such a decision should not preclude heat networks connection occurring independently on either side of the train line.

• The proposed development will focus on provision of new domestic properties with the aim of diversifying and improving the type of housing choice available. This is likely to result in a range of different dwelling types available affecting the density of development. The plots themselves are not very large, meaning that early-stage consideration of building mix and development density may significantly increase the feasibility of district heating being applicable.

• Several other buildings exist near the proposed development sites that may be considered as anchor loads for the residential development around them, or for future phased connections to a wider network. These include Westmorland Primary School (central Brinnington) and Highfields Primary School (south-east Brinnington). Westmorland in particular is located close to four of the apartment blocks – these five buildings stand out as close enough to create an initial heat association.

• It is understood that the regeneration plans for the area include the potential relocation of the Castle Hill Primary School and the Lapwing Centre. If these can be relocated close to the proposed development sites (north Brinnington), the potential for increasing the uptake of a decentralised heat network could increase. This relocation may have to be considered in terms of constraints relating to development moving into green belt areas.

• For domestic led developments, most heating technologies (CHP, biomass) are likely to be suitable from a technical point of view due to the year-round heat demand of residential buildings. If a requirement for electricity usage exists on-site then CHP should be considered as particularly feasible, although the sizing of this technology should be based on heat demand rather than electricity demand.

• The adjacent Bredbury industrial estate is the location for one of the Greater Manchester waste PFI’s biogas plant and a proposal for a smaller private biogas plant to treat food waste. The availability of heat from both plants and network routing options would require further attention when more information becomes available. There is a pedestrian overpass over the M60 between the two sites.

17www.biomassenergycentre.org.uk/pls/portal/docs/PAGE/PRACTICAL/USING%20BIOMASS%20FUELS/DISTRIC T%20HEATING/BARNSLEY%20FLATS.PDF

21

Financial considerations • The viability of an initial heat network at the two proposed sites will depend largely on the proposed

dwelling density and the placement of heat generation plant in relation to the anchor buildings at the north end of the site. This should be considered throughout the planning process and include an appreciation of how this may reduce costs (for example through minimising infrastructure / pipe-work runs).

• Assuming that wet heating system distribution exists within the high-rise blocks, their conversion to a community heating system would be technically straight-forward. Even so, the costs associated with a retrofit option will be high, and may require a funding source to help minimise associated capital costs. Such an option is likely to require a capital investment of between £800 and £2,000 per dwelling (internal retrofit), along with potentially up to £1,500 per dwelling for plant and equipment within a central plant room.

• Biomass has been identified as a potential technology to deliver low carbon heat – the cost of central biomass plant for a high-rise apartment block is likely to be up to £5,000 per dwelling.

• Biomass qualifies for a tariff under the Renewable Heat Incentive – see Appendix 2. This provides a payment for every kWh of heat used that is generated by renewable technologies, which can help to offset the capital costs required for network development. The level of tariff available is dependent on the size of the heat generation installation, where generally smaller installations receive a higher tariff. The highest tariff available is for plant size of 200kWth or less, which should be considered as more than what is required for a retrofit development of the size of one of the existing blocks. This assumes the use of gas-fired back-up boilers and that a good level of energy efficiency improvement is achieved (which will help to minimise heat losses and allow for a cut in the boiler output and capital cost required).

• In the case of the Barnsley funding was secured through several organisations including Yorkshire Forward. A partnership with the South Yorkshire Forest Partnership was also established to create a local woodchip supply company. In this case, funding mechanisms allowed for increased viability not only in setting up and financing the retrofit/installation, but in establishing links within the community. There may be scope for discussions with biomass fuel suppliers local to Stockport in terms of establishing a long-term fuel supply chain for such a development. This could help create a more robust supply of fuel if local resources become stretched.

Planning and co-ordination • The public buildings identified as anchor loads (school and leisure centre) are proposed for

rebuilding/reproviding which could create the chance to use them as mini-networks and to create a focus on carbon reduction, in-line with Council policies and drivers such as the CRC.

• The timing of the new-build sites might now be longer due to the cuts in Government/HCA funding, suggesting 2013 onwards, so this may create a greater drive for technologies that can meet changing (and tightening) Part L requirements. It also allows time for more in-depth consideration of energy options within design of the sites.

