News from the Frontline (June 2010)
Lessons for Low-carbon Large Scale Developments
Dear colleagues
It’s been a fascinating experience for me in the last year moving from a national policy world to the frontline of delivery of renewable energy, demand reduction and low carbon jobs as chief executive of Regen SW. I thought some of you whose meetings are still in Whitehall rather than on Dartmoor might be interested in an occasional update on some the lessons of that on the ground delivery experience.
If you have enough in your inbox already, please say so.
For those of you that don’t know, Regen SW is the sustainable energy agency for the south west of England and is working to deliver renewable energy and energy efficiency and build a low-carbon economy.
Our work driving the first large-scale zero-carbon development in the country at Cranbrook, east of Exeter is a particularly interesting example of supporting delivery of energy policy goals in practice. The development is due to break ground later this year - in summary the numbers are:
- 6 MW electric and 17 MW thermal biomass combined heat and power (CHP) with 34 km district heating, serving 2900+ homes
- Pyrolysis plant using recycled wood (ca 50,000 tpa)
- £30-£40 million low carbon investment (including a £3.6 million HCA grant)
- Demonstration of a private sector ESCo model
I have included some more detail on the project (please click here to open) and the lessons for low-carbon large-scale developments. But more generally the project suggests the following lessons for delivering our low carbon ambitions:
1. The right policy, regulatory and incentive framework is a necessary but not sufficient condition for delivery of low-carbon ambitions at the speed required – intervention to support the first ground-breaking projects is also key
The changes to our energy system are at an early stage, delivering the first ground-breaking projects is a challenging, time consuming, and often painful process. In the case of low-carbon development there is a strong government policy framework of legislation and grants. However, even then the rewards are often insufficient to justify the risks to get the first projects of the ground.
Independent and high quality technical advice we have been able to provide is cited by all parties in the Cranbrook example as a critical factor to reduce the risks and overcome the lack of knowledge and expertise available in low-carbon developments. The cost of this is tiny compared to capital expenditure, but it is often the most difficult cost to finance.
2. Active supply-chain development is also needed if the economic benefit is to flow to the local and national economy
Capturing the economic benefit in the UK is clearly central to the low carbon transition. Our experience suggests that it is also vital that the local economy benefits directly if new projects are to be accepted by the community.
Projects such as the energy centre development at Cranbrook will provide a range of economic opportunities but without active support to business to invest and innovate the opportunity to develop internationally competitive business sectors providing the jobs of the future will be lost.
3. Delivery and supply-chain support is most effective when it combines critical mass with local knowledge
Our low-carbon development programme supports five developments across the south west and makes the learning available to all large developments. It also works with other Regen SW programmes to develop the supply chain and is informed by our mapping of renewable energy resources and heat demands across the south west.
Coordinating the programme at this level is efficient (one part time project manager) and allows a strategic approach to the interventions made. The project manager is close enough to the project to enable the detailed knowledge of local resources and supply chains.
4. Once the first few projects are delivered interventions can and must be progressively less intense
Once the first few projects are up and running the knowledge and experience required begins to embed itself in the community and the need for active public sector intervention reduces. Scarce public resources need to be targeted at interventions that enable the market to deliver low-carbon investment going forward without continuing support – hence a strategic approach.
5. The public sector as a whole must have the clarity of purpose and capacity to support change
The development at Cranbrook requires a wide range of public sector bodies (local authority planners, the HCA, regulatory authorities and the regional development agency) not just to support but to be absolutely committed to a low-carbon solution, rather than the status quo. Without this shared commitment the development could not have proceeded down a low-carbon route. The government needs to support both clarity of purpose for the public sector and the technical capacity to make the judgements required.
To read the full case study of lessons learned at Cranbrook , click here.
If people have found this useful, future ‘news’ will look at lessons from other of our programmes such including woodfuel, whole house retrofits and community led renewables.
All feedback/comments welcome.
Merlin Hyman
Chief Executive
Regen SW
Local Carbon Solutions - Public Sector Conference, Regen SW in partnership with Energy Saving Trust, 23 June:
From national ambition to local delivery.
Regen SW is the sustainable energy agency for the South West of England
The Innovation Centre, Rennes Drive, Exeter, Devon, EX4 4RN
Tel: 01392 494399
Regen SW is core funded by the South West RDA
