CLEANTECH OPPORTUNITIES IN LONDON & THE UK BOB DOYLE, SENIOR - - PowerPoint PPT Presentation

CLEANTECH OPPORTUNITIES IN LONDON & THE UK

BOB DOYLE, SENIOR BUSINESS DEVELOPMENT MANAGER LONDON & PARTNERS September 2012

THE FUTURE

In the next 10 years:

• Demand for energy will increase substantially: London is set to grow by one million people
• ¼ of UK power plants will shut down
• 34% cut in carbon emissions
• 15% energy from renewables – EU target
• Increased exposure to price shocks
• £110billion energy investment

Actions:

• Stop wasting energy - The Green Deal to improve residential energy efficiency
• Heating is 2nd highest driver of energy demand – implement Renewable Heat Incentive
• Rebuild electricity supplies
• Renewables – strong tidal and offshore wind
• New nuclear
• Clean coal and gas – Carbon Capture and Storage

GROWTH IN LONDON

Forecasts from the London Mayor’s Office show key area

• f population growth is East

London For example 10,000 new homes planned for Barking Riverside

All new homes built with public money need to meet at least Level 6 of The Code for Sustainable Homes from 2015.

• The Mayor of London is developing programmes
• n how London can be the world’s low carbon

capital

• Target of cutting carbon output by 60% by 2025
• London Green Fund – to de-risk investment for

private sector

• Waste - target £70million Foresight

Environmental Fund

• Energy efficiency – target £100mill fund

manager Amber Green Consortium

• Carbon markets – UK announcement of carbon

price floor 23rd March 2011 budget

• Decentralised Energy and Smart Grid
• Building retrofit

MAYORAL POLICY

LONDON INITIATIVES

RE:FIT

43% of London’s total CO2 emissions are from commercial & public sector buildings Re:Fit aims to facilitate Energy Performance Contracting across London’s public sector buildings Target: 11 million sq m in London, 40% of public sector buildings, £400million of projects. 400 organisations Pipeline for London Green Fund – 7 year payback Supported by 3million Euros European funds

Framework panel of 12 suppliers in place

• Balfour Beatty
• COFELY (GDF SUEZ)
• MITIE (Dalkia FM)
• EDF Energy
• E.ON Sustainable Energy

Business

• Hoare Lea Consulting

Engineers (Parkeray)

• Honeywell
• Hurleypalmerflatt
• Interserve
• Johnson Controls
• Schneider Electric - Strategic Building

Solutions

• Willmott Dixon Partnerships

RE:NEW

36% of London’s CO2 emissions are from housing Re:New aims to reduce CO2 emissions from existing homes in London, help residents to save money on their energy bills and create ‘green’ jobs. 3 million homes in London, target is 1.2 million by 2015

Framework panel of 12 suppliers in place

• Axis
• Groundwork London
• Breyer Group
• Lakehouse Contracts
• British Gas
• Osborne Energy
• CEN Services
• United House
• Eaga
• Warmzones
• Enterprise
• Willmott Dixon

Subcontract opportunities exist with framework suppliers

SOME PRIVATE SECTOR INITIATIVES

• BT’s Corporate Renewable Energy Programme
• BT to build UK's second largest solar-powered roof, largest in

London

• 1440 solar panels covering 2350m2 May 2011
• BT strategy is 25% electricity needs from renewables
• Skanska and GE have formed a strategic partnership
• to develop new environmental technologies and processes for the

emerging green retrofit and refurbishment market

• Market estimated to be worth in excess of £10bn per year in the UK.
• Low Carbon Workplace
• unique partnership between the Carbon Trust, developer Stanhope

and fund manager Threadneedle

• design, build and manage bespoke and contemporary offices for
• rganisations committed to eco-friendly operation.

ENTERPRISE ZONE

Light Assembly hub

Site opportunities - land for sale and lease Enterprise Zone announced 23rd March 2011

THE CRYSTAL

A sustainable cities initiative by Siemens

• East London Enterprise Zone
• Siemens global centre for infrastructure and cities
• Centre for thought leadership, a knowledge hub and

showcasing for energy efficiency, transport and the city in 2050.

• All electric
• Rainwater recycled
• Connected to smart grid for electric vehicles.

Distributed Energy

Distributed Energy strategy

• London Plan – targets for London’s energy from DE 25% by

2025

• Systematic approach to planning
• London Heat Map – identify hot spots, by March 2012 whole of

London www.londonheatmap.org.uk

• Energy masterplanning €3.3million secured from ELENA

European funds over 3 years.