• The large amount of lower density housing may require a focus on modern terrace houses as these have a tighter layout. Semi-detached property would be more appropriate for micro-generation solutions.

• The mix of dwelling types suggests that it might be beneficial for Stockport Council/Stockport Homes to have the ability to drive investment in other technologies as well as the retrofitting of homes now that the Decent Homes programme has been completed.

Delivery Options • Stockport Homes are critical to delivery given their management of the stock and their leading role

on retrofit at AGMA level. • It will be important to understand the type of heating system installed in the high rise blocks and the

extent of any remaining Decent Homes funding, in order to prioritise/align expenditure.

• The reas

• Opp apa anc occ go a

• If su con

• Netw infra

• Ene due

e developm sonable de portunities artment bui chors aroun ur – althou ahead as p uch upgrad sider work expa astructure ergy/heat s e to position

ment of hou ensity of de may exist ldings on t nd which fu ugh electric part of wide des are po

ansion into costs due

sharing con n of M60 m

using in the evelopmen for implem

the north s uture expa c heating a er improve ssible, biom

the wider to lower d

nnections t motorway h

e two prop nt for distric menting pla side of the ansion (pot already exi ement work mass heat

residential ensity of h to Cromwe however a

osed areas ct heating ant upgrad site(s) to d entially into sts within t

ks to socia ting would

area is lik housing ell Road Ind pedestrian

s of Brinnin to be feasi es/replace

develop a s o the wide these bloc l housing s be an app

kely to incu

dustrial Es n overpass

ngton will r ible

ement with series of lo r residentia

cks, upgrad stock in the propriate te

ur significan

state may n s does exis

require a

in existing ocal heat al area) ca des could s e Borough echnology t

nt

not be viab st

an still

to

ble

22

• Aberdeeen Heat annd Power iss a special purpose veehicle that hhas combineed social objectives wwith a focus oon the on-gooing provision of low ccarbon infrasstructure, inn this case wwith an initiial focus onn one estate. It is a useeful precedeent for howw the projecct could be financed / delivered ggiven the loower densitiees and pottentially lowwer rate off return from any pro posed app proach. Conntributions from developpers, if feassible in this location, coould be usedd to fund more in-depthh feasibilityy work and sstart-up costts.

• The eliigibility of tthe masterpplan area ffor CESP oor ECO funnding goingg forward could, alonggside developper contribuutions, be a critical souurce of gap ffunding / seeed funding .

• An Eneergy Servicces Compaany (ESCo))18 vehicle should / could be caapable of financing mmicro-generaation or min i-networks ffor the loweer density aareas of thee masterplann and for fuurther new-bbuild sites. Any surpluuses could be re-inveested in ordder to suppport developpers and too subsidisee the connecction of loweer density housing andd any associate commuunity buildinngs.

• If retroffit is being consideredd by Stockpport Homess they mighht consider the propossed 'Commuunity Green Deal' modeel in which the Feed I n Tariff andd Renewabble Heat Inccentive reveenue is useed to cross-ssubsidise buuilding fabri c improvemments.

Overview Coonclusionss

www.tcpa.o rg.uk/data/fil es/comm_ennergy_plandeevdel.pdf - see pages 288 to 30 18

S

ll building i

renting ilding ntial area, green spac n vicinity

along site

south-wes office acent to m

in

, warehousse,

o all buildin

e

st

mill

ngs

y

pinning mil

s currently ain mill bu nly residen areas of g f course) i

anal runs a rn edge of

area l estate to plus new

ildings adja eave shed,

required to

Site detail

• Loca Marp

• Seve space

• Situa with s (inclu

• Macc weste

• SHLA • Cons • Smal

of mi • Three

also v engin

• Impro

l summary

on sit

lly listed sp le ral tenants e within ma ted in main significant uding a gol clesfield ca ern/norther AA site servation a l industrial ll building, e small bui vacant (we ne house) ovements r te

23

GGoyt Mill, Marple

Deevelopmennt proposals Thhe mill buil ding is currrently occuupied by seeveral tenannts that leaase floorspaace from thhe owner (PPeak Group of Commpanies). Itt is understtood that cuurrent ideass for development of thhe mill include a mixedd-use sccheme whicch will includde approximmately 60 reesidential unnits on the ttop two flooors, plus commmercial sppace onn other flooors. The site has beeen put forwward as parrt of the SHLAA Eviddence Basee for resideential deevelopmentt.

