THE ENVIRONMENTAL MARKET OPPORTUNITY IN LONDON PRU ASHBY, ENVIRONMENTAL SECTOR SPECIALIST LONDON & PARTNERS October 2011
LONDON IN THE NEXT 10 YEARSDemand for energy will increase substantially:London is set to grow by one million people inthe next 10 years180,000 jobs will be created – 120,000 newhomes will be built
GROWTHForecasts from the LondonMayor’s Office show key areaof population growth is EastLondonFor example 10,000 newhomes planned forBarking Riverside
MAYORAL POLICYThe Mayor of London is developing programmeson how London can be the world’s low carboncapitalTarget of cutting carbon output by 60% by 2025London Green Fund – to de-risk investment forprivate sector Waste - target £70million Foresight Environmental Fund Energy efficiency – target £100mill fund manager Amber Green ConsortiumCarbon markets – UK announcement of carbonfloor price 23rd March 2011 budgetDecentralised Energy and Smart GridBuilding retrofit
RE:FIT 43% of London’s total CO2 emissions are from commercial & public sector buildings Re:Fit aims to facilitate Energy Performance Contracting across London’s public sector buildings Target: 11 million sq m in London, 40% of public sector buildings, £400million of projects. 400 organisations Pipeline for London Green Fund – 7 year payback Framework panel of 12 suppliers in place• Balfour Beatty • Honeywell• COFELY (GDF SUEZ) • Hurleypalmerflatt• MITIE (Dalkia FM) • Interserve• EDF Energy • Johnson Controls• E.ON Sustainable Energy • Schneider Electric - Strategic Building Business Solutions• Hoare Lea Consulting • Willmott Dixon Partnerships Engineers (Parkeray)
RE:NEW36% of London’s CO2 emissions are from housingRe:New aims to reduce CO2 emissions from existing homes inLondon, help residents to save money on their energy bills andcreate ‘green’ jobs.3 million homes in London, target is 1.2 million by 2015Framework panel of 12 suppliers in place• Axis • CEN Services• Groundwork London • United House• Breyer Group • Eaga• Lakehouse Contracts • Warmzones• British Gas • Enterprise• Osborne Energy • Willmott DixonSubcontract opportunities exist withframework suppliers
Some Private Sector InitiativesBT’s Corporate Renewable Energy Programme• BT to build UKs second largest solar-powered roof, largest in London• 1440 solar panels covering 2350m2 May 2011• BT strategy is 25% electricity needs from renewablesSkanska and GE have formed a strategic partnership• to develop new environmental technologies and processes for the emerging green retrofit and refurbishment market• Market estimated to be worth in excess of £10bn per year in the UK.Low Carbon Workplace• unique partnership between the Carbon Trust, developer Stanhope and fund manager Threadneedle• design, build and manage bespoke and contemporary offices for organisations committed to eco-friendly operation.
GREEN ENTERPRISE DISTRICT Site opportunities - land for sale and lease Enterprise Zone announced 23rd March 2011
The CrystalA sustainable cities initiative by Siemens- East London Enterprise Zone- Siemens global centre for infrastructure and cities- Centre for thought leadership, a knowledge hub and showcasing for energy efficiency, transport and the city in 2050.- All electric- Rainwater recycled- Connected to smart grid for electric vehicles.
LONDON THAMES GATEWAY HEAT NETWORK Heat sourced from Barking Power Station – 400MW per year currently wasted Supply 120,000 homes 1st phase – 2km 2nd phase 67kmOpportunities Plant and equipment - £100million Investors in infrastructure - £160million Build / own / operate - £100million worth of projects
SUSTAINABLE INDUSTRIES PARK River access AD plant Closed Loop recycling 60 Acre site in East London – first of its kind in the UK Opportunities for suppliers and assemblers of renewables
LOW CARBON VEHICLES IN LONDONLondon to become the electric vehiclecapital of EuropeMayor’s electric vehicle charging network,Source London, is live. www.sourcelondon.net1,300 public charging points across London by2013100,000 EVs on London streets as soon aspossibleLondon hydrogen buses will form the onlyhydrogen bus fleet in the UK and the largestcurrently in Europe.Future opportunities for low carbon vehiclemanufacturers and charging point technology
DATA CENTRESLondon is a key internet exchange andlocation for data centres to support thecommercial environmentMajor opportunities for companiesin: Energy efficiency technology Optimising use of energy and heat Alternative sources of electricity Energy conservation CHP
FIT UPDATE 18TH MARCH 2011The UK government has recently announced cuts in the level of incentivesavailable to solar photovoltaic installationsNew tariffs will come into effect 1 April 2012 and will affect installations madeafter 12 December 2011Household solar installations with between with less than 4kW capacity willreceive 21p/kWh and industrial installations with up to 250kW capacity willreceive 15.2p/kWh through the feed-in tariff scheme, while larger installationsup to 5MW such as wind farms will attract 8.5p/kWh.Proposals to increase the level of feed-in tariffs available for anaerobicdigestion (AD) systems: current feed-in tariffs of 12.1p/kWh for all AD plantswith up to 500kW of capacity will be increased to 14p/kWh for installations withup to 250kW capacity and 13p/kWh for AD installations with between 250kWand 500kW of capacity.
