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
I WANT AN ESCO!
Peterborough City Council - Strategic
Context
Current
Future
Environment City
Environment Capital
Tactical
Development
Net Consumer
Net Generator
Operational
Deployment
ESCo
Micro-Utility
Contractual
Definition
Customer
Central Purchasing Authority
Strategic
Direction
Converting “opportunity” to “project”
1
Compliant
2
Bankable
3
Structured
4
Commercialised
1
2
4
3
ESCO Scope
ECO & Green
Deal
Energy
Efficiency
Regeneration
Energy From
Waste
Blue Sky
Peterborough
Collective
Switching
Rooftop Solar
Ground Mount
Solar
Wind
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
CfDs
become
available
ROCs or
CfDs
available to
new gen
projects
2014
CfD price
set by
government
31 March 2017
RO accreditation
no longer
available to new
generation
2017
Late 2020s
CfD no longer needed.
Market drives prices.
2020
2027
Competitive pricing
of CfDs for projects
post 2020
Ofgem buy ROCs at a
fixed price funded by
levy on electricity
suppliers
2030
2037
31 March 2037
ROCs no longer
tradeable / valid
Supply and Sell Model
PCC Generated Energy
£ for Energy sold by PCC
£ from PCC Energy sold to market
171 GWh p.a
£X / MWh
PCC
Assets
£xm Surplus
Value
Energy
Supply
Company
47 GWh p.a.
PCC
Buildings
124 GWh p.a.
Surplus
£xm/ MWh
Surplus Value
Energy Wholesale
Market
Operating Energy Cost
ENPC: STRATEGY
Long term EnPC
Time
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 Council
Example – EnPC
Contractor
Savings Guarantee
Savings Guarantee
BSP
Framework
Payment
Council
EnPC
Repayment
BSP
Portfolio
Framework
Repayment from
savings
Funding
Funder
Council
BSP
Framework
3rd
Party
Lessons Learned
1
Governance – Ownership at Financial Director level
2
Centralised control – Structured approach
3
Strategic Direction – Strong Legal, Technical and Financial focus
4
Triage – Focus on commercialisation
5
Collaboration – Leverage framework and experience to reduce
time and costs
Contact
John Harrison
Executive Director of Strategic Resources
Peterborough City Council
Managing Director, Blue Sky Peterborough
john.harrison@peterborough.gov.uk
+44 (0) 1733 452 520