Thhe proposals fall beloww the threshholds of Core Strategyy policy SD-4, wherebyy specific deelivery of a heat neetwork is rrequired. HHowever hoousing leveels do requuire considderation of future prooofing, wheereby pootential con nection to ffuture districct heating nnetwork devvelopment sshould be cconsidered. Indeed exissting hoousing clos se to the sitte should bbe noted forr its type aand density which wouuld lend itseelf to retrofiitting district heatinng technology. Other mmeasures ccan be conssidered, whi ch are desccribed beloww.

Ann outline ennergy map oof the Goyt Mill site andd the surrouunding builddings/area iss shown beelow.

24

Ennergy map of the Goytt Mill site annd surroundings

Thhe followingg points summmarise thee key deveelopment annd site oppoortunities annd constrainnts for the GGoyt Mill site.

Teechnical feeasibility • Goyt MMill has beenn identified as part of thhe SHLAA exercise. It is understoood that a ppreferred deesign

proposal will incluude develoopment of residential units alonggside somee commerccial/employmment opportuunities. Currrent thinkinng indicatess that resideential deve lopment willl be limitedd by the sizze of the milll building annd the needd for employyment oppoortunities.

• As such the numbber of resideential units tthat may bee developedd is likely too fall under the threshoold of Core SStrategy Po licy SD-4, wwhich requires that deevelopmentts of less thhan 100 dwwellings “shhould connecct to any avvailable district heatingg networks. Where a district heaating network does noot yet exist, aapplicants sshould install heating oor cooling e quipment thhat is capabble of conn ection at a later date”.

• For thiss type of deevelopment it is essenttial that futuure-proofingg measures are considered in order to maximiise district heating op portunities on both a local and aa Borough--wide scalee. These future-proofing measuress should incclude energgy efficiencyy improvemments to fabbric, improving or replaacing existingg boilers with high-efficiency and/or reenewable plant thatt includes provision for importinng/exporting heat, straategic placeement of neew plant onn the site thhat consideers where fuuture (off-sitee) infrastruccture may ddevelop, an d use of onn-site microogenerationn technologiies to provide a short-teerm reductiion in carb on emissioons (until additional caarbon reducctions can be made by a future cconnection to an energgy network)..

25

•

•

•

•

•

•

•

•

•

•

Financial considerations

The microgeneration option is particularly important as a proactive measure that will demonstrate an initial commitment to reducing carbon emissions if a heat network is not initially available to connect to or develop on-site. The site is reasonably isolated in terms of proximity to anchor loads, as the surrounding area is either green space or low density residential. There are several existing heat-led buildings to the north of the site, including a sixth form college, a sports facility and a care home, but these are considered too far away to be taken into account for connection initially. Therefore the above future-proofing measures should drive development at Goyt Mill to be recognised as a potential anchor load itself. This would increase the attractiveness of Goyt Mill as a site that future networks may connect to. Due to the scale of development at this site it may be more appropriate for a centralised on-site system to develop as a heat-only (i.e. non-CHP) solution until a connection increases the demand to a level where a ‘full’ CHP upgrade can take place. A mix of residential and commercial floor space within Goyt Mill will require consideration of a range of heat and electricity generation technologies. These should include solar hot water (not always easily compatible with CHP) or a community-scale PV system. Depending on the extent of the commercial development plans for this site, there is also potential to explore the possibility of using the Macclesfield Canal as a heat sink for providing cooling to office (or other commercial) spaces. This concept replaces conventional chillers with water-cooled chillers and heat exchangers. The water taken from the canal is rejected back slightly warmer than its abstraction temperature, so a detailed analysis of the environmental impact of such a solution would need to be carried out, with approval/consent obtained from the Environment Agency. This type of system is relatively robust at this scale and British Waterways are aware of several schemes that are already in operation.

