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SUSTAINABILITY


a single home might generate £5,000 of income immediately. Were a local authority to have control over these funds, they could pool the money and invest in CHPs (combined heat and power), renewable energy and local district heating networks to create further revenue streams and fund community projects. 65 new homes would generate around £292,000 from allowable solutions. A £280,000 100kW wind turbine could offset the emissions and generate an annual £42,000 income through electricity sales.


Equally, should an existing community want that same turbine right now, it could set up a special purpose vehicle to fund the initial outlay, and then pay off the debt at the same time as it generates a small community income through selling the electricity back into the grid.


By looking to such approaches we create a more secure and diverse power supply that reduces the onus on any one supply method and harnesses the full potential of energy generation.


Of course decentralised energy, especially district heating, isn’t appropriate everywhere. So LDA Design, the Combined Heat & Power Association and the Town & Country Planning Association have created a how-to guide for project developers, local authorities and other public sector bodies: Community Energy – planning, development and delivery.


Especially when viewed in conjunction with the Homes and Communities Agency’s District Heating Good Practice: Learning from the Low Carbon Infrastructure Fund and the forthcoming Community Energy Online website from the Department of Energy & Climate Change, the guide provides a step-by-step analysis of how and


Nov/Dec 10


where to embark on all sorts of community energy projects.


Projects might take the form of a building-integrated energy system that connects a number of buildings or even an entire town, or the relatively simpler build of a wind farm. The real key is planning.


Local authorities can assume the twin roles of policy maker and developer, especially as they and other public sector bodies will often own land and assets which are ripe for income generation from community energy projects.


They can use Community Energy – planning, development and delivery and set about creating energy maps, which are critical to masterplan a region’s energy decentralisation and identify the opportunities. While the guide explains every process plainly, a policy maker should also consult energy experts for guidance on specific technologies. The challenges are undoubtedly great. We face serious climate change and the increasing risks to energy security and affordability. Decentralisation offers a very real solution to all three of these challenges, and now is the time to start planning for a brighter future.


Robert Shaw is


sustainability & climate change director at LDA Design


Michael King is an associate of the Combined Heat & Power Association and chairman of Aberdeen Heat and Power Company – authors of the new guide Community Energy - planning, development and delivery, launched by the Combined Heat & Power Association (CHPA), the Town & Country Planning Association (TCPA) and LDA design in November.


Tips to help in the process


Start with the guide. Information is power. Once you have a clear understanding of the possibilities, consider talking with environmental energy experts for closer examination.


Assemble your energy maps and energy character areas. Energy maps are already being prepared by many planning authorities; they’re geographical information system-based maps which reveal the existing physical makeup of an area.


They’re your starting point, and they’ll help you identify opportunities and potential hurdles in preparing a masterplan and energy strategy. Energy character areas outline who owns what, so you can see where each approach is appropriate.


Know your trigger points. Energy should be considered whenever an existing building is being refurbished, an existing system is on its last legs, in the planning of a new build or larger development, when the energy costs get too high, or when there’s a realistic chance to make money.


Follow the energy project flightpath. There are ten stages and they need to be taken in turn: 1. Objective setting – gauge CO² emissions reduction targets, affordability and financial viability


2. Data gathering – on local infrastructure, existing buildings, likely demand and possible CHP locations


3. Project definition – scale, extent and who you need to involve to make it happen


4. Options appraisal – CHP, renewables, biogas, district heating networks…what suits your area?


5. Feasibility study – a detailed technical study for each technology in your area


6. Detailed financial modelling – informed by the feasibility study, examine how the money stacks up


7. Detailed business modelling – private or public ESCO; PPP or special purpose vehicles? Which works for you?


8. Soft market testing – get an expert in to test tender your projects


9. Procurement - as defined by your business model, take your projects to tender


10. Delivery – the easy bit? Provided you’ve carried out the other stages correctly.


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