Presentation by Camco on the baseline study of Cambridgeshire and the three pathways for delivering renewable energy in Cambridgeshire, at the CRIF final event on 15th November 2011.

1. Cambridgeshire Renewables Infrastructure Framework:
How can Cambridgeshire secure £6billion of low carbon energy
infrastructure by 2031?
Smartlife Centre 15th November 2011
Duncan Price, Director, Camco
Cambridgeshire Renewables Infrastructure Framework

2. The CRIF project so far
• Cambridgeshire’s renewable energy baseline has been estimated
• Cambridgeshire’s renewable energy potential has been assessed,
looking at a range of renewable energy technologies
• We have canvassed opinion on how to deliver this potential
across all sectors – community, public sector and commercial -
through a number of workshops
• We have developed delivery pathways to identify how key
issues/opportunities can be overcome/developed
• We will provide an action plan for each sector to help implement
these delivery pathways
Cambridgeshire Renewables Infrastructure Framework 1

3. Cambridgeshire’s challenging carbon objectives
What is Cambridgeshire's potential?
Cambridgeshire Renewables Infrastructure Framework 2

4. Substantial infrastructure is needed
Number of installations associated with delivery of each scenario
Cambridgeshire Renewables Infrastructure Framework 3

5. Significant investment opportunity
Investment potential for each scenario in £millions
Cambridgeshire Renewables Infrastructure Framework 4

6. Significant investment opportunity
Investment potential for each scenario in £millions
Cambridgeshire Renewables Infrastructure Framework 5

7. What is the potential for each pathway?
Deployment potential by pathway
1600
1400
Deployment potential (GWh)
Wind >=6 turbines
1200
Wind <=5 turbines
1000
Biomass
800
ASHP
600
GSHP
400
SWH
200
PV
0
Public sector Community Commercial
Cambridgeshire Renewables Infrastructure Framework 6

8. Renewable electricity potential is very large
Cambridgeshire Renewables Infrastructure Framework 7

9. Renewable heat constitutes the greater challenge
Cambridgeshire Renewables Infrastructure Framework 8

10. Cambridgeshire is progressing well
Cambridgeshire Renewables Infrastructure Framework 9

11. Modelling renewable energy deployment potential
Scenario 4
Scenario 1 Scenario 2 Scenario 3 (high without
Inputs (low) (medium) (high) wind)
Discount rate 9% 7% 6% 6%
DECC - 'high DECC - 'high
Energy price DECC - 'low' DECC - 'high' high' energy high' energy
[1]
energy prices energy prices prices prices
current rates current rates
(FIT/ RHI (FIT/ RHI
designed to designed to
give fixed give fixed
return & will return & will
Financial lower than adjust to adjust to
incentives current tariff energy energy
(FIT/RHI) rates current rates prices) prices)
Project
deployment
rate
(wind/biomas 30% (0% for
s/EfW) 8% 15% 30% wind)
Green policy
support (for
building
integrated
technologies) Low Medium High High
Cambridgeshire Renewables Infrastructure Framework 10

12. Deployment options for renewable energy
Cambridgeshire Renewables Infrastructure Framework 11

13. S. Cambs and Hunts have largest resource
Cambridgeshire Renewables Infrastructure Framework 12

14. District heating potential lies in Cambridge and
Huntingdon
Cambridgeshire Renewables Infrastructure Framework 13

15. Energy efficiency and renewable energy can
close the carbon ‘gap’
Cambridgeshire Renewables Infrastructure Framework 14

16. Conclusions
• Cambridgeshire is doing well – especially renewable electricity
• There is potential for more – solar, biomass, heat pumps, wind
• All technologies are needed – heat and electricity
• Somewhere between medium & high scenarios delivers by 2031
• Also closes carbon gap to meet pro-rata 4th carbon budget
• Significant investment potential – up to £6.1 billion for high
scenario
Cambridgeshire Renewables Infrastructure Framework 15

17. Thanks
Duncan Price
Renewable energy delivery pathways
Director
Camco
t: +44 (0)20 7121 6150
m: +44 (0)7769 692 610
e: duncan.price@camcoglobal.com
172 Tottenham Court Road London
W1T 7NS United Kingdom
www.camcoglobal.com
Cambridgeshire Renewables Infrastructure Framework 16