Due to the Goyt Mill building/site falling under the threshold for development of a heat network, a series of energy efficiency improvements and future-proofing measures should be considered (as a minimum) in terms of preparing the site for a potential future heat network connection. Improvements to fabric (including roof, wall and window) are likely to cost in the region of £900 to £1,500 per dwelling depending on the extent of works required, and the finite number of dwellings considered appropriate (given the space available) within the building. Similar improvements to commercial areas are likely to cost between £10 and £40 per square metre of floor area. These types of improvements will reduce the energy demands of the mill building, allowing for reduced plant heat output requirement and reduced plant size. This will provide for extra plant space in line with allowances for future plant retrofitting. Although the size of potential development at Goyt Mill precludes the installation of a heat network under Core Strategy Policy SD-4, a heat sharing connection to the Shepley Lane Industrial Estate should be considered as an initial on-site carbon reduction solution (depending on the heat requirement of the industrial/warehouse units). An indicative cost for such a connection can be up to £200 per square metre of floor space (in this case the floor space of the non-domestic buildings connected to). Improvement works to the Mill building roof could include installation of a PV array to generate electricity for the commercial and residential spaces within. An array of up to 50kW (approximately 400m2) would be eligible for a generation tariff in excess of 32p/kWh (a much higher tariff than a slightly larger installation), representing a significant investment opportunity. An array of this scale would cost approximately £200,000 and generate approximately 40,000kWh (an annual tariff income of £12,800). Stockport Council’s Conservation & Heritage Team will be able to provide information on planning and design considerations as well as current information on heritage funding. http://www.stockport.gov.uk/services/business/regeneration/consheritage/

r• Site

how • Goy

larg it an

• Futu dev inclu layo that sav

• An i with

• Futu usin coo

e falls below wever futur yt Mill is re gely residen n anchor lo ure-proofin

velopment ude a prog out (in term t can easily ings throug initial on-s

h the Shep ure develo ng canal co ling require

w policy SD e proofing latively iso ntial area) oad itself ng measure is reduced

gramme of ms of where y connect t gh implem ite energy ley Lane In

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mprovemen t may occu nt and dem

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chor buildi p a future

re carbon f is maximis t works, co ur), specific

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26

Pllanning and co-ordination • Mills off this age, size and ccondition ar re often cosstly to make fabric im mprovementss to in ordeer to

make tthem more energy effi cient, thereefore the seelection of l ow carbon technologies for heat and power iis an importtant consideeration.

• Solutions could bee promotedd with refereence to too ls such as the Greateer Manchestter Low Carbon Mills tooolkit whichh was prodduced by AAECOM for Greater MManchester’ s Commisssion for a New Econommy. If refurbbishment takes place itt could offerr an opportuunity to furthher refine thhe toolkit.

• The deesign of insttalled heating systemss should bee future prooofed for coonnection of the wholee mill compleex to an eneergy centre – potentiallyy repowerinng the existing engine hhouse.

Deelivery opttions • The deelivery optioons will deppend on thee nature of the refurbi shment prooject, whichh because oof its

scale mmay require gap fundin g/assistancce from the Council. • Given the likely ccosts of reefurbishmennt the Cou ncil could be approacched to disscuss assissting

potentiaal developeers to achievve low carbbon objectivves – this coould focus oon support at the feasibility stage aand identificcation of ESSCo partnerss.

• This foorm of refurrbishment wwould be suuitable for aa discrete tturnkey heaat supply coontract succh as those aarranged byy companiess such as EENER-G (gaas CHP) or Econergy (biomass heating). A ggood examplle of a prec edent is Vicctoria Mill inn Ancoats.

• Energyy Services CCompany (EESCo)19 paartners coul d be investtigated baseed on their track reco rd of carryingg out detail ed feasibilitty studies aand/or deliv ering heat ((and potenttially also p rivate electricity suppliees and cooli ng) to smal ler standaloone buildingg complexess/networks..

• Micro-ggeneration ssolutions suuch as sola ar photovoltaaics arrays would be rrelatively straightforward to financee based on Feed In TTariff revenue. Option s could rannge from self-finance to a roofsppace licensee with a speccialist invesstor or utilityy.

