CLEANTECH OPPORTUNITIES IN LONDON & THE UK
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CLEANTECH OPPORTUNITIES IN LONDON & THE UK BOB DOYLE, SENIOR BUSINESS DEVELOPMENT MANAGER LONDON & PARTNERS September 2012
Transcript of CLEANTECH OPPORTUNITIES IN LONDON & THE UK
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
of 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
on 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 organisations 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
on 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
“Mayor Boris Johnson is very ambitious with green
technology; more so than his counterparts in New York
or 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
