Lessons from Denmark: District Heating in Inverness

1. District Heating Inverness 1 September 2015 Peter Marshall (Strategy & Policy Manager)

2. Lessons from Denmark • Early attempts in Perth & Kinross • Local Development Plan • Current Activity • What Next? • The Unanswered Questions

3. Lessons from Denmark Heat planning in existence on a formal basis for forty years. (first around 100 years ago) Current policy approach to district heating was established following the oil crises of 1973/74 The national consensus and direction extends to providing central support on assumptions to be used in assessing heat planning projects and providing guidance to local authorities on how to prepare mandatory and holistic energy plans.

4. Lessons from Denmark The tradition of municipal-owned or community-owned energy companies gives Denmark a different starting point than Scotland It should also be noted that when this push started in the early 1980s the entire Danish energy sector was in Public ownership. The production, network and distribution companies are set up as not for profit organisations

5. Lessons from Denmark Legislation allows for compulsory connection but seldom required Connecting individual homes, as opposed to higher density properties such as apartments, increases costs and reduces the competitiveness Does Scotland need an acceptance of higher density development? The principle here seems to be to start small in a number of places and then connect these smaller schemes

6. Lessons from Denmark

7. Early attempts in Perth & Kinross 2001 - Binn Farm surplice heat from anaerobic digestion plant attempt to get developer of nearby strategic site 4 miles to north to develop heat network Failed – Lack of imagination / flexibility by developer and timing of proposals post planning application 2008- Proposed district heat network to serve new Secondary School and regeneration of Muirton (400 houses) Failed due to inability of PPP partner and housing association to reach agreement

8. Heat Map Commissioned by us in partnership with Fife Council and the Scottish Government helps to identify district heating opportunities in Perth and Kinross.  Provides starting point to inform district heating policies in the Local Development Plan and develop a Local Energy Plan www.pkc.gov.uk/heatmap

9. The Local Development Plan Sustainable Construction Policy backed up by Supplementary Guidance Site specific requirement for 5 key strategic sites round Perth Core Area to investigate the potential for district heating (6,500-9,000 houses) LDP2 needs to strengthen strategic approach and widen the site specific requirements to smaller sites particularly off gas network

10. The Local Development Plan At time of Adopting LDP 1 proposals lodged for a 20MW forest residue biomass plant Too much reliance placed by developers on this providing their solution – proposal now unlikely to go ahead due to changes in the renewable heat incentive Danish message start small individual schemes and link up

11. Cross TAY Link Road Linking Strategic Development Sites Luncarty 500+ houses Scone 800+ houses 3000+ houses 1500+ houses Estimated Cost £88M Phasing 20-22 3000+ houses Relieves traffic pressure and air quality on Bridgend and Atholl Street

12. Current Activity River Tay Renewable Heat Exchange Network 12MW Peak Demand Heat 2MW Peak Demand Cooling Serves Food and Drink Park 8 Council Buildings 1537 Homes Next Step – Further feasibility work

13. Current Activity Perth West Wood Biomass combined heat and power proposal Large estate with significant forestry assets Interested in running plant but perhaps not network Potential to link to Business Park and 5 Schools Wants to run joint feasibility study with Council Officer support but want to draw in other strategic sites and main areas of fuel poverty to look at a comprehensive network

14. Current Activity Planning permission for 114 ha of unheated and heated polytunnels and Binn Farm Eco Park Heat generated from the existing and proposed recycling, waste management and heat recovery processes– landfill gas, the anaerobic digestion plant and an energy from waste facility

15. Current Activity It was evident various services in Council were working on related projects and not always sharing information - Inter departmental group established to co-ordinate activity LDP 2 underway strengthening approach to District Heating Supplementary Guidance on Renewables being prepared identifying strategic opportunities from new or more joined up activity across renewable and low carbon technologies City Plan promoting carbon neutral development

16. Strategic Planned energy National Planning Framework Scottish Planning Policy Strategic Development Plans LDP/Renewables SG Local Energy Plan Master plan and projects We are here “Local Development Plans should: • Use heat mapping to identify opportunities • Give policy support for developing of heat networks • Identify where heat networks would be appropriate” (SPP, 2015)

17. What Next? Request to Executive Officer Team to develop strategic framework for energy A proposed Energy Plan identifying priority actions to plan strategic energy networks and clearly defined outcomes Progress feasibility work in association with strategic site owners

18. Unanswered questions The Scottish Government needs to research whether the greatest carbon savings can be achieved with heat networks and buildings which fall short of passive status Funding model and who owns and runs the plant, network and distribution companies? What is the Council’s attitude to risk? Can we exclude gas networks in new development with district heat networks?

19. Unanswered questions How we get developer buy in? How do we get public buy in? • Public need to expect / demand heat networks from developers • Need to understand and trust technology • Accept that plant is environmentally acceptable and compatible with adjacent land uses

20. Questions For me or my colleagues