D E P D U S U C C E S S O R

P R O G R A M M E

Alex Hobley 17th November 2016

Mayoral targets by 2025 CO2 Reduction of 60% & Decentralised Energy 25%

Targets to reduce CO2 emissions on 1990 levels (45.05 MtCO2 per annum) by…

20% by 2015

38% by 2020

60% by 2025

80% by 2050

CO2 emissions in 2008 = 44.71 MtCO2 per annum

CO2 emissions in 2013 = 40.19 MtCO2 per annum

Mayor of London

Key Energy Manifesto Commitments

• 2050 target committing London to be a zero-carbon city by 2050

• Establish Energy for Londoners, a not-for-profit

company providing:

• Help Londoners generate more low-carbon energy and increase their energy efficiency,

• Support local and community energy enterprises,

• Buy clean energy generated across the city, using it to power GLA and TfL facilities.

• Lead on work to cut energy bills for Londoners: explore the business case for savings on bills by bulk-buying energy.

• Solar strategy energy generation to make the most of the

city’s roofs, public buildings and land owned by TfL • Reduce energy demand by working with the industry to

accelerate the rollout of smart meters. • Back district heating schemes that make the most of waste

heat from the Tube, such as that in Bunhill, Islington.

DECENTRALISED ENERGY

PROJECT DELIVERY UNIT (DEPDU)

• EU funded, EIB manager ELENA technical assistance • 4 years, £2.8m project development support programme – 2011 to 2015 • Superseded by DEPDU Successor Programme in 2016

Conclusions from DEPDU

•Idea to construction - three

to seven years

•Persevere – many blind

alleys

•Plan big, start small

•Public leadership

essential - where more

than two entities are

involved

•Political support

•Senior officers’ agenda

•The Champion

DEPDU Successor Programme

(Working Programme Name)

• Know-how, skills, capability, co-

ordination, leadership and

support.

• Providing intervention in areas of

market failure

• £3.5m, programme to Oct 2019

• Funding: currently applying for

50% funding from ERDF and

50% GLA match

• Building and consolidating

previous work programmes:

• Heat mapping and capacity

building

• Energy master planning

• DEPDU pipeline

• Research, piloting, and

facilitating early operation

Programme Outputs

1. Decentralised energy production capacity (MW

electricity and heat)

2. Renewable energy capacity enabled (heat network

installed)

3. CO2 reductions

4. Capital investment levered (£87.5m)

Programme Consultancy Framework

FRAMEWORK LEVEL 1 (Lot) LEVEL 2 (Sub-Lot)

DEC

ENTR

ALI

SED

EN

ERG

Y

Ad

viso

ry S

ervi

ces

1. TECHNICAL

1.1 ENERGY GENERATION. ENERGY CENTRE DESIGN AND CONTROLS

1.2 ENERGY TRANSMISSION. DISTRICT HEATING NETWORK DESIGN AND CONTROLS

1.3 ENERGY DISTRIBUTION & SUPPLY IN BUILDINGS. SECONDARY SYSTEMS DESIGN AND CONTROLS

1.4 FESIBILITY STUDIES FOR DE PROJECTS

1.5 TECHNICAL SPECIFICATIONS & COSTING OF DE PROJECTS

1.6 ENERGY ICT

2. COMMERCIAL & FINANCIAL

2.1 BUSINESS CASE/PLAN FOR ENERGY PROJECTS

2.2 DELIVERY VEICHLES, OWNERSHIP & FUNDING STRUCTURE FOR ENERGY PROJECTS

2.3 COMMERCIAL DOCUMENTATION FOR ENERGY PROJECTS

2.4 FINANCIAL MODELS FOR ENERGY PROJECTS

2.5 PROJECT DOCUMENTATION FROM INCEPTION TO MARKET FOR ENERGY PROJECTS

3. LEGAL

3.1 LEGAL DOCUMENTATION FOR ENERGY PROJECTS

3.2 EU AND UK ENERGY REGULATION, ELECTRICITY & HEAT MARKETS AND LICENSING

4. STRATEGIC

4.1 ENERGY STRATEGIES & MASTERPLANNING

4.2 ENERGY POLICY, MARKETS AND PLANNING FOR DE AND CHP IN THE UK AND LONDON

EfL Agreements

GLA

Consultant Beneficiary

GLA pays consultant

GLA Support Agreement

Guaranteed services

Tripartite Call-Off

Consultancy Framework

Consultancy procurement support and management

Organisational structure

Project Manager Strategic/

Technical Advisor Commercial/Legal Advisor

Project Director

Energy consultancy framework

GLA Investment and Performance Board (Programme Sponsor)

• Ensures work of project aligns with

priorities and policies of the Mayor

• Monitors progress against programme

and KPIs.

• Responsible for the overall direction and

operation of the programme

• Ensures the rationale for intervention is

developed and maintained.

• Decides whether to support projects

• Responsible for the day-to-day operation of

the project

• Manages mini-competitions for pieces of

work via procurement framework

• Manages budget

• Provides advice to Project Director

assessing projects to support

• Preliminary evaluation of project

prospects for further support (go/no

go)

• Writes specification

• Provides advice to Project Director

assessing projects to support

• Preliminary evaluation of project

prospects for further support (go/no

go)

• Writes specification

Programme structure

London Heat Map

Alex Hobley

Senior Programme Officer

Greater London Authority

alex.hobley@london.gov.uk