• Arup providing technology, financial and commercial advisory.
• Target of £95million investment to be generated by August 2015
• 130 projects in pipeline, 25 currently supported
• DE Manual for London published 13th March 2012
• Technology standards
• Commercial templates
• Planning guidelines

Opportunities

• Energy production technologies – energy from waste,

fuel cells, heat pumps etc

• DE infrastructure
• Investors
• Energy companies with track record in running DE

systems

• AECOM study to be completed in 2012:
• how to intelligently integrate electricity and heat supply chain
• Technology catalogue
• Open for ideas and input

SUSTAINABLE INDUSTRIES PARK

Closed Loop recycling AD plant River access 60 Acre site in East London – first of its kind in the UK Opportunities for suppliers and assemblers of renewables

Industrial Symbiosis

Biofuel manufacturing By-product processing

LOW CARBON VEHICLES

• London to become the electric vehicle

capital of Europe

• Up to £5000 subsidy on purchase of

electric vehicles extended to 2015 plus up to £8000 on commercial electric vans

• Mayor’s electric vehicle charging network,

Source London, is live. www.sourcelondon.net

• 1,300 public charging points across London by

2013, 100,000 EVs on London streets as soon as possible

• London hydrogen buses forms the only

hydrogen bus fleet in the UK and the largest currently in Europe.

• Qualcomm to trial wireless electric charging in

Tech City

• Future opportunities for low carbon vehicle

manufacturers and charging point technology

Charging network

• Pan London scheme until 2014
• Siemens appointed as IT and services partner.
• Sponsorship deal with time limit
• Model is fixed annual membership fee
• Will provide a range of driver services including:
• customer interaction centre
• card production
• registration services
• After 2014…
• What is a sustainable business model for charging networks: who

provides, how financed and how people pay

• Opportunities for providers of low carbon vehicle supply chain,

charging systems technology and other value added services to help provide a return on the hardware

DATA CENTRES

London is a key internet exchange and location for data centres to support the commercial environment Major opportunities for companies in:

• Energy efficiency technology
• Optimising use of energy and

heat

• Alternative sources of electricity
• Energy conservation
• CHP

OPPORTUNITIES ARISING FROM UK WIDE INITIATIVES

UK FEED IN TARIFF SCHEME

• Introduced on 1 April 2010.
• Through the use of FITs, the UK Dept for Energy & Climate Change (DECC) hopes to encourage

deployment of additional small-scale (less than 5MW) low-carbon electricity generation, particularly by organisations, businesses, communities and individuals that have not traditionally engaged in the electricity market.

• This will allow many people to invest in small-scale low-carbon electricity, in return for a

guaranteed payment from an electricity supplier of their choice for the electricity they generate and use as well as a guaranteed payment for unused surplus electricity they export back to the grid.

• FITs work alongside the Renewables Obligation (RO) – which is currently the primary mechanism

to support deployment of large-scale renewable electricity generation – and the Renewable Heat Incentive (RHI) which, when implemented, will support generation of heat from renewable sources at all scales. Technologies eligible for FITs

• Small-scale low-carbon electricity technologies eligible for FITs are:
• wind
• solar photovoltaics (PV)
• hydro
• anaerobic digestion
• domestic scale microCHP (with a capacity of 2kW or less) – a domestic scale microCHP pilot

will support up to 30,000 installations, with a review to start when the 12,000th installation is completed

FEED IN TARIFF (FIT) UPDATE 31st OCTOBER 2011

• The UK government announced plans in early 2011 to impose cuts in the level of incentives

available to solar photovoltaic installations with over 50kW and to increase tariffs for Anaerobic Digestion (AD) systems

• On 31st October 2011, it announced proposals to reduce subsidies for PV schemes up to 4kW in

size to 21p/kWh, down from the current 43p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW, to ensure those schemes receive a consistent rate of return. The proposed new tariffs would apply to all new solar PV installations with an eligibility date on or after 21th December 2011. Proposed new tariffs:

Band (kW) Current generation tariff (p/kWh Proposed generation tariff (p/kWh) ≤4kW (new build) 37.8 21 ≤4kW (retrofit) 43.3 21 >4-10kW 37.8 16.8 >10-50kW 32.9 15.2 >50-100kW 19 12.9 >100-150kW 19 12.9 >150-250kW 15 12.9 >250kW-5MW 8.5 8.5* stand alone 8.5 8.5*

Under the proposals, the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate.

Source: DECC

THE GREEN DEAL

Will replace Warmfront scheme in late 2012

• Allows householders to improve efficiency

with no upfront cost

• The upfront finance will be attached to the

building’s energy meter.

