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South2East Energy Strategy: Decarbonizing, Innovating, and Collaborating for Clean Growth

Discover the South2East Energy Strategy, a collaborative initiative aimed at decarbonization, innovation, and clean growth in the tri-LEP region. Explore the strategic objectives, revolutionary interventions, and benefits of this forward-thinking energy strategy.

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South2East Energy Strategy: Decarbonizing, Innovating, and Collaborating for Clean Growth

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  1. Tim Wates Chair, Coast to Capital LEP WELCOME

  2. Katherine Wright Deputy Director, Public Sector and Local, BEIS NATIONAL ENERGY CONTEXT

  3. Dave Axam Chair, Enterprise M3 LEP THE IMPORTANCE OF COLLABORATION

  4. PARTNERSHIPS

  5. TAKING THE FIRST STEP

  6. FUNDING

  7. Carl Ennis Managing Director, Siemens Energy Management SOUTH2EAST ENERGY STRATEGY

  8. South2East Energy StrategyCarl Ennis, Managing Director Siemens Energy Management

  9. 59,000jobssupported Siemens and the UK in numbers £5bn revenue generated £18.4m economic valueof educationprogrammes £1.8bn investment in UK supplychain 22,000 supply chainjobs £3m donations peryear 15 97% 200 research projects on-going including the landmark Triangulum project manufacturing sites waste recycled 15,000 employees £3.5bn value addedto UKeconomy Top 5 engineering employer 20% tax paid in profits

  10. Siemens: Ingenuity in the UK

  11. Siemens commitment to decarbonisation – carbon neutrality by 2030 Siemens will halve its own 2014 carbon emissions by 2020 … Over €100m is being invested in measures to reduce direct and indirect carbon emissions -50% -100% 2.2 million tons • Drive Energy Efficiency Program • Increase energy efficiency in factories as well as new constructions • Leverage Distributed Energy Systems • Optimize energy costs and leverage CO2 footprint of decentralized systems Electricity • Reduce Fleet emissions • Utilizing potential of low emission cars in fleet, including e-Car potential Heating/ Process heat Fleet • Purchase Green Energy • Move towards a significantly cleaner power mix with a strong focus on renewable energies and high efficient gas Other 2030 2014 2020 … and will be CO2 neutral by 2030

  12. How the Energy trilemma drives Energy Strategy for South East England Strategic Objectives • Enable the tri-LEP region to decarbonise • Position the tri-LEP region as a centre for innovation in the low carbon sector • Foster clean growth across the region • Ensure that all energy produced is clean and low-carbon energy • Ensure that local people and society are beneficiaries of the energy strategy

  13. Can the Energy Strategy meet our Climate Change targets? The Committee on Climate Change (2016, Progress Report to Parliament): Sector-wise Decarbonisation from 1990 to 2016 UK greenhouse gas emissions, assuming no additional policy or regulation aimed at reducing emissions

  14. The tri-LEP Energy Strategy for South East England sets the following course... • Moving from evolutionary… • Diversification to enhance and accelerate the local energy economy, with increase in GVA arising from job growth in low-carbon technology • Other local planning and strategies unaffected or even enhanced • Innovation and new opportunities that need significant investment in new skills / training • …to revolutionary! • Hydrogen networks for heating, transport and process industry • Implement circular economy across transport and residential sectors • Smart Energy Efficiency to move beyond net zero carbon into self-generation No intervention MtCO2 Evolutionary intervention Target: 80% reduction against 1990 Revolutionary development 2032 1990 2015 2050

  15. Who benefits from the centralised cost of energy?Energy Independence… 36.17% Almost 2/3 of the energy bill is not the energy itself: this value leaves the region 25.44% https://www.ofgem.gov.uk/data-portal/breakdown-dual-fuel-bill

  16. The drivers of the tri-LEP energy strategy themes Trends Tri-LEP 5 Priority Themes Decarbonization Low carbon heating Energy Saving and Efficiency Decentralization FutureEnergy Renewable Generation Digitalization Smart Energy System Democratisation Transport Revolution Cost-effective Clean Growth

  17. What the energy strategy is for The strategy reflects energy-related aspects of the Industrial Strategy Responds to national trajectory for decarbonisation and clean growth Makes reference to other national and local energy and low carbon policy. “In addition to providing a strategic framework that informs the actions which LEPs and their partners take on energy, the LEP energy strategies should provide a valuable evidence base for use by central government.” BEIS 2017

  18. National Policy Context Industrial Strategy (2017) government’s plan to shape a stronger, fairer economy. Clean Growth Strategy (2017) plan to cut emissions, reduce cost and increase efficiency Smart Power ReportNIC’s proposals for the UK’s future energy system Cost of Energy Report (2017) Prof. Dieter Helm’s analysis of how and why we pay too much for energy Climate Change Act (2008) Legally binding target to reduce emissions by 80% by 2050

  19. EnergySouth2East Strategy Pathway Heat Strategy Renewables Energy Efficiency Strategy Development Smart Transport Non-technical Interventions

  20. Some of the key challenges for the tri-LEP region 1. Electrical grid constraint prevents growth and development 2. Lots of heat is being wasted by industry and lots of homes are burning oil 3. 20% of homes are not connected to the gas grid 4. The economic value of the energy produced in the tri-LEP region is not retained 5. There are real concerns around air quality and emissions

  21. Some of the key opportunities for the tri-LEP region 1. Significant renewable potential 2. Rich in natural assets 3. Large amount of development taking place 4. Key sectors are already engaging 5. New technology digitalisation, decentralisation and democratisation is becoming viable

  22. The 5 Key Themes and 18 Project Models

  23. Scale-up and extension of Project Models 2050 Power Heating Novel RES Demand response District heating Storage Aggregation Micro-grids Transport Utilisation of heat sources Industrial energy efficiency E-highway Off-grid solutions E-buses Heat pumps On-shore wind High power DC Residential energy efficiency PV Hydrogen Charging infrastructure Modal shift Solar thermal CNG Congestion charging Public transport EV Bio-fuel production and conversion Cross-cutting and non-technological Insulation on homes and buildings Pre-payment and switching Carbon pricing Today

  24. Integrated thinking between the public and private sectorEconomic Growth… Traditional Energy Schemes Significant social and community value-add from smart and integrated energy systems Community Microgrid CO2 Energy Cost Estate Management Carbon Reduction Resilience Innovation C&I Collaboration Training And Skills Quality of Life

  25. Project Model #4: Offshore wind development Rampion Project • Stretches from East Worthing to Brighton • Covers 72 square kilometers with 116 turbines • Will power the equivalent of half the homes in Sussex from the 400MW capacity Scale-up Address blockers in the large-scale development by encouraging developers with a viable project pipeline and local support structures As LEPs... Encourage investors and supply-chain businesses Drive upgrade of the electricity grid for injection of offshore-wind energy Secure training and retain generated value within the region

  26. Project Model #5: Solar and Microgrid on Landfill Sites Westhampnett Solar Farm • West Sussex County Council’s publicly-owned solar farm opened in October 2018 • 26,000 panels delivering 7.4MW with on-site batteries • Equivalent to powering 2,400 households. A similar scheme generates income for the Council of £13.8M andpaying-back in under 10 years Scale-up Consortium of Local Authorities with Landfill development portfolio ready for investment by low risk funders UtilisingLand that is contaminated and currently not ready for development and creating or securing 4000 jobs

  27. In summary, the Local Energy Strategy and Action Plan for the South East…

  28. 59,000jobssupported Siemens and the UK in numbers £5bn revenue generated £18.4m economic valueof educationprogrammes £1.8bn investment in UK supplychain 22,000 supply chainjobs £3m donations peryear 15 97% 200 research projects on-going including the landmark Triangulum project manufacturing sites waste recycled 15,000 employees £3.5bn value addedto UKeconomy Top 5 engineering employer 20% tax paid in profits

  29. Siemens: Ingenuity in the UK

  30. Siemens commitment to decarbonisation – carbon neutrality by 2030 Siemens will halve its own 2014 carbon emissions by 2020 … Over €100m is being invested in measures to reduce direct and indirect carbon emissions -50% -100% 2.2 million tons • Drive Energy Efficiency Program • Increase energy efficiency in factories as well as new constructions • Leverage Distributed Energy Systems • Optimize energy costs and leverage CO2 footprint of decentralized systems Electricity • Reduce Fleet emissions • Utilizing potential of low emission cars in fleet, including e-Car potential Heating/ Process heat Fleet • Purchase Green Energy • Move towards a significantly cleaner power mix with a strong focus on renewable energies and high efficient gas Other 2030 2014 2020 … and will be CO2 neutral by 2030

  31. How the Energy trilemma drives Energy Strategy for South East England Strategic Objectives • Enable the tri-LEP region to decarbonise • Position the tri-LEP region as a centre for innovation in the low carbon sector • Foster clean growth across the region • Ensure that all energy produced is clean and low-carbon energy • Ensure that local people and society are beneficiaries of the energy strategy

  32. Can the Energy Strategy meet our Climate Change targets? The Committee on Climate Change (2016, Progress Report to Parliament): Sector-wise Decarbonisation from 1990 to 2016 UK greenhouse gas emissions, assuming no additional policy or regulation aimed at reducing emissions

  33. The tri-LEP Energy Strategy for South East England sets the following course... • Moving from evolutionary… • Diversification to enhance and accelerate the local energy economy, with increase in GVA arising from job growth in low-carbon technology • Other local planning and strategies unaffected or even enhanced • Innovation and new opportunities that need significant investment in new skills / training • …to revolutionary! • Hydrogen networks for heating, transport and process industry • Implement circular economy across transport and residential sectors • Smart Energy Efficiency to move beyond net zero carbon into self-generation No intervention MtCO2 Evolutionary intervention Target: 80% reduction against 1990 Revolutionary development 2032 1990 2015 2050

  34. Who benefits from the centralised cost of energy?Energy Independence… 36.17% Almost 2/3 of the energy bill is not the energy itself: this value leaves the region 25.44% https://www.ofgem.gov.uk/data-portal/breakdown-dual-fuel-bill

  35. The drivers of the tri-LEP energy strategy themes Trends Tri-LEP 5 Priority Themes Decarbonization Low carbon heating Energy Saving and Efficiency Decentralization FutureEnergy Renewable Generation Digitalization Smart Energy System Democratisation Transport Revolution Cost-effective Clean Growth

  36. What the energy strategy is for The strategy reflects energy-related aspects of the Industrial Strategy Responds to national trajectory for decarbonisation and clean growth Makes reference to other national and local energy and low carbon policy. “In addition to providing a strategic framework that informs the actions which LEPs and their partners take on energy, the LEP energy strategies should provide a valuable evidence base for use by central government.” BEIS 2017

  37. National Policy Context Industrial Strategy (2017) government’s plan to shape a stronger, fairer economy. Clean Growth Strategy (2017) plan to cut emissions, reduce cost and increase efficiency Smart Power ReportNIC’s proposals for the UK’s future energy system Cost of Energy Report (2017) Prof. Dieter Helm’s analysis of how and why we pay too much for energy Climate Change Act (2008) Legally binding target to reduce emissions by 80% by 2050

  38. EnergySouth2East Strategy Pathway Heat Strategy Renewables Energy Efficiency Strategy Development Smart Transport Non-technical Interventions

  39. Some of the key challenges for the tri-LEP region 1. Electrical grid constraint prevents growth and development 2. Lots of heat is being wasted by industry and lots of homes are burning oil 3. 20% of homes are not connected to the gas grid 4. The economic value of the energy produced in the tri-LEP region is not retained 5. There are real concerns around air quality and emissions

  40. Some of the key opportunities for the tri-LEP region 1. Significant renewable potential 2. Rich in natural assets 3. Large amount of development taking place 4. Key sectors are already engaging 5. New technology digitalisation, decentralisation and democratisation is becoming viable

  41. The 5 Key Themes and 18 Project Models

  42. Scale-up and extension of Project Models 2050 Power Heating Novel RES Demand response District heating Storage Aggregation Micro-grids Transport Utilisation of heat sources Industrial energy efficiency E-highway Off-grid solutions E-buses Heat pumps On-shore wind High power DC Residential energy efficiency PV Hydrogen Charging infrastructure Modal shift Solar thermal CNG Congestion charging Public transport EV Bio-fuel production and conversion Cross-cutting and non-technological Insulation on homes and buildings Pre-payment and switching Carbon pricing Today

  43. Integrated thinking between the public and private sectorEconomic Growth… Traditional Energy Schemes Significant social and community value-add from smart and integrated energy systems Community Microgrid CO2 Energy Cost Estate Management Carbon Reduction Resilience Innovation C&I Collaboration Training And Skills Quality of Life

  44. Project Model #4: Offshore wind development Rampion Project • Stretches from East Worthing to Brighton • Covers 72 square kilometers with 116 turbines • Will power the equivalent of half the homes in Sussex from the 400MW capacity Scale-up Address blockers in the large-scale development by encouraging developers with a viable project pipeline and local support structures As LEPs... Encourage investors and supply-chain businesses Drive upgrade of the electricity grid for injection of offshore-wind energy Secure training and retain generated value within the region

  45. Project Model #13: Compressed Natural Gas (CNG) fleet rollout Converting Council refuse fleets • Move to CNG as a prime fuel with 30% cost saving per mile • 20% reduction in emissions over diesel fuel • 95% CO2 savings when using bio-methane • Unused high-pressure gas pipeline to act as CNG feed • Quieter and improved air quality Investment Consortium of Local Authorities investing or specifying CNG fleets will help unlock supply chain and private CNG fleets (haulage, warehousing, supermarkets) TransportAlternative decarbonization pathway in the event that electrification / battery / storage is insufficient for large or heave vehicle fleets

  46. In summary, the Local Energy Strategy and Action Plan for the South East…

  47. Adam Bryan Managing Director, South East LEP IMPORTANCE OF ENERGY TO BUSINESS

  48. Chris Seamark LOCASE LOCAL ENERGY CASE STUDY

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