Overview coonclusions

www.tcpa.o rg.uk/data/fil es/comm_ennergy_plandeevdel.pdf - see pages 288 to 30 19

SSite detail

• Existi within

• 33,00 • Site c

Mill L includ space

• Appro by a v

• SHLA • Site lo

reside • Site b

buildi Indus

• Three furthe

rea

e nt

al

ed

d

ed

eddish, ervation Ar or area

Broadstone developme commercia

ntly occupie nesses ed

antly and east) ehouse d Hurstfield uth-east are locate

y

ilding in Re orth Conse metres floo wned by B ans for red ential and c

mill curren small busin rade II Liste predomina

a (to west a y two ware south and e to the so l buildings

summary

ing mill bui n Houldswo 00 square m currently ow td, with pla ding reside e ox 60% of variety of s AA site, Gr ocated in p ential area bounded by ngs to the

strial estate e other mill er north

27

BBroadstone Mill, RReddish

Deevelopmennt proposals Thhe proposeed site is likkely to be ddeveloped as mixed-uuse residenntial / commmercial. Theere are exissting isssues with thhe conditionn of the building (mainnly to do with the roof aand ongoingg issues witth the windoows) which will neeed to be adddressed ass part of anyy developmeent works.

Seeveral othe r mills, eitheer fully or paartially goinng through aa series of improvemennt works, arre located too the noorth of the ssite: Houldssworth Mill, Victoria Miill and Elisaabeth Mill. TThese mills form a ‘sp ine’ of builddings that form parrt of a widerr regeneratioon proposaal centred arround thesee mills.

Ann outline ennergy map oof the Broaddstone Mill ssite and thee surroundinng buildingss/area is shown below.

28

Ennergy map of the Broadstone Mill site and suurroundings

Thhe followingg points summmarise thee key devel opment andd site opportunities as well as connstraints forr this deevelopmentt site.

Teechnical feeasibility • Broadsstone Mill iss a site that has been iidentified ass part of thee SHLAA. TThe total flooor-space oof the

buildingg is in exccess of 33,000m2 so there is pootential for significant mixed-usee residentiaal-led developpment. Thiss building is also typiical of manny mill sitess around SStockport wwhich potentially requiree investment and regenneration.

• There aare issues wwith the Brooadstone M ill building ffabric and structure thaat will requirre a programmme of impprovements that mustt take intoo account any conseervation arrea requireements. Simmilar improveements havve been caarried out foor three othher Mills whhich are loccated close to Broadsttone. These include thee redeveloppment of HHouldsworthh Mill (also a SHLAAA site) as aa residentiaal-led mixed-uuse site whhich is curreently in the second phaase of workks having deelivered 1800 apartmennts in the firstt phase.

• Initially, the devellopment of Broadston e as a ressidential-led site offerss several oopportunitiess for explorinng/developiing a centraalised systeem within thhe mill itselff. There is sspace on thhe site to hoouse plant thhat can servve all the residential uunits plus a ny commerrcial space, , but which can also reetain

29

space for any future plant expansion or replacement. This should be considered a priority regardless of whether a connection can be made beyond the site boundary.

• The potential anchor loads adjacent to the Broadstone site mostly lie to the north of the existing train line close to the site. Of particular interest is the ‘spine’ of three mills that runs directly to the north of the site, as these buildings are suitably placed in terms of layout that could define a simple heat transmission main. However, it is understood that the improvements that have already been carried out to these mills include installation of electric heating systems, meaning that retro-fitting of a wet heating system could prove both difficult and/or costly. If this is the case, then district heating connections between these buildings may be unviable.

• Two industrial buildings sit adjacent to the south of Broadstone Mill – a warehouse occupied by Remploy Ltd (actually within the Mill site boundary) and a giftware office/warehouse. If an initial centralised system within the Mill building were developed then these two buildings should be considered a part of a small initial on-site heat-sharing network. Further expansion to the south-east (towards the retail/industrial estate) may be expensive due to the presence of the train line.

