District Energy - 2006 Second Quarter

There is even talk that the U.K. government will introduce some form of CHP Obligations Certificate to increase the value of electricity from CHP, so the future is looking bright for Southampton. [Renewable Obligation Certificates already exist for electricity generated from renewable sources; they are currently valued at 3 pence/k Wh ($0.053/k Wh).]

Why Is the Scheme Successful?

Today the scheme is still growing and becoming stronger and stronger, demonstrating new technologies and looking forward to significant expansion in the next five to 10 years. The scheme’s success can be attributed to

( 1) a genuine public-private sector partnership that is as strong today as it was 20 years ago;

( 2) a flexible approach to changes in fuel availability/pricing, energy technologies and market deregulation;

( 3) a flexible approach to changing developments in the city and the need to expand the network to maintain growth and profitability; and

( 4) an ability to tailor connections both technically and commercially to meet the individual needs of each consumer.

In addition to such measures of success, the scheme is also currently delivering ongoing carbon dioxide reductions of 10,000 tons/yr. In 2001 this achievement was recognized when the scheme was awarded a Queen’s Award for Enterprise in the sustainable development category. Together, all these factors have helped to make Southampton the U.K.’s largest commercially developed district energy scheme.

Simon M. Woodward is chief executive of Utilicom Ltd., one of the United Kingdom’s leading developers of district energy systems. With customers in all market sectors, Utilicom systems serve a total energy load equivalent of more than 30,000 residences. He joined Utilicom as engineering manager in 1991, spending his time designing and managing the construction of extensions to the Southampton district heating scheme, including the connection of the RSH Hospital and the De Vere Grand Harbour Hotel. He was appointed chief executive in July 1996. Woodward graduated in 1987 with a 2: 1 Bsc (Hons) degree in energy technology and management from Swansea University and spent four years working with WS Atkins engineering consultants. He may be reached at simon@utilicom.co.uk.