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District energy is set to underpin the UK’s green revolution to completely transform how heat is generated and delivered.
At present, there are over 14,000 heat networks in the UK, providing heating and hot water to around 480,000 consumers.
The Climate Change Committee advises that heat networks are a cost-effective decarbonisation pathway and that in order to cut carbon emissions the UK will need to move from 2% of heat supplied through heat networks in 2020 to 18% by 2050, the date by which the UK must meet its legally-binding target on climate change.
Bevan Brittan experience
Bevan Brittan has market leading expertise in the UK district energy sector, advising on well over 100 schemes in recent years. We have advised on some of the major district energy projects that have completed to date in in the UK - from significant area wide decentralised energy networks to projects forming part of major residential/regeneration developments.
We are working with both DESNZ and Ofgem to advise on the new regulations for the sector. In particular, we have recently advised on the development of legislation for heat networks working with Ofgem and we are appointed by DESNZ on the delivery of a number of new heat zoning projects.
We work with developers, investors national government, local authorities, energy generators, heat network operators, ESCOs, utility companies, contractors, and advise across a range of technologies including CHP, biomass, geothermal, heat pumps and a variety of heat-off-take arrangements including energy from waste and water utility / effluent treatment.
We regularly support clients on applications for grant/loan funding to support heat network developments including through Heat Networks Investment Programme (HNIP) and Green Heat Network Fund (GHNF). We are leading the way on standardisation of the legal documentation for district energy projects.
In addition to the high level of legal expertise which I would expect from partners in any law firm, the partners at Bevan Brittan are particularly effective at engaging with all the key disciplines deployed across a project including technical, financial and commercial advisors.
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How we can help
- We advise on all aspects of the district energy project lifecycle including: feasibility, strategy and business case preparation (OBC, DPD, FBC); procurement, planning, financing (loan, grant and subsidy aspects) and security; entity structuring; commercial delivery (including design and build); operation (operation and maintenance, metering and billing, customer contracting); and disposal and exit
- We develop precedent and bespoke forms of contract including: design, build, operation and maintenance agreements; connection and supply agreements for bulk and customer supply (commercial, residential and social housing customers); and property agreements (leases, easements and wayleaves)
- We develop tailored and bespoke agreements for heat offtake from existing and innovative technologies including energy from waste, waste water, and data centres, and advise on electricity arrangements including power purchase and private wire.
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Experience
Heat Network Examples
Some examples of our relevant experience include:
- Single site community heat schemes
- Area wide decentralised energy networks
- Heat networks forming part of residential,
mixed use or regeneration projects
- ECO based heat network projects
- RHI based heat network projects
- Heat network extensions
- Commercial & Industrial
decentralised energy projects
- Commercial & Industrial Heat Grids
- Creation of ESCOs, MUSCOs and HEATCOs
CHP and Energy Centres
We have been involved with this sector over the last 15 years. Our initial projects focused on the hospital CHP sector. In addition to NHS projects we advise a number of contractors, funders, technology providers as well as other public sector organisations on CHP and Energy Centre projects.
Our team have advised on CHP and Energy Centre installations including:
- co-generation (electricity and heat), and tri-generation (electricity, heat and cooling)
- technologies - gas, biomass, coal mine methane, geothermal and energy from waste
- major housing, regeneration or mixed use developments
Electricity and Energy
We have advised on a number of related Energy areas including:
- Private wire networks
- Power Purchase Agreements
- Energy management and efficiency projects
- Energy efficient boilers, chillers and infrastructure
- Energy (electricity, heat, steam, power) supply arrangements
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