March 2006

Background
Vision and Mission
London Climate Change Agency Progress
London ESCO

 

EDF Energy chosen as ESCO Partner

Background

The establishment of the London Climate Change Agency (LCCA) was a manifesto commitment by the Mayor of London in the 2004 election and will implement projects in the sectors that impact on climate change, especially energy, transport, waste and water. The Agency will play a key role in helping to deliver the Mayor's Energy Strategy for London, especially the target of reducing carbon dioxide CO₂ emissions by 20%, relative to the 1990 level, by 2010, as the crucial first step on a long-term path to a 60% reduction from the 2000 level by 2050.

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Vision and Mission

The LCCA's work includes the development and implementation of energy efficiency, combined heat and power CHP (cogeneration/ trigeneration), renewable energy, fuel cells/hydrogen technologies and related transport, waste and water climate change projects.

This includes:-

• The creation of a centre of climate change and energy engineering excellence, offering advice and support to the GLA Group, the London Boroughs, other public bodies and the private sector.
• The establishment of a public/private joint venture London Energy Services Company or ESCO, in partnership with one or more private sector partners, that will deliver low carbon decentralised energy solutions in new and existing development. Initially, the focus will be on cogeneration (combined heat and power), trigeneration (combined heat, power and cooling) and integrated renewable energy on local private wire district energy systems and networks.
• Other activities include large scale renewable energy technologies, environmentally friendly materials recycling/waste-to-energy technologies, stationary and transport hydrogen projects and sustainable water services systems for which project or special purpose vehicle companies may be established.
• The dissemination of information on the Agency's activities and achievements to the C20 world cities and the promotion of a catalyst for action to tackle global climate change.

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London Climate Change Agency Progress

The London Climate Change Agency has now been established as a municipal company owned by the London Development Agency and led by the Mayor. The first Board meeting of the LCCA Ltd. was held on 2 March 2006 at City Hall. Gerry Acher of KPMG and Lord Larry Whitty, previously Environment Minister at DEFRA, have been appointed as independent directors.

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London ESCO

On 6th March, the Mayor of London, Ken Livingstone, announced that the London Climate Change Agency has selected EDF Energy, one of the largest energy companies in the UK and the owner of London Energy and London’s public electricity network, as the preferred bidder to set up a joint venture energy services company (ESCO) whose remit is to develop sustainable energy schemes for London.

The Mayor said: 'The partnership with EDF Energy places London at the forefront of tackling climate change'.

The Mayor was joined at the press conference at City Hall by Deputy Mayor Nicky Gavron, CEO of EDF Energy Vincent de Rivaz, and Chief Development Officer of the LCCA, Allan Jones. Mr de Rivaz said:

'We are delighted to have been chosen to provide London with its own sustainable energy infrastructure. EDF Energy believes that a diverse mix of energy is the key to security of supply for the UK in the longer term and central to the fight against climate change.  Local solutions will need to play their part as part of that diverse mix.  The task of providing sustainable, local energy projects which help to reduce carbon emissions is a big one but it is one to which we can bring our extensive expertise. I am hugely proud to be involved in this initiative, which will create a benchmark for other capital cities to follow.'   

EDF Energy was selected as a result of a competitive negotiated procedure process from a very strong field of 9 energy and utility companies who had registered an interest in being the private sector partner in the London ESCO.

EDF Energy is one of the UK's largest energy companies. It provides power to a quarter of the UK's population via electricity distribution networks in London, the South East and the East of England. The company supplies gas and electricity to over 5 million customers through the retail brands of EDF Energy, London Energy, Seeboard Energy and SWEB Energy.

Allan Jones MBE, Chief Development Officer of the LCCA said:

'EDF Energy share our vision at the highest level. And they have the technical expertise, the project management capability, the financial resources, and the customer management infrastructure to make this work.'

EDF own London's electricity distribution network, manage generation, distribution and supply with the ability to provide both standby and top up supply and export agreements with the London ESCO, are the only utility that currently has an enabling agreement to facilitate a decentralised energy operation that can harness the generation of island sites – that is where energy is being produced and supplied locally – across London, and already operate several Combined Heat and Power schemes, such as that at Barkantine.

The London ESCO will design, finance, build and operate local sustainable energy systems for both new and existing development. It will be a private limited company with shareholdings jointly owned by the London Climate Change Agency (with a 19% stake) and EDF Energy (with an 81% shareholding). The company will tackle climate change by developing local sustainable energy solutions to London's power, heating and cooling needs. It will identify and develop sites across the capital where investment in sustainable energy technology would reduce carbon dioxide and other greenhouse gas emissions, which are contributing to global warming.

For the full GLA press release see http://www.london.gov.uk/view_press_release.jsp?releaseid=7465

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