Low Carbon Policy and the Cambridgeshire Renewables Infrastructure Framework (CRIF)
- 1. Low Carbon Policy & Cambridgeshire Renewables Infrastructure Framework (CRIF) This project is being developed as part of the Climate Change Skills Fund. The fund is managed by Sustainability East on behalf of Improvement East
- 2. The Key Driver for Change • The Climate Change Act 2008 legally binds the UK to deliver its commitment of 80% reduction of CO2 emissions by 2050 • The Coalition Government has committed to deliver the 4th carbon budget which covers the period spanning 2023 to 2027 and commits the UK to cut its emissions by 50% on 1990 levels, on course for emissions cuts of 80% by 2050. “By making this commitment, we will position the UK as the leading player in the global low- carbon economy, creating significant new industries and jobs,” said the Prime Minister. Huhne added that the announcement will give investors the certainty they need to invest in clean energy”.
- 3. The Policy Framework Carbon Emissions Targets for 2050 Zero Carbon Policy for New Homes Electricity Market Reform Presumption in Favour of Sustainable Development Affordable Warmth The Green Deal Carbon Budgets Feed-in Tariffs The Green Investment Bank Energy Bill Strategy to Promote Microgeneration
- 4. The UK Energy Trilemma Affordable Energy £200 billion energy investment required in Britain Global competition for energy over the next decade (Ofgem, 2009) Reducing supply of fossil fuels Securing alternative energy supplies UK Energy Security Low carbon energy Global demand for energy Climate Change Act 2008, forecast to increase by 45% reduce CO2 emissions by 80% between 2006 and 2030, (IAE 2008) by 2050 from 1990 levels
- 5. Global – Energy Demand
- 6. Source: E.ON The energy challenge ELECTRICITY SUPPLY GAP Page 6
- 7. What does this mean for Cambridgeshire? • We need to find a way of dealing with rising fuel prices. • We need to find a way of responding to targets – and the policy framework it offers. If we don’t we’ll find investment and opportunities go elsewhere. • We need to know what options are on the table - how much energy will we need to generate, - how much will we have to rely on energy efficiency and - what investment, skills and resources do we have to tackle these problems • CRIF is Cambridgeshire’s attempt to deal with this in an honest, sensible and transparent way.
- 8. Government is implementing policies to ensure that new homes are increasingly resource efficient Government is seeking to address the resource efficiency and CO2 emissions of new buildings. The Building Regulations, the principle tool for controlling energy use in new developments, are being progressively tightened on a pathway to introduction of Zero Carbon Policy. Pathway to Zero Carbon Homes CO2 emissions from new 25% reduction Regulated emissions developments 44% reduction – heating, hot-water, lighting& ventilation 100% reduction Unregulated emissions – appliances & cooking 2009 2010 2013 2016 Zero Carbon The Zero Carbon policy could potentially increase the role of local authorities in delivering low carbon growth.
- 9. The zero carbon policy introduced the concept of allowable solutions – this creates the role for community energy funds Allowable Solutions – A range of on-, near- or off-site measures to mitigate the remaining regulated emissions. Carbon Compliance – the level of CO2 reduction that must be delivered through on-site measures
- 10. Community energy fund is a means of channelling developer investment in carbon reduction into the local area Developer CO2 reduction obligation On-site CO2 reduction Payment to Fund % of target met through on- % of target met by payment site measures into an Energy Fund The Community Energy Fund Developer Fund invests in local Fund invests in local investments are COlow carbon projects 2 reduction pooled in the Fund Potential revenue into the Fund
- 11. The Community Energy Fund is a mechanism for ensuring the substantial Allowable Solution investment is retained locally Based on Cambridgeshire’s growth projections, the Allowable Solutions payments could reach substantial sums. The Community Energy Fund will ensure this money is invested locally. Allowable Solutions investment raised in Cambridgeshire Cumulative investment (£ million) 70 60 50 Allowable Solutions payments 40 – potential investment in the local economy 30 20 10 0 2009 2011 2013 2015 2017 2019 2021 2023 2025
- 12. The framework envisages a mix of Community Energy Funds and private initiatives delivering Allowable Solutions projects Developer requires Allowable Solutions to comply with zero carbon policy Submits plans to local authority LA with a prescribed set of Allowable LA without a prescribed set Solutions of Allowable Solutions Route A Route B Either Or Contract a Third- Private Energy Fund Pay into Community party to deliver is contracted to Energy Fund Allowable Solutions manage delivery In both cases, Allowable Solutions projects The Private Energy Fund can will be delivered in the local area deliver projects anywhere in the country
- 13. The work to-date on a Cambridgeshire Community Energy Fund An initial scoping study into the development of a Community Energy Fund in Cambridgeshire was carried out in 2010. This study: •Assessed the monetary size of a fund operating at a county-wide geographic scale. •Examined potential mechanisms for collecting developer payments •Proposed a structure for the local fund holding body – a company limited by guarantee. A further stage of detailed development of Fund proposals is now underway, focussing on: •Detailed governance structure – provisions for oversight by local authority members •Measurement and accounting for carbon savings delivered •Need for an evidence base and nature of local planning policy required.
- 14. CRIF Aim & Objectives • To be proactive about addressing the known energy issues facing us in Cambridgeshire • Identify opportunities for renewables investment by communities, private sector and use of public sector assets • Make best use of the growth agenda to support renewables and investment in existing housing stock • Creating and supporting green jobs • Involving stakeholders in developing the CRIF
- 15. Scope of Work • Step 1: Identify a baseline of energy use
- 16. Scope of Work • Steps 2+3: Three pathways for community, commercial and public sector investment • Identifying a supporting policy framework • Developing a coordinating plan for investment • Identifying how the community can benefit
- 17. Who is involved?