• Two further potential anchor sites exist nearby that may offer connection opportunities in the future – the Morrisons supermarket to the north-east of the site (situated next to the train line) and the Broadstone Hall Primary School to the south-west of the site. Connections between these buildings are potentially difficult to implement due to the low density residential areas in-between. However if a longer-term plan of district heating implementation in these residential areas is considered in the future, these anchors would provide potential for energy sharing as part of wider network development.

• The large size of this mill, and associated ‘stand-alone’ development potential, is likely to allow for consideration of either CHP (if connection to adjacent office/warehouse space can be achieved) or biomass heat generation.

Financial considerations • An outline solution for the Broadstone Mill involves development of an internal centralised heating

system with potential to connect such a system to the office/warehouse units at the southern end of the site. This should be carried out alongside a schedule of energy efficiency improvement works to the mill building – improvements required include roof repairs and replacement of windows.

• Improvements to fabric are likely to cost in the region of £900 to £1,500 per dwelling depending on the extent of works required, and the finite number of dwelling considered appropriate (given the space available) within the building. Similar improvements to commercial areas are likely to cost between £10 and £40 per square metre of floor area.

• Gas-fired CHP does not qualify as an eligible technology under the Feed in Tariff or Renewable Heat Incentive but its use at this scale can offer significant financial benefits 20. Generally the electrical efficiency of CHP engines increases with size, therefore the potential for offsetting meaningful amounts of electricity is greatly increased with plant size. As electricity prices increase going forward, the increased amount of electricity cost saving could over time offset a large proportion of the capital cost requirement.

• The potential for microgeneration technologies should be considered alongside the feasibility of district heating. The principle opportunities offered by the site are using the roof space for solar water heating or photovoltaic panel arrays. These technologies both offer tariffs for energy generation which significantly increase viability. Payback periods of around 10-15 years are achievable depending on the array size.

• Assuming an approximate roof area of 5,000m2, both a solar PV array and a set of solar water heating tubes could be installed to provide on-site microgeneration. For example, a 400m2 PV array (eligible for much higher tariff than a slightly larger installation) would cost approximately £200,000 and generate circa 40,000kWh (an annual tariff income of £12,800) at current market prices – see Appendix 2.

20 http://www.decc.gov.uk/en/content/cms/meeting_energy/chp/chp.aspx

30

Planning and co-ordination • Mills of this age, size and condition often incur costly fabric improvements in order to make them

more energy efficient, therefore the selection of low carbon technologies for heat and power is an important consideration.

• Solutions could be promoted with reference to tools such as the Greater Manchester Low Carbon Mills toolkit which was produced by AECOM for Greater Manchester’s Commission for a New Economy. If refurbishment takes place it could offer an opportunity to further refine the toolkit.

• The design of installed heating systems should be future proofed for connection of the whole mill complex to an energy centre – potentially repowering the existing engine house.

• The close proximity of three other significant mill refurbishments with good routes between them could create the potential to develop a wider energy opportunity plan. It is understood however that the heating systems within these mills may not be ideally compatible with a wider heat network, or at least require a significant investment. Further information should be obtained to determine the extent to which such potential could be realised.

• Whilst any requirement to consider low carbon technologies would focus on the building itself, Stockport Council could lead on identifying the benefits that a wider energy opportunities plan (potentially based around a heat network concept, but also focusing on the procurement of micro-generation solutions) could bring.

• A wider plan would need to create a sufficient evidence base and firm proposals to then support negotiations with the owner of Broadstone Mill.

Delivery options • Delivery options will depend on the nature of the refurbishment project and the balance between

focussing on the individual mill or the wider potential opportunities that could arise from linking together several mills.

• It is likely that a wider energy planning exercise may need to be led and funded by Stockport Council but that the owner of Broadstone Mill (and if possible the other mills) could make a contribution.

• The connection of the mills which have been converted to residential/mixed uses would be likely to require consultation with resident associations/management companies in order to agree new investment/changes to existing heating arrangements (if feasible).

• Victoria Mill in Ancoats and Titanic Mill in Linthwaite demonstrate the most relevant local precedents, albeit having been converted to wet heating systems/low carbon heat source prior to occupation. Titanic Mill required the establishment of a resident/consumer owned Energy Services Company (ESCo)21 which provides a high level of overall accountability. Victoria Mill was procured as a turnkey energy services contract.

