Engaging Consultancy Support - Regensw
Engaging Consultancy Support
Local Authority District Heat Forum Digby Morrison & Bruce Geldard Parsons Brinckerhoff, Energy Solutions 25th March 2014
risk
Project development process Objective setting
Data gathering
Project definition
Options appraisal Feasibility study Detailed financial modelling Detailed business modelling Soft market testing Procurement Delivery
cost Source: ‘Community Energy: Planning, Development & Delivery’, TCPA 2011
2
Funding through the process Initial concept
Outline Business Case
Concept development
Energy Masterplan
Full Business Case
Contract Development
Feasibility
• Heat sales
Operation
Detailed design, procurement and construction
• EPC/ESCO
Local Authority / Consultant
Contractor funded
HNDU support available
3
Effective engagement of consultants
Common procurement pitfalls § Know the market § Approx. £4m awarded ? § Less than ¼ of this procured
§ Time to bid § less than 2 weeks is not enough
§ Delivery timetables § Funding will be wasted if studies rushed § Time to iterate
§ Quality/price weighting § Small pool of qualified consultants § Weighting needs to target that pool – 70/30? 4
Case studies
LONDON BOROUGH OF ISLINGTON LONDON BOROUGH OF ISLINGTON Bunhill Heat and Power
Bunhill Heat and Power
GATESHEAD COUNCIL
Town Centre District Energy Scheme
5
Bunhill Heat and Power
Islington Decentralised Energy Strategy Aims of strategy: •
To inform the development of planning policy aimed at encouraging DE uptake
•
To safeguard existing district and community heating systems for future connection
•
To identify and preserve key energy infrastructure (i.e. potential energy centre sites)
•
To ensure that the Borough is in the best position to make maximum use of available DE funding programmes when they arise
•
To have a sound understanding of the commercial issues around DE deployment.
Energy centre looking north up Central Street (courtesy of Tim Ronalds Architects)
6
Bunhill Heat and Power
Islington Decentralised Energy Strategy
7
Bunhill Heat and Power
Islington Decentralised Energy Strategy
8
Bunhill Heat and Power
South cluster “B” •
Connected loads ─ Existing residential: Stafford Cripps Estate, Redbrick Estate and St Luke’s Estate (~ 500 dwellings) ─ Finsbury Leisure Centre and Ironmonger Row Baths ─ Mixed use new-build: Seward Street (161 residential units, 6 commercial and 1 retail)
•
DH network ─ 1.5km of heat mains ─ Sized to meet peak demand of existing buildings, allows for future network expansion
•
Energy centre ─ 2.0MWe gas engine CHP unit ─ 115m3 thermal store ─ Top-up and standby provided by local boilers
9
Bunhill Heat and Power
10
Bunhill Heat and Power
11
Gateshead Council
12
Gateshead Council
Map of heat demand in Gateshead
13
Gateshead Council
Constraints assessment
Gateshead Council
Strategic development – network flexibility
Gateshead Council
Gateshead Town Centre DE Scheme
16
Gateshead Council
Town Centre DE Scheme •
Connected loads ─ Existing residential blocks (replacing communal heating and individual gas fired systems in 400 dwellings) ─ Administration, legal and education buildings ─ Creative arts buildings
•
DH network ─ 3km of heat mains initially, expanding to 8km ─ Sized to meet peak demand of connected buildings, allows for future network expansion
•
Energy centre ─ 2.6MWe gas engine CHP unit ─ 2 x 135m3 thermal stores ─ 2 x 7.5MW top-up and standby gas fired boilers 17
Gateshead Council
Gateshead Town Centre DE Scheme
18
Effective engagement of consultants
Key elements to consider § Success factors § What must be delivered? § What are nice to have?
§ Planning policy development § Essential early step § Provides certainty for investment
§ Engagement with stakeholders § Other public sector partners § Heat source owners § Utilities companies
§ Scheme identification § Iterative process
§ Outline business case § WLC (Treasury Green Book guidelines) § Risk register § Development in phases re
19
Effective engagement of consultants
What you can do § Define your objectives clearly § Collate energy data for your estate § Provide OS base maps and licence permissions obtained
•
obtained
•
§ Utilities drawings § Facilitate/coordinate input from other departments/stakeholders § DH network routes § Land ownership/energy centre locationsl change
of project scope requiring re-design and / or additional equipment retrofit if
approval not received.
§ Be realistic about programme
permissions obtained
.
