Download - Peterborough City Council
Peterborough City Council
ESCO’s, renewable energy and energy efficiency
Base Birmingham 11 April 2013
2 years ago...
What’s happening at the moment…….A LOT
• that’s not co-ordinated• that does not link into a lot of the councils core policies and strategies• of resources• lack of prioritisation• conflicting priorities• missed opportunities to make real difference
Peterborough City Council - Strategic Context
Current Future
Strategic Direction Environment City Environment Capital
Tactical Development Net Consumer Net Generator
Operational Deployment ESCo Micro-Utility
Contractual Definition Customer Central Purchasing Authority
Converting “opportunity” to “project”
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Compliant1
Bankable2
Structured3
Commercialised4
ESCO Scope
Primary Objectives
• Peterborough Council (PCC) aim to generate up to 171GWh of energy annually from a blend of renewable sources.– Sources due to begin generation in 2015 – 2016.– Should fulfill Peterborough City Council’s energy
needs (demand of 47 GWh)– May require a “top-up” agreement with an energy
supplier.– Other sources of generation to potentially be added
subsequent to 2016 (e.g. CCGT power plant).
Business Model
– Generate a profit from the sale of its excess energy;– Be scalable / sellable to other councils;– Be financially self-sustaining for [X] years;– Keep costs of supply/transmission low;– Result in a cheap, green “Peterborough tariff” for local
residents;– Allow Peterborough to be self-sufficient for energy.
Transition from ROCs to CfDs
2014 2017 2027 2037
31 March 2037ROCs no longer tradeable / valid
2020 2030
CfDs become available
CfD price set by
government
Competitive pricing of CfDs for projects
post 2020
Ofgem buy ROCs at a fixed price funded by
levy on electricity suppliers
31 March 2017RO accreditation
no longer available to new
generation
Late 2020sCfD no longer
needed. Market drives prices.
ROCs or CfDs
available to new gen projects
PCC Assets
Supply and Sell Model
PCC Buildings
124 GWh p.a. Surplus
£xm/ MWhSurplus Value
£xm Surplus Value
171 GWh p.a
47 GWh p.a.
£X / MWh EnergySupply
Company
Energy Wholesale Market
PCC Generated Energy
£ for Energy sold by PCC
£ from PCC Energy sold to market
ENPC: STRATEGYO
pera
ting
Ene
rgy
Cos
t
Time
Business as usual
Capital constrained efficiency
Long term EnPC
ENPC: Key Benefits
• Guaranteed energy performance improvements
• Access to third-party funding
• Using operational savings to reduce capital budget requirements for maintenance and refurbishment
BSP & Other CouncilExample – EnPC
Contractor
Funder
EnPC
Portfolio
Savings Guarantee
Repayment from savings
Funding
Repayment
Savings Guarantee
Payment
BSPFramework
3rd Party
Council
BSPFramework
Council
BSPFramework
Lessons Learned
Governance – Ownership at Financial Director level
Centralised control – Structured approach
Strategic Direction – Strong Legal, Technical and Financial focus
Triage – Focus on commercialisation
Collaboration – Leverage framework and experience to reduce
time and costs
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John HarrisonExecutive Director of Strategic ResourcesPeterborough City Council
Managing Director, Blue Sky Peterborough
[email protected]+44 (0) 1733 452 520
Contact
