Heat and the City: Comparing the trajectory of sustainable heat and energy conservation in the municipal communities of Glasgow and Edinburgh

Lead Research Organisation: University of Edinburgh
Department Name: Institute of Governance

Abstract

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Description Increasing numbers of UK municipal authorities are recognising the opportunities associated with District Heating (DH) and Combined Heat and Power (CHP): benefits for local people and local economies; potential to reduce the cost of transforming energy infrastructure; effective climate change mitigation and energy security. Historically the UK has done very little of it. This is changing, and local authorities are key actors, despite limited powers and limited access to energy project finance. In our case studies, lead officers are committed to action within their sphere of control to mitigate climate change, improve energy security and tackle fuel poverty. Their investigations identify two areas for change: improving the energy efficiency of the building stock, including retro-fitting micro-renewables; and establishing community scale district energy. In densely populated urban areas, district energy provides affordable heat, as well as energy and carbon saving. Because heat networks can use heat from multiple sources, including waste heat, they provide greater local control over energy security. In the right places, they contribute to local economic regeneration and public welfare. Local authority (LA) leadership is key to maximising potential for heat networks with capacity for expansion. For most authorities, however, the scale and complexities of district energy pose major challenges. While community enterprises, housing developers and other public bodies are also developing DH, the statutory functions of LAs (as planning authorities and service providers) mean they can give strategic direction. LAs provide long-term contracts for heat and power supply, which stabilise business revenues; as well as having prudential borrowing powers, they can act as guarantor to reduce costs of long term loan finance; they can ensure that heat tariffs are fair and transparent; and they can assist in developing consumer protections and service standards. DH is inherently local, and needs actors with long-term commitment to the area; this requires local knowledge about opportunities, their timing, and potential for integration with other developments. An effective means of governing and managing district energy is to set up a special purpose Energy Services Company (ESCo). The ESCo ensures clear accountability, sharp focus, ring-fenced budget and risk-sharing for project planning, development and delivery. The type of ESCo depends on local priorities, and can be a private enterprise (Birmingham District Energy Company), a joint public-private company (Thameswey Energy Ltd) or a not-for-profit company (Aberdeen Heat and Power Ltd). Benefits of DH and CHP are recognised by the UK Government as cost effective means of reducing CO2 emissions, required by climate change legislation, but LAs pursuing DH have to deal with the inertia of existing energy systems. Despite recent policy measures to support investment, DH and CHP remain on the margins of UK and Scottish energy policy, which focuses on electricity markets, and is designed around the structures of large centralised generators. The absence of clear incentives and directive planning measures means that targets for investment are being missed. However, both Scottish and UK Governments are developing a more supportive policy framework.
Exploitation Route Development of energy policy and regulatory frameworks for sustainable, affordable heat;
development of business and governance models for localised energy services for low carbon, efficient space heating and hot water in buildings;
project management of inter-party coordination of urban retrofit for sustainable low energy heating.
Sectors Energy,Environment,Financial Services, and Management Consultancy,Government, Democracy and Justice

URL http://www.heatandthecity.org.uk/
 
Description Research findings have had impacts in the following areas: 1. Energy policy and regulatory frameworks for sustainable, affordable heat i. UK Government Dept of Energy and Climate Change 2013, The Future of Heating: Meeting the Challenge, URN: 13D/033, Chapter 2; also invited presentations to DECC Heat Team and Heat Networks Delivery Unit officials. ii. Invitation to advise Scottish Government Special Working Group on Regulation of District Heating, resulting in report on European Comparative Regulatory Structures for District Heating, which has formed a component of Scottish Government Heat Expert Commission evidence and reporting. iii. Invitation to present oral evidence to UK Parliament Energy and Climate Change Committee evidence gathering on heat. iv. Invitation to dinner (autumn 2015) hosted by Imperial College/British Institute of Energy Economics for UK Secretary of State for Energy and Climate Change to discuss energy policy options; heat and energy efficiency was a discussion theme. 2. Development of business and governance models for localised energy services for low carbon, efficient space heating and hot water in buildings: i. Scottish Futures Trust Guidance on Delivery Structures for Heat Networks, Case Studies 1 (p.13-20) and 6 (p. 36-41) http://www.districtheatingscotland.com/sites/default/files/SFT%20DH%20Delivery%20Structure%20Report%20%28v1%20-%2016%20Mar%2020015%29_0.pdf ii. UK HM Government Treasury 2015 Valuing Infrastructure Spend; Supplementary Guidance to the Green Book. Section 3, Valuing Interdependence and Resilience, p.21 Box 3.E. iii. Project evidence and analysis used by both Edinburgh and Glasgow city councils in internal energy project development documents (documents not in public domain). 3. Project management of inter-party coordination of urban retrofit for sustainable low energy heating. Evidence to inform capacity building networks, partnerships and reports as follows: i. Scottish Government Heat Network Partnership member - http://www.gov.scot/Resource/0042/00423849.pdf ii. UK Energy Research Partnership - Economic Resilience of UK Cities: the Role of Cities in the UK Energy Agenda http://erpuk.org/wp-content/uploads/2015/09/ERP-Report-2015_EconomicResilienceUKCities_Summaryv2.pdf iii. UK District Energy Vanguards Network, http://www.heatandthecity.org.uk/dh_vanguards_network iv. Association for Public Service Excellence: Local Authority Energy Collaboration http://www.apse.org.uk/apse/index.cfm/local-authority-energy-collaboration/
First Year Of Impact 2013
Sector Energy,Environment,Government, Democracy and Justice
Impact Types Societal

