Heat Networks Delivery Consultant for Lancaster City Council

INTRODUCTION AND SCOPE

Commissioned by the Department for Business, Energy and Industrial Strategy department - Heat Network Delivery Unit (HNDU), Element Energy delivered a heat mapping and master planning study for Lancaster in June 2019. The study investigated the potential for the development of heat network scheme options in Lancaster and surrounding areas, and the potential benefits such schemes could deliver. The study also considered potential constraints, risks, and opportunities related to the delivery of heat networks in the region.

Based on the energy data assessment an opportunity for potential heat network clusters has been identified. A high-level analysis of information such as heat demand across existing buildings and industrial sites, potential low carbon heat sources, planned developments and possible constraints to network development was investigated.

Once defined, each cluster was studied in more detail - qualitatively and quantitatively - to capture key characteristics influencing the viability of heat network schemes such as the volume of heat delivered, the level of stakeholder engagement, the linear heat density and the availability of low-carbon heat sources.

Based on an initial high-level economic assessment of a series of scheme options for each cluster, it was recommended to advance to a detailed techno-economic feasibility study stage the opportunity area covering South Lancaster and City Centre clusters.

This project is to define the study to a greater detail, provide technical modelling for heat demand and heat supply within the selected clusters. Additionally, this project will provide an outcome in a form of a Techno-Economic model which will evaluate viability for proposed scenarios, including not only potential income revenue streams but also carbon savings.

REQUIREMENTS

Lancaster City Council is looking to appoint a management consultant to carry out the delivery of a Techno-Economic Feasibility Study (TEF) for the district and identify which of the eight clusters present viable opportunities. At this stage, it's likely these will be clusters within Central and Southern Lancaster area but the study will confirm if this is the case.

The aim of this study:

1 Is to develop a clear set of recommendations, based on detailed technical and economic analysis, as to the feasibility of developing a heat network scheme for the specified area. The study should be such as to enable the Client to determine whether to invest in progressing the scheme(s). 2 The recommendations should describe an initial scheme that is deliverable in the short-term and outline the vision for phased network expansion that can be achieved in the long-term. 3 The recommendations should describe the next steps required by the Client to take the project through to commercialisation and construction. 4 The study should cover the following red line boundary which is smaller than the District boundary and con