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Michael King Chairman Aberdeen Heat & Power Co

Michael King Chairman Aberdeen Heat & Power Co. District Heating and CHP in Aberdeen. Aberdeen multi storey blocks. Aberdeen City Council. Feb 1999 adopts Affordable Warmth Strategy Policy to target the least thermally efficient homes Found to be multi storey flats

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Michael King Chairman Aberdeen Heat & Power Co

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  1. Michael KingChairmanAberdeen Heat & Power Co District Heating and CHP in Aberdeen

  2. Aberdeen multi storey blocks

  3. Aberdeen City Council • Feb 1999 adopts Affordable Warmth Strategy • Policy to target the least thermally efficient homes • Found to be multi storey flats • Commissioned study of all 59 multi storey blocks • Structural survey • Ground conditions survey • Energy issues - affordable warmth, reduced CO2 emissions, affordable to Council, speedy delivery • Will provide a strategy for future investment in these blocks

  4. Aberdeen City Council • Interim report: • Focused on one cluster of 4 multi storey blocks - Stockethill cluster • 19 storeys • total of 288 flats • electric storage heating • precast panel, cavity construction • Considered range of options • Recommended CHP

  5. Report findings Option Over-claddingCost/FlatHeatcost/Flat Elect Htg £4.3M £20,000 £14.27 Central Blr £5.4M £23,000 £5.65 CHP Plant £5.6M £24,000 £3.18 Option No Over-claddingCost/FlatHeat cost/Flat Elect Htg £0.4M £1,691 £15.73 Central Blr £1.0M £4,464 £5.83 CHP Plant £1.2M £5,000 £3.65

  6. Aberdeen City Council • Council had the technical answer but how to do within financial constraints?Council needed external funding • Appointed specialist CHP consultant • Established independent, not-for-profit company • Provides focussed management • Company raises capital • Contracts between Council and company • Business Plan and cash-flow forecast/management • Enables the Council to accelerate refurbishment and regeneration programmes Without external funding Council could only afford one development every 10 to 12 years!

  7. Aberdeen Heat & Power Co • Founded 2002 • Arms length not-for-profit co limited by guarantee • Membership structure instead of shareholders • Voluntary board • N-f-P structure enables alignment with socio/environmental objectives • Can accept lower NPV • Contractual relationships with Council secures lower cost capital • Responsible for fuel purchases, operation & management & sales • Sales arrangements • Consultation on resident preferences - Flat rate charge for heat - Tenants – heat with rent - Owner-occupiers – direct debit established • Electricity sales – via consolidator - to local residents and customers • Development of further projects

  8. Governance • Board Membership • Experience - technical, management, finance, community and intermediary groups. • Specialist Advisors • Aberdeen City Council officer support, CHP consultant provides project management, accountant provides strategic financial advice & support, legal advice • Structure • Quarterly Board Meetings • Sub Groups – Finance + Development + Policy & Resource + Marketing • Business Strategy and Business Plan reviews

  9. Partnership, Funding and Agreements Partnership • Aberdeen City Council & Aberdeen Heat & Power Co • Agreed pilot project – Stockethill Cluster Funding • Aberdeen City Council funding • Council application to Community Energy Programme Agreements • Framework Agreement with Aberdeen City Council for each scheme covers: • Heat Supply Agreement • Maintenance Agreement • Installation Agreement • Licence to occupy land for infrastructure

  10. Stockethill Cluster • Total project cost - £1.6 million • Community Energy Programme • £730,000 grant for capital costs • CHP plant • Distribution system • Internals • Bank financing of up to £1 million based on income from Council of £215,000 per annum • Energy Efficiency Commitment (EEC) money to offset costs of heating systems within leaseholder flats. • Surpluses re-cycled for further projects

  11. Development at Hazlehead • Hazlehead completed • Community Energy Prog grant • 4 blocks with 180 flats • 50 sheltered units • School with swimmimg pool • Extension to Hazlehead sports facility completed • Plant room located in school • 320 kW CHP with backup boilers • Private electricity supply to school • 14,500 tonnes saved over 25 years

  12. Development at Seaton • Seaton Phase 1 (6 blocks - 503 flats) • 408 completed 2008 - 10 • Community Energy Prog grant • Plant room designed to blend with links • Incorporates sports changing room and shower facilities • 1 MW gas-fired CHP with back-up boiler • Space allowed for future plant additions • Link to sports village completed 2009 • Beachfront complex (ballroom, ice rink, leisure centre) completed 2009 • 24,300 tonnes saved over 25 years

  13. 52 flats Previously electric ‘wet’ systems Residents campaign for DH Developed as a stand alone ‘heat only’ 4 in line gas boilers Will retro-connect to heat network as it develops Straight design/build contract with City Council Completed May 2009 Mastrick Land

  14. 40 flats Peviouslytly electric storage heaters Developed as a stand alone ‘heat only’ 4 in line gas boilers Will retro-connect to heat network as it develops Straight design/build contract with City Council Completed December 2009 Ashgrove Court

  15. Denburn Court • Gas fired heat only boiler • Internals suitable for CHP • 1 Block of 120 flats • Adjacent to health centre • Completed Aug 2010 • 1,000th domestic connection

  16. Future Development • Seaton Phase 2 - 8 blocks (740 flats) • Approved August 2010 • 25% CESP funding contribution • Work undertaken 2010 – 2012 • Planned city centre network linking blocks and public buildings • Extend into Tillydrone regen area • Planning permission lodged for extension to Seaton plant room to accommodate biomass CHP • Discussions with NHS Grampian

  17. Overview • Strategic city wide approach • Focus on fuel poverty • Identify and develop heat islands as anchor loads • Public sector customer base reduces development risk • Connect loads together to form network • Diversify customer base – residential, institutional, commercial • Multiple heat sources • Diversify fuel types • Provides robust system, security of supply and reduces volatility • Eventual development of ring main with multiple embedded CHP stations with a variety of fuels • Develop skills base • Future proofs city – easy to retrofit emerging technologies • Generates electricity locally – avoids transmission/distribution losses • Saves carbon – 2,000 tonnes per annum • Community Energy Programme crucial for start up

  18. What people wantAffordable, reliable, controllable heat

  19. Contact Michael King Chairman Aberdeen Heat & Power Co 43 Regents Court Aberdeen AB24 1SZ 01224 482620 mj.king@blueyonder.co.uk .

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