 
Description District Heating UK Local Authorities' Vanguard Network - response to DECC Heat Strategy Consultation 2012
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
 
Description HEAT AND THE CITY RESPONSE TO ENERGY AND CLIMATE CHANGE COMMITTEE CALL FOR EVIDENCE ON LOCAL ENERGY
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact Invitation of research team member to give oral evidence to UK Parliament Energy and Climate Change Committee as part of their enquiry into heat.
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact UK Government DECC. March 2013 Report commissioned by DECC on 'Research into barriers to deployment of district heating networks in suitable locations'; the results of the report are widely referred to in the March 2013 UK Government DECC Heat Strategy: 'The Future of Heating: Meeting the Challenge', Chapter 2 pp.37-61 (see chapter footnotes). The Policy and Report are published at https://www.gov.uk/government/publications/the-future-of-heating-meeting-the-challenge
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact UK Government DECC. The researchers organised knowledge co-production event in Feb 2013, at the request of UK Government DECC officers, to evaluate Local Authority responses to proposed heat policy measures for publication Spring 2013.
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Participation in advisory committee
Impact Appointment to Scottish Government District Heating Loans Advisory Panel
URL http://www.energysavingtrust.org.uk/scotland/businesses/getting-support/district-heating-loan
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Participation in advisory committee
Impact Appointment of research team members to Scottish Government Heat Networks Partnership
 
Description Heat and the City
Geographic Reach Multiple continents/international 
Policy Influence Type Participation in advisory committee
Impact Appointment to Scottish Government Expert Commission on District Heating
 
Description Heat and the City
Geographic Reach National 
Policy Influence Type Participation in advisory committee
Impact Appointment of research team members to Scottish Government Heat Networks Partnership
URL http://www.districtheatingscotland.com/content/district-heating-scotland
 
Description Heat and the City submission to UK Parliament Energy and Climate Change Committee in response to its call for evidence on heat.
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact Response to UK Parliament Energy and Climate Change Committee call for evidence on heat
 
Description Heat generation in Scotland. Invited suggestions to Scottish Government on development of scenario modelling to support Heat Generation Policy Statement
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact Substantially shaped the specification used by the Scottish Government in its tender for consultancy work developing heat scenario models.
URL http://www.scotland.gov.uk/Publications/2014/03/2778
 
Description Infrastructure and Interdependencies: Valuing Investment for Passive Provision
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact Contribution to UK Treasury (Infrastructure UK) Revised Supplementary Green Book Guidance on Infrastructure and Interdependencies: Valuing Investment for Passive Provision; case study of heat network investments
 
Description Joint Consultation with, and Report to, Scottish Government on Local Heat and Energy Efficiency Strategies and Regulation of District Heating
Geographic Reach National 
Policy Influence Type Gave evidence to a government review
Impact Evidence from our research on governance and business models for sustainable heating systems in urban areas has been used by Government in development of new energy policy on local heat and energy efficiency strategies and potential regulation, including proposed new statutory powers for local governments in energy planning at area scale, and regulation and licensing of district heating operators. The research evidence is incorporated into the policy consultation document, and we are running, jointly with Government, two public consultations on the proposals; our report to Government on the outcomes will be part of the decision making process on final measures.
URL https://consult.scotland.gov.uk/energy-and-climate-change-directorate/local-heat-and-energy-efficien...
 
