With European Energy Commissioner Andris Piebalgs, the London Energy Partnership today launched their highly anticipated 'Making Energy Service Companies Work: Guidance and Advice on Setting Up and Delivering an ESCO'
The report provides guidance and advice to those considering setting up and delivering Energy Services Company, with particular reference to the pilot Energy Action Areas in London. David Green, Chair of the London Energy Partnership, comments:
"The UK has the benefit of a long established and thriving energy services industry in the industrial and commercial sector, getting the concept applied in the domestic sector is a real challenge. This report will help break this cycle of inaction".
Michael King, Chair of the Partnership's Community Heating and CHP task group and Chair of ESCO's in both Aberdeen and Southampton adds:
"The early pioneers have experienced a painful climb up the learning curve to acquire the necessary knowledge of legislative, regulatory and commercial issues, not always realising that others were going through the same process. This report marks the first time that all this knowledge has been compiled in one place."
The report considers ESCO models operating in Greater London, elsewhere in the UK and internationally, and seeks to draw some conclusions as to the benefits and drawbacks of these various models. This is designed to assist in considering the model most appropriate for individual projects.
The second part is intended to draw attention to the legislative and regulatory framework relevant to anyone considering establishing an ESCO.
Also at the meeting, the London Borough of Barking & Dagenham presented their Implementation Plan for Barking Town Centre Energy Action Area, which sets out a strategy for reducing carbon emissions generated by new developments by one third compared to emissions generated by developments built to current building regulations. This will translate to a carbon dioxide saving of 6,590 tonnes per year.
Notes to Editors
1. A copy of the Executive Summary is available
2. Making ESCOs Work: Guidance and Advice on Setting Up and Delivering an ESCO was produced by Brodies LLP for the London Energy Partnership, with input into certain aspects provided from SEA / Renue, and is available here.
3. The London Energy Partnership (LEP) uses the power of partnership to enable London to respond to the challenges of climate change, security of energy supply and fuel poverty.
4. David Green is Chief Executive of UK Business Council for Sustainable Energy.
5. Michael King is a Chair of two leading local authority based ESCOs - Aberdeen Heat & Power Company and Solent Sustainable Energy Ltd. He is also an Associate of the Combined Heat & Power Association.
6. Launching the London Energy Partnership in 2004, London Mayor Ken Livingstone said: 'The London Energy Partnership and its work will go beyond any action we have seen before in this area. We must work with communities and businesses across London to build a strong sustainable energy sector that delivers social, economic and environmental benefits for London.'
The LEP aims to:
7. The London Energy Partnership is funded by the Department of Trade and Industry, the Greater London Authority, Energy Saving Trust, London Development Agency and Argent Group plc. The London Energy Partnership steering group members and observers include representatives from Argent Group Plc, Business Councils for Sustainable Energy UK, Carbon Trust, EDF Energy, Energy Saving Trust, RBC Capital Markets, Greater London Authority, Government Office for London, London Borough's Energy Group, London Climate Change Agency, London Development Agency, London Sustainability Exchange, Renewable Energy Association, London South Bank University and Thames Gateway London Partnership.
8. The Mayor's Energy Strategy called for Energy Action Areas in London to showcase the future for energy use in London. The Mayor tasked the London Energy Partnership with developing and implementing the Energy Action Areas as a priority project and launched the pilot in July 2005. The London Energy Partnership is working on the ground with developers and local authorities to use renewable technologies in these areas to reduce emissions of carbon dioxide. The pilot Energy Action Areas are located in new Wembley, Barking, Southwark, and Merton.
9. Barking Energy Action Area will achieve their carbon savings through the connection of new developments to a town centre community heating network and on-site generation of electricity by renewable energy technologies such as small-scale wind turbines and photovoltaics (PVs).