• In order to deliver the wider opportunity plan the options could include the establishment of an Special Purpose Vehicle by Stockport Council which could seek to raise finance from a local partner such as the Co-operative Bank, or a private sector partner/specialist ESCo could be procured with experience of delivering and financing mini-networks.

• ESCo partners could be investigated based on their track record of carrying out detailed feasibility studies and/or delivering heat (and potentially also private electricity supplies and cooling) to smaller standalone building complexes/networks.

See Overview Conclusions overleaf.

21 www.tcpa.org.uk/data/files/comm_energy_plandevdel.pdf - see pages 28 to 30

Overview Coonclusionss

h ns o

t t

• Higmillthe

• FurHou

• Dev buil for p war

• Exp infra

• Lim area

hest poten s to the no electric he ther invest uldsworth M velopment dings (war providing t rehouse/off pansion to astructure ited conne as are sep

on

he other ion due to

to date at ction to two

bust solutio of

y high

as these

eration of t ensive opt ed mills carried out ring connec eat export ered a rob

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de conside tal cost inte e develope of works c nergy shar ration of he HP consid

d electricity

s potentially

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hould includ be a capit d within the t and type oping an en e consider

he Mill – C pment and

ential areas

f site (retai

heating sh is likely to

dy installed the extent for develo

must includ south of th

Mill develop

sity reside

uth-east of e

der district site – this ems alread quired into e potential tone Mill m ffices) just emand of M

ng low den ery costs ntial to sou a train line

tial for wid rth of the s

eating syste igation req

Mill and the of Broadst

rehouse/of he heat de fices surroundin and delive

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31

32

Apppendix 1 –– Masterplans

Man Diessel proposed illustrattive masterrplan (5plus architectts)

33

Brinninggton Spatiaal Masterplaan (GVA Grrimley)

34

Appendix 2 – FIT/RHI Summary Tables

Feed in Tariff technology / tariff summary

Technology Scale Generation tariff (p/kWh)

Tariff duration (years)

Anaerobic digestion

< 500 kW 12.1 20 > 500 kW 9.4 20

Hydropower

<15 kW 20.9 20 > 15 kW - 100 kW 18.7 20 > 100 kW - 2MW 11.5 20 > 2 MW - 5 MW 4.7 20

Micro-CHP <2 kW 10.5 10

Solar PV*

< 4 kW new 37.8 25 < 4 kW retrofit 43.3 25

4 - 10 kW 37.8 25 10 - 50 kW 32.9 25 50 - 100kW

19.0 25

100 - 150 kW 25 150 - 250 kW 15.0 25

250 kW - 5MW 8.5 25

Wind

< 1.5 kW 36.2 20 > 1.5 kW - 15 kW 28.0 20 > 15 kW - 100 kW 25.3 20

> 100 kW - 500 kW 19.7 20 > 500 kW - 1.5 MW 9.9 20 > 1.5 MW - 5 MW 4.7 20

*Please note the Government’s consultation on proposed changes to solar photovoltaics tariff rates: http://www.decc.gov.uk/en/content/cms/consultations/fits_comp_rev1/fits_comp_rev1.aspx

35

Renewable Heat Incentive technology eligibility / tariff summary

Tariff name Eligible technology Eligible sizes Tariff rate

(p/kWh) Tariff

duration (years)

Support calculation

Small biomass

Solid biomass; municipal solid

waste (incl. CHP)

Less than 200kWth

Tier 1: 7.6

20 Metering

Tier 2: 1.9

Medium biomass

200kWth and above; less than

1,000kWth

Tier 1: 4.7

Tier 2: 1.9

Large biomass 1,000kWth and above 2.6 Metering

Small ground source

Ground-source & water-source heat pumps;

deep geothermal

Less than 100kWth 4.3 20 Metering

Large ground source

100kWth and above 3

Solar thermal Solar thermal Less than 200kWth 8.5 20 Metering

Biomethane

Biomethane injection and

biogas combustion, except from landfill gas

Biomethane all scales; biogas

combustion less than 200kWth

6.5 20 Metering

Source: www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/incentive/incentive.aspx