20
Digby Morrison 01392 229 783 07884 235 801
Bruce Geldard 07765 898 307
[email protected]
[email protected]
21
Local Authority District Heat Forum Digby Morrison & Bruce Geldard Parsons Brinckerhoff, Energy Solutions 25th March 2014
risk
Project development process Objective setting
Data gathering
Project definition
Options appraisal Feasibility study Detailed financial modelling Detailed business modelling Soft market testing Procurement Delivery
cost Source: ‘Community Energy: Planning, Development & Delivery’, TCPA 2011
2
Funding through the process Initial concept
Outline Business Case
Concept development
Energy Masterplan
Full Business Case
Contract Development
Feasibility
• Heat sales
Operation
Detailed design, procurement and construction
• EPC/ESCO
Local Authority / Consultant
Contractor funded
HNDU support available
3
Effective engagement of consultants
Common procurement pitfalls § Know the market § Approx. £4m awarded ? § Less than ¼ of this procured
§ Time to bid § less than 2 weeks is not enough
§ Delivery timetables § Funding will be wasted if studies rushed § Time to iterate
§ Quality/price weighting § Small pool of qualified consultants § Weighting needs to target that pool – 70/30? 4
Case studies
LONDON BOROUGH OF ISLINGTON LONDON BOROUGH OF ISLINGTON Bunhill Heat and Power
Bunhill Heat and Power
GATESHEAD COUNCIL
Town Centre District Energy Scheme
5
Bunhill Heat and Power
Islington Decentralised Energy Strategy Aims of strategy: •
To inform the development of planning policy aimed at encouraging DE uptake
•
To safeguard existing district and community heating systems for future connection
•
To identify and preserve key energy infrastructure (i.e. potential energy centre sites)
•
To ensure that the Borough is in the best position to make maximum use of available DE funding programmes when they arise
•
To have a sound understanding of the commercial issues around DE deployment.
Energy centre looking north up Central Street (courtesy of Tim Ronalds Architects)
6
Bunhill Heat and Power
Islington Decentralised Energy Strategy
7
Bunhill Heat and Power
Islington Decentralised Energy Strategy
8
Bunhill Heat and Power
South cluster “B” •
Connected loads ─ Existing residential: Stafford Cripps Estate, Redbrick Estate and St Luke’s Estate (~ 500 dwellings) ─ Finsbury Leisure Centre and Ironmonger Row Baths ─ Mixed use new-build: Seward Street (161 residential units, 6 commercial and 1 retail)
•
DH network ─ 1.5km of heat mains ─ Sized to meet peak demand of existing buildings, allows for future network expansion
•
Energy centre ─ 2.0MWe gas engine CHP unit ─ 115m3 thermal store ─ Top-up and standby provided by local boilers
9
Bunhill Heat and Power
10
Bunhill Heat and Power
11
Gateshead Council
12
Gateshead Council
Map of heat demand in Gateshead
13
Gateshead Council
Constraints assessment
Gateshead Council
Strategic development – network flexibility
Gateshead Council
Gateshead Town Centre DE Scheme
16
Gateshead Council
Town Centre DE Scheme •
Connected loads ─ Existing residential blocks (replacing communal heating and individual gas fired systems in 400 dwellings) ─ Administration, legal and education buildings ─ Creative arts buildings
•
DH network ─ 3km of heat mains initially, expanding to 8km ─ Sized to meet peak demand of connected buildings, allows for future network expansion
•
Energy centre ─ 2.6MWe gas engine CHP unit ─ 2 x 135m3 thermal stores ─ 2 x 7.5MW top-up and standby gas fired boilers 17
Gateshead Council
Gateshead Town Centre DE Scheme
18
Effective engagement of consultants
Key elements to consider § Success factors § What must be delivered? § What are nice to have?
§ Planning policy development § Essential early step § Provides certainty for investment
§ Engagement with stakeholders § Other public sector partners § Heat source owners § Utilities companies
§ Scheme identification § Iterative process
§ Outline business case § WLC (Treasury Green Book guidelines) § Risk register § Development in phases re
19
Effective engagement of consultants
What you can do § Define your objectives clearly § Collate energy data for your estate § Provide OS base maps and licence permissions obtained
•
obtained
•
§ Utilities drawings § Facilitate/coordinate input from other departments/stakeholders § DH network routes § Land ownership/energy centre locationsl change
of project scope requiring re-design and / or additional equipment retrofit if
approval not received.
§ Be realistic about programme
permissions obtained
.
20
Digby Morrison 01392 229 783 07884 235 801
Bruce Geldard 07765 898 307
[email protected]
[email protected]
21