Description Local Engagement in Energy Systems Development
Amount £48,951 (GBP)
Organisation Energy Technologies Institute (ETI) 
Sector Public
Country United Kingdom
Start 07/2013 
End 01/2014
 
Description Cascade 
Organisation CASCADE Project
Country Belgium 
Sector Public 
PI Contribution Participation in peer learning events with municipal governments in Genoa (Italy) and Amsterdam (Netherlands)
Collaborator Contribution Participation in, organising of, and learning from peer learning events with municipal governments in Genoa (Italy) and Amsterdam (Netherlands). Other cities were also involved as there were multiple learning sessions to which different "peer cities" were invited.
Impact Peer learning reports compiled from learning exchanges by CASCADE
Start Year 2012
 
Description Cascade 
Organisation City of Edinburgh Council
Country United Kingdom 
Sector Public 
PI Contribution Participation in peer learning events with municipal governments in Genoa (Italy) and Amsterdam (Netherlands)
Collaborator Contribution Participation in, organising of, and learning from peer learning events with municipal governments in Genoa (Italy) and Amsterdam (Netherlands). Other cities were also involved as there were multiple learning sessions to which different "peer cities" were invited.
Impact Peer learning reports compiled from learning exchanges by CASCADE
Start Year 2012
 
Description Scottish Heat Networks Partnership Practitioners' Group 
Organisation Government of Scotland
Country United Kingdom 
Sector Public 
PI Contribution Knowledge Exchange for Sustainable Heat
Collaborator Contribution Knowledge Exchange for Sustainable Heat
Impact Commencing November 2014 so no direct outputs yet
Start Year 2014
 
Description TEDDINET 
Organisation University of Edinburgh
Country United Kingdom 
Sector Academic/University 
PI Contribution TEDDINET is an EPSRC funded network primarily supporting the work of the 22 individual (Build)TEDDI projects, ensuring that they achieve more than the sum of their parts and leave a strong legacy for industry, government and society.
Start Year 2011
 
Description HEAT AND THE CITY RESPONSE TO ENERGY AND CLIMATE CHANGE COMMITTEE CALL FOR EVIDENCE ON LOCAL ENERGY 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Evidence Submission to UK Parliament Select Committee

Contribution to UK Parliament Select Committee Report on Local Energy
Year(s) Of Engagement Activity 2013
 
Description Heat Networks Investment Conference - UK Department of Business Energy and Industrial Strategy 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact UK BEIS ran a conference to engage the investment community with ongoing district heating development, bringing together financiers with project developers and local authorities. David Hawkey and Mags Tingey presented results from 'Heat and the City', 'Local Engagement with UK Energy Systems' and 'Reframing Energy Demand' to give and overview of and insight into patterns of district heating development in the UK and issues shaping prospects for further expansion.
Year(s) Of Engagement Activity 2017
 
Description Heat and the City - New research 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Radio interview about the research project on better ways to heat city buildings and homes, BBC Radio Scotland News programme

Followed up by BBC Radio Scotland News journalist with further questions and interest
Year(s) Of Engagement Activity 2010
 
Description Low Carbon Heat: Research Gaps and Opportunities 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? Yes
Geographic Reach National
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Rc-UK Heat and the City: Research in Progress presentations fed into Report on Future Research Agenda for Low Carbon Heat

Report on Future Research Agenda for Low Carbon Heat
Year(s) Of Engagement Activity 2013
URL http://www.youtube.com/watch?v=ZXhHZV1d3qw&feature=youtu.be
 
Description Ministerial Invitation to join Scottish Government Special Working Group on Regulation of District Heating 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? Yes
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Ongoing; initial report of Expert Commission resulted in Scottish Government District Heating Action Plan and Draft Heat Generation Policy Statement

Initial report of Expert Commission resulted in Scottish Government District Heating Action Plan http://www.scotland.gov.uk/Publications/2013/06/7473
and contributed to Draft Heat Generation Policy Statement http://www.scotland.gov.uk/Publications/2014/03/2778
Year(s) Of Engagement Activity 2014
 
Description Oral HEAT AND THE CITY Evidence TO ENERGY AND CLIMATE CHANGE COMMITTEE CALL FOR EVIDENCE ON LOCAL ENERGY 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact UK Parliament Energy and Climate Change Committee questions and discussion



Oral evidence: Heat, HC 743

Tuesday 29 October 2013

Oral evidence: Heat, HC 743
Year(s) Of Engagement Activity 2013
URL http://www.publications.parliament.uk/pa/cm201314/cmselect/cmenergy/180/180.pdf
 
Description Research Councils UK (RC UK) Energy Programme: Heat and the City Project www.heatandthecity.org.uk Submission to UK Parliament Energy and Climate Change Committee in response to its call for evidence on heat. 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Written evidence submitted by Dr David Hawkey on behalf of the RC UK Heat and the City project.

Contributed to Report of UK Parliament Energy and Climate Change Committee on its inquiry into heat.
Year(s) Of Engagement Activity 2013
URL http://www.parliament.uk/business/committees/committees-a-z/commons-select/energy-and-climate-change...