THE GREEN DEALWill replace Warmfront scheme in late 2012• Allows householders to improve efficiency with no upfront cost• The upfront finance will be attached to the building’s energy meter.• People can pay back over time with the repayments less than the savings on bills• If 26 million homes are done, this will create 250,000 jobs• March 2011 – government funding for 1000 apprentices• Landlords to face minimum energy efficiency standards from 2016: 682,000 rental properties
RENEWABLE HEAT INCENTIVEDetails just been announced - to go ahead summer2011. First phase large heat users, second phasedomestic• First of its kind in world• Renewable technologies include household solar thermal panels to industrial wood pellet boilers• £850m of investment• Objective to move from 1% to 12% of all heat generated from renewable source by 2020.Key opportunities for companies in RHI technologyand manufacturing
CRC – CARBON REDUCTION COMMITMENTSEmissions trading scheme for large energy users –began April 2010Government currently meeting with stakeholders toconsider simplifying the systemOpportunities for energy efficiency solutions providers
GREEN INVESTMENT BANKUpdate 23rd March 2011 Budget Funding of £3billion is secured for 2012 – borrow money from 2015 Private capital plus government injections should boost capitalisation to £18bn Being suggested as a template for European Union OPPORTUNITIES FOR INVESTORS
SMART GRIDLondon won £35million governmentfunding for smart grid project – beingmanaged by UK Power NetworksMany other projects being createdKey opportunities for companiesin: • Smart meters • “beyond the meter” technology (switch off applications when on highest tariff) • network dynamics • smart grid
OFFSHORE WIND £60m from government for port facility upgrades for offshore wind Will help maintain UK’s position as largest offshore generator in the world Funds for R&D into wind turbinesLondon is key location for UK and European HQVattenfall is Europe’s fifth largest generator of electricity and thelargest generator of heat. They chose London for their UK HQ foraccess to policy makers, decision makers, industry associationsand transport connectivity.
CASE STUDY: ALTPOWER “Mayor Boris Johnson is very ambitious with greentechnology; more so than his counterparts in New Yorkor Stockholm. From London’s new bike hire scheme to its plans for a low carbon Olympics, you can see that the city is making a real effort to be green.Having an office in a pioneering green city will give my business a higher profile around the world.” ANTHONY PEREIRA, CEO, ALTPOWER
HOW TO ACCESS THESE OPPORTUNITIES?Contact London & Partners for help with: Understanding the market opportunity and the legislative landscape Accessing connections, networks and decision makers in government, trade bodies and academia Exploring partnerships and relationships across your supply chain Set up a physical presence and recruit skilled people
REGULAR EVENTS ORGANISATIONSRenewable Energy Association The Guardian Sustainable Business Eventshttp://www.r-e-a.net/events http://www.guardian.co.uk/sustainable- business/eventsThe Renewable Energy Centre Green Mondayshttp://www.therenewableenergycentre.co.uk/even www.greenmondays.comts.htmlThe Building Centre eco-Connect – connections hubhttp://www.buildingcentre.co.uk/events/forthcomin http://www.eco-connect.org/g_events.aspLondon Electric Vehicle Partnership Green Power ConferencesTo meet once every 6 months organised by http://www.greenpowerconferences.com/Transport for London. Next one is Tuesday 19thJuly. Also view www.sourcelondon.netEnvirotech and Clean Energy Investor Summit BASELondon: opportunities in a low-carbon London9-10th November 2011 Grange City Hotel London June 2012 City of Londonhttp://www.envirotechinvestorsummit.com/2011/ http://www.baselondonshow.co.uk/
THE EXPERTSON DOING BUSINESS IN LONDON HOW WE CAN HELP FIND THE PROPERTY FIND THE BUSINESS FIND THE EXPAND YOUR YOUR &PROPERTY LOCATION CASE RIGHT PEOPLE NETWORK LONDON & LOCATION- Sector Intelligence - Specialist Recruitment - Office Specialists - Professional Service - Culture & Social Life- Legal Requirements - Funding & Training - Market, Clients & -- Events - Visas & Work Permits- Corporate/Tax Structure - Salary Benchmarking Transport -- Government Contacts - Schools & Colleges- Cost-effective Set-up - Employment Practice - Labour Pool -- Policy-makers - Demographic Mapping
ANY QUESTIONS? www.londonandpartners.comEnvironment Sector Specialist Pru Ashby firstname.lastname@example.org