Energy and Heat Pooling

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From a proposal by Chris Cook to the Scottish Parliament in August 2008, related to the fight against climate change:

Source

Scottish Parliament. Economy, Energy & Tourism Committee. Energy and Heat Pooling. Submission to Energy Inquiry. By the Nordic Enterprise Trust, August 2008


Context

What type of future is needed in Scotland in terms of the production, distribution and more efficient use of energy, given the issues of price, security of supply and sustainable development?

The requirement is for energy decentralisation, with energy generated and consumed locally wherever possible. Use of existing National Grid infrastructure should be scaled down and replaced by international connections allowing system and load balancing eg between Scotland and Norway’s complementary renewable resources and the rest of Europe.


How can this future be delivered in Scotland and how will we meet all the various targets and obligations?

Through the use of “Energy Pooling” many sources of energy generation, particularly based on wind and tidal streams, become “self funding” simply by selling production forward to Investors.

The use of “Heat Pooling” allows a significant proportion of the vast amount of heat currently wasted as a by product of energy generation to be collected and delivered to consumers in a simple but elegant way. Similarly, energy savings may be financed by widespread implementation of solar water heating, ground source heating, and where appropriate biomass schemes, all funded from the future energy savings to which they give rise.


What decisions need to be taken, by when and by whom to deliver on Scotland’s energy future?

Both national and local Government should develop policy in respect of the “Pool” concept under the guidance of elected representatives with community participation aimed at identifying optimal outcomes.


Generally

The potential policy outcomes of Pools are compelling, and include:

• Financing at a fraction of the cost of conventional finance, and requiring no Treasury permission. • A new asset class ideal for long term investment • A “sustainable” development model, where it is more profitable to develop and operate to high standards of quality • A policy which requires no legislation to implement

Pooling is an inherently “mutual” and collaborative approach entirely consistent with Scotland’s traditions, culture and values."


Description

"A Pool is a development and funding mechanism using a UK Limited Liability Partnership as a framework with the following stakeholders:

• Custodian - holds assets in perpetuity on behalf of the Community • Customer - the community of individuals and/or enterprises which use energy produced or benefit from energy savings • Investor - the consortium of individuals and enterprises who invest money and/or money's worth (eg the value of the site) in a Pool • Developer/Operator - provides development expertise and manages a Pool once the development is complete.

When the development is complete, the Customer either:

• buys renewable energy produced (“MegaWatts”) from a Pool; or • repays loans out of energy savings (“NegaWatts”) to a Pool.

In an Energy Pool approach, the developer need commit no Capital, and would receive, in exchange for work and services provided, a combination of cash to cover costs, and – in respect of an agreed profit element - a proportional share of the output from the development once complete."


More Information

  1. Community_Land_Partnership: another proposal to Scottish Parliament