• People can pay back over time with the

repayments less than the savings on bills

• If 26 million homes are done, this will create

250,000 jobs

• March 2011 – government funding for 1000

apprentices

• Landlords to face minimum energy

efficiency standards from 2016: 682,000 rental properties

RENEWABLE HEAT INCENTIVE

Details being finalised. First phase large heat users, second phase domestic

• First of its kind in world
• Renewable technologies include household solar

thermal panels to industrial wood pellet boilers

• £850m of investment
• Objective to move from 1% to 12% of all heat

generated from renewable source by 2020. Key opportunities for companies in RHI technology and manufacturing

CRC – CARBON REDUCTION COMMITMENTS

• The CRC is a mandatory scheme aimed at improving energy efficiency

and cutting emissions in large public and private sector organisations.

• These organisations are responsible for around 10% of the UK’s

emissions.

• The scheme features a range of reputational, behavioural and financial

drivers, which aim to encourage organisations to develop energy management strategies that promote a better understanding of energy usage. 12 January 2012

• The Government published an updated version of the draft CRC Energy

Efficiency Scheme (CRC) Allocation Regulations. They include the allowance price of £12 for 2012 as announced at Budget 2011.

• £3billion to invest in:
• energy from waste
• non domestic energy efficiency
• offshore wind
• Need to invest £700million by March

2013

• Looking for projects

GREEN INVESTMENT BANK

• Being suggested as a template for European Union

SMART GRID

• London won £35million government

funding for smart grid project – being managed by UK Power Networks

• Many other projects being created
• Key opportunities for companies

in:

• Smart meters
• “beyond the meter” technology

(switch off applications when

• n highest tariff)
• network dynamics
• smart grid

OFFSHORE WIND

• London Array:
• An offshore area of 100km2
• 175 wind turbines
• Two offshore substations, one onshore
• Nearly 450km of offshore cabling
• 630MW of electricity
• Enough power for around 480,000 homes
• CO2 savings of 925,000 tonnes a year
• London is key location for UK and European HQ
• UK is largest offshore generator in the world

Vattenfall is Europe’s fifth largest generator of electricity and the largest generator of heat. They chose London for their UK HQ for access to policy makers, decision makers, industry associations and transport connectivity.

Benefits of London

• Mayoral support
• Strength of the market
• Incentives
• Londoners are innovative and willing to try new

technology

• Research and Development
• Imperial College Racing Green Endurance
• Tech cluster e.g. Tech City

London’s Tech cluster

“Mayor Boris Johnson is very ambitious with green technology; more so than his counterparts in New York

• r Stockholm. From London’s new bike hire scheme to

its plans for a low carbon Olympics, you can see that the city is making a real effort to be green. Having an office in a pioneering green city will give my business a higher profile around the world.” ANTHONY PEREIRA, CEO, ALTPOWER

CASE STUDY: ALTPOWER

HOW TO ACCESS THESE OPPORTUNITIES?

Contact London & Partners for help with:

• Understanding the market opportunity and the legislative

landscape

• Accessing connections, networks and decision makers in

government, trade bodies and academia

• Exploring partnerships and relationships across your supply

chain

• Set up a physical presence and recruit skilled people

REGULAR EVENTS ORGANISATIONS

Renewable Energy Association http://www.r-e-a.net/events The Guardian Sustainable Business Events http://www.guardian.co.uk/sustainable- business/events The Renewable Energy Centre http://www.therenewableenergycentre.co.uk/even ts.html Green Mondays www.greenmondays.com The Building Centre http://www.buildingcentre.co.uk/events/forthcomin g_events.asp eco-Connect – connections hub http://www.eco-connect.org/ London Electric Vehicle Partnership To meet once every 6 months organised by Transport for London. Next one is at 1pm on 1st November 2012 at City Hall. Contact me for more

• information. Also view www.sourcelondon.net

Green Power Conferences http://www.greenpowerconferences.com/ Ecobuild 5-7 March 2013 Excel London http://www.ecobuild.co.uk/ BASELondon: opportunities in a low-carbon London June 2013 (tbc) London http://www.baselondonshow.co.uk/

FIND THE PROPERTY & LOCATION BUSINESS CASE YOUR LONDON EXPAND YOUR NETWORK FIND THE PROPERTY & LOCATION FIND THE RIGHT PEOPLE

THE EXPERTS ON DOING BUSINESS IN LONDON HOW WE CAN HELP

• Sector Intelligence
• Legal Requirements
• Corporate/Tax Structure
• Cost-effective Set-up
• Specialist Recruitment
• Funding & Training
• Salary Benchmarking
• Employment Practice
• Office Specialists
• Market, Clients &

Transport

• Labour Pool
• Demographic Mapping
• Professional Service
• - Events
• - Government Contacts
• - Policy-makers
• Culture & Social Life
• Visas & Work Permits
• Schools & Colleges

www.londonandpartners.com Bob Doyle bdoyle@londonandpartners.com

ANY QUESTIONS?