What is Glenrothes Heat?
Glenrothes Heat is a project to look at whether there is a technical and business case for the implementation of a community heating network in Glenrothes utilising the heat from the RWE Markinch Biomass CHP plant, which was formally opened in March 2015. The project team for Glenrothes Heat, has been set up with representative of Fife Council, RWE and the Scottish Government.
How would Glenrothes Heat work?
Rather than using gas or electricity to provide hot water or heating for local businesses and/or homes in the centre of Glenrothes, the local biomass CHP plant owned and operated by RWE will provide the heat. Highly insulated underground pipes carry the hot water to businesses and homes within an allocated area; at each property a Heat Interface Unit is installed instead of a boiler and provides the resident with full heating control and domestic hot water generation. This is known as district or community heating.
Fife Council provide your waste food from Recycling Centres as fuel at the RWE biomass plant at Markinch. It uses 90% waste food to create energy providing businesses with with a lower cost energy provider and helping to prevent climate change. The remaining 10% of wood is sourced from sustainable Scottish timber production under long term contract from the Forestry Commission.
What are the benefits?
Using a source of low cost, low carbon heating for homes and businesses in the local area
Working towards reducing fuel poverty
Creating heat from waste wood products
Supporting jobs and investment in the national forestry industry and protecting our rural environment.
Community heating schemes have been well received in the UK, examples include Aberdeen Heat and Power, Glasgow Commonwealth Games Athletes Village, Wyndford Estate, Dunfermline Community Energy scheme. A resident of Brownriggs Court Scheme in Newcastle upon Tyne, Helen Speed said "I have lived in a property on the communal scheme for just over three years. I moved from a property with an individual gas boiler which was much more expensive. I am using less energy and spending less money which is great!"
Following a comprehensive competitive tendering process. WSP Parsons Brinckerhoff have been awarded the contract to carry out the technical appraisal. WSP Parsons Brinckerhoff have extensive experience in assessment, design and delivery of district heating networks. They will start work in mid-July 2016 and should be finished by November 2016. Much of the work will be desk and telephone based research.
RWE is a leading UK energy company and part of the RWE group. The company is responsible for the construction of the biomass-based combined heat and power (CHP) plant in Markinch. This plant is the largest power plant of its kind in the country. The plant was officially inaugurated in March 2015 by Scottish Minister for Business, Energy and Tourism Fergus Ewing and required and investment of over £300 million. The project created more than 600 jobs during construction and 40 permanent positions.
The project team have secured project development support funding from Scotland's Low Carbon Infrastructure Transition Programme (LCITP), for the first phase of this project. LCITP is supported by European Regional Development Funds. District/Community heating is a key component of Scottish Governments approach to meet Scotland's Climate Change targets and secure the transition to a low carbon economy in Scotland. To secure sustainable economic growth, Scotland aims to have 40,000 homes supplied through district or communal heating by 2020.
In Glenrothes we have the unique opportunity to utilise the heat produced by the RWE Biomass CHP Plant, therefore avoiding the need to build one of the most expensive elements of a new scheme.
Yes! Technology has developed in such a way that we believe there is potential for a cost-effective community heating system to be delivered to Glenrothes premises. Modern Community heating schemes are as flexible and controllable as domestic gas boiler systems. The difference users will notice is in the lower costs of heating and water supplies.
This first phase is focused on the area around the town centre close to the biomass plant. The project will look at heating requirements of public buildings, commercial, industrial and domestic premises in the area. The intention is to develop a network capable of being expanded in the future.
To ensure the scheme is cost effective (and therefore capable of delivering energy cost savings to customers), community heating schemes need to include large 'anchor' heat loads. The town centre and Queensway industrail area, provides the greatest potential to maximise heat sales.
The potential to heat all properties in the are will be examined.
During the initial study, questions will be directed to a sample of businesses and households. WSP Parsons Brinckerhoff are seeking to determine the heat requirements of potential customers and understand what existing heating methods are currently being used, when they were last upgraded and what investment would be required to connect to a new community wide scheme.
WSP Parsons Brinckerhoff will report their findings to the Glenrothes Heat project team. The aim of this study is to create an investment grade business case whereby if there's a decision to go ahead, potential investors such as the UK Governments Green Investment Bank, Scottish Government's District Heating Loan Scheme and private investors are willing to provide funding to build the heat network.
The heat will primarily be produced by RWE's Biomass CHP Palnt, however other potential heat generators will be considered for inclusion in the scheme.
A key component of the potential scheme would be the construction of an energy centre housing heat storage units and gas fired back-up boilers. This will ensure heat is available 24 hours a day, 365 days a year.
The RWE Boimass CHP has the potential to generate enough heat to supply the whole of Glenrothes. However the cost of laying the pipe network that would be required makes that unfeasible to start with. So a small area of Glenrothes is being investigated to start with and the possibility of expansion will be investigated in later stages.
In parallel to the technical study, the project team have appointed legal and financial advisers to advise on potential operating structures i.e. who will run the network, who will be the heat supplier to customers. A common model in practise elsewhere is to set up a new Energy Supply Company (ESCo). The ESCo would comprise partners such as Fife Council and investors in the scheme. Who exactly is involved depends on who eventually invests in developing the scheme. At this stage the project team are considering the options.
No, connection to a community heating network replaces existing boilers with a Heat Interface Unit (HIU). HIU's area a similar size to modern gas boilers and provide localised metering and control of the heat consumed in a self-contained package.
At this stage the project team will be reviewing all the charging options and taking advice from consultants on what works best on other schemes. It's likely that some potential customers may want to pay nothing upfront and roll costs costs into their monthly bills, others (particularly business customers), would prefer to see the lowest ongoing costs and therefore would be prepared to make an initial investment contribution.
Yes, when compared to the overall costs of heating a building. The energy cost savings will differ depending on the current method of heating. Those with electricity heating will generally see the biggest savings. Connection to a community heating network needs to be considered as a long term investment e.g. for customers with a gas boiler they no longer have to buy and maintain an individual boiler.
If the scheme goes ahead it will probably take two to three years to fully develop phase 1.
If you have any questions about Glenrothes Heat please contact Lindsey Methven.
Glenrothes Heat - Project Area
Glenrothes Heat - Q&A's
Glenrothes Heat Press Release
Lindsey Methven, Investment Officer
Tel: 03451 55 55 55 + Ext 44 22 80
By Post: Kingdom House, Kingdom Avenue, Glenrothes, Fife, KY7 5LY