18. There are three delivery pathways
Community Public Sector Commercial
Cambridgeshire Renewables Infrastructure Framework 17

19. Community deployment vision and potential
• Communities have strong incentive to invest in renewable energy
• Communities have access to a range of funding sources
• Communities are maximising learning from leading practice
• Communities are managing energy projects effectively
• PV • Heat pumps
• 145MWp, 1,150,000m² of panels • 43,000 or 15% of houses
• 460 non-residential buildings and 30,400 • £140m capex, £75m NPV
houses (14%)
• Wind
• £640m capex, £150m NPV
• 75MW or 30 turbines
• Solar water heating
• £120m capex, £8m NPV
• 42,600m² of panels on 8,500 houses (4%)
• £50m capex, £20m NPV
Cambridgeshire Renewables Infrastructure Framework 18

20. Community sector pathway
Cambridgeshire Renewables Infrastructure Framework 19

21. Community sector pathway
Cambridgeshire Renewables Infrastructure Framework 20

22. Community sector pathway
Cambridgeshire Renewables Infrastructure Framework 21

23. Public sector deployment vision and potential
• Public sector is maximising value of its own hard assets
• Public sector is maximising value from its soft assets
• PV • Heat pumps
• 39MWp, 300,00m² of panels • 8,100 or 20% of houses
• 180 non-residential buildings and 7,500 • £40m capex, £23m NPV
houses (18%)
• Wind
• £170m capex, £40m NPV
• 27MW or 11 turbines
• Solar water heating
• £44m capex, £3m NPV
• 8,400m² of panels on 1,700 houses (4%)
• £10m capex, £4m NPV
• Biomass
• 14 installations of 1.5MW
Cambridgeshire Renewables Infrastructure Framework 22

24. Public sector pathway
Cambridgeshire Renewables Infrastructure Framework 23

25. Public sector pathway
Cambridgeshire Renewables Infrastructure Framework 24

26. Public sector pathway
Cambridgeshire Renewables Infrastructure Framework 25

27. Commercial deployment vision and potential
• Investment opportunities are clearly identified
• Public sector is facilitating investment
• Investment is flowing, projects being developed
• PV • Heat pumps
• 160MWp, 1,300,000m² of panels • 200 or 3% of buildings
• 3,200 non-residential buildings • £75m capex, £43m NPV
• £720m capex, £165m NPV • Wind
• Solar water heating • For wind parks ≤5 turbines, 28MW or 11
turbines
• 8,300m² of panels on 1,700 or 20% of
buildings • For wind parks ≥6 turbines, 375MW or 150
turbines
• £9m capex, £4m NPV
• Total capex £660m, £45m NPV
• Biomass
• 14 installations of 1.5MW
Cambridgeshire Renewables Infrastructure Framework 26

28. Commercial sector pathway
Cambridgeshire Renewables Infrastructure Framework 27

29. Commercial sector pathway
Cambridgeshire Renewables Infrastructure Framework 28

30. Commercial sector pathway
Cambridgeshire Renewables Infrastructure Framework 29

31. Vision for community delivery pathway
• Communities have strong incentive to invest in renewable energy
• Effective hard and soft incentive mechanisms
• Minimisation of risks and barriers to implementation
• Communities have access to a range of funding sources
• Availability of applicable finance options for a range of project types
• Gaining access to existing and new funding sources
• Communities are maximising learning from leading practice
• Demonstration case studies of successful community energy schemes
• Access to quality impartial ‘self-help’ guidance and information
Cambridgeshire Renewables Infrastructure Framework 30

32. Vision for community delivery pathway
• Communities are managing energy projects effectively
• Identification of governance methods and relative benefits of each approach
• Range of delivery options identified
• Investment and delivery opportunities are clearly communicated
Cambridgeshire Renewables Infrastructure Framework 31

33. Vision for public sector pathway
• Public sector is maximising value of its own hard assets
• PV on roofs of offices, schools, hospitals, leisure centres
• PV in social housing – own stock, ALMO and with housing association partners
• Appropriate wind development on public land
• Provision of anchor loads for district heating and CHP
• Renewable energy transition plan for each building
• Demonstration projects for advanced technologies and new approaches
Cambridgeshire Renewables Infrastructure Framework 32

34. Vision for public sector pathway
• Public sector is maximising value from its soft assets
• Planning policies – LDF, LDO, s106, CIL
• Enabling mechanisms – community energy fund, grant funding
• Public sector led development – de-risking projects, early project promotion
• Political engagement – FIT, RHI and Green Deal policy certainty, tariffs, etc.
• Market development – awareness raising, pipeline development for Green Deal
Cambridgeshire Renewables Infrastructure Framework 33

35. Vision for public sector pathway
Cambridgeshire Renewables Infrastructure Framework 34

36. Vision for commercial delivery pathway
• Investment opportunities are clearly identified
• Technical, economic and deployment potential based on WP1
• Benefits of growth agenda are articulated
• Preconditions are clearly understood by public and private sector + community
• Public sector is facilitating investment
• Establishing clear public policies and protocols to provide market certainty
• Engaging in constructive dialogue with community
• Using its own assets to lever wider opportunities
Cambridgeshire Renewables Infrastructure Framework 35

37. Vision for commercial delivery pathway
• Investment is flowing, projects being developed
• Cambridgeshire seen as county with good renewable energy development
potential
• Cambridgeshire demonstrated to be investor-friendly
• Supply chain is in place, levels of risk and return meet minimum commercial
requirements
• Constructive dialogue, community benefiting and accepting
Cambridgeshire Renewables Infrastructure Framework 36

38. Vision for commercial delivery pathway
Cambridgeshire Renewables Infrastructure Framework 37

39. PV deployment potential
Cambridgeshire Renewables Infrastructure Framework 38

40. Wind deployment potential
Cambridgeshire Renewables Infrastructure Framework 39

41. Cambridgeshire’s challenging carbon objectives
Case studies
Cambridgeshire Renewables Infrastructure Framework 40

42. Case study: public sector
• Sustainable Parish Energy Partnership, South Cambs
• Network of local voluntary groups; project secured by SCDC
• Objective to reduce energy bills, tackle climate change, build a sustainable future
• Organises events and initiatives e.g. energy shows, home energy thermal image
surveys, working with local businesses, community energy generating projects
• Part-time Parish Energy Project Officer organises programme and provides
support
• No direct costs, application forms, contracts or binding targets to parish councils
• How can we build on this to create more community energy projects?
Cambridgeshire Renewables Infrastructure Framework 41

43. Case study: public sector
• Decarbonising Cambridge and Carbon Management, Cambridge
City
• Decarbonising Cambridge Study – forms part of evidence base for RE planning
policies
• Assessed district heating, biomass, energy from waste, wind, pyrolysis,
gasification and anaerobic digestion
• Carbon Trust’s Public Sector Carbon Management Plan Programme participation -
to cut the Council’s carbon emissions and make ongoing cost savings
• Projects form the basis of the CM plan e.g. upgrading boilers, replacing inefficient
light fittings, energy awareness campaigns – also renewable energy projects e.g.
Renewable Heat Incentive projects
Cambridgeshire Renewables Infrastructure Framework 42

44. Case study: public sector
Wind Energy Policy, Fenlands District Council
• Wind energy policy developed 5-7 years ago
• Policy was successful - willingness of council
members to approve wind development given
need to reduce carbon emissions
• By 2008-2009, impact on landscape led to
interim guidance being produced to inform
decisions on wind turbine locations
• Now takes into account key criteria e.g.
character of landscape, proximity of
settlements, visual impact, etc
Cambridgeshire Renewables Infrastructure Framework 43

45. Case study: public sector
• St Neots District Heating, Hunts
• Feasibility studied carried out and detailed
feasibility now underway
• Funding from ERDF and Cambridgeshire Horizons
• Aims to provide local benefit – heat to local
businesses; potential extension to housing,
colleges, housing and central St Neots, possibly
Little Barford Power Station
• Public sector led – so lower return is possible with
lower cost of borrowing
• Local enthusiasm for scheme
• Hunts already have some experience of DH
feasibility – Northstowe
• How can the public sector share this knowledge
and experience?
Cambridgeshire Renewables Infrastructure Framework 44

46. Case study: commercial sector
• Ely Straw Burning Power Station, East Cambs
• At 38MW, largest straw burning power station in the
world; straw is used as fuel to heat water, creating
steam to drive turbines
• Total cost £55 million - the company did not expect
to show a return on this investment for 15 years
• Non Fossil Fuel Obligation contract through to 2013
- electricity purchased at 6p/kWh
• This security was reassuring for banks when
compared with the value of ROCs, which were not
guaranteed - but makes new investment under the
RO less likely
• Waste heat may be used as energy source for
adjacent eco village and Elean Data Campus –
what can the public sector do to help deliver
this?
Cambridgeshire Renewables Infrastructure Framework 45

47. Case study: commercial/community partnership
• Coldham Estate, Fenlands
• Standalone turbines
• Private ownership
• Savings: 38.5 GWh/year - 9,000 UK homes
36,000 tonnes CO2
• Community benefits: Revenue under Section
106 agreement for local projects and
regeneration; Fund for education
• Community input: The Co-operative Group
worked closely with local community during
planning and site construction
• How we can encourage more
commercial/community collaboration?
Cambridgeshire Renewables Infrastructure Framework 46

48. Case study: community
• Gamlingay Eco Hub and Wind Turbine (planned)
• Community building owned by Parish Council with community input; funding from
Public Works Loan Board or Community Builders fund
• Income from FiT & energy export; reduced energy bills; new community centre
• Standalone wind turbine proposed, owned by community group; entirely private
investment from residents and businesses
• 10% net income to community fund for first 15 years of FiT estimated at £200,000
• How can the public and commercial sectors support more projects like this?
Cambridgeshire Renewables Infrastructure Framework 47

49. Case study: community
• Waterbeach Biogas (Potential)
• Community building
• Savings: potential generation of electricity
and heat for the Emmaus community;
home to 30 people who were formerly
homeless.
Potential savings of £14,000/year
• Community benefits: reduction in energy
bills; high savings as not on gas grid
(currently bottled gas)
Cambridgeshire Renewables Infrastructure Framework 48

50. Case study: community
• Upwell Park Solar PV Installations
• Individual households
• Private ownership
• Funding: Property developer
• Savings: 68 tonnes CO2 per year;
electricity generated covers lighting and
cooking for each of the 67 bungalows
• Community benefits: free electricity & FiT
income passed to tenants of retirement
homes
• How can we overcome the proposed
changes to the FIT to deliver more
schemes like this?
Cambridgeshire Renewables Infrastructure Framework 49

51. Cambridgeshire’s challenging carbon objectives
The scale of the challenge
Cambridgeshire Renewables Infrastructure Framework 50

52. Energy efficiency and renewable energy can
close the carbon ‘gap’
Cambridgeshire Renewables Infrastructure Framework 51

53. What could the CRIF help achieve?
• Cambridgeshire benefiting from up to £6bn of investment
• Shared understanding of barriers and risks to implementation
• Local businesses are provide goods and services to the sector
• Leading county where people choose to invest
• Consistent and pro-active policy framework is adopted
• The public sector takes the lead
• Action plans for shared decision making
Cambridgeshire Renewables Infrastructure Framework 52

54. Cambridgeshire’s challenging carbon objectives
Action plans
Cambridgeshire Renewables Infrastructure Framework 53

55. Example action plan: public sector
Intervention:
Using existing
buildings as anchor
loads
Cambridgeshire Renewables Infrastructure Framework 54

56. Example action plan: public sector
Intervention:
Using public sector
assets for RE
generation
Cambridgeshire Renewables Infrastructure Framework 55

57. Thanks
Duncan Price
Director
Camco
t: +44 (0)20 7121 6150
m: +44 (0)7769 692 610
e: duncan.price@camcoglobal.com
172 Tottenham Court Road London
W1T 7NS United Kingdom
www.camcoglobal.com
Cambridgeshire Renewables Infrastructure Framework 56