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UKDEA Media Release

UK District Energy Association says results of CESP are a resounding success for district energy

15th May 2013

The UKDEA have applauded the success of the recently closed CESP programme in demonstrating the effectiveness of district heating measures in a range of situations. Targeted at the fuel poor, CESP aimed to improve the efficiency of whole houses and even entire areas through the delivery of packages of measures.

Published at the start of this month, Ofgem's final results of the CESP programme were a mixed bag. Although the target was missed, the overall achievements of the programme have proven success at taking what was learned under CERT, the scheme's predecessor, and building on those foundations.

One of the biggest successes of the programme was the high level of take up of district energy. The results of the push for heat networks and district heating connections under CESP has proven the applicability of this technology in many types of buildings and communities.

Over the course of CESP, 24,000 district heating measures were installed (covering new connections to district heating schemes as well as upgrades to existing district heating schemes), which Ofgem estimate will lead to a lifetime saving of 1.6 million tonnes of CO2. This accounts for 8.1% of the CESP programme's overall carbon savings.

Across all the regions of the CESP programme, district heating featured in all but 3 of the regions. There were as many district heating measures installed as there were lofts insulated, proving that district energy is successful in delivering meaningful carbon savings, and savings on customers' bills, in a wide variety of situations.

Of the energy companies taking part in the scheme, British Gas installed more district heating than any other, with a total of 7,708 installations. Of the other energy companies, each installed a substantial number of district energy measures.

These included EDF with 2,925, E.ON with 1,174, RWE npower with 3,647, SSE with 4,023 and Scottish Power with 1,225.

As well as major energy companies, a number of independent generators took part in the scheme. GDF Suez / IPM was one such company and ended up the largest installer of district heating of all the independents, installing 2,567 measures which accounted for 79% of its overall installations.

Overall, new connections of properties to district heating systems accounted for over 50% of the overall savings achieved by district energy under the scheme. There were a total of 6,459 district heating connections applied under CESP, a stark contrast to the 1,349 that were achieved under its predecessor, CERT.

UKDEA Chairman, Simon Woodward, commented;

"CESP has successfully demonstrated the effectiveness of district heating in tackling the issues of fuel affordability and low incomes. Aimed squarely at areas of deprivation, the scheme has proven that in the right situation, district heating is a gift wrapped solution to low carbon, affordable heating.

The UKDEA hopes to see more of this impetus in the domestic market over the coming years, and is looking forward to seeing what comes out of the new ECO scheme as a result."

The final report detailing the outcomes of CESP can be downloaded from Ofgem:

http://www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/cesp/Documents1/CESP%20Final%20Report%202013_FINAL%20300413.pdf

--ENDS--

Notes to Editors:

The partners, owners and operators of the largest district energy schemes in the UK have aligned themselves in the creation of the UK District Energy Association (UKDEA); with the aim of not only promoting district energy as a means to deliver significant carbon savings, but also to establish a direct link between the Government and the industry's small market base.

The Association is a not for profit, non-trade association of companies and public sector organisations involved or interested in district energy schemes of all sizes, from village scale, community based 'micro district energy' schemes to city wide district heat energy networks.

Still in its infancy, the UKDEA has attracted leading players in the industry, with the UKDEA's Full members comprising of 14 major organisations:

• Birmingham City Council
• Cofely District Energy Limited
• Coventry City Council
• ENER-G Switch 2 Limited
• Enviroenergy Limited
• E.ON Energy Solutions Limited
• Leicester City Council
• Newcastle City Council
• Newport City Homes Limited
• Shetland Heat, Energy and Power Limited
• Southampton City Council
• SW Energy Limited
• Thameswey Limited
• Veolia Environmental Services Limited

Together, these 14 organisations represent the: Birmingham, Coventry, Exeter, Leicester, Liverpool Manchester, Milton Keynes, Newport, Newcastle, Nottingham, Sheffield, Shetland, Southampton and Woking District Energy schemes, together with a number of schemes in London including Olympic Park and Stratford City, Bloomsbury Heat & Power, Whitehall, Hatfield, Dalston Square, Greenwich Millennium Village, Barbican Arts Centre, Guildhall, Bastion House, Ontario Tower, Pan Peninsula, Baltimore Wharf, Wapping Lane, High Point Village and London Central Markets.

The UKDEA also has 35 Associate Members, including international members, sharing and contributing information to our district energy knowledge base.

UKDEA Key Facts:

Together the UKDEA members represent:

• Over 120 MW of low carbon generation plant (CHP, biomass, EFW etc)
• Supported by over 600 MW of conventional back up boiler plant
• Delivering over 700,000,000 kWh of heat each year
• Across energy networks which, if combined, would extend for more than 200km

Through Full and Associate membership, the UK District Energy Association's aim is to represent current and potential owners, developers, consumers, partners, operators, product suppliers and interested parties of District Energy schemes throughout the UK.

The UKDEA welcomes new members. Be part of our district energy information sharing loop and apply for membership of this forward thinking Association today.

For more information or membership details contact:

Chris Tanner
Secretary & Administrator for the UKDEA

Thames Head Wharf,
Tetbury Road,
Cirencester,
Gloucestershire,
GL7 6NZ

Office: 01285 770615 Mobile: 07773 457941

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Website: www